{"id":84718,"date":"2026-05-14T09:54:04","date_gmt":"2026-05-14T04:24:04","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=84718"},"modified":"2026-05-14T09:54:07","modified_gmt":"2026-05-14T04:24:07","slug":"best-psu-bank-stocks-in-india-2026","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/best-psu-bank-stocks-in-india-2026\/","title":{"rendered":"Best PSU Bank Stocks in India 2026: Top 5 Public Sector Bank Picks With Analyst Targets"},"content":{"rendered":"
<\/div>\n

The best PSU bank stocks in India 2026 are at an earnings quality inflection rarely seen in two decades. India’s public sector banks have completed a decade long NPA resolution cycle, GNPA for PSU banks has fallen from a peak of 14.6 percent in FY18 to below 4 percent in FY26. State Bank of India Ltd at Rs 7.2 lakh crore is India’s largest bank with a Rs 40 lakh crore loan book serving retail, corporate, SME and agriculture. Bank of Baroda Ltd is the fastest growing mid large PSU bank with international operations in 18 countries. Punjab National Bank Ltd is executing a turnaround with improving PCR and retail loan growth. Canara Bank Ltd is the deepest value PSU bank at below 1 time book value. Union Bank of India Ltd is focused on RAM (retail, agriculture and MSME) lending growing at 16 percent annually.<\/p>\n

Ankit Jaiswal, Senior Research Analyst at Univest, sees the best PSU bank stocks in India 2026 as the most undervalued financial businesses in Indian equities, trading at 1 to 1.5 times book versus private peers at 3 to 4 times book despite rapidly converging ROE trajectories. Kunal Singla, Associate Director at Univest, highlights that SBI’s credit card, mutual fund and insurance subsidiaries are creating a financial supergroup whose subsidiary value alone justifies the parent’s market cap.<\/p>\n

\n
\n

Table of Contents<\/p>\nToggle<\/span><\/path><\/svg><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n