SBIN.NS Stock Today: February 26 — FM Rules Out PSU Bank Merger Plan
Sitharaman public sector bank stance is clear: no merger roadmap now, while a high-level banking committee will review reforms. For investors, this tempers PSU bank consolidation bets and shifts attention to earnings strength, capital and credit growth under the RBI banking outlook. On 26 February, SBI closed at ₹1,223.30 with a day range of ₹1,219.70–₹1,234.70 and a 52-week range of ₹680.00–₹1,228.10. We break down today’s prices, trend signals, and key fundamentals across SBI, PNB, Canara Bank, Bank of Baroda, and Union Bank.
Policy Signal: No PSU Bank Mergers For Now
Finance Minister Nirmala Sitharaman said there is no current roadmap for merging state-run lenders. A new committee will review sector reforms. This removes a near-term trigger for deal premiums in PSU banks and supports a fundamentals-first view. Full remarks here: source.
With the Sitharaman public sector bank message, focus moves to profitability, capital, and growth. Valuation snapshots: SBI P/E 13.07, P/B 1.87; PNB P/E 8.43, P/B 1.01; Canara P/E 7.13, P/B 1.23; Bank of Baroda P/E 8.39, P/B 0.99; Union Bank P/E 8.04, P/B 1.16. The RBI banking outlook on credit growth and asset quality will drive near-term performance.
Price and Technical Snapshot of Key PSU Banks
SBIN.NS closed at ₹1,223.30, day range ₹1,219.70–₹1,234.70; 52-week ₹680.00–₹1,228.10. Volume 15,788,449 vs 11,020,269 average. RSI 66.97, ADX 41.34 signals a strong trend. Bollinger upper band ₹1,287.29 caps near-term upside. YTD +21.87%, 1Y +68.81%. Momentum reads remain firm, with MFI 85.87 flagging overbought conditions.
PNB.NS ended ₹131.03, range ₹129.30–₹132.10; 52-week ₹85.46–₹135.15. RSI 61.99, CCI 105.51, MFI 56.69. CANBK at ₹157.03, range ₹155.00–₹158.10; 52-week ₹78.60–₹160.79. RSI 64.26, ADX 14.07 shows a weak trend, while CCI 148.57 is overbought. Both trade near resistance with constructive momentum.
BANKBARODA at ₹313.10, range ₹307.00–₹314.20; 52-week ₹190.70–₹316.45. RSI 66.85 and rising MACD support positive bias. UNIONBANK at ₹200.62, range ₹196.21–₹202.24; 52-week ₹107.60–₹202.54. RSI 71.98 and ADX 39.22 suggest strong, overbought conditions. Short-term pullbacks can occur as prices test upper channels.
Fundamentals and Valuations To Track
Core returns remain healthy. ROE: SBI 15.75%, PNB 12.91%, Canara 16.88%, Bank of Baroda 12.49%, Union Bank 15.82%. Dividend yields: SBI 1.32%, PNB 2.22%, Canara 2.52%, Bank of Baroda 2.64%, Union Bank 2.38%. The Sitharaman public sector bank stance puts these steady return profiles at the center of investor decisions.
Price-to-book remains near or below 1.25 for most peers, anchoring downside: SBI 1.87, PNB 1.01, Canara 1.23, Bank of Baroda 0.99, Union Bank 1.16. Debt-to-equity prints are: SBI 1.16, PNB 0.77, Canara 1.26, Bank of Baroda 0.87, Union Bank 0.60. For banks, P/B and ROE are more telling than leverage alone.
EPS growth FY25: SBI 15.62%, PNB 98.55%, Canara 14.79%, Bank of Baroda 10.39%, Union Bank 23.34%. Near-term model price estimates: SBI ₹1,131.45 monthly, PNB ₹116.73, Canara ₹146.03, Bank of Baroda ₹296.74, Union Bank ₹183.68. Use these as directional, not advice, under the broader RBI banking outlook.
What The Banking Reform Committee Could Examine
The banking reform panel could examine governance standards, capital buffers, recovery frameworks, digital risk, and competition with fintech and NBFCs. It may also study PSU bank consolidation at a later stage, per media reports: source. The Sitharaman public sector bank position keeps policy optionality, but without a near-term merger plan.
Watch credit growth, NIMs, slippages, PCR, and CET1 trends in Q4 results. Track deposit pricing and CASA mix as the RBI banking outlook evolves. With PSU bank consolidation off the table for now, price action should follow earnings delivery, recoveries and capital build. Maintain discipline on P/B versus sustainable ROE.
Final Thoughts
The key takeaway from the Sitharaman public sector bank update is that mergers are not a near-term driver. That shifts attention to fundamentals and trend signals. SBI trades near its 52-week high with strong momentum and above-average volume. PNB, Canara Bank, Bank of Baroda, and Union Bank show healthy ROE and reasonable P/B, though several screens look overbought. We would track Q4 updates, including SBI’s late-April results date, credit growth, NIM, slippages, and capital ratios. In the absence of PSU bank consolidation, use simple guardrails: favor sustainable ROE above cost of equity, monitor P/B re-rating risk, and respect technical overbought readings when sizing entries. Policy clarity is helpful, but earnings will lead prices.
FAQs
What exactly did the Finance Minister say about PSU bank mergers?
She said there is no current roadmap for merging state-run lenders. A high-level committee will review sector reforms, and any consolidation, if considered, would be part of a broader process. For now, the Sitharaman public sector bank stance removes a near-term deal trigger and shifts attention to bank-specific fundamentals and earnings delivery.
How does this affect SBI and peer valuations today?
Without a merger catalyst, valuations track earnings, ROE, and asset quality. SBI P/E is 13.07 and P/B 1.87, while peers range near 0.99–1.23 P/B. That supports downside buffers if ROE stays strong. Watch technicals too, since several names screen overbought, which can invite short-term pullbacks.
What should investors focus on in PSU banks now?
Prioritize credit growth, net interest margins, slippages, PCR, and CET1. Compare P/B against sustainable ROE. Follow the RBI banking outlook for loan growth and deposit costs. With PSU bank consolidation off the table for now, the runway depends on steady earnings, recoveries, and capital build through Q4 and FY26.
What could the banking reform panel review next?
Likely areas include governance, capital buffers, digital risk, recovery frameworks, and public sector bank competitiveness. It may examine consolidation scenarios in context, but timing is uncertain. Until then, the Sitharaman public sector bank position suggests policy stability, placing the burden of performance on bank-level execution.
Are PSU bank stocks overbought right now?
Several screens signal stretched momentum. For example, SBI shows RSI 66.97 and MFI 85.87, while Union Bank’s RSI is 71.98 with a strong ADX. Overbought does not mean reversal, but it can cap near-term upside. Use pullbacks, watch volumes, and align entries with earnings milestones.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.