India, in Infographics: Banking
The Twin Balance Sheet Problem, Fixed: Public Sector Banks Went From ₹2.07 Lakh Crore Of Losses To A Record ₹1.98 Lakh Crore Profit
Combined Net Profit Of India’s Public Sector Banks, 2014-15 To 2025-26, With Their Bad Loan Ratio And The Government’s 4R Strategy. Hover Or Tap A Year.
Each Bar Is The Combined Net Profit Or Loss Of All Public Sector Banks That Year, In ₹ Lakh Crore; The White Line Is Their Gross Bad Loan Ratio At The End Of March. Hover Or Tap A Year For The Numbers, Including The Capital The Government Put In That Year.
Losses, 2015-16 To 2019-20
₹2.07L Cr
Five Straight Loss Years
Profits Since 2020-21
₹7.21L Cr
Record ₹1.98 Lakh Crore In 2025-26
Gross Bad Loan Ratio
1.93%
Down From 14.6% In March 2018
Government Capital
₹3.41L Cr
2015-16 To 2021-22; None Since April 2022
The Bottom Line
Public Sector Banks Lost ₹2.07 Lakh Crore Between 2015-16 And 2019-20 As Bad Loans Peaked At 14.6%. After Recognition, Resolution, Recapitalisation And Reforms, They Earned A Record ₹1.98 Lakh Crore In 2025-26, With Bad Loans At 1.93%.
The 4R Strategy
Recognition
After The RBI’s 2015 Asset Quality Review Forced Banks To Declare Hidden Stress, Bad Loans At Public Sector Banks Rose From ₹2.79 Lakh Crore In March 2015 To ₹8.96 Lakh Crore, 14.58% Of Loans, In March 2018. The Banks Lost ₹2.07 Lakh Crore In Five Years.
Resolution And Recapitalisation
The Insolvency And Bankruptcy Code Of May 2016 Let Creditors Recover ₹3.99 Lakh Crore Through 1,300 Resolution Plans By September 2025. The Government Put ₹3.41 Lakh Crore Of Capital Into The Banks Between 2015-16 And 2021-22, Including Recapitalisation Bonds.
Reforms And The Turnaround
27 Banks Were Consolidated Into 12. The Share Of Bad Loans Provided For Rose From 46% To 94%. Since 2020-21 The Banks Have Earned ₹7.21 Lakh Crore, And The Bad Loan Ratio Fell To 1.93% In March 2026.
Read With Care
Fewer Banks, Same Sector
Each Year Counts Every Public Sector Bank Of That Year: 27 Until 2016-17, 12 Since 2020-21. IDBI Bank Has Been Counted As Private Since January 2019.
Two Sources For The Loss Years
2015-16 To 2019-20 Come From A March 2022 Rajya Sabha Reply As Reported; 2017-18 Is Confirmed By PIB’s Bank-Wise Table. An Earlier Provisional Figure For 2018-19 Was Larger Because It Still Included IDBI Bank.
Profit Is Not The Whole Story
Profits Also Reflect Lower Provisions As Old Bad Loans Were Written Off. The Card Shows The Bank Side Of The Twin Balance Sheet Problem; Company Debt Is Shown Only Through Insolvency Recoveries.
Sources & Method
Data
Net Profit: Lok Sabha Unstarred Question 1470 (9 February 2026) And DFS Banking Analytics (2020-21 To 2025-26); PIB, 24 July 2018 (2017-18); Rajya Sabha Replies Of 21 July 2015 And 15 March 2022, As Reported (2014-15 And 2015-16 To 2019-20). Gross NPA: RBI Handbook Of Statistics, Table 50; 2025-26 From PIB, 12 May 2026. Capital, 4R And IBC Figures: DFS Banking Analytics And DFS Year Ender 2025 (PIB).
Data: DFS Banking Analytics · PIB · RBI.
