PSU Bank Stocks Rally Up to 5%: SBI, PNB, Canara Bank, IOB, Bank of Maharashtra Among Top Gainers; Here's Why

Shares of leading public sector (PSU) banks saw strong intraday gains, with Bank of Baroda, Canara Bank, Indian Bank, State Bank of India (SBI), Punjab National Bank (PNB), Indian Overseas Bank, and Bank of Maharashtra all surging by up to 5%. Remarkably, all 12 constituents of the Nifty PSU Bank Index were firmly in positive territory, in sharp contrast to the subdued performance of the broader Bank Nifty Index.

This uptick followed a directive from the Finance Ministry urging state-owned lenders to monetise their stakes in subsidiaries through either initial public offerings (IPOs) or strategic stake sales.

Reports suggest that around 15 subsidiaries or joint ventures of public sector banks are being evaluated for IPOs or strategic divestments over the medium to long term. Among the most anticipated candidates are SBI General Insurance and SBI Payment Services, both of which are viewed as strong potential IPOs once they achieve the necessary scale.

Nifty PSU Bank stocks Today: Check Latest Share Prices of SBI, PNB, Canara Bank, Bank of Maharashtra and Indian Overseas Bank

SBI Share Price Today

NSE: SBIN: On June 30, shares of State Bank of India saw a notable uptick, rising by 1.69% to trade at Rs 819.00 as of 12:49 PM. The stock opened higher at Rs 809.00, compared to its previous close, and climbed to an intraday high of Rs 820.30, reflecting positive sentiment in the PSU banking space.

The day's low was recorded at Rs 807.05, showing limited downside during the session. Over the past year, SBI shares have traded within a range of Rs 680.00 at 52-week low and Rs 899.00 at 52-week high.

PNB Share Price Today

NSE: PNB: Shares of Punjab National Bank surged 3.42% on Monday, trading at Rs 109.98 as of 12:56 PM. The stock opened the session strong at Rs 107.07, reflecting positive market sentiment following news related to PSU bank reforms and upcoming monetisation plans.

During intraday trading, the share hit a high of Rs 110.11 and a low of Rs 106.70, indicating firm buying interest.

Canara Bank Share Price Today

NSE: CANBK : Shares of Canara Bank witnessed a solid upward movement in Monday's session, rising 2.40% to trade at Rs 113.64 as of 1:01 PM. The stock opened at Rs 111.56, showing strength from the start, and reached an intraday high of Rs 114.61, while the low stood at Rs 111.47.

India Overseas Bank Share Price Today

NSE: IOB : Shares of Indian Overseas Bank traded higher on Monday, gaining 1.36% to reach Rs 38.77 as of 1:09 PM. The stock opened slightly stronger at Rs 38.44 and moved up to an intraday high of Rs 39.59, with a low of Rs 38.29 during the session.

Bank of Maharashtra Share Price Today

NSE: MAHABANK : Bank of Maharashtra witnessed a notable rally on Monday, with its share price climbing 4.24% to trade at Rs 56.60. The stock opened at Rs 54.60, matching its intraday low, and later surged to a high of Rs 57.35 during the trading session.

Nifty Bank Index Surges; What is Expert's Take?

Analysts at HDFC Securities observed that India's PSU banking sector-historically perceived as structurally challenged-is showing firm signs of a long-term recovery. This revival is being propelled by governance reforms, the adoption of technology, and marked improvements in asset quality and profitability.

Reflecting this optimism, HDFC Securities reiterated its "buy" recommendation for SBI, citing it as their top pick among public sector banks. They also initiated coverage of Bank of Baroda, Indian Bank, and Bank of Maharashtra with "buy" ratings, while assigning a more cautious "add" rating to Canara Bank and Union Bank of India.

Disclaimer

The information provided above is for informational purposes only and is not promotional content. It does not constitute financial advice and should not be considered a recommendation for any investment or spending decisions. Neither the author nor Greynium Information Technologies shall be held liable for any losses incurred as a result of decisions based on this write-up.