However, income from mutual fund distributions was mixed, with some banks reporting higher earnings while others saw declines.
An analysis of annual reports of banks by PTI showed that the country’s largest lender, (SBI), continued to dominate the segment, earning Rs 2,795.01 crore in insurance commission during FY26, up 19.26 per cent from Rs 2,345.36 crore in the previous financial year.
Commission income from mutual fund distribution at SBI also rose 7.05 per cent to Rs 1,617.52 crore from Rs 1,511.06 crore in FY25.
Of the Rs 2,795.01 crore in insurance commissions booked by SBI, a bulk Rs 2,384.63 crore or 85 per cent came from distributing policies of its life insurance subsidiary SBI Life.
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Similarly, SBI Mutual Fund contributed Rs 1,209.33 crore, or nearly three-fourths of the bank’s total for the country’s largest lender, which has over 22,000 branches.
The growth in the commission income came even as the finance ministry has asked banks to avoid misselling and focus on their core activity of accepting deposits and giving credit.
Banks also sold government insurance products such as Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY), according to the analysis.
Among other large state-owned lenders, registered one of the strongest performances, with insurance commission rising 15.67 per cent to Rs 566.36 crore in FY26 from Rs 489.64 crore a year earlier. Its mutual fund commission also increased 8.41 per cent to Rs 72.84 crore.
reported a 3.76 per cent increase in insurance commission to Rs 368.93 crore, although commission from mutual fund distribution declined marginally by 0.82 per cent to Rs 142.52 crore.
, however, witnessed declines in its income from both segments.
PNB’s insurance commission fell 8.61 per cent to Rs 438.67 crore, while mutual fund commission dropped 13.14 per cent to Rs 163.41 crore during the year.
also reported a 10.77 per cent decline in insurance commission to Rs 475.45 crore, but its mutual fund commission increased 7.93 per cent to Rs 29.66 crore.
Among mid-sized public sector lenders, ‘s insurance commission increased by 8.21 per cent to Rs 190.65 crore, while income from mutual fund distribution rose by 7.73 per cent to Rs 4.74 crore.
posted a 6.53 per cent increase in insurance commission to Rs 66.08 crore, and mutual fund commission increased sharply by 42.04 per cent to Rs 2.23 crore.
reported an insurance commission of Rs 160.90 crore in FY26, up 13.57 per cent from the previous year. Punjab & Sind Bank bucked the trend among smaller lenders, registering a 17.92 per cent rise in insurance commission at Rs 31.98 crore.
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