Chennai, Nov. 27 -- Indian public sector banks (PSBs) logged 4.7pc growth in their net profit as compared to a decline of 2.1pc y-o-y for private sector banks (PVBs), reaching Rs. 0.50 lakh crore and Rs. 0.44 lakh crore, respectively, in Q2FY26, said credit rating agency CARE Ratings in a report.
According to CARE Ratings, the rise in PSB profits is mainly attributed to fee income and treasury gains, alongside credit growth in the retail and MSME segments, and normalised operating expenses.
"Additionally, if we include the stake sale impact, the net profit for large PSBs would grow by 8.9% y-o-y," CARE Ratings said.
In contrast, the decrease in profits for PVBs is attributed to slower corporate loan demand, flat growth in interest income...