Public Sector Banks (PSBs) posted 12.2% loan growth in FY25, their first double-digit rise since 2010, surpassing private banks' 9.5%, a Systematix report said. Despite deposit growth lagging for three years, PSBs retained market share, aided by branch expansion. Recoveries, tech upgrades, and focus on non-interest income strengthened profitability, while margins are expected to stabilise in FY26.