Nifty Bank, Nifty PSU Bank Indices Hits New Lifetime High - What's Fuelling This Rally?

The Nifty Bank index rallied as much as 1.18 per cent to hit a fresh all-time high of 59,515 in Wednesday's trading session fuelled by gains in State Bank of India (SBI). 

The Nifty PSU Bank index also hit a new high of 8,665.70, after having gained 4 per cent in the last two trading sessions. 

Public Sector Banks Price Movement 

The share price of public sector banks rallied in today's trading session, pushing the Nifty PSU Bank index to surge 2 per cent at 8,665.70 level.

The PSU Bank index has now surpassed its previous all-time high of 8,624.80 recorded on November 20, 2025.

In the past two trading days, the bourse has increased nearly 4 per cent. In the past three months, Nifty PSU Bank index has surged 27 per cent, as against 5.6 per cent rise in the Nifty 50.

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Meanwhile, State Bank India (SBI) hit a fresh high of Rs 999, up 1 per cent on the NSE in intra-day trade today. Canara Bank (Rs 152.50), and Bank of India (Rs 151.43) and were higher by 3 per cent each, hitting their respective multi-year highs in intra-day trade.

On there other hand, Punjab & Sind Bank, Uco Bank, Indian Overseas Bank, Central Bank of India, Union Bank of India, Punjab National Bank, Indian Bank and Bank of Baroda were trading in the bandwidth of 2 per cent to 3 per cent higher. 

Solid Q2 Earnings

Private banking majors ICICI Bank, HDFC Bank, and Kotak Mahindra Bank reported a net interest income growth of 4 per cent -7 per cent, whilst Axis Bank recorded a net interest income growth of 2 per cent.

Meanwhile, the public sector banks, like State Bank of India, Canara Bank and Bank of Baroda, posted 2-4% YoY growth in net interest income.

While HDFC Bank and ICICI Bank posted 10.5 per cent and 5.2 per cent year-on-year (YoY) net profit growth, SBI and Canara Bank reported 8-10% net profit growth.