SBI vs BoB vs PNB: Which Stocks to Buy Today After Q1 2024 Results and Stock Market Crash

SBI vs BoB vs PNB: State Bank of India (SBI) announced its Q1FY24 results on Saturday, reporting a slight increase in net profit on account of higher provisions. After SBI announced its Q1FY24 results, three central PSU banks — SBI, Punjab National Bank (PNB) and Bank of Baroda (BoB) — announced their results for the first quarter of the current fiscal year. With the Indian stock market on a downward trend on renewed fears of a US recession and rising tensions in the Middle East, long-term investors may find it difficult to pick any of these stocks.

SBI vs BoB vs PNB: Whose Q1 results are better

Comparing Q1FY24 results of the three central PSU banks, Tapan Doshi, SEBI registered analyst and founder of Thoughtful Investors Hub, said, “When we compare Q1FY25 results of SBI, PNB and BOB, SBI is in a strong position compared to the other two PSU banks. Over the last two decades, SBI had the lowest credit cost and an impressive ROE of 17.3%, which was the highest since FY 2005. Loans grew by 15% YoY, while slippages were controlled at 70 basis points, which shows good asset quality and exciting valuation. PNB saw profits grow by 160% YoY on the back of lower provisions, but that’s 0.8% RoA and 12% RoE. However, it is important to note that a 100% increase in stock prices in a single year makes it more expensive.”

“BOB on the other hand delivered a modest 10% earnings growth, accompanied by low slippage at 1%, a solid asset quality record of 8% YoY growth and 15% ROE and 1.1% ROA. Overall, SBI is leading, followed by BOB, while PNB trails on revaluation concerns,” said Tapan Doshi.

SBI Share Target Price

Talking about the SBI share price outlook, Sumeet Bagadia, Executive Director, Choice Broking, said, “In view of the stock market crash, I suggest buying SBI shares at around ₹790 to ₹800 per person for short term purpose ₹860 and ₹900. However, a strict stop loss level must be maintained. ₹760, while taking new buy positions in SBI shares.”

BoB Share Target Price

On the outlook for BoB share prices, Bagadia said, “Bank of Baroda shares can be bought or accumulated in ₹230 to ₹Range 220 pieces, keeping the stop loss at ₹210 per share. If the trend reverses, we can expect the PSU bank shares to touch ₹270 to ₹“In the short term, the goal is to reach $280 per share.”

Nifty PSU Bank Index Outlook

Sumeet Bagadia of Choice Broking said that the Nifty PSU Bank index is under pressure today due to the stock market crash following weak global signals on recession fears in the US. He said geopolitical tensions in the Middle East and the US-China trade war are also reasons for weakness in global markets.

PSU Bank Index

“Nifty PSU Bank index has strong support at 6400-6500 levels while the index is facing resistance at 7100 level. A break on either side could lead to a bullish or bearish trend. Till then, investors should maintain a buy strategy on dips,” Bagadia said.

Stock exchange today

Indian stock indices Sensex and Nifty 50 fell 3 per cent on Monday morning, mirroring the global trend after fears of a US recession intensified and rising tensions in the Middle East left investors jittery.

Reservation: The above views and recommendations are those of the individual analysts or brokerage firms, not Mint. We recommend that investors consult certified experts before making any investment decisions.