PSU Banking Stocks

The Nifty PSU Bank index has risen by 4% this month so far, compared to a 0.60% rise in the Nifty Private Bank index, and a flat with negative bias Nifty 50.

Bank Nifty index has underperformed the benchmark Nifty 50 over the past month. The banking index has fallen more than 2% during the period, compared with a 0.54% decline in the Nifty 50.

State Bank of India's shares fell 6.66% to ₹1,019 after disappointing Q4 FY26 results, erasing ₹67,040 crore in market cap. Despite strong credit growth and improved asset quality, margin pressure and lower profitability led to earnings below market expectations.

The Nifty PSU Bank index fell nearly 2%, with all its constituents trading in the red. Bank of India, Union Bank of India, Punjab & Sind Bank and Canara Bank were the top index losers, falling more than 2% each.

Nandish Shah favors SBI and Indian Bank for their strong performance, healthy credit growth, and improved asset quality. SBI's NIM is projected at 3%+ in FY26, while Indian Bank shows steady margins. Both banks have raised earnings estimates for FY27 and FY28, indicating a positive outlook.

The banking sector is on the brink of a bullish breakout, with experts recommending key stocks like ICICI Bank and SBI. Strong earnings and healthy credit growth have positioned banks for further gains. Discover which stocks to watch as the Nifty Bank index inches closer to its all-time high.

State Bank of India's shares have surged to record highs, gaining nearly 1% to ₹1,154, marking a 67% increase over the past year. SBI's market capitalisation has exceeded ₹10 lakh crore, making it the second-most valuable bank in India.

Punjab National Bank shares fell 3% to ₹116.60 after reporting a ₹2,434 crore fraud linked to SREI companies but later recovered to ₹120.75.

Canara Bank's shares continued to rally, increasing 1.3% to ₹128.40, approaching a 14-year high. The stock has gained 61.50% since March and 27% year-to-date, fueled by positive developments including possible increase in FPI limits.

Bank of India reported a net profit of ₹2,252 crore for the June quarter, marking a 32% increase from ₹1,703 crore a year earlier, driven by a 66.4% rise in non-interest income to ₹2,166 crore.