The shares of PSU banks sharply surged on July 24 as investors positively responded to June quarter earnings announced by some of the lenders. The sharp rise in the share prices pushed the Nifty PSU Bank index up more than 1 percent to hover around 7,115 in the afternoon.
The PSU Bank index has now extended gains for the second consecutive session.
Canara Bank Q1 Results:
Canara Bank was the top gainer on the index, jumping over 5 percent to trade at Rs 113 apiece. This came after the company reported a net profit of Rs 4,752 crore for the first quarter of the financial year 2026. This marks a jump of nearly 22 percent on-year from the Rs 3,905 crore reported in the corresponding quarter of the previous financial year.
The lender's net interest income (NII) however fell around 2 percent on-year to Rs 9,009 crore in Q1 FY26. Its NII stood at Rs 9,166 crore in Q1 FY25. Operating profit meanwhile improved 12 percent on-year to Rs 8,554 crore during the quarter under review.
Canara Bank's asset quality improved, with net non-performing assets (NPA) falling more than 42 percent on-year to Rs 6,765 crore and net NPA ratio reducing to 0.63 percent in Q1 FY26 from 1.24 percent in Q1 FY25.
Despite the recent rise, Canara Bank shares have fallen more than 2 percent in the past five days. The stock has gained over 17 percent in the past six months, and is up 13 percent in 2025 so far.
Indian Bank Q1 Results:
Indian Bank shares rose over 3 percent to trade at Rs 644 apiece. The lender reported a net profit of Rs 2,973 crore in Q1 FY26. This marks a 24 percent on-year rise from the Rs 2,403 crore net profit reported in the corresponding quarter of the previous financial year.
Its NII meanwhile rose nearly 3 percent on-year to Rs 6,359 crore during the quarter under review. The bank had earlier reported NII at Rs 6,178 crore in the same period last year.
Asset quality improved significantly, with net NPA nearly halving to Rs 1,036 crore. Net NPA ratio reduced to 0.18 percent in Q1 FY26, from 0.39 percent in Q1 FY25.
Indian Bank shares were trading nearly 4 percent higher at Rs 649 apiece in the afternoon. The stock has gained over 4 percent in the past one month, and nearly 30 percent in the past six months.
Other PSU stocks surge
Bank of Baroda shares jumped nearly 2 percent to trade at Rs 247 apiece, while Bank of Maharashtra and Bank of India shares were up nearly 1 percent. Bucking the trend, SBI, Central Bank, Uco Bank and other PSU lender stocks were trading in the red with marginal losses.
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