Canara Bank vs PNB vs BoB: Which bank PSU stock to buy after Q4 results 2025?

Canara Bank vs PNB vs BoB: After the announcement of Q4 results 2025 last week, Indian stock market investors would be keen to find value picks among bank PSU stocks—Canara Bank, Pubjab National Bank (PNB), and Bank of Baroda (BoB). Amid sharp selling pressure on Friday after the escalation in India-Pakistan tension, shares of PNB, Canara Bank, and BoB ended higher. So, these PSU stocks are expected to remain under the bulls' radar when the Indian stock market reopens next week.
According to stock market experts, PNB reported the highest rise in global business during Q4FY25, which was driven by a rise in global deposits. Bob also reported double-digit growth in global advances. Canara Bank also reported modest growth, driven by a rise in global gross advances and domestic deposits.
Reveiwing the Q4 2025 results of respective PSU banks, Seema Srivastava, Senior Research Analyst at SMC Global Securities, said, "After the Q4 FY2025 results, among the three major PSU banks—Punjab National Bank (PNB), Bank of Baroda (BoB), and Canara Bank—PNB and BoB appear to be the stronger contenders, while Canara Bank lags slightly in key areas."
"Starting with business growth, PNB reported the highest year-on-year (YoY) increase in global business, with a 14.03% rise to ₹ 26.83 lakh crore. It also recorded strong growth in global deposits (14.38%) and advances (13.56%). RAM (Retail, Agriculture, MSME) advances grew by an impressive 15.89%. In comparison, BoB's global advances increased by 12.8%, with robust growth in retail loans at 19.4%, while global deposits rose by 10.3%. Canara Bank showed more modest growth, with global gross advances rising by 11.74% and domestic deposits by 9.56%," Seema added.
Comparing the profitability of these three PSU banks, Seema Srivastava said, "In terms of profitability, PNB stands out with the highest Return on Equity (RoE) at 19.33% and a significant improvement in Return on Assets (RoA) to 0.97%. Net Interest Income (NII) for PNB grew 6.7% to ₹ 42,782 crore, although its Net Interest Margin (NIM) remained flat at 2.93%. BoB, meanwhile, posted the highest NIM at 3.02%, along with an RoA of 1.16% and RoE of 16.96%. Canara Bank, in contrast, saw a 1.44% decline in NII and a steep 34 basis point drop in NIM to 2.73%, although its operating profit in Q4 grew 12.14% YoY and net profit rose over 33%."
Asked about asset quality of Canara Bank, PNB and BoB, Seema said, "On asset quality, Bank of Baroda emerged as the leader with the lowest Gross NPA (2.26%) and Net NPA (0.58%), showing strong improvement from the previous year. PNB did not disclose NPA ratios but reported the highest Provision Coverage Ratio (PCR) at 96.82% and a sharp improvement in credit cost to 0.21% from 0.81%. Canara Bank's GNPA and NNPA improved to 2.94% and 0.70%, respectively, with a PCR of 92.7%."
On which stock is better from the fundamental perspective, Seema Srivastava of SMC Global Securities said, "PNB is best positioned for investors seeking high growth and improving profitability, while BoB appeals to more conservative investors due to its strong asset quality and stable margins. Despite positive profit growth and improving asset quality, Canara Bank is relatively less attractive due to falling NII and NIM. Thus, PNB and BoB are better placed for investment consideration post-Q4 FY25 results."
On which stock is better from the technical perspective, Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, said, "From a technical standpoint, Canara Bank currently presents a more attractive setup than PNB and Bank of Baroda (BOB). On the monthly chart, Canara Bank share price has formed a bullish engulfing pattern, a strong indicator of potential upward momentum. Moreover, the stock has broken out of its Bollinger Band, indicating heightened volatility and the possibility of a continued uptrend. The medium-term target for the stock lies in the ₹ 125 to ₹ 130 range. Currently trading near ₹ 95 to ₹ 100, Canara Bank share offers a favourable risk-reward ratio, particularly with a well-placed stop loss at ₹ 75."
On technical charts regarding PNB and BoB shares, Ganesh Dongre of Anand Rathi said, 'BOB share price remains in a profit-booking and consolidation phase, currently trading within a ₹ 200 to ₹ 250 range. A breakout on either side of this zone will likely dictate its next major move. Until such confirmation emerges, BOB share lacks a compelling technical entry point. PNB share price, having undergone a significant correction, still shows no clear technical setup or breakout on the medium-term chart. As a result, it offers limited immediate upside potential from a technical perspective.'
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Standard

23 minutes ago

• Business Standard

DGCA launches comprehensive special audit plan to end siloed safety checks

The Directorate General of Civil Aviation (DGCA) has rolled out a new 'comprehensive special audit' framework for India's aviation sector that aims to move beyond siloed safety assessments and carry out integrated evaluations across airlines, airports, maintenance firms, training institutes, and ground handling agencies. 'Traditionally, regulatory and safety oversight functions within Indian aviation have been conducted in silos, with different directorates (of DGCA) performing inspections and audits specific to their respective domains. These activities include planned/unplanned surveillance inspections, random spot checks and ramp inspections, which primarily assess compliance and safety within individual aviation segments,' the regulator stated. On June 12, Air India's London-bound AI171 flight crashed shortly after take-off from Ahmedabad, killing 229 passengers, 12 crew members, and 34 people on the ground. Issued on June 19, the DGCA circular mentioned the need for 'a 360-degree evaluation of the aviation ecosystem, reflecting both its strengths and areas needing improvement'. Going beyond the annual surveillance audits currently in place, the special audits will be carried out by multidisciplinary teams led by senior officials from the regulator. These teams will include personnel from various DGCA divisions—such as flight standards, air safety, airworthiness, aerodrome standards, and air navigation—and may also bring in external experts when needed. The audits will examine three broad areas: the effectiveness of an organisation's Safety Management System (SMS), the robustness of its operational practices, and compliance with regulatory provisions. Each audit will involve a combination of techniques, including on-site inspections, document reviews, interviews with operational staff, safety data analysis, and training record checks. 'These audits will be over and above the Regulatory Audits carried out as per the Annual Surveillance Programme,' the DGCA said. They will apply to all major players in the civil aviation system, including not just airlines and airports but also Maintenance, Repair and Overhaul (MRO) providers, training academies, and even entities that manage emergency response systems and supply chains. The regulator will initiate these audits either routinely—such as through annual assessments or post-implementation reviews—or in response to specific triggers like serious incidents, regulatory violations, or findings by UN body International Civil Aviation Organisation (ICAO). In urgent cases, audits may begin without notice. Otherwise, entities will be given between three to fourteen working days to prepare. Audit findings will be categorised by severity. The most critical will require corrective action within seven days, while others may be resolved over 30 or 90 days. 'Audited entities must submit a Corrective Action Plan… detailing root cause analysis, remedial actions, preventive measures, implementation timelines, and success metrics,' the circular stated. The DGCA has also made it clear that enforcement will follow in cases where findings are not addressed. 'Non-compliance… may result in progressive enforcement actions, including advisory guidance, formal warnings, operational restrictions, financial penalty, suspension, or revocation of licences,' it noted. To encourage transparency, the regulator has promised confidentiality of audit findings in line with international norms. 'The Special Audit upholds a confidential approach, aligned with ICAO Annex 19 principles, to foster open reporting and positive safety culture,' it said. The new audits, DGCA said, will 'provide a holistic evaluation of the aviation sector, meticulously examining safety, operational efficiency, and regulatory compliance'. The goal is to proactively identify systemic vulnerabilities, enhance resilience, and ensure alignment with international standards and India's own aviation safety objectives.

Business Standard

23 minutes ago

• Business Standard

Markets may dip as US strikes on Iran stoke oil fears, global volatility

Indian markets may open lower on Monday due to fears of crude oil disruption from the West Asia though domestic institutional investors may support valuations Sundar Sethuraman Mumbai Listen to This Article Investors may have to brace for a spike in volatility on Monday following the US military's direct involvement in the Israel–Iran conflict over the weekend. Experts believe benchmark Sensex and Nifty may correct 1–1.5 per cent if oil prices surge and Asian markets fall due to the widening of the West Asia conflict. However, domestic institutional investor (DII) buying could cushion the fall. Last week, the domestic markets had gained over 1.5 per cent even as hostilities between Iran and Israel escalated. On Saturday, President Donald Trump announced targeted strikes on three of Iran's key nuclear facilities—Fordow, Natanz, and Isfahan—using

Mint

29 minutes ago

• Mint

Vivek Oberoi's Net Worth: Bollywood actor credits early stock market exposure for building ₹1,200 crore fortune

Actor Vivek Oberoi, whose acting career didn't went well, has turned himself into a successful businessman by creating a ₹ 1,200 crore biz empire. During a recent interview on Owais Andrabi's Dubai Property Insider podcast, Vivek revealed that his father only played the role of a mentor in his life and never helped him financially. Vivek, son of actor and politician Suresh Oberoi, made his Bollywood debut in 2002 with Ram Gopal Verma's film 'Company', and became a household name with movie 'Saathiya' (2002), directed by Shaad Ali. Talking about how he built such a big empire, Vivek said that his father groomed him regarding economics and business from a very young age. 'He would bring me a product and would ask me to create an entire business plan about how I was going to sell it. I started understanding the nuances of business from the age of 10 because I was going from door to door to sell that stuff.' Vivek further said that his father used to tell him 'I am a rich man; you are not. You will get there, but you have to do it on your own.' He also credited his exposure to the stock market trading and real estate investments during his teenage years for shaping up his entrepreneurial journey. He said: 'I was able to raise $3 million for my first company, and I was only 19, and I made a lot of money for my investors and myself, and I sold the company by the time I was 23. If I hadn't been applying myself for all those years, it never would have been possible. Because I put in that work, now I have been able to take nine companies public on the Indian stock market, and I am planning to take four more.' As of April 2025 Vivek Oberoi has a net worth of ₹ 1200 crore, according to Forbes India. His ventures include BNW Real Estate Developers, a prominent player in the UAE luxury market, and Solitario, a lab-grown diamond brand. Other business ventures in which Vivek has invested include global brand accelerator Impresario Global, a gin brand called Rutland Square Spirits, and vehicle care platform ReadyAssist.