Mumbai: The consolidated net profit of listed commercial banks crossed ₹4 lakh crore for the first time in FY26, with top three lenders - State Bank of India (SBI), HDFC Bank and ICICI Bank - making up more than half the sector's aggregate bottom-line.Overall, private banks accounted for a slightly higher share of the profits at ₹2.09 lakh crore, while state-run banks reported an aggregate net profit of ₹2.01 lakh crore. The consolidated net profit of the top three lenders - also designated as systemically important by the banking regulator - totalled ₹2.13 lakh crore. Overall, the banking industry's consolidated net profit rose 4.5% to ₹4.11 lakh crore, and standalone net profit increased 7.5% to ₹3.95 lakh crore.The net profit for banks may have been even higher but for the sharp, 45-basis-point rise in benchmark government bond yields in the fourth quarter and the unexpected imposition of the $100 mn cap on net open position just a day before year-end. The cap was introduced to curb the steep decline in the rupee against the dollar. Both factors, however, weighed on treasury incomes at banks.The top three banks accounted for 43% of deposits and 44% of advances, with system-wide deposits at ₹251 lakh crore and advances at ₹212 lakh crore by end March 2026.Advances of PSU banks rose 16%, while those of private banks grew 14%, while deposits rose 10% and 13%, respectively, in FY26 over previous year.Growth, however, may soften this year due to the impact of the West Asia crisis that began on February 28. "The economic fallout of the conflict may lead to lower GDP growth and higher inflation in FY2027," SBI Chairman S C Setty said in his address to shareholders in the bank's annual report. Loan Growth SlowingSBI expects credit to expand by 13%-15% in FY27 versus 17% previous year. At an analysts' meeting, Setty said, "Credit growth is a function of macroeconomic conditions. We do not want to grow faster than what the macro environment can support."Net profits of private and PSU banks were almost equal, despite PSU banks holding around 61% market share in total business (deposits and advances). PSU banks' net profit rose 11% to ₹1.98 lakh crore, while private banks' profit increased 4% to ₹1.96 lakh crore.