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.
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