PSU Bank Stocks Surge Up to 4% Following Positive Q4 Updates

Original: 5 PSU bank stocks rally up to 4% after reporting March quarter updates. Check details

The Economic Times•Apr 6, 20263 min

In a Nutshell

The Nifty PSU Bank Index rose by 0.5% as five public sector bank stocks saw gains of up to 4% after reporting strong business growth for the March quarter. Key performers included Bank of Baroda, Union Bank of India, and Bank of Maharashtra, reflecting resilience despite recent market corrections.

Key Points

01Nifty PSU Bank Index increased by 0.5% despite broader market declines.
02Bank of Baroda reported a 14% YoY growth in global business.
03Union Bank of India experienced a 5.8% YoY increase in total global business.
04Bank of Maharashtra's total business grew by 18% YoY.
05UCO Bank and Punjab National Bank also reported significant growth in deposits and advances.

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Full Summary

On Monday, the Nifty PSU Bank Index gained 0.5%, defying a downturn in benchmark indices Nifty 50 and BSE Sensex. This uptick followed positive March quarter updates from several public sector banks, with five stocks rising up to 4%. Bank of Baroda's shares surged 4% to ₹260.50, driven by a 14% year-on-year growth in global business, reaching ₹30.78 lakh crore. Union Bank of India saw a 3% increase after reporting a 5.8% YoY rise in total global business. Bank of Maharashtra's shares climbed 4.3%, fueled by an 18% growth in total business to ₹6.42 lakh crore. UCO Bank's stock rose 2%, with total business up 14.59% YoY, while Punjab National Bank reported an 11% increase in global business. Despite a challenging environment due to rising bond yields, these results reflect the resilience of PSU banks.

Key Figures

4%

Maximum gain by individual PSU bank stocks

14%

Year-on-year growth in global business for Bank of Baroda

18%

Year-on-year growth in total business for Bank of Maharashtra

5.8%

Year-on-year increase in total global business for Union Bank of India

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Why It Matters

The positive performance of PSU banks may lead to increased investor confidence and potentially stabilize the banking sector, which could benefit customers through improved services and lending rates.

Who is affected

Investors, homebuyers, and businesses seeking loans.

What to know

Investors should monitor these banks for further performance trends, while potential borrowers may find favorable lending conditions.

FAQ

The rise was primarily due to positive business updates for the March quarter from several public sector banks.

PSU banks faced a sharp correction in March, falling up to 20% due to rising global bond yields, but recent updates have shown resilience.

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