Bank of Maharashtra rallies over 6%; SBI, PNB gain up to 5%: State-run banks jump amid all-round buying

State Bank of India (SBI) was up 4%, while Canara Bank was trading 3.60% higher, and Bank of Baroda shares were up 2.72%.

Other gainers were Union Bank of India (up 5%) and Punjab National Bank (up 4.36%).

Bank of Maharashtra rallied over 6% to ₹65.12.

Public sector banks' profit in Q3

Led by the country's biggest lender, State Bank of India (SBI), public sector banks (PSBs) logged a record cumulative profit of ₹52,603 crore in the third quarter of the current fiscal year (Q3 FY26), reflecting an 18% year-on-year (YoY) growth.

All 12 public sector banks (PSBs) together clocked a profit of ₹44,473 crore in the December quarter of FY25.

Thus, the increase in profit in absolute terms was ₹8,130 crore as compared to the same quarter of the previous financial year.

How SBI fared

Market leader SBI alone contributed 40% to the total earnings of ₹52,603 crore, as per the published numbers on stock exchanges.

SBI posted the highest quarterly net profit of ₹21,028 crore in Q3 FY26, 24% higher than the same period of the previous fiscal.

In percentage terms, Chennai-based Indian Overseas Bank reported the highest net profit growth of 56% to ₹1,365 crore, followed by Central Bank of India with a 32% rise to ₹1,263 crore.

During the quarter, all 12 public sector banks (PSBs), except Bank of Baroda, Union Bank of India, Indian Bank, and Bank of India, reported profit growth in single digits.

Banks that reported more than 20% improvement in profit aside from SBI are Bank of Maharashtra, with a 27% increase, and Canara Bank, with a 26% rise in their profits.

Banks record double-digit growth

Those that recorded double-digit growth in profit were Punjab & Sind Bank at 19%, UCO Bank at 16%, and Punjab National Bank (PNB) at 13%.

On an annual basis, PSBs recorded a slightly lower profit of 9% to ₹49,456 crore in the second quarter as compared to ₹45,547 crore in the September quarter of FY25.

Public sector lenders recorded a slightly higher profit of 11% on an annual basis to ₹44,218 crore in the first quarter as compared to ₹39,974 crore in the June quarter of FY25.

Aggregate profit of PSBs

For the nine months ended December 2025, the aggregate profit of PSBs crossed ₹145,000 crore for the first time.

Together, the PSBs have earned ₹1,46,277 crore as compared to ₹1,29,994 crore in the April-December period of FY25, registering nearly a 13% growth.

Speaking to PTI in an interview, financial services secretary M. Nagaraju exuded confidence that the combined profit of these banks should cross ₹2 lakh crore in the current financial year.

What the FM said on banking sector health

Finance and Corporate Affairs Minister Nirmala Sitharaman on Monday said in the Lok Sabha that the Insolvency and Bankruptcy Code (IBC) has been a main and very crucial factor in improving the health of the country's banking sector, including recovery of non-performing assets.