New Delhi, May 9 -- PSU banking stocks are back in focus after the Q4 FY26 earnings season, but the market reaction has been mixed across the sector. While all three major public sector lenders - State Bank of India, Punjab National Bank, and Bank of Baroda - reported profit growth, investors are now focusing more on asset quality, margin trends, and long-term business strength rather than just headline earnings numbers.

State Bank of India reported a 5.6% YoY rise in standalone net profit to Rs.19,683.75 crore for Q4FY26, while net interest income grew 4.13% YoY to Rs.44,380 crore. However, domestic net interest margin narrowed to 2.93%. Asset quality improved, with gross NPA ratio easing to 1.49% and net NPA ratio declining to 0.39%. ...