{"id":148625,"date":"2026-07-13T13:00:32","date_gmt":"2026-07-13T07:30:32","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=148625"},"modified":"2026-07-13T13:00:34","modified_gmt":"2026-07-13T07:30:34","slug":"psu-bank-stocks-improving-asset-quality-2026","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/","title":{"rendered":"3 PSU Bank Stocks With Improving Asset Quality After Q4 FY26 Results"},"content":{"rendered":"<div class=\"meta-block\">\u00a0<\/div>\n<p style=\"border-left: 4px solid #1F4E79; background: #EBF3FB; padding: 10px 16px; font-style: italic;\"><em>SBI GNPA 1.49%, CMP Rs 1,016.90. Bank of Baroda GNPA 1.89%, CMP Rs 251.40. PNB GNPA 2.95%, CMP Rs 104.29.<\/em><\/p>\n<p>SBI, Bank of Baroda and Punjab National Bank are three PSU bank stocks with improving asset quality after posting some of their strongest Q4 FY26 results in years, with gross NPA ratios falling to multi-decade lows across the sector.<\/p>\n<p>The improvement reflects a broader shift in PSU banking, aided by better underwriting standards, stronger recoveries and sustained credit demand across retail, agriculture and MSME segments. PSU bank stocks with improving asset quality have re-rated meaningfully as investors reward this operational turnaround.<\/p>\n<p style=\"margin-top: 24px;\"><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&amp;utm_medium=psu-bank-asset-quality-stocks\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/a><\/p>\n<p>This article examines SBI, Bank of Baroda and PNB as the leading PSU bank stocks with improving asset quality, along with their Q4 FY26 numbers and forward risks.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#What_Does_Improving_Asset_Quality_Mean_for_PSU_Bank_Stocks\" title=\"What Does Improving Asset Quality Mean for PSU Bank Stocks\">What Does Improving Asset Quality Mean for PSU Bank Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#Why_PSU_Bank_Stocks_With_Improving_Asset_Quality_Re-Rated_in_FY26\" title=\"Why PSU Bank Stocks With Improving Asset Quality Re-Rated in FY26\">Why PSU Bank Stocks With Improving Asset Quality Re-Rated in FY26<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#SBI_The_Strongest_Asset_Quality_Among_PSU_Bank_Stocks_With_Improving_Asset_Quality\" title=\"SBI: The Strongest Asset Quality Among PSU Bank Stocks With Improving Asset Quality\">SBI: The Strongest Asset Quality Among PSU Bank Stocks With Improving Asset Quality<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#Bank_of_Baroda_Balanced_Growth_and_Asset_Quality\" title=\"Bank of Baroda: Balanced Growth and Asset Quality\">Bank of Baroda: Balanced Growth and Asset Quality<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#PNB_The_Sharpest_Asset_Quality_Turnaround\" title=\"PNB: The Sharpest Asset Quality Turnaround\">PNB: The Sharpest Asset Quality Turnaround<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#Factors_Affecting_PSU_Bank_Stocks_With_Improving_Asset_Quality\" title=\"Factors Affecting PSU Bank Stocks With Improving Asset Quality\">Factors Affecting PSU Bank Stocks With Improving Asset Quality<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#Benefits_of_Investing_in_PSU_Bank_Stocks_With_Improving_Asset_Quality\" title=\"Benefits of Investing in PSU Bank Stocks With Improving Asset Quality\">Benefits of Investing in PSU Bank Stocks With Improving Asset Quality<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#Risks_Affecting_PSU_Bank_Stocks_With_Improving_Asset_Quality\" title=\"Risks Affecting PSU Bank Stocks With Improving Asset Quality\">Risks Affecting PSU Bank Stocks With Improving Asset Quality<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#How_to_Choose_PSU_Bank_Stocks_With_Improving_Asset_Quality\" title=\"How to Choose PSU Bank Stocks With Improving Asset Quality\">How to Choose PSU Bank Stocks With Improving Asset Quality<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#How_to_Invest_in_PSU_Bank_Stocks_With_Improving_Asset_Quality\" title=\"How to Invest in PSU Bank Stocks With Improving Asset Quality\">How to Invest in PSU Bank Stocks With Improving Asset Quality<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#Which_PSU_bank_stocks_have_the_best_improving_asset_quality_in_2026\" title=\"Which PSU bank stocks have the best improving asset quality in 2026?\">Which PSU bank stocks have the best improving asset quality in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#What_is_SBIs_current_asset_quality\" title=\"What is SBI&#8217;s current asset quality?\">What is SBI&#8217;s current asset quality?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#How_much_did_Bank_of_Barodas_profit_grow_in_Q4_FY26\" title=\"How much did Bank of Baroda&#8217;s profit grow in Q4 FY26?\">How much did Bank of Baroda&#8217;s profit grow in Q4 FY26?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#Why_is_PNB_seen_as_a_turnaround_story_among_PSU_bank_stocks\" title=\"Why is PNB seen as a turnaround story among PSU bank stocks?\">Why is PNB seen as a turnaround story among PSU bank stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#What_risks_could_affect_PSU_bank_stocks_with_improving_asset_quality\" title=\"What risks could affect PSU bank stocks with improving asset quality?\">What risks could affect PSU bank stocks with improving asset quality?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/psu-bank-stocks-improving-asset-quality-2026\/#How_is_asset_quality_measured_for_PSU_banks\" title=\"How is asset quality measured for PSU banks?\">How is asset quality measured for PSU banks?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Does_Improving_Asset_Quality_Mean_for_PSU_Bank_Stocks\"><\/span><strong>What Does Improving Asset Quality Mean for PSU Bank Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>PSU bank stocks with improving asset quality are lenders showing a consistent decline in gross and net non-performing asset ratios over several quarters, reflecting better credit underwriting, stronger recoveries and lower fresh slippages.<\/p>\n<p>Gross NPA measures the proportion of total loans that have turned bad, while net NPA reflects the same figure after provisioning. Falling ratios on both metrics, as seen across SBI, Bank of Baroda and PNB in Q4 FY26, signal genuine balance sheet strengthening rather than one-off write-offs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_PSU_Bank_Stocks_With_Improving_Asset_Quality_Re-Rated_in_FY26\"><\/span><strong>Why PSU Bank Stocks With Improving Asset Quality Re-Rated in FY26<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>All three major PSU banks reported healthy profit growth alongside falling NPAs in Q4 FY26, shifting investor focus from just headline earnings to genuine credit quality improvement. This combination has made PSU bank stocks with improving asset quality one of the more closely tracked themes in Indian banking this year.<\/p>\n<ul>\n<li><strong>Multi-decade low NPAs:<\/strong> SBI&#8217;s gross NPA ratio eased to 1.49 percent and net NPA to 0.39 percent, both at multi-decade lows.<\/li>\n<li><strong>Strong profit growth:<\/strong> Bank of Baroda&#8217;s Q4 net profit rose 11.2 percent year on year to Rs 5,616 crore, while PNB&#8217;s profit grew 14.4 percent to Rs 5,225 crore.<\/li>\n<li><strong>Improving recovery mechanisms:<\/strong> Better use of digital underwriting and stronger recovery processes have reduced fresh slippages across the sector.<\/li>\n<li><strong>RAM-driven growth strategy:<\/strong> Retail, agriculture and MSME focused lending is diversifying loan books away from concentrated corporate exposure.<\/li>\n<\/ul>\n<table border=\"1\" cellspacing=\"0\" cellpadding=\"6\">\n<tbody>\n<tr>\n<th>Company<\/th>\n<th>CMP (Rs)<\/th>\n<th>Market Cap (Rs Cr)<\/th>\n<th>Gross NPA<\/th>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/univest.in\/stocks\/sbin\/state-bank-of-india-share-price-today\">State Bank of India<\/a><\/td>\n<td>1,016.90<\/td>\n<td>&#8211;<\/td>\n<td>1.49%<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/univest.in\/stocks\/bankbaroda\/bank-of-baroda-share-price-today\">Bank of Baroda<\/a><\/td>\n<td>251.40<\/td>\n<td>1,40,402<\/td>\n<td>1.89%<\/td>\n<\/tr>\n<tr>\n<td><a href=\"https:\/\/univest.in\/stocks\/pnb\/punjab-national-bank-share-price-today\">Punjab National Bank<\/a><\/td>\n<td>104.29<\/td>\n<td>1,18,883<\/td>\n<td>2.95%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"SBI_The_Strongest_Asset_Quality_Among_PSU_Bank_Stocks_With_Improving_Asset_Quality\"><\/span><strong>SBI: The Strongest Asset Quality Among PSU Bank Stocks With Improving Asset Quality<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>State Bank of India leads PSU bank stocks with improving asset quality with a Q4 FY26 gross NPA ratio of just 1.49 percent and net NPA at 0.39 percent, both at multi-decade lows, alongside a standalone net profit of Rs 19,684 crore, up 5.6 percent year on year.<\/p>\n<p>Annual profit crossed a record Rs 80,032 crore for FY26. Whole-bank net interest margin narrowed slightly to 2.91 percent amid rising deposit costs, but SBI&#8217;s scale, digital leadership and balance sheet strength keep it the benchmark PSU bank.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bank_of_Baroda_Balanced_Growth_and_Asset_Quality\"><\/span><strong>Bank of Baroda: Balanced Growth and Asset Quality<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bank of Baroda delivered one of the most balanced performances among PSU bank stocks with improving asset quality, with Q4 net profit of Rs 5,616 crore, up 11.2 percent year on year, and gross NPA improving to 1.89 percent from higher levels a year earlier.<\/p>\n<p>Global advances grew 16.2 percent year on year to Rs 30.78 lakh crore, with management raising loan growth guidance to 12 to 14 percent for the coming year and continuing its RAM-driven retail, agriculture and MSME strategy.<\/p>\n<p style=\"margin-top: 24px;\"><a href=\"https:\/\/univest.in\/sebi-registered-investment-advisor-india\"><strong>Get SEBI-Registered Research on PSU Bank Stocks<\/strong><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"PNB_The_Sharpest_Asset_Quality_Turnaround\"><\/span><strong>PNB: The Sharpest Asset Quality Turnaround<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Punjab National Bank posted the strongest earnings growth among PSU bank stocks with improving asset quality in Q4 FY26, with net profit up 14.4 percent year on year to Rs 5,225 crore, while gross NPA improved sharply to 2.95 percent.<\/p>\n<p>Q1 FY27 provisional data showed domestic advances up 12.85 percent year on year and deposits growing 8.6 percent, continuing the turnaround. Technically, PNB still trades below key moving averages, reflecting some residual investor caution.<\/p>\n<p style=\"margin-top: 24px;\"><em>Download the <a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&amp;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track SBI, Bank of Baroda and PNB live prices.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Factors_Affecting_PSU_Bank_Stocks_With_Improving_Asset_Quality\"><\/span><strong>Factors Affecting PSU Bank Stocks With Improving Asset Quality<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Credit growth momentum:<\/strong> Sustained loan growth across retail, agriculture and MSME segments supports revenue even as margins face pressure.<\/li>\n<li><strong>Deposit cost pressure:<\/strong> Rising deposit costs have narrowed net interest margins across PSU banks in recent quarters.<\/li>\n<li><strong>Provisioning discipline:<\/strong> Consistent provisioning against stressed assets has been central to the asset quality improvement across PSU bank stocks with improving asset quality.<\/li>\n<li><strong>ECL transition:<\/strong> The RBI&#8217;s upcoming expected credit loss framework from April 2027 will require additional provisioning buffers.<\/li>\n<li><strong>Digital banking adoption:<\/strong> Expanding digital lending and collections infrastructure is improving underwriting and recovery efficiency.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_Investing_in_PSU_Bank_Stocks_With_Improving_Asset_Quality\"><\/span><strong>Benefits of Investing in PSU Bank Stocks With Improving Asset Quality<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Lower credit cost risk:<\/strong> Falling NPA ratios reduce the likelihood of future provisioning shocks that have historically hurt PSU bank earnings.<\/li>\n<li><strong>Valuation re-rating potential:<\/strong> Improving fundamentals have already driven meaningful stock re-rating and could continue if trends persist.<\/li>\n<li><strong>Dividend growth:<\/strong> Stronger profitability is translating into higher dividend payouts across PSU bank stocks with improving asset quality.<\/li>\n<li><strong>Scale advantages:<\/strong> SBI, Bank of Baroda and PNB rank among India&#8217;s largest lenders by branch network and business volume.<\/li>\n<li><strong>Government backing:<\/strong> Sovereign ownership reduces the risk of sudden failure compared to smaller private lenders.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Risks_Affecting_PSU_Bank_Stocks_With_Improving_Asset_Quality\"><\/span><strong>Risks Affecting PSU Bank Stocks With Improving Asset Quality<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Margin pressure:<\/strong> Narrowing net interest margins from deposit cost increases could offset some of the asset quality gains.<\/li>\n<li><strong>Macro sensitivity:<\/strong> Slower economic growth or a rate cycle reversal could stall the improvement in credit quality.<\/li>\n<li><strong>Technical weakness:<\/strong> Some PSU banks, including PNB, continue to trade below key moving averages despite improving fundamentals.<\/li>\n<li><strong>Regulatory transition costs:<\/strong> The shift to an expected credit loss provisioning framework by 2031 could require capital buffers ahead of time.<\/li>\n<li><strong>Sector-wide sentiment swings:<\/strong> PSU bank stocks tend to move together on Bank Nifty sentiment, sometimes masking company-specific strength.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Choose_PSU_Bank_Stocks_With_Improving_Asset_Quality\"><\/span><strong>How to Choose PSU Bank Stocks With Improving Asset Quality<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Compare gross and net NPA trends over the last 4 to 6 quarters, not just the most recent print.<\/li>\n<li>Check net interest margin trajectory alongside asset quality to assess overall earnings quality.<\/li>\n<li>Review credit growth composition across retail, agriculture, MSME and corporate segments.<\/li>\n<li>Track provisioning coverage ratio as a buffer against future stress.<\/li>\n<li>Assess capital adequacy ratio relative to regulatory minimums and growth ambitions.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Invest_in_PSU_Bank_Stocks_With_Improving_Asset_Quality\"><\/span><strong>How to Invest in PSU Bank Stocks With Improving Asset Quality<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Use the Univest platform to compare NPA trends, credit growth and margins across PSU banks.<\/li>\n<li>Open a demat and trading account with Univest for zero-brokerage execution.<\/li>\n<li>Track quarterly results for SBI, Bank of Baroda and PNB through the Univest app.<\/li>\n<li>Consult a SEBI-registered advisor before allocating a large portion of your portfolio to banking stocks.<\/li>\n<li>Review positions periodically as margin trends and credit cycles evolve.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>SBI, Bank of Baroda and PNB stand out as PSU bank stocks with improving asset quality after a strong Q4 FY26, with gross NPA ratios falling to multi-decade lows across the sector. Historically, sustained asset quality improvement has supported valuation re-rating for PSU banks, though margin pressure and macro sensitivity remain real considerations. Consult a SEBI-registered advisor before making investment decisions.<\/p>\n<div style=\"background: #CC0000; border-radius: 8px; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"color: #ffffff; font-size: 13px; line-height: 1.7; margin: 0;\"><strong style=\"color: #ffffff;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Which_PSU_bank_stocks_have_the_best_improving_asset_quality_in_2026\"><\/span><strong>Which PSU bank stocks have the best improving asset quality in 2026?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> SBI, Bank of Baroda and PNB are the leading PSU bank stocks with improving asset quality, posting Q4 FY26 gross NPA ratios of 1.49 percent, 1.89 percent and 2.95 percent respectively.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_SBIs_current_asset_quality\"><\/span><strong>What is SBI&#8217;s current asset quality?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> SBI leads PSU bank stocks with improving asset quality with a gross NPA ratio of 1.49 percent and net NPA of 0.39 percent in Q4 FY26, both at multi-decade lows.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_much_did_Bank_of_Barodas_profit_grow_in_Q4_FY26\"><\/span><strong>How much did Bank of Baroda&#8217;s profit grow in Q4 FY26?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Bank of Baroda, among PSU bank stocks with improving asset quality, posted an 11.2 percent year on year rise in Q4 net profit to Rs 5,616 crore, with gross NPA improving to 1.89 percent.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_is_PNB_seen_as_a_turnaround_story_among_PSU_bank_stocks\"><\/span><strong>Why is PNB seen as a turnaround story among PSU bank stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> PNB delivered the strongest earnings growth among PSU bank stocks with improving asset quality in Q4 FY26, with profit up 14.4 percent and gross NPA improving sharply to 2.95 percent from higher levels a year earlier.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_risks_could_affect_PSU_bank_stocks_with_improving_asset_quality\"><\/span><strong>What risks could affect PSU bank stocks with improving asset quality?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Key risks for PSU bank stocks with improving asset quality include net interest margin pressure from rising deposit costs, macro slowdown risk and the upcoming transition to expected credit loss provisioning norms.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_is_asset_quality_measured_for_PSU_banks\"><\/span><strong>How is asset quality measured for PSU banks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Asset quality for PSU bank stocks with improving asset quality is measured using gross and net non-performing asset ratios, which track the proportion of loans turning bad before and after provisioning.<\/p><p><\/p>","protected":false},"excerpt":{"rendered":"<p>PSU bank stocks with improving asset quality, SBI, Bank of Baroda and PNB, posted multi-decade low NPAs in Q4 FY26. Full stock analysis.<\/p>\n","protected":false},"author":28,"featured_media":148745,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[842],"tags":[3802],"class_list":["post-148625","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-news"],"metadata":{"rank_math_internal_links_processed":["1"],"_edit_lock":["1783927836:28"],"_last_editor_used_jetpack":["block-editor"],"rank_math_primary_category":["842"],"rank_math_seo_score":["85"],"rank_math_title":["PSU Bank Stocks With Improving Asset Quality 2026"],"rank_math_description":["PSU bank stocks with improving asset quality, SBI, Bank of Baroda and PNB, posted multi-decade low NPAs in Q4 FY26. 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