Public Sector Banks (India) — Q1 Fy27 Sector Synthesis (Psbs)

A data-driven snapshot of India’s public sector banking system in Q1 FY27 (quarter ended 30 Jun 2026), synthesizing profitability, growth, funding, asset quality, capital, strategy, and emerging themes (ECL transition, FCNR(B) window, digital/AI, RAM mix shift). It also includes deeply detailed company-by-company profiles for the PSBs covered.

A. Industry Overview & Market Landscape

1) Sector Context: Psbs In The Indian Banking Ecosystem

India’s Public Sector Banks (PSBs) constitute a broad, nationally distributed banking layer with (i) very large branch and BC networks, (ii) strong government-linked franchises (pension, tax, government payments, PSU relationships), and (iii) large priority sector obligations (agri, MSME, weaker section) and associated instruments (PSLC).

Within PSBs, the competitive structure has a clear barbell:

• Mega-scale universal bank: SBI (dominant distribution + digital + corporate + retail + overseas).
• Large PSB cluster: BoB, PNB, Canara, Union Bank, Indian Bank, Bank of India.
• Mid/smaller PSBs: UCO, Central Bank, IOB, Bank of Maharashtra, Punjab & Sind, etc.

The sector’s “market landscape” in Q1 FY27 is defined by:

• Credit growth remaining robust (many banks reporting low-to-high teens; several above guidance).
• **Deposits becoming the binding