PSU Bank Stocks In Focus: PNB, Union Bank, SBI, In Green Amid Reports of PSU Merger, Time To Buy?

PSU Bank Stocks In Red: Central Bank, Maharashtra Bank, Indian Overseas Bank (IOB), Punjab & Sind Bank, UCO Bank, Bank of Baroda, and other public sector banks were trading in red on Friday amid reports of PSU bank mergers.

Nifty PSU Bank indices remained under pressure during the trading hours. The sectoral benchmark index was 0.07% lower at 7,030.65 points at 2:52 pm. Strong movement in Punjab National Bank, Bank of India, SBIN and Union Bank shares supported Nifty PSU Bank's trajectory.

The recovery in PSU bank stocks has come after global financial news provider, Bloomberg, reported that the Indian government may explore merger of PSU banks and of raising foreign direct investment (FDI), according to CNBC TV18. Additionally, the government may explore steps to build bigger and stronger banks.

There has been no official confirmation related to the development so far. GoodReturns couldn't independently verify the news.

PSU Bank Stocks In Focus

Several PSU bank stocks stayed in green during the Friday's trading session. Meanwhile, there was some recovery in other PSU bank stocks movement during the last thirty minutes of the trading session. There was some recovery seen in Indian Bank and Canara Bank shares on NSE.

State Bank of India (SBI) shares were trading 0.05% higher at Rs 808.4 per share on NSE on 3 pm. Punjab National Bank shares were up 0.54% at Rs 110.35 per share on NSE at 3 pm. Meanwhile, Union Bank shares were trading 144.01 per share.

PSU Bank Stocks Recommendation

State Bank of India shares received a 'Buy' rating from Antique stock brokerage in its report on Friday. The brokerage had fixed a target price of Rs 955 per share indicating an upside of 18% in the stock valuation. Whereas, Syestematix Institutioal Equities gave a 'Buy' rating for the stock with a target price of Rs 1,027 per share.

Union Bank of India shares received a 'Buy' rating from the stock with a target price of Rs 162 per share, according to Antique Stock Brokerage. It has indicated a 13% upside in its valuation.

Bank of Baroda shares were given a 'Buy' rating with a target price of Rs 290 per share, indicating a 21% upside in the stock valuation, according to Antique Stock Brokerage.

Punjab National Bank shares had 'Hold' recommendation by the Antique Stock Brokerage, which indicated a 0% upside in its stock valuation in long-term.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.