SBI, PNB & 10 More: 12 PSU Banks Ranked — Q1 FY27

The major 12 PSU banks have reported their Q1 FY27 results, and this post breaks down every one of them — fundamentals, technicals, and key ratios — into a single ranking that helps you decide which PSU bank stock is worth your money in 2026. If you are new to bank analysis, start with our guide on how banks work and make money, then come back here for the numbers.

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Net Profit — Q1 FY27

SBI reported the highest net profit among all PSU banks, which is expected given that it is India's largest public sector bank with a market cap of around Rs 10 lakh crore. However, if we look at profit growth, PNB reported a 200%+ jump — the highest among all PSU banks. Indian Bank has the highest Net Interest Margin (NIM), while Bank of Maharashtra reported the highest ROA and ROE of the twelve. To understand these profitability ratios in detail, refer to our profitability ratios guide.

BoB's reported PAT is Rs 1,278 Cr, but that includes a one-off Rs 5,680 Cr NMC Health settlement charge. The adjusted PAT of Rs 5,528 Cr — which reflects the bank's actual operating performance — is used in the table above. NIM shown is domestic for SBI, BoB, and Indian Bank, and global for the rest.

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Return on Equity

Bank of Maharashtra leads on ROE at 22.6%, well above the twelve-bank average of about 14.5%. UCO (8.6%) and Punjab & Sind (9.6%) trail the field.

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Asset Quality — GNPA vs NNPA

NPAs are the most important thing to watch in banking stocks, since these banks are in the lending business. Bank of Maharashtra has the lowest gross and net NPA along with a high PCR, while Punjab & Sind Bank has the lowest slippage and the lowest credit cost.

PNB does not disclose PCR for the quarter. Slippage and credit-cost figures for IOB, UCO Bank, and Central Bank were not published in their Q1 FY27 releases.

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Capital Adequacy and CASA

On capital adequacy, Bank of Maharashtra comes first with a CASA ratio above 50%, followed by Central Bank. For SBI and several others it is below 40%, and Punjab & Sind Bank has the lowest CASA ratio. UCO Bank has the highest CRAR and CET-1 ratios, while Central Bank has the lowest CD ratio. To understand how these solvency and liquidity metrics work, see our solvency ratios and liquidity ratios guides.

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Valuation — P/E and P/B

Price-to-earnings and price-to-book are the key valuation ratios, though for banking stocks the P/B ratio matters more. Of the twelve PSU banks, Bank of India has the lowest P/E, while UCO Bank and SBI have the highest. A P/E of 12–13 makes a PSU bank relatively expensive as an investment. Central Bank of India has the lowest P/B (below 1) and the highest dividend yield, which suggests its downside risk is lower than that of a richly valued bank like SBI. For a deeper explanation of these metrics, see our valuation ratios guide.

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Dividend Yield

Central Bank offers the highest dividend yield at 3.83%, followed by Bank of Baroda (3.39%) and Bank of India (3.21%). IOB pays no dividend.

FII & DII Holding — Year-over-Year Change

Comparing June 2025 to June 2026, Bank of Maharashtra saw the biggest FII increase (+3.93 pp), followed by Bank of India (+3.34 pp). On the DII side, Central Bank of India led at +5.89 pp, followed by Bank of Maharashtra at +3.88 pp. The takeaway: Bank of Maharashtra is the only bank where both FIIs and DIIs added meaningfully.

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Technicals — RSI, Support, Resistance & Analyst Targets

On the weekly charts, Bank of Baroda has the lowest RSI among these banks at about 43, while SBI has the highest at around 60. The nearest support and resistance levels from the weekly charts are listed in the table below, along with the analyst price targets from TradingView.

Central Bank of India has the highest analyst 1-year price-target upside at nearly 43%, followed by Bank of Maharashtra at about 30%. Note that Central Bank's target is based on a single analyst, while Indian Bank carries a "Strong Buy" consensus.

Analyst targets are TradingView 1-year consensus. IOB, UCO Bank, and Punjab & Sind have no analyst coverage and are therefore excluded from the targets chart.

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Balance Sheet — Q1 FY27

SBI has the highest deposits at around Rs 60 lakh crore, but Bank of India has the highest deposit growth at 14.9%, followed by Indian Bank and Bank of Baroda. Punjab & Sind Bank has the fastest advance growth.

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PSU Bank Rankings — Q1 FY27 Scorecard

Each bank is scored on six pillars; every cell shows the points earned in that pillar. Add them across a row to get the Overall score. Bank of Maharashtra and Indian Bank lead on asset quality, profitability, and capital strength.

Columns: Val = Valuation (P/B + P/E, max 24). Prof = Profitability (ROE + ROA + NIM, max 36). AQ = Asset Quality (GNPA + NNPA + PCR, max 36). Cap = Capital & Funding (CET-1 + CASA + CD ratio, max 36). Eff = Efficiency (cost-to-income, max 12). Grw = Growth (advances growth + PAT YoY, max 24). Maximum possible overall score is 168.

How the score is calculated

1. Each bank is ranked 1–12 on every metric; the best gets 12 points, the worst gets 1.
2. For P/B, P/E, GNPA, NNPA, CD ratio and cost-to-income, lower is better. For ROE, ROA, NIM, PCR, CET-1, CASA and the growth rates, higher is better.
3. Valuation (max 24) = P/B + P/E.
4. Profitability (max 36) = ROE + ROA + NIM.
5. Asset Quality (max 36) = GNPA + NNPA + PCR.
6. Capital & Funding (max 36) = CET-1 + CASA + CD ratio.
7. Efficiency (max 12) = cost-to-income.
8. Growth (max 24) = advances growth + PAT YoY growth.
9. Overall = the six pillar scores added together (max 168).
10. Bank of Maharashtra wins on quality + profitability; Indian Bank is the most balanced; the cheap banks (BoI, Central) score on valuation and capital but lag on profitability.

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Challenges Facing PSU Banks vs Private Banks

Private sector banks consistently earn better margins — sometimes above 3.5% — than PSU banks. The main reason is that PSU banks were built with public service as the primary goal and profit as a secondary one. That mandate leaves them with higher infrastructure costs (they need far more branches), lower lending yields, large staff costs, and heavy pension liabilities.

PSU banks also carried very high gross NPAs for a long time, although these have come down sharply since 2021 as balance sheets were cleaned up. Another structural issue is that the government is the majority owner of these banks, which can act as a barrier to the kind of aggressive, growth-first decision-making that private sector banks are free to pursue.

Their digital infrastructure is also relatively weak. Online and mobile banking experiences at most PSU banks lag well behind private sector peers, which makes them less attractive to the younger, Gen-Z customers who will drive future growth.

That said, the government is working aggressively to close this gap — pushing PSU banks to match private banks on operations and profitability, merging multiple PSU banks to create stronger entities, and in some cases reducing its own stake or considering privatization.

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Conclusion

We compared all the major PSU banks on valuation, profitability, and other key ratios, and the ranking scorecard lists them from top to bottom. The top three PSU banks are Bank of Maharashtra, Indian Bank, and Indian Overseas Bank. Bank of Maharashtra and Indian Bank also carry analyst "Buy" ratings, which adds confidence to their fundamental scores.

SBI remains the largest PSU bank, but it now trades at a relatively high valuation. Over the past five years the PSU banking sector has generated strong returns for investors, while many private sector banks delivered comparatively lower returns over the same period. Many private banks have also corrected significantly and are now available at reasonable valuations.

Before investing, it is worth weighing each bank's future growth potential, management vision, and financial data. This PSU rally can continue if these banks show consistent operational improvement and stay focused on growth.

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References

1. Screener.in — PSB Stock Data and Peer Comparison
2. TradingView — Analyst Price Targets
3. SBI Q1 FY27 Press Release — BSE
4. PNB Q1 FY27 Press Release
5. Union Bank Q1 FY27 Investor Presentation
6. Canara Bank Q1 FY27 Investor Presentation
7. Indian Bank Q1 FY27 Press Release
8. Bank of Baroda Q1 FY27 Results — BSE
9. Bank of India Q1 FY27 Investor Presentation — BSE
10. Bank of Maharashtra Q1 FY27 Results — BSE
11. Indian Overseas Bank Q1 FY27 Results — BSE
12. Central Bank of India Q1 FY27 Results — BSE
13. NSE India — PSU Bank Stock Quotes
14. Reserve Bank of India — Banking Statistics

All numbers from Q1 FY27 earnings presentations, press releases, BSE filings, Screener.in, and TradingView analyst data (August 2026 close).

This analysis is for educational purposes only and does not constitute investment advice. Please consult a SEBI-registered investment adviser before making any investment decision.