Altman Z-Score Flags 8 NSE Financials in Distress

Eight NSE-listed financial companies screened below the 1.8 Altman Z-Score distress threshold as of 2026-08-31. The screen puts eight NSE-listed financial names in the Altman Z-Score distress zone. LICI's reading was -0.83, the bottom of the set. Central Bank, Canara Bank, Bank of Baroda, PNB, Bank of India, UCO Bank, and Union Bank clustered at 0.33 to 0.37. The screen is a flag, not a verdict. It uses retained earnings, EBIT, working capital, sales, and market value of equity to score solvency risk. A score below 1.8 puts a company in the distress zone. LICI's -0.83 reflects thin retained earnings and large insurance liabilities relative to market value. It does not mean the insurer is insolvent. What the Altman Z-Score Distress Zone Means for PSU Banks Seven state-owned banks make up the rest of the list. [Central Bank of India](/stock/CENTRALBK) (NSE: CENTRALBK), [Canara Bank](/stock/CANBK) (NSE: CANBK), [Bank of Baroda](/stock/BANKBARODA) (NSE: BANKBARODA), [Punjab National Bank](/stock/PNB) (NSE: PNB), [Bank of India](/stock/BANKINDIA) (NSE: BANKINDIA), [UCO Bank](/stock/UCOBANK) (NSE: UCOBANK), and [Union Bank of India](/stock/UNIONBANK) (NSE: UNIONBANK) all sit between 0.33 and 0.37. That is a tight band. The Z-Score model penalizes banks for high debt-to-equity ratios and interest-sensitive operating income. It also uses book equity, which these lenders carry in large amounts. The valuations have not collapsed. Canara Bank trades near 5x forward earnings. Bank of Baroda shows a price-to-book under 1. ROCE is positive across most of the group. The Altman model was built for manufacturers, not for leveraged financials. A sub-1.8 reading overstates failure risk for banks with deposit franchises and central bank access. Investor Read: Z-Score vs Valuation Investors should treat the list as a screening input, not a sell list. A low Z-Score plus a low P/E can mean the market already prices the distress. That is the case for [Union Bank of India](/stock/UNIO...