What exactly did the Finance Minister say about PSU bank mergers?

She said there is no current roadmap for merging state-run lenders. A high-level committee will review sector reforms, and any consolidation, if considered, would be part of a broader process. For now, the Sitharaman public sector bank stance removes a near-term deal trigger and shifts attention to bank-specific fundamentals and earnings delivery.

How does this affect SBI and peer valuations today?

Without a merger catalyst, valuations track earnings, ROE, and asset quality. SBI P/E is 13.07 and P/B 1.87, while peers range near 0.99–1.23 P/B. That supports downside buffers if ROE stays strong. Watch technicals too, since several names screen overbought, which can invite short-term pullbacks.

What should investors focus on in PSU banks now?

Prioritize credit growth, net interest margins, slippages, PCR, and CET1. Compare P/B against sustainable ROE. Follow the RBI banking outlook for loan growth and deposit costs. With PSU bank consolidation off the table for now, the runway depends on steady earnings, recoveries, and capital build through Q4 and FY26.

What could the banking reform panel review next?

Likely areas include governance, capital buffers, digital risk, recovery frameworks, and public sector bank competitiveness. It may examine consolidation scenarios in context, but timing is uncertain. Until then, the Sitharaman public sector bank position suggests policy stability, placing the burden of performance on bank-level execution.

Are PSU bank stocks overbought right now?

Several screens signal stretched momentum. For example, SBI shows RSI 66.97 and MFI 85.87, while Union Bank’s RSI is 71.98 with a strong ADX. Overbought does not mean reversal, but it can cap near-term upside. Use pullbacks, watch volumes, and align entries with earnings milestones.

Law and Government

SBIN.NS Stock Today: February 26 — FM Rules Out PSU Bank Merger Plan

ByHuzaifa Zahoor February 26, 2026February 26, 2026

Sitharaman public sector bank stance is clear: no merger roadmap now, while a high-level banking committee will review reforms. For investors, this tempers PSU bank consolidation bets and shifts attention to earnings strength, capital and credit growth under the RBI banking outlook. On 26 February, SBI closed at ₹1,223.30 with a day range of ₹1,219.70–₹1,234.70 and a 52-week range of ₹680.00–₹1,228.10. We break down today’s prices, trend signals, and key fundamentals across SBI, PNB, Canara Bank, Bank of Baroda, and Union Bank.