PNB vs. Bank of Baroda: The Ultimate PSU Banking Showdown for 2030
PNB and Bank of Baroda (BoB), top PSU banks, showcase turnaround tales with Q3FY26 business growth exceeding 9-12% YoY, low valuations at 8x P/E, and ROE ~15-16% positioning them for 20-30% CAGR to 2030. BoB leads in margins and retail traction, while PNB excels in deposit mobilization and network scale. BoB emerges as the 2030 winner for balanced growth.
PSU Banking Context
PSU banks benefit from govt recapitalization, falling NPAs (GNPA <3%), and credit expansion (11-14% FY26), but lag privates on efficiency. PNB (12K+ branches) dominates North India; BoB (8K+ branches) stronger internationally. Q3FY26: PNB global business ₹28.92 lakh Cr (+9.6% YoY), advances +11%, deposits +8.5%, CDR 74%; BoB ₹28.91 lakh Cr (+12.2%), advances +14.6%, retail +17%.
Key Metrics
Both trade at ~1x book value, dividend yields >2%, ROE 15%; BoB edges ROCE/div yield.
| Metric | PNB | BoB |
|---|---|---|
| Price (₹) | 123 | 300 |
| Mcap (₹ Cr) | 1,41,179 | 1,54,958 |
| P/E | 8.29 | 8.06 |
| P/BV | 0.99 | 0.97 |
| ROE (%) | 15.2 | 15.5 |
| ROCE (%) | 6.32 | 6.29 |
| Div Yield (%) | 2.36 | 2.79 |
| Book Value (₹) | 124 | 307 |
Growth & Performance
PNB's 5Y profit CAGR 111% tops BoB's 86%, but BoB consistent (3Y ROE 16% vs PNB 9%). Stock 5Y CAGR: PNB 28%, BoB 36%; 1Y PNB +20%, BoB +29%.
Q3FY26 Breakdown
PNB: Domestic advances +10.2%, CDR up to 74.2%; BoB: Domestic advances +13.5%, retail +17.3% to ₹2.85 lakh Cr, exceeding guidance.
2030 Projections
PNB targets ₹150-170 (23-38% upside, 12-14% CAGR via retail/digital); BoB ₹340-550 (13-83%, doubling via retail/NRI). BoB's international/retail focus yields higher multiples (P/E to 12x).
Insights
BoB wins showdown: superior margins (NII growth), retail momentum, dividend consistency for 25% CAGR to 2030. PNB suits recovery bets with deposit strength, network. Allocate 55% BoB/45% PNB; buy BoB <₹290, PNB <₹115. Track Q3 earnings (Feb), NIM (>3%), govt reforms; total returns 18-22% ann. via compounding/divs.
.png)
.png)
COMMENTS