Select PSU banks gain up to 4%; Canara, Indian Bank near 52-week highs

At 01:49 PM, the Nifty PSU Bank index, the top gainer among sectoral indices, was up 1 per cent, as compared to a 0.50 per cent decline in the Nifty 50

Public sector banks (PSBs) share price today:  Shares of select public sector banks (PSBs) have moved higher by up to 4 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day deal after Canara Bank and Indian Bank announced their June quarter (Q1FY26) results.

 

Shares of Canara Bank and Indian Bank have rallied 4 per cent each. Canara Bank is trading close to its 52-week high level of ₹119.30, it touched on June 9, 2025. Shares of Indian Bank had hit a 52-week high of ₹ 658.50 on June 3, 2025.

 

Uco Bank, Union Bank of India, Punjab National Bank, Bank of Baroda, Indian Overseas Bank, Bank of India and Bank of Maharashtra were trading higher by up to 1 per cent. However, State Bank of India (SBI) and Central Bank of India were trading almost flat.

 

At 01:49 PM; Nifty PSU Bank index, the top gainer among sectoral indices, was up 1 per cent, as compared to 0.50 per cent decline in the Nifty 50.  Track LIVE Stock Market Updates

Canara Bank, Indian Bank Q1 result

Asset quality of Canara Bank improved during April to June quarter. Gross non-performing assets (GNPA) ratio improved to 2.69 per cent as of June 2025, down from 2.94 per cent in March 2025 and 4.14 per cent in June 2024. Net NPA ratio improved to 0.63 per cent as at June 2025, down from 0.70 per cent as of March 2025 and 1.24 per cent in June 2024.

 

The bank’s net profit increased 21.69 per cent year-on-year (Y-o-Y) at ₹4,752 crore. Operating profit grew 12.32 per cent Y-o-Y at ₹8,554 crore. Net interest income, however, declined 1.7 per cent Y-o-Y, 4.6 per cent sequentially at ₹9,009 crore. 

 

Meanwhile, Indian Bank's gross non-performing assets (GNPA) ratio improved to 3.01 per cent as of June 2025, down from 3.09 per cent in March 2025 and 3.77 per cent in June 2024. The net NPA ratio also declined to 0.18 per cent in June 2025 from 0.19 per cent in March 2025 and 0.39 per cent in June 2024.

 

The lender's net profit grew 23.6 per cent Y-o-Y to ₹2,973 crore, while operating profit up 6 per cent Y-o-Y to ₹ 4,770 crore. Net interest income rose to ₹6,359 crore from ₹6,178 crore in the year-ago quarter. 

FY26 outlook remains optimistic

 

In the face of a turbulent global environment, the country continues to demonstrate resilience. The growth momentum of the domestic economy is supported by easing inflationary pressure, stable currency, proactive monetary support, growing consumption demand, fiscal discipline and a resilient financial sector. Having said that, uncertainties surrounding global developments pose a key risk to domestic growth outlook for FY26, Indian Bank said in its FY25 annual report.

 

The outlook for FY26 remains optimistic, bolstered by sustained domestic growth momentum, liquidity support from the regulator, improving asset quality and healthy capital buffers. In this backdrop, credit growth is anticipated to remain robust in FY26 as well, Canara Bank said.

 

The Reserve Bank of India (RBI) cut policy rates by 50 basis points (Bps) (2x market expectations) and signalled that it is done with easing for now, with its stance revised to Neutral. This has set market expectations for a quick margin bottom for the banking sector by Q2FY26, with a bulk of the dip expected in Q1FY26, according to analysts at BNP Paribas India.

  

Overall, asset quality outlook is stable to positive for the sector, except for the unsecured retail loans and microfinance institution (MFI) segment. Analysts believe banks with a robust capital base, strong asset quality, and healthy retail deposit franchises are well-placed to capture growth opportunities.