PNB, Canara Bank, Union Bank power Nifty PSU Bank 1.7% higher after June-quarter results

Monday’s rally comes after Punjab National Bank, over the weekend, posted a 213% surge in net profits with key support from the institutional lender’s interest income, a fall in overall expenses, and margin improvement.

NSE data showed that the Nifty PSU Bank index surged 1.7% to an intraday high of 8,527.50 points on Monday’s market, compared to 8,381.75 points at the previous stock market close.

At 10:50 am, the index was trading 1.34% higher at 8,494 points on July 20, according to the exchange data.

Investors also remain focused on the better-than-expected PSU Bank performance in the April to June quarter results of the financial year ending 2026-27, while the private bank earnings missed market estimates.

Key focus is now on the upcoming Q1 earnings of India’s largest government bank, State Bank of India, which is expected to announce the date for its quarterly results late July or early August 2026.

How did PSU banks perform in Q1 earnings?

Punjab National Bank

The latest round of PSU banking earnings was from Punjab National Bank, where the institutional lender’s net profit advanced 213% to ₹5,253 crore in the first quarter of FY27, compared with ₹1,675 crore in the same period a year ago.

PNB’s net profits gained from a tax expense support, which was at ₹1,724.72 crore in the first quarter, compared with ₹5,083.25 crore in the same period a year earlier, as per the exchange filings.

Net interest income (NII) advanced 3% to ₹32,897 crore in the April to June quarter, from ₹31,963 crore in the same quarter of the previous financial year.

On a sequential basis, the state-run bank’s global Net Interest Margin (NIM) improved to 2.50% in Q1 FY27 from a 2.47% level in Q4 FY26.

While the provision for bad loans was nearly doubled to ₹792 crore from ₹396 crore in the same period a year earlier, the gross NPAs declined 100 basis points to 2.78% in the first quarter, from 3.78% in the same period a year ago.

CASA (current account savings account) deposits increased to ₹6,13,116 crore, recording a YoY growth of 7.8% as of the quarter ended June 2026.

What does Citibank expect?

US-based leading investment firm Citibank analysts said that Punjab National Bank’s improvement in net interest margin (NIM) and treasury gains have kept the return on assets (RoA) afloat for the lender in the Q1 earnings.

The experts said that the bank has controlled its slippages, creating further floating provisions while keeping the loan growth within the guided range.

After reviewing the Q1 deposit growth front, Citibank analysts said that PNB is “deliberately keeping deposit growth calibrated.”

Indian Bank

Indian Bank’s Q1 net profits rose 10% to ₹3,273 crore, compared year-on-year (YoY) with ₹2,973 crore in the same period a year earlier, as per the exchange filings.

The net profit growth was supported by a rise in core interest income, lower provisions for bad loans and improvement in asset quality during the June quarter.

NSE filings showed that Indian Bank’s interest income increased 17% to ₹7,435 crore, from ₹6,359 crore in the same period a year earlier.

In the period under review, the PSU bank’s NPA’s dropped to 1.86%, from 3.01% in the same period last year, while the provisions also declined to ₹376 crore, compared year-on-year with ₹387 crore a year earlier.

Bank of Maharashtra

Data showed that Bank of Maharashtra recorded a 27% jump in net profit to ₹2,020 crore in the quarter ended June 30, 2026, compared year-on-year (YoY) with ₹1,593 crore. While the profits surged, the asset quality remained flat on a sequential basis.

The lender’s gross NPAs declined by 29 basis points to 1.45% in the first quarter of FY27, compared to 1.74% in the same period the previous fiscal year.

While the PSU bank’s net interest income (NII) rose by 14.5% to ₹3,770 crore in the period under review, compared YoY with ₹3,117 crore in the year-ago period.

Union Bank of India

Last week, Union Bank of India posted a 29% increase in net profit to ₹5,332 crore in the April to June quarter, from ₹4,115.53 crore a year ago. While the net interest income of the bank increased YoY to ₹27,203 crore in the period under review, from 26,919 crore.

The filing data also showed that Union Bank of India reduced its provision for bad loans, indicating that the bank expects its asset quality to keep improving in the upcoming period.

The lender’s provision for bad loans dropped to ₹1,019.55 crore in the first quarter, from ₹1,152.94 crore in the same period a year ago. While the gross NPAs declined to 2.65%, compared YoY with 3.52% a year earlier.

On the margin front, the bank’s net profit margins surged to 16.76% from 13.10% in the first quarter, while the operating margins expanded to 25.16% from 22% in the same period a year ago.

PSU banking stocks on NSE

*Note: All data related to the current market price, intraday returns, 1-month returns, and YTD returns have been collected from the NSE website.