Price-to-Earnings, PB Ratio & Dividend Yield
Last updated
PSU Bank is trading 0.9% below its 3-year median PE of 8.0. The sector is trading near its historical average. Valuations are neither cheap nor expensive.
Based on the last 3 years of PSU Bank data (avg PE: 8.0), here are the valuation zones:
| PSU Bank PE Range | Market Valuation | What Investors Typically Do |
|---|---|---|
| Below 7.2 | Undervalued (Buying Zone) | Historically strong entry points for long-term investors |
| 7.2 – 8.9 | Fairly Valued | Continue SIPs and regular investing with normal allocation |
| 8.9 – 9.7 | Getting Expensive | Be cautious, continue SIPs but avoid lump sum investments |
| Above 9.7 | Overvalued (Caution Zone) | Consider booking partial profits |
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 9.0 | 9.3 | 8.6 | 8.5 | 8.0 | 7.8 | — | — | — | — | — | — |
| 2025 | 7.1 | 6.4 | 6.3 | 6.8 | 6.8 | 7.0 | 7.2 | 7.2 | 7.4 | 8.0 | 8.6 | 8.5 |
| 2024 | 8.3 | 9.4 | 9.5 | 9.9 | 9.6 | 9.5 | 9.3 | 8.5 | 8.2 | 7.9 | 7.7 | 7.8 |
| 2023 | 10.7 | 8.7 | 8.5 | 8.9 | 8.4 | 7.6 | 8.2 | 7.4 | 7.8 | 7.6 | 7.1 | 7.8 |
| 2022 | 10.9 | 10.0 | 9.0 | 9.5 | 7.9 | 7.2 | 7.7 | 8.1 | 8.7 | 8.6 | 9.8 | 10.8 |
| 2021 | 100.0 | 84.8 | 70.8 | 65.1 | 39.8 | 17.3 | 14.4 | 11.2 | 11.0 | 12.5 | 11.3 | 10.2 |
| 2018 | 88.5 | 100.0 | — | — | — | — | — | — | — | — | — | — |
| 2017 | — | — | — | — | 86.3 | 55.6 | 35.1 | 34.8 | 34.3 | 38.4 | 75.3 | 95.7 |
Monthly average P/E ratios. Colors relative to 3Y average (8.0): green = below avg, blue = near avg, orange = above avg, red = well above avg.
“—” = PE data unavailable for that month. This happens when aggregate index earnings are negative or near-zero, making the PE ratio undefined.
| Year | PE Avg | PE Low | PE High | PB Avg | DY Avg |
|---|---|---|---|---|---|
| 2026 | 8.66 | 7.65 | 9.80 | 1.42 | 2.21% |
| 2025 | 7.30 | 5.96 | 8.78 | 1.23 | 2.46% |
| 2024 | 8.80 | 7.15 | 10.41 | 1.46 | 1.90% |
| 2023 | 8.22 | 7.01 | 11.26 | 1.11 | 1.90% |
| 2022 | 9.02 | 6.72 | 11.58 | 0.81 | 1.28% |
| 2021 | 30.91 | 9.70 | 100.00 | 0.80 | 0.21% |
| 2018 | 93.24 | 85.14 | 100.00 | 1.18 | 0.64% |
| 2017 | 54.00 | 33.01 | 100.00 | 1.15 | 0.66% |
12 companies in the PSU Bank index
| Company | Price | Day Change | PE TTM | 52W Range |
|---|---|---|---|---|
|
Bank of Baroda
BANKBARODA
|
₹268.9 | +1.2% | 7.1 |
Low ₹231
High ₹326
|
|
Bank of India
BANKINDIA
|
N/A | N/A | N/A | N/A |
|
Bank of Maharashtra
MAHABANK
|
N/A | N/A | N/A | N/A |
|
Canara Bank
CANBK
|
N/A | N/A | N/A | N/A |
|
Central Bank of India
CENTRALBK
|
N/A | N/A | N/A | N/A |
|
Indian Bank
INDIANB
|
N/A | N/A | N/A | N/A |
| ₹33.0 | +0.6% | 18.8 |
Low ₹31
High ₹42
|
|
|
Punjab & Sind Bank
PSB
|
N/A | N/A | N/A | N/A |
| ₹105.8 | +1.6% | 6.4 |
Low ₹99
High ₹135
|
|
|
State Bank of India
SBIN
|
₹970.5 | +1.4% | 11.2 |
Low ₹782
High ₹1,235
|
|
UCO Bank
UCOBANK
|
N/A | N/A | N/A | N/A |
|
Union Bank of India
UNIONBANK
|
N/A | N/A | N/A | N/A |
Comprises public sector banks like State Bank of India, Bank of Baroda, Punjab National Bank, and Canara Bank. The index currently has 12 constituent companies and is categorised under Banking on Craytheon.
Current PSU Bank PE Ratio today 7.9 | PB 1.20 | Div Yield 2.37%
Disclaimer: The information provided on this page is for educational and informational purposes only. It should not be construed as investment advice, a recommendation, or an offer to buy or sell any securities. Past performance and historical PE ratios do not guarantee future results. Always consult a qualified financial advisor before making investment decisions.
Data Source: Indian Stock Exchange