Top PSU Stocks in India
During FY24–25, Public Sector Banks (PSBs) in India reported a record net profit of ₹1.78 lakh cr, marking a 26% increase from the previous year. This growth was accompanied by a significant improvement in asset quality, with the Gross Non-Performing Assets (GNPA) ratio declining to 3.12% in September 2024, down from 14.58% in March 2018. These developments reflect a strong financial turnaround for PSBs. In this article, we examine the 12 PSU bank stocks in India, including their features, benefits, risks, and more.
Best PSU Stocks
Saturday, 2 August, 2025
| symbol | Company | ticker | slug | Sector | Market Price | 52W High | 52W Low | Market Cap (Cr.) | PE Ratio | Industry PE | PB Ratio | Div. Yield (%) | ROE (%) | 1YReturns | 3YReturns | 5YReturns | Market Cap Label | Industry Group | Industry | Sub Industry | percentageChange |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BMBK | Bank of Maharashtra Ltd | MAHABANK | /stocks/bank-of-maharashtra-BMBK | Public Banks | 54.27 | 67.50 | 42.00 | 41,742.07 | 7.53 | 16.63 | 1.45 | 2.76 | 22.82 | -17.91 | 216.44 | 354.14 | Midcap | Banks | Banks | Diversified Banks | -3.23 |
| BOB | Bank of Baroda Ltd | BANKBARODA | /stocks/bank-of-baroda-BOB | Public Banks | 235.13 | 266.95 | 190.70 | 121,594.24 | 5.87 | 16.63 | 0.82 | 3.56 | 15.43 | -6.42 | 102.18 | 401.88 | Largecap | Banks | Banks | Diversified Banks | -1.15 |
| BOI | Bank of India Ltd | BANKINDIA | /stocks/bank-of-india-BOI | Public Banks | 109.29 | 130.24 | 90.05 | 49,756.11 | 5.21 | 16.63 | 0.62 | 3.71 | 12.59 | -13.34 | 122.36 | 126.98 | Midcap | Banks | Banks | Diversified Banks | -1.88 |
| CBI | Central Bank of India Ltd | CENTRALBK | /stocks/central-bank-of-india-CBI | Public Banks | 35.93 | 64.38 | 32.75 | 32,521.68 | 8.27 | 16.63 | 0.88 | 0.53 | 11.33 | -43.10 | 97.96 | 102.99 | Smallcap | Banks | Banks | Diversified Banks | -1.32 |
| CNBK | Canara Bank Ltd | CANBK | /stocks/canara-bank-CNBK | Public Banks | 105.89 | 119.30 | 78.60 | 96,049.13 | 5.48 | 16.63 | 0.90 | 3.78 | 17.56 | -6.03 | 135.21 | 420.09 | Midcap | Banks | Banks | Diversified Banks | -1.27 |
| INBA | Indian Bank | INDIANB | /stocks/indian-bank-INBA | Public Banks | 621.20 | 658.50 | 473.90 | 83,673.40 | 7.43 | 16.63 | 1.17 | 2.62 | 17.09 | 4.29 | 249.87 | 969.19 | Midcap | Banks | Banks | Diversified Banks | -0.08 |
| IOBK | Indian Overseas Bank | IOB | /stocks/indian-overseas-bank-IOBK | Public Banks | 36.81 | 68.46 | 33.50 | 70,883.51 | 20.88 | 16.63 | 2.20 | 0.00 | 11.36 | -44.76 | 112.16 | 257.38 | Midcap | Banks | Banks | Diversified Banks | -2.00 |
| PNBK | Punjab National Bank | PNB | /stocks/punjab-national-bank-PNBK | Public Banks | 103.18 | 125.70 | 85.46 | 118,584.19 | 6.42 | 16.63 | 0.89 | 2.81 | 15.10 | -16.08 | 208.92 | 213.62 | Largecap | Banks | Banks | Diversified Banks | -2.09 |
| PUNA | Punjab & Sind Bank | PSB | /stocks/punjab-and-sind-bank-PUNA | Public Banks | 28.64 | 68.70 | 25.22 | 20,321.76 | 20.00 | 16.63 | 1.52 | 0.24 | 7.03 | -56.78 | 92.21 | 112.15 | Smallcap | Banks | Banks | Diversified Banks | -1.78 |
| SBI | State Bank of India | SBIN | /stocks/state-bank-of-india-SBI | Public Banks | 794.00 | 881.40 | 680.00 | 732,911.04 | 9.45 | 16.63 | 1.45 | 1.94 | 16.58 | -7.96 | 48.76 | 313.00 | Largecap | Banks | Banks | Diversified Banks | -0.32 |
| UCBK | UCO Bank | UCOBANK | /stocks/uco-bank-UCBK | Public Banks | 29.14 | 57.34 | 26.81 | 36,540.27 | 14.81 | 16.63 | 1.18 | 1.34 | 8.50 | -47.53 | 152.29 | 106.67 | Midcap | Banks | Banks | Diversified Banks | -2.18 |
| UNBK | Union Bank of India Ltd | UNIONBANK | /stocks/union-bank-of-india-UNBK | Public Banks | 128.10 | 158.65 | 100.81 | 97,786.49 | 5.42 | 16.63 | 0.86 | 3.71 | 17.05 | -5.29 | 231.01 | 340.96 | Largecap | Banks | Banks | Diversified Banks | -2.18 |
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.
Note: The data on this list of PSU bank stocks is dynamic in nature and subject to real-time changes. This data is derived from Tickertape Stock Screener.
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What are PSU Bank Stocks?
PSU Bank Stocks refer to the shares of public sector banks in India, which are owned and operated by the government. These banks play a crucial role in the country’s financial system by providing a wide range of banking services, including retail banking, corporate banking, and government financing. They are listed on the stock exchanges, such as the National Stock Exchange (NSE).
About the Top PSU Bank Stocks
- State Bank of India (SBI): SBI is India’s largest public sector bank, with a dominant market presence. It offers a wide range of financial services and has a strong retail and corporate banking segment.
- Punjab National Bank (PNB): PNB is one of India’s oldest public sector banks, serving individuals, SMEs, and large corporations. With a focus on improving asset quality and expanding its digital services, PNB plays a vital role in the country’s banking landscape.
- Bank of Baroda (BoB): BoB is a prominent public sector bank in India, offering comprehensive financial services. With a large customer base and expanding global presence, BoB focuses on loan growth and operational efficiency through strategic mergers and digital upgrades.
- Union Bank of India: Union Bank is a large public sector bank in India. The merger of Canara Bank formed it is one of India’s leading public sector banks, offering a range of services including retail, corporate, and wealth management. Andhra Bank and Corporation Bank.
- Canara Bank: Canara Bank is one of India’s leading public sector banks, offering retail, corporate, and wealth management services. With a broad branch network and a focus on improving its digital banking services, Canara Bank is a prominent player in the Indian banking sector.
Union Budget Implications for the PSU Bank Sector
The Union Budget 2024-25 included key provisions aimed at strengthening the Public Sector Bank (PSB) sector:
- MSME Support: The creation of a ₹100 cr guarantee fund for MSMEs, along with enhanced Mudra loan limits, will boost credit flow to small businesses, benefiting PSBs.
- Digitalisation: Investments in cybersecurity and digital infrastructure will enhance PSBs’ ability to offer secure, efficient services, improving customer trust.
- Infrastructure Development: A ₹11.11 lakh cr allocation for capital expenditure, focusing on infrastructure, will present PSBs with new lending opportunities.
How to Invest in PSU Bank Stocks in India?
Here are the steps involved when investing in PSU bank stocks:
- Open a brokerage account with a stockbroker. You can also open a demat account with smallcase!
- Fund your brokerage account.
- Search for the best PSU bank stocks in India. You can utilise the Tickertape Stocks Screener and use their 200+ filters to sort through the top PSU bank stocks.
- Place a ‘Buy’ order on the chosen stocks in the Nifty PSU bank stocks list with weightage.
Future Outlook for PSU Bank Stocks in India
- Government Reforms and Capital Raising: The government plans to raise approximately ₹45,000 cr through Qualified Institutional Placement (QIP) and stake sales in FY26, including a substantial capital infusion into major banks such as SBI.
- Improved Asset Quality and Profitability: PSU banks have significantly reduced non-performing assets (NPAs), leading to a 26% growth in net profits in FY25.
- Technical Indicators and Market Sentiment: The Nifty PSU Bank Index surged 6.6% in May 2025, indicating a potential bullish trend.
What is the Nifty PSU Bank Index?
The Nifty PSU Bank Index, or the PSU bank Nifty Index is a sectoral index on the NSE that tracks the performance of major public sector banks in India. Launched in 2007, it is weighted based on the free-float market capitalisation of these banks. The index is rebalanced semi-annually to reflect the sector’s dynamics. While direct investment in the index isn’t possible, investors can gain exposure through ETFs and mutual funds that track its performance.
Benefits of Investing in PSU Bank Stocks
- Government Support During Crisis: PSU banks receive financial backing and capital infusions from the government, especially during times of economic distress or financial instability.
- Resilient to Market Volatility: Due to their large market share and government ownership, PSU banks tend to exhibit less volatility compared to their private-sector counterparts.
- Exposure to Infrastructure Development: With the government’s emphasis on infrastructure, PSU banks are well-positioned to benefit from rising credit demand linked to large-scale projects in construction, transportation, and public works.
- Access to Rural and Underserved Markets: The government’s push for financial inclusion, combined with the widespread presence of PSU banks in rural and semi-urban areas, creates a unique growth engine that private banks may find challenging to replicate.
- Improved Asset Quality: Recent measures have focused on reducing non-performing assets (NPAs), with several public sector banks (PSBs) showing progress in lowering their NPAs, indicating improved asset quality and better risk management.
Risks of Investing in PSU Bank Stocks
- High Exposure to Non-Performing Assets (NPAs): Despite improvements, public sector banks (PSBs) have historically had higher NPAs compared to private banks. This increases the risk of profitability volatility and may lead to capital raising requirements.
- Slow Growth: PSU banks generally experience slower growth than their private-sector counterparts due to bureaucratic inefficiencies, legacy issues, and slower adoption of technology. This can limit capital appreciation potential.
- Increased Regulatory Scrutiny: Being government-owned, PSU banks face stringent regulatory requirements, which may limit their flexibility in decision-making and affect their ability to compete with private banks in terms of innovation and customer service.
- Capital Infusion Reliance: PSU banks often rely on government capital infusions for survival during periods of financial stress, meaning their financial stability is directly tied to government fiscal health and priorities, which may not always align with shareholder interests.
Factors to Consider When Investing in PSU Bank Stocks
- Government Support and Policy Impact: PSU banks are closely tied to government policies, and their performance can be influenced by ongoing reforms, such as recapitalisation plans or potential privatisation moves. The level of government involvement can significantly impact stability and long-term growth.
- Asset Quality (NPAs): Non-performing assets (NPAs) are an essential indicator of a bank’s financial health. High NPA levels can impact profitability, and understanding trends in asset quality can provide valuable insights into the bank’s risk profile.
- Profitability and Growth Potential: Examining a bank’s profitability, particularly its return on equity (ROE) and net interest margin (NIM), can provide insight into its financial strength and growth trajectory within the competitive banking sector.
- Capital Adequacy: A strong capital adequacy ratio (CAR) ensures a bank can withstand financial pressures and meet regulatory requirements, serving as an essential measure of its ability to absorb losses and maintain stability.
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To Wrap It Up…
Investing in PSU bank stocks provides exposure to one of India’s core financial sectors, bolstered by government initiatives for recapitalisation and economic inclusion. While they offer stability, the potential for slower growth and limited political influence requires a strategic approach to fully gauge their long-term value.
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Frequently Asked Questions About PSU Bank Stocks
1. What are PSU bank stocks?
PSU bank stocks on the PSU bank share price list refer to shares of public sector banks in India, which the government primarily owns. These banks operate across various sectors, including retail, corporate, and investment banking.
2. What is the current state of Non-Performing Assets (NPAs) in PSU banks?
NPAs have been steadily declining in recent years due to better asset management practices. As of FY 2024-25, the Gross NPA ratio for PSUs dropped to 3.12%, its lowest in over a decade.
3. What impact has the government recapitalisation had on PSU bank stocks?
Government recapitalisation, particularly through bond issuance and direct funding, has strengthened the capital base of PSU banks, improving their ability to lend.
4. How are PSU banks preparing for privatisation, and what does this mean for stock prices?
While privatisation remains uncertain, any moves in this direction would likely reduce government stakes, which could positively impact stock prices due to potential efficiency gains and market-driven decision-making.
5. How does digital banking adoption affect PSU bank stocks?
PSU banks are focusing on enhancing digital services, and successful digital banking strategies have contributed to improved customer engagement, loan growth, and operational efficiency.
6, How do PSU bank stocks react to economic reforms like the Union Budget or interest rate changes?
PSU bank sector stocks often react positively to economic reforms that encourage lending, recapitalisation, or fiscal support. Interest rate changes by the RBI also directly affect the profitability of PSU banks, particularly in terms of loan growth and net interest margins.
