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PSU Bank Penny Stocks

The Indian banking system largely consists of public sector banksprivate sector banks, and foreign banks, in addition to cooperative credit institutions.

Access to the banking system has improved over the years due to persistent effort from the Government to promote banking technology and promote expansion in unbanked and metropolitan regions.

If you look at the history of the financial world over the last 50-60 years, you will see there was hardly any innovation. This is because traditionally the banking sector is very slow to adopt new technologies.

However, with the rise of disruptive technologies like artificial intelligence (AI), machine learning, and blockchain, the industry is now at the forefront of technological innovation.

Due to this, the banking sector will undergo a massive transformation in the coming years. And the fastest growing entities will possibly be the ones that adapt to this change without compromising on the core of margins and asset quality.

Many banks are investing heavily in their own technology and other startups to catch up with non-banks in the digital banking space.

To draw a stark comparison between PSU and private sector banks, public sector banks in India have suffered poor valuations for decades. At the turn of every economic cycle, these entities are forced to lend vigorously. They even lend to corporates with poor balance sheets.

Their private peers, on the other hand, have stayed ahead and invested in technology to keep up with the changing dynamics. They have showed consistency in lending quality, NPA provisions and profit growth.

As things stand now, the government is employing capital expenditure programs to boost demand. The key is to stimulate growth via a long-term capex measure.

This massive capital outlay bodes well for banks in general. However, the PSU banks are at a slight advantage.

Further, the opportunities are not just limited to the big PSU banks. Even their smaller counterparts can make a breakthrough and get recognized.

If the smaller PSU banks do have a major impact in the future, they could potentially turn into future bluechips.

Here are some of the public sector bank penny stocks to add to your watchlist.

#1 UCO Bank

#2 Bank of India

#3 Bank of Maharashtra

#4 Central Bank of India

#5 Indian Overseas Bank

#6 Punjab & Sind Bank

#7 Union Bank of India

For the entire list of PSU banking stocks, check out our list of PSU banks.


Stock Split Alert: This PSU Stock Prepares for First Ever Stock Split

Feb 10, 2024

This PSU bank will be carrying out its first ever stock split if it gets approved later this month.

Why Yes Bank Share Price is Rising

Feb 8, 2024

Yes Bank shares hit their highest level since June 2020, surging 43% in three days. What's driving the rally?

Top 2 PSU Banks with Reasonable Valuations

Jan 26, 2024

The ability for banks like Union Bank of India and Canara Bank to manage their NIMs would be key, given that the rate easing cycle is still 6-9 months away.

Why PNB Share Price is Rising

Nov 15, 2023

Shares of PNB have surged around 80% in a year. The stock is currently trading very close to 52-week high. Let's explore the reasons driving this rally.

Why Indian Overseas Bank's (IOB) Share Price is Rising

Oct 4, 2023

What's next for the stock of IOB? Find out...

Why UCO Bank Share Price is Rising

Sep 18, 2023

This multibagger banking stock zooms 27% in five days. Find out what next for this PSU bank.

South Indian Bank - A Multibagger Stock in the Making?

Jul 13, 2023

The overall sentiment in the PSU banking sector is bullish, and South Indian Bank has resumed its upward momentum after breaking out of a rectangle pattern.

Is it Time to Shun the Capital Goods Sector?

Jun 7, 2023

With Sky High Valuations, is it Time to Relook at the Capital Goods Sector.

Why SBI Share Price is Falling

May 19, 2023

After reporting highest ever quarterly profit, shares of SBI have encountered a roadblock due to these reasons.

India's Worst Performing Banking Stocks of 2023 So Far

Mar 22, 2023

Questions have been raised on the Indian banking sector amid the global banking crisis. As a result, bank stocks are falling. But is an Indian banking crisis in the offing?

5 Best PSU Bank Penny Stocks in India

Feb 10, 2024

With strong credit growth and cleaner balance sheets, the best PSU bank stocks could see more upside in the medium term.

Why IOB Share Price is Rising

Feb 7, 2024

Shares of this PSU bank zoomed 13% today and hit their 52-week high. What's driving the rally?

Why Bank of Baroda Share Price is Rising

Dec 27, 2023

Shares of the third largest PSU bank in the country touched their 52 week high today. Here's why.

Canara Bank & Union Bank's Strong Q2 Results: What Next for these Top Performing PSU Bank Stocks?

Oct 28, 2023

The ability of these two PSU banks to effectively manage a rising interest rate scenario is commendable.

Pyramiding PSU Bank Stocks

Sep 22, 2023

How to trade PSU banking stocks now.

2 PSU Stocks You Could 'Bank' Upon

Jul 25, 2023

In the past few days, two PSU banks have reported strong operational performance. Find out more details inside.

Are PSU Bank Stocks Worth Investing in Now?

Jul 6, 2023

What do the charts say about PSU banking stocks? Find out...

Is it Time to Shun Capital Goods Stocks?

Jun 1, 2023

Due to sky high valuations, what should you do with these stocks?

Why Canara Bank Share Price is Falling

May 9, 2023

Most banks have reported a superlative performance in the quarter ended March 2023. What about Canara Bank?

Why UCO Bank Share Price is Falling

Feb 22, 2023

After reporting highest ever quarterly profit, shares of UCO Bank have hit the wall. Find out what next for this PSU bank.