Bank stocks ended Monday’s trading session in green after several lenders shared positive Q2 business updates. Punjab National Bank reported 11.95% growth, while Canara Bank and Union Bank also showed progress. Motilal Oswal gave a ‘Buy’ rating for PNB with a target price of ₹135 per share for investors.

Bank Q2 result updates: Bank stocks ended Monday’s trading session in green driven by a surge in bank stocks like HDFC Bank, Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank and Bandhan Bank.

The strong momentum in banking stocks was triggered by updates shared by most of these financial institutions related to their corporate earnings for the second quarter of financial year 2026-27.

The Q2FY27 earnings in the bank stocks will likely be led by private banks, according to Motilal Oswal Financial Services report. Here are brokerage’s outlook for the bank stocks which recently released their Q2FY27 result updates.

Punjab National Bank Q2 update

The PSU lender announced that its business grew by 11.95% on a year-on-yar basis to ₹31.2 trillion. Its domestic business was up nearly 10.8%. PNB's global advances surged 14.8% on an annual basis led by lower growth in domestic advances. Global deposits grew 9.9% on an annual basis supported by domestic deposit growth of 9.4%.

Punjab National Bank share price target

Motilal Oswal gave a ‘Buy’ rating for the stock with a target price of ₹135 per share, indicating a 23% upside. PNB stock closed 1.91% higher at ₹112 per share on BSE with an MCap of ₹1,28,720.96 crore on Monday.

Canara Bank Q2 update

Canara Bank reported healthy business growth with advances jumping nearly 6.2% on a quarter on quarter (QoQ) basis. The healthy growth was driven by strong RAM growth.

“The bank has delivered healthy overall business growth, while advances growth was largely driven by RAM advances. As a result, the calculated CD ratio (on gross advances) increased to 80.9% from 80.2% in 1QFY27,” stated the brokerage in its report.

Canara Bank share price target

Motilal Oswal maintained a ‘Buy’ rating for the stock with a target price of ₹160 per share. Canara Bank stock closed marginally higher at ₹118.60 per share on BSE on Monday.

Union Bank of India Q2 result update

Union Bank of India registered improvement in business growth and domestic CD ratio. The bank’s total deposits surged 2.81% on a sequential basis in the second quarter of financial year 2026-27.

Union Bank of India share price target

Union Bank of India share price closed 0.06% higher at ₹168.10 per share on BSE on Monday. The brokerage maintained a ‘Neutral’ rating on the banks stock with a target price of ₹190 per share.

Indian Bank Q2 result update

Indian Bank reported strong business growth and robust gross advances driven by healthy traction in the RAM segment. Its deposits grew 12.4% on an annual basis driven by robust growth in CA deposits.

“Overall business growth was robust, while deposits growth was largely driven by FCNR (B) inflows of USD2.4b. As a result, calculated CD ratio (on gross advances) increased marginally to 82.8% from 81.3% in 1QFY27,” highlighted the brokerage in its report.

Indian Bank share price target

The stock closed with a percentage point gain at ₹808.40 per share on BSE on Monday. Motilal Oswal maintained a ‘Buy’ rating for the bank stock with a target price of ₹1025 per share.

Bandhan Bank Q2 result update

Bandhan Bank reported soft business growth in Q2FY27 with CASA ratio falling sharply to 26.7%.On the asset quality front, overall CE remains consistent at 98.9%, with collection efficiency in EEB at 98.6% and that in the non-EEB segment at 99.2%.

Bandhan Bank share price target

The brokerage gave a ‘Neutral’ rating to the stock with a target price of ₹INR210 per share. The stock closed 3.7% lower at ₹168.8 per share.