Analyzing PSU Bank Stocks Post Q4 FY26 Earnings: SBI, PNB, or BoB?
SBI vs PNB vs BoB: Which PSU bank stock to buy after Q4 results 2026?
Mint
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Following the Q4 FY26 earnings season, public sector banks in India—State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BoB)—showed mixed performance. While SBI leads in profitability and asset quality, BoB stands out for its balanced growth. Investors must consider their risk appetite and market conditions before choosing a stock.
- 01State Bank of India reported a 5.6% YoY profit growth, with net profit at ₹19,684 crore.
- 02Bank of Baroda's annual profit surpassed ₹20,000 crore for the first time, showing strong loan growth.
- 03Punjab National Bank had the highest profit growth at 14.4% YoY but faces margin pressure.
- 04Analysts suggest SBI for stability, BoB for balanced growth, and PNB for turnaround potential.
- 05Technical indicators show mixed signals for PSU banking stocks, emphasizing selective trading.
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Public sector banks in India, including State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda (BoB), have reported mixed results following the Q4 FY26 earnings season. SBI achieved a 5.6% year-on-year profit growth, reaching ₹19,684 crore, while its net interest income (NII) grew by 4.13% to ₹44,380 crore. Asset quality improved, with gross non-performing assets (NPA) at 1.49% and net NPA at 0.39%. Bank of Baroda posted an 11.25% YoY profit increase to ₹5,616 crore, benefiting from healthy loan growth, particularly in gold loans, which surged 98% YoY. In contrast, PNB reported a 14.41% rise in profit to ₹5,225 crore, despite a decline in NII. Analysts highlight SBI's strong franchise and asset quality as key strengths, while BoB is noted for its balanced performance and execution strength. PNB, while showing strong profit growth, is viewed as a turnaround opportunity amidst margin pressures. Technical indicators suggest mixed signals across these stocks, with SBI facing resistance at ₹1,100 and PNB showing bullish potential around ₹108.
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Investors in PSU banking stocks may experience varying degrees of growth and stability based on their choice of bank, affecting their investment returns. SBI offers stability, while BoB presents balanced growth opportunities, and PNB may attract those looking for turnaround potential.
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