Stocks · PNB vs Union Bank
PNB vs Union Bank of India: comparing the two mid-size PSU banks in 2026
NPA recovery trajectory and loan book quality improvement post the bad debt cycle. A factual, signed comparison, informational and not a recommendation to buy or sell either stock.
The verdict
Punjab National Bank and Union Bank of India are both mid-size government-owned banks that went through significant asset quality stress cycles and are now in recovery mode, with the comparison hinging on credit quality improvement speed, credit growth visibility, and management execution on NPA resolution. As of 2026-06-18, the systematic read scores Punjab National Bank 62 and Union Bank of India 68 on the BazaarBaazi Crack Score, an Edge Score of 56 out of 100 to Union Bank of India.
BazaarBaaziSource & method
The matchup, at a glancePNB 62 · UNIONBANK 68
The Edge Score is a BazaarBaazi number for this matchup: 50 plus the gap between the two Crack Scores, capped at 100. 50 is a dead heat; the further above 50, the more decisively the systematic read favours the leader.
The case for eachStructural, not a tip
What each stock has going for it, factually. The Crack Score is the live systematic read; the edges are durable structural points, not forecasts.
The case for
Punjab National Bank
Crack Score
62 / 100Neutral
Structural edges
- One of the oldest and most established PSU bank brands in India with a deep north India customer relationship base.
- Consistent multi-year NPA reduction trajectory supported by improved recovery mechanisms and selective credit origination.
- The post-Nirav Modi institutional memory has been a discipline catalyst for underwriting conservatism.
The case for
Union Bank of India
Crack Score
68 / 100Mixed
Structural edges
- The amalgamation, while complex, created a larger balance sheet with geographic diversification that a standalone Union Bank would not have had.
- Cost synergy realisation from the three-bank merger is an ongoing source of operating efficiency improvement over the integration period.
- Stable government ownership backing with a track record of capital support when needed.
The live ratios, side by sideQ4 FY05 results · live spot
Valuation and quality ratios computed from each company's latest filed results times its live spot, the same engine as the fundamentals calculator. The price-derived ratios (P/E, P/B, yield) move with the market; the rest hold until the next results.
| Punjab National Bank | Union Bank of India | |
|---|---|---|
| P / E | 6.8x | n/a |
| P / B | 0.83x | n/a |
| Dividend yield | 2.75% | n/a |
| Return on equity | 12.3% | n/a |
| Net profit margin | 31.2% | n/a |
| EPS growth (YoY) | -0.5% | n/a |
Stored from each company's filed results, as of 2026-06-17 and currency-checked; anything we could not verify is shown as n/a rather than guessed. Move the price and watch them react in the calculator.
The comparison, side by sideFactual
Sector, indicative market cap, the live Crack Score and stance, then the structural read on each business. The live valuation and quality ratios are in the table above; read any ratio against the sector and the company's own history.
| Punjab National Bank | Union Bank of India | |
|---|---|---|
| Sector | PSU bank | Public-sector banking |
| Market capIndicative band, refreshed monthly. Read the live figure from the latest screen. | ₹1.20 lakh cr | ~1.3 lakh cr |
| Crack Score | 62 / 100 | 68 / 100 |
| Systematic stance | Neutral | Mixed |
| Scale and franchise | One of India's largest PSU banks by branch count and deposit base, with a strong presence in north India. Went through the Nirav Modi fraud and subsequent NPA cycle. Now in post-amalgamation recovery phase. | Created through the 2020 amalgamation of Oriental Bank of Commerce, United Bank of India, and Union Bank. A pan-India franchise with significant presence in central and western India. |
| Asset quality journey | Gross NPA ratio has been on a multi-year improvement trajectory from elevated post-crisis levels. Provision coverage and capital adequacy have improved. The pace of slippage control is a primary monitorable. | Post-amalgamation integration has been accompanied by NPA resolution work across the three merged entities. Asset quality improvement has been steady but the amalgamation adds complexity to comparison. |
| Credit growth | Retail, MSME, and agriculture credit are the focus segments. Corporate credit growth is more selective post the NPA cycle. RAM (retail, agriculture, MSME) mix improvement is a stated strategy. | Similar RAM-focused growth strategy. Retail and MSME segments are growing faster than corporate. The amalgamated balance sheet provides a broader geographic credit distribution platform. |
| Capital position | Capital adequacy has been maintained through a combination of government capital infusions and internal capital generation from improved profitability. | Government capital support post-amalgamation has supported capital ratios. Profitability improvement is translating into internal capital generation. |
| Best suited to | The investor who wants a large-franchise PSU bank turnaround story with a north India brand and a long history, accepting that the NPA legacy overhang takes time to fully clear. | The investor who sees value in the amalgamated entity's cost synergies, geographic diversification, and the NPA resolution runway from three merged books. |
Compute the live valuation and quality ratios for either stock, or read the full signed verdict on PNB and UNIONBANK.
FAQ2 reader questions · AEO-eligible
The PNB vs Union Bank call, distilled and schema-marked for AI Overview, Perplexity, and reader search.
Why do PSU bank stocks trade at a discount to private sector banks?
Government-owned banks in India have historically traded at lower price-to-book multiples than private sector banks due to structural concerns: politically influenced lending decisions, lower operational efficiency, legacy NPA burden from priority sector and corporate credit cycles, and slower adoption of technology and product innovation relative to private peers.
What is the Nirav Modi connection to PNB?
Punjab National Bank was the bank at the centre of the Nirav Modi fraud case revealed in 2018, where fraudulent Letters of Undertaking were issued by PNB's Brady House branch to Nirav Modi's companies, resulting in losses running into billions of dollars. The incident led to a significant NPA provision burden, regulatory scrutiny, and a broader hit to the PSU banking system's governance reputation.
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