UBS has intiated coverage on three PSU Banks. (Stock market. Photo: Envato) Show Quick Read Summary is AI Generated. Newsroom Reviewed

UBS has initiated coverage on three major public sector banks, Punjab National Bank, Canara Bank, and Union Bank.

The brokerage has assigned a ‘Buy’ rating to Canara Bank with a target price of rs 150, citing a steady earnings profile and stable business metrics.

The brokerage expects return on assets and returns on equity to remain healthy at 1% and 16%, respectively, over FY26-28.

“We expect loan growth to remain steady at a 12% CAGR over FY26-28, driven by the RAM (retail, agri and micro, small & medium enterprises [MSME]) segment which contributes 57% of total loans as on 1QFY26,” the brokerage noted.

It further added, “a higher liquidity cove

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