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Bank of Baroda, Bank of Maharashtra and other PSU bank stocks surge up to 4.6% after Q4 business updates
4 min read | Updated on April 06, 2026, 16:11 IST
SUMMARY
NIFTY PSU Bank index has surged over 2% today, following robust Q4 business updates by leading PSU Banks like Punjab National Bank, Union Bank of India, and Bank of Maharashtra. Most banks reported double-digit growth in advances as banks continue to face challenges from rising bond yields.
PSU bank stocks have witnessed profit booking amid the rising 10-year bond yield.
Bank of Baroda, Punjab National Bank, Union Bank of India, Bank of Maharashtra and other PSU Banks have come out with their quarterly business updates for the fourth quarter in the last few days.
Most PSU banks reported robust growth in gross advances and deposits, with the Bank of Maharashtra reporting the highest growth in advances. Following the announcement, the NIFTY PSU Bank index surged 2.3% intraday, with shares of Bank of Maharashtra, Indian Bank and Bank of India rising between 2% and 4% on NSE.
NIFTY PSU Bank index has witnessed a steep fall of nearly 20% last month amid profit booking and rising yields on government bonds, which is negative for the PSU banks. However, despite challenges PSU banks posted high growth in advances and deposits in the last quater of FY26.
| PSU bank | Market cap | Gross advances | Total deposits | YTD stock return |
|---|---|---|---|---|
| Bank of Baroda | ₹1.32 lakh crore | ₹22.5 lakh crore (15.3% YoY) | ₹27.1 lakh crore (12.4% YoY) | ▼13.9% |
| Union Bank of India | ₹1.32 lakh crore | ₹19.2 lakh crore (6.1% YoY) | ₹25.4 lakh crore (6.8% YoY) | ▲12.5% |
| Punjab National Bank | ₹1.20 lakh crore | ₹21.8 lakh crore (12.5% YoY) | ₹30.7 lakh crore (9.1% YoY) | ▼15.1% |
| Indian Bank | ₹1.19 lakh crore | ₹5.88 lakh crore (13.6% YoY) | ₹7.37 lakh crore (12.6% YoY) | ▲5.9% |
| Bank of India | ₹64,602 crore | ₹12.2 lakh crore (15.8% YoY) | ₹15.1 lakh crore (13.9% YoY) | ▼2.1% |
| Bank of Maharashtra | ₹50,248 crore | ₹3.98 lakh crore (20.3% YoY) | ₹3.50 lakh crore (14% YoY) | ▲5.2% |
| Central Bank of India | ₹30,295 crore | ₹2.90 lakh crore (18.9% YoY) | ₹4.12 lakh crore (13.3% YoY) | ▼10.2% |
| Punjab & Sind Bank | ₹16,057 crore | ₹1.1 lakh crore (18.3% YoY) | ₹1.45 lakh crore (12.3% YoY) | ▼17.7% |
As seen from the above table, credit growth remained healthy across key public sector banks, with Bank of Maharashtra (20.3% YoY) and Central Bank of India (18.9% YoY) showing high double-digit growth on gross advances. Union Bank of India reported moderate growth of 6.1% YoY in gross advances. Meanwhile, deposit growth is relatively steady for PSU banks. Bank of Maharashtra, Bank of India and Bank of Baroda saw higher double-digit growth in total deposits.
Key factors impacting PSU Banks
This situation negatively impacts the banking sectors, especially PSU Banks like State Bank of India, Bank of Baroda, Punjab National Bank and others because they hold a large portion of their assets in government bonds in Available For Sale (AFS) form. When bond prices fall, the value of their holdings decreases, leading to mark-to-market (MTM) losses for the banks, which affects their treasury income and impacts their profitability. As a result, most PSU bank stocks are trading in the red amid weak investor sentiment.
Disclaimer:
Investments in the securities market are subject to market risk. Read all the related documents carefully before investing. The stock discussed in this article is only for educational purposes and not a buy or sell recommendation. Investors are advised to conduct their own analysis and risk due diligence before trading and investing in the stock market.
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