5 PSU bank stocks jump up to 4% after reporting March quarter biz updates. Check details

The Nifty PSU Bank Index gained half a percent on Monday, even as benchmark indices Nifty 50 and BSE Sensex traded lower, snapping a two-day gaining streak. The resilience in PSU bank stocks came after several lenders reported their March quarter business updates, with as many as five stocks rising up to 4%.

PSU bank stocks witnessed a sharp correction in March, falling as much as 20%, as the US-Iran conflict pushed global bond yields higher. India’s 10-year bond yield also crossed the 7% mark recently. Since PSU banks hold large portfolios of government securities, a rise in yields leads to a fall in bond prices, resulting in mark-to-market losses on their holdings.

Among individual stocks, Bank of Baroda gained 4% to Rs 260.50 after reporting a 14% year-on-year growth in global business to Rs 30.78 lakh crore for the March quarter, compared to Rs 27 lakh crore a year ago. Global deposits rose 12% to Rs 16.48 lakh crore, while domestic deposits increased 13% to Rs 14 lakh crore. Global advances grew over 16% to Rs 14.30 lakh crore during the quarter. The bank noted that these figures are provisional and final numbers will be announced with earnings.


Union Bank of India shares gained 3% after it reported a 5.8% YoY and 6.5% QoQ increase in total global business. Global deposits rose 2.8% YoY and 6.9% sequentially, while advances grew 9.8% YoY and 6.1% QoQ. Domestic deposits and advances also showed steady growth, with CASA deposits rising 7.90% YoY and 10.82% QoQ to Rs 4.60 lakh crore.

Bank of Maharashtra shares were up 4.3% after it reported a 14% year-on-year increase in total deposits to Rs 3.5 lakh crore, while total business grew 18% to Rs 6.42 lakh crore. Global advances rose 22% to Rs 2.92 lakh crore, led by 21% growth in RAM advances and 17% growth in domestic corporate advances. The domestic credit-deposit ratio increased to 82% from 78% a year ago.

UCO Bank share price gained 2% after it reported a 6.32% sequential and 14.59% year-on-year rise in total business to Rs 5.89 lakh crore. Advances increased 7.38% QoQ and 19.09% YoY to Rs 2.62 lakh crore, while deposits grew 5.48% sequentially and 11.22% YoY to Rs 3.27 lakh crore.

Punjab National Bank posted an 11% rise in global business to Rs 29.72 lakh crore, with domestic business growing nearly 10% to Rs 28.45 lakh crore. Sequentially, global business was up 2.8%, while domestic business rose 3%. Global deposits increased 9.25% year-on-year and 3.08% quarter-on-quarter to Rs 17.11 lakh crore, while advances rose 13% YoY and 2.45% QoQ to Rs 12.61 lakh crore.

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