PSU Bank Stock News

PNB Q4 Results: Public sector bank Punjab National Bank (PNB) on Wednesday, May 7, announced a 51% year-on-year (YoY) rise in its standalone net profit for the fourth quarter of financial year 2024-25 (Q4 FY25).

Bank stocks are witnessing a robust rally, with the Nifty Bank index reaching an all-time high. Strong performances from leading banks like HDFC and ICICI have raised market optimism, while credit growth is forecasted to accelerate amid supportive fiscal policies.

Bank stocks rose for the third consecutive day after retail inflation eased, boosting investor sentiment for another RBI rate cut. The Nifty Bank index increased 0.70%, with major banks like Federal Bank and Canara Bank gaining over 1.5%.

Arrest of jeweller Mehul Choksi in Belgium has reignited focus on the ₹14,000-crore Punjab National Bank scam from 2018, involving fake loans and significant financial losses. Despite recovery efforts, PNB shares remain below pre-fraud levels, though analysts express optimism for future growth.

Stock market crash: Nine PSU bank stocks touched their 52-week lows. SBI shares fell by 1.24% to ₹679.65, while Bank of Baroda shares declined 2.3% to ₹197.70 on the BSE.

Indian PSU banking stocks fell sharply on January 6 after disappointing December quarter updates, with all 12 Nifty PSU Bank index stocks in the red. Union Bank led the losses, dropping 8%, while the index itself saw a 4.30% decline, marking a 7-week low.

Despite a challenging month for frontline indices, the Nifty PSU Bank index showed resilience in October, closing with a minor decline. Strong quarterly results from several banks boosted investor sentiment, resulting in all constituents gaining over 5% during the last week of the month.

Motilal Oswal maintains a 'buy' recommendation on Bank of Baroda despite a 9.5% decline over the last three months. The brokerage has a target price of ₹290 on the stock, indicating a 16% upside from current levels as it expects steady earnings growth.

The Nifty PSU Bank index alone has delivered impressive returns of over 83%, overshadowing the 19.5% returns of the Nifty Bank index, in the last 1 year. Let's analyse between the State Bank of India (SBI) and Bank of Baroda (BoB), which PSU bank stock has better long-term investment opportunities.

On SBI's outperformance with other public banks, Kotak analysts said the premium at which SBI is currently trading to Bank of Baroda and with other mid-tier public banks has declined sharply and is closer to the best of times.