Public sector banks raised nearly Rs 1.54 lakh crore in equity and bonds in 3 fiscals: Minister
Public sector banks (PSBs) raised Rs 1,53,978 crore in the form of both equity and bonds during the last three financial years, the Parliament was informed on Monday.
Total amount of capital raised by PSBs in the form of both equity and bonds during three financial years (FY2022-23 to FY 2024-25) amounts to Rs 1,53,978 crore (Rs 44,942 crore in FY2022-23, Rs 57,380 crore in FY 2023-24, and Rs 51,656 crore in FY 2024-25), Minister of State for Finance, Pankaj Chaudhary, said in a written reply to a question in Lok Sabha.
The fresh raising of capital by banks is used for various purposes, which include meeting the capital needs of banks to support credit growth, meeting regulatory requirements for capital adequacy, complying with minimum public shareholding norms by increasing public shareholding and strengthening the overall capital position of the bank, among others.
PSBs raise capital from the market to meet their capital requirement from time to time. The robust financial strength of PSBs has boosted investors’ confidence, enabling them to raise capital from the market.
Banks raise capital from the market in the form of equity, Basel III-compliant Additional Tier-I and Tier-II bonds, the minister said.
Meanwhile, the Finance Ministry has called a meeting of the heads of PSBs this week to review their financial performance for the first quarter of the current financial year (FY26).
The review meeting is likely to discuss the health of the banking sector and assess the outlook for the rest of the financial year.
PSBs posted strong earnings in the April–June quarter of 2025-26 (Q1 FY26). Together, the 12 PSBs reported a record profit of Rs 44,218 crore -- reflecting an 11 per cent growth over the same quarter previous year.
In comparison, these banks had earned Rs 39,974 crore in the June quarter of 2024-25 -- marking an increase of Rs 4,244 crore in absolute terms.
The State Bank of India (SBI) remained the biggest contributor, accounting for 43 per cent of the total profits. The country’s largest lender posted a net profit of Rs 19,160 crore in the first quarter of FY26, which was 12 per cent higher than the same period the previous year.
