Business

Modi Government Turns PSUs Into Wealth Creators With Record Market Cap And Profits

Over the past 11 years, the Narendra Modi-led government has significantly strengthened India’s public sector undertakings (PSUs), transforming them into key drivers of economic growth and wealth creation.

According to data shared by infoindata on X, these reforms have helped boost the PSU market cap and profits across core sectors like energy, power, and finance.

With strategic autonomy, capital infusion, and structural reforms, PSUs in India have recorded a sharp rise in market capitalisation.

NTPC saw its market cap grow from Rs 0.99 lakh crore in 2014 to Rs 3.27 lakh crore in 2025. Similarly, Power Grid increased from Rs 0.55 lakh crore to Rs 2.80 lakh crore during the same period.

Other PSUs such as IOCL, BPCL, GAIL, NHPC, and BHEL also saw significant increases in valuation.

Public sector banks post strong gains

Public sector banks (PSBs) also witnessed a remarkable surge in market cap.

State Bank of India (SBI) rose from Rs 1.51 lakh crore in FY16 to Rs 7.32 lakh crore in FY26. Punjab National Bank (PNB) jumped from Rs 0.06 lakh crore to Rs 1.29 lakh crore, and Bank of Baroda rose from Rs 0.34 lakh crore to Rs 1.28 lakh crore in the same period.

The infoindata handle credited this turnaround to key reforms, including asset quality reviews, targeted recapitalisation, bank mergers, and bad loan resolution mechanisms. It highlighted that these efforts reversed the non-performing asset (NPA) crisis left by the UPA era.

Record profits across financial and energy sectors

Top-performing PSUs recorded strong profits in Q4 of FY25.

SBI reported a net profit of Rs 18,643 crore for the quarter and Rs 70,901 crore for the full year. LIC posted a quarterly profit of Rs 19,013 crore and an annual figure of Rs 48,151 crore.

In the energy sector, Coal India earned Rs 9,604 crore in Q4. IOC followed with Rs 7,265 crore, while ONGC registered Rs 6,448 crore.

Among power PSUs, NTPC earned Rs 7,897 crore, Power Finance Corporation (PFC) Rs 8,358 crore, and Power Grid Rs 4,143 crore.

These strong performances are expected to further strengthen the government’s fiscal position, underlining the Modi government’s long-term focus on building strong public enterprises.

Also Read: Dharavi Redevelopment Project Pitched As Catalyst For Inclusive Urban Renewal In Mumbai

Ajaypal Choudhary

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