Agent James Gould told NBC Washington's Lindsay Czarniak that Banks had a chest tube removed and his lung fully re-inflated. Banks is expected to have a recovery time of three to four weeks, Gould said.
Banks was transferred to Virginia Hospital Center Wednesday, where he was under the care of team physician Dr. Anthony Casolaro.
Banks and his good friend Christopher Nixon were stabbed in an altercation outside The Park at 14th nightclub at about 3 a.m. Saturday. Jason Shorter, 24, of Lanham, Md., is charged in the incident.
The knife nicked Banks's lung, creating a "pneumothorax condition," according to Gould's statement on Wednesday.
Pneumothorax is a collapsed lung -- a buildup of air in the space around the lungs that puts pressure on the lung so it can't expand as much as usual.
NBC Washington reported Wednesday that the Park at 14th would not be disciplined because of the incident because Banks and Nixon had not yet entered the club when the altercation took place.