Indian Bank hits record high, SBI gains 2% as PSU bank stocks rally; Nifty PSU Bank index jumps 3.4% in 2 days

PSB Stocks Today: Public sector banks (PSBs) continued their rally on Thursday, seeing gains for the second straight day amid rising expectations of strong credit growth. The Nifty PSU Bank index climbed 1.3 per cent by 11:03 AM—substantially ahead of the Nifty 50, which rose just 0.06 per cent over the same period.

Over the past two sessions, the PSU Bank index has surged 3.4 per cent, compared to a modest 0.5 per cent gain in the benchmark index. The index also hit an intraday high of 7,142.25, staying about 2.3 per cent below its 52‑week high of 7,304.80 touched in mid‑July 2025.

Indian Bank, SBI, PNB Union Bank of India: Top Performers and Stock Moves

Indian Bank made headlines, hitting a fresh high of Rs 701.85, up 5 per cent over two days.

State Bank of India (SBI) saw its stock rise roughly 2 per cent in the same period.

Other gainers included Uco Bank, Punjab National Bank, Canara Bank, Central Bank of India, Union Bank of India, Bank of Maharashtra, and Bank of India, each trading higher by 1 to 2 per cent.

Why PSBs Are Outperforming

Data from Care Edge Ratings shows that PSBs have surpassed private sector banks (PVBs) in credit offtake for three consecutive quarters. Their credit‑to‑deposit (CD) ratios remain more stable, giving PSBs more lending headroom. As of Q1 FY26, PSBs held 53.8 per cent of the market share, up 55 basis points year‑on‑year, while private banks lost 58 bps.

PSBs are also expanding in the retail, agriculture, and MSME segments, benefiting from a wide branch network and government scheme inflows. Since March 2020, PSBs saw an increase in deposits of Rs 47.5 lakh crore, slightly ahead of the Rs 42.4 lakh crore rise for private banks.