BoB, PNB to Canara Bank: These four Nifty PSU bank shares hit 52-week high. Experts see more upside
Stock market today: Despite profit booking trigger in small-cap and mid-cap index stocks, PSU bank shares have remained bulls' favourite in Indian stock markets. In early morning deals on Dalal Street four state-owned banks — Bank of India, Bannk of Baroda, Canara Bank and Punjab National Bank shares climbed to a new 52-week.
Bank of Baroda share price today opened upside and went on to hit a new 52-week peak of ₹213.20 apiece on NSE, Bank of India shares today opened upside and hit a new 52-week high of ₹107.80 per share, Canara Bank shares today hit a new 52-week high of ₹368.70 per equity share in NSE whereas PNB shrae price today had a gap up opening leading to fresh 52-week high of ₹73.90 per share withing few minutes of stock market's opening bell today. However, stock market experts believe that rally in PSU bank shares may further continue as large-cap PSU banks still have potential to move upside.
They said that state-owned large-cap banks that has reported im provement in net interest income and CASA would benefit much after RBI's move to discontinue incremental CRR. They said that PSU banks like Bank of Baroda, Canara Bank, State Bank of India (SBI), Unhion Bank of India, Punjab National Bank (PNB) are going to benefit and compete against big private lenders like HDFC Bank and ICICI Bank and advised investors to maintain ‘buy on dips’ strategy in these state-owned bank shares.
On why PSU bank shares are in uptrend, Sandeep Pandey, Director at Basav Capital said, “In post-Covid scenario, PSU banks have managed to improve their net interest income duue to high interest regime. But, after the high interest regime peaked out, only those banks are expected to report strong financials who have a better CASA.
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