A few years ago, people preferred private banks and often viewed public sector banks (PSBs) as less efficient. However, continuous government efforts and bold reforms have helped PSBs transform into strong, competitive players that not only challenge private banks but also make a significant contribution to India’s economy.
So, what initiatives has the government taken, and where do public sector banks stand today compared to private banks? Let’s explore everything through an infographic.
What’s Next?
With improved asset quality, disciplined cost management, and a growing focus on digital adoption, PSBs are steadily narrowing the gap with private banks. The combined market capitalisation of PSBs has grown nearly five times since FY20.
There was a time when a 1% Return on Assets (RoA) was considered ambitious for PSBs, but improved underwriting and cost management have helped the sector achieve around 1.1% in FY25. Along with this, PSBs posted a record net profit of Rs 1.5 trillion in FY25, compared to an aggregate loss of Rs 295 billion in FY18, highlighting their impressive turnaround and strong growth trajectory.
*The companies mentioned in the article are for information purposes only. This is not investment advice.
*Disclaimer: Teji Mandi Disclaimer
