SBI, PNB, Bank of Baroda, Canara Bank: Which PSU Bank Delivers the Best Dividend, Market Cap, and Returns in 2025?

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India’s top public sector banks are in the limelight as investors look for the best mix of dividend yield, market capitalization, and returns. Here’s a concise, data-driven comparison to help you decide which PSU bank stands out as of July 2025.

Key Takeaways

SBI is the clear leader in market capitalization and offers a strong dividend yield, making it a reliable choice for investors seeking stability and consistent returns.
Bank of Baroda and Canara Bank have both improved their dividend payouts and demonstrated robust profit growth, appealing to those who value a balance between yield and growth.
PNB has posted the highest net profit growth among the four, but its dividend yield remains lower than its peers, making it more attractive to investors focused on earnings momentum rather than immediate income.

Highlights by Bank

SBI stands out with the largest market cap among Indian banks, a steady dividend yield, and stable returns, reinforcing its position as a market leader.
Bank of Baroda has delivered strong profit growth, a healthy dividend, and improving fundamentals, making it a solid contender for those seeking both income and growth.
Canara Bank has shown rapid profit growth and offers a competitive dividend yield, positioning itself as a rising star among PSU banks.
PNB, while leading in profit growth, trails in dividend yield, making it best suited for investors who prioritize growth over immediate dividend income.

Investor Insight

For those seeking a blend of high dividends, strong returns, and market leadership, SBI and Bank of Baroda remain top choices. Canara Bank is emerging as a strong contender with impressive profit growth, while PNB is ideal for investors who prioritize earnings momentum over yield.

Sources: Economic Times, Moneycontrol, INDmoney, Angel One, Groww, Screener, CompaniesMarketCap