Bank Nifty Trades Flat: PSU Bank Stock Shines After Monetisation Push

The Bank Nifty index remained relatively flat during today's session, currently trading at 57,455.45, reflecting a marginal gain of 0.02%. Despite the slight uptick, the index experienced a minor intraday decline of 47.35 points, which corresponds to a 0.08% decrease. Market sentiment remained cautious, with traders keeping an eye on macroeconomic cues and sector-specific developments.

The index opened the day at 57,529.95 and recorded an intraday high of 57,614.50, which also happens to be its 52-week high. On the lower end, it dipped to 57,297.80 during the session. The index's 52-week low stands at 47,702.90, underscoring the strong rally it has seen over the past year. These levels highlight the resilience of banking stocks even amidst broader market fluctuations.

Top Gainers and Losers

As of 12:00 PM, several public sector banks were leading the gains in the Bank Nifty index. Punjab National Bank (PNB), Canara Bank, Bank of Baroda, Federal Bank, and State Bank of India (SBI) emerged as the top performers. Conversely, the private banking segment saw some pressure, with Kotak Mahindra Bank, Axis Bank, HDFC Bank, and ICICI Bank slipping into the red. This divergence suggests a shift in investor preference toward PSU banks, likely driven by recent policy updates.

PSU Banks Shine After Monetisation Push

Public sector banking stocks took center stage on June 30, following the Finance Ministry's directive to state-owned lenders. The ministry urged these institutions to monetise their holdings in subsidiaries via initial public offerings (IPOs) or strategic stake sales. This announcement triggered investor interest in PSU banks, signaling potential value unlocking in the near future.

Sharp Rally in PSU Bank Stocks

Reacting to the government’s monetisation drive, shares of leading PSU banks surged between 1% and 3% intraday. Notably, Bank of Baroda, Canara Bank, Indian Bank, SBI, PNB, and Bank of India all saw strong buying interest. In stark contrast to the largely subdued Bank Nifty index, all 12 stocks in the Nifty PSU Bank index were firmly in the green, reflecting growing confidence in the sector's transformation and growth potential.

Also Read: Sensex Trades Flat on June 30; SBI, LT Among Top Gainers

Future IPO Pipeline: Major Listings on the Horizon

According to industry reports, nearly 15 subsidiaries and joint ventures under public sector banks are being evaluated for IPOs or strategic divestments over the medium to long term. Among the most anticipated public offerings are SBI General Insurance and SBI Payment Services, which are expected to go public once they achieve sufficient operational scale. These developments could further enhance the visibility and valuation of PSU banking entities.

Profitability Momentum Driving Policy Push

This policy push comes in the wake of a recent review meeting chaired by the Finance Minister, where PSU bank heads were encouraged to sustain the strong profit growth into FY26. In the financial year 2024–25 (FY25), the combined net profit of the 12 public sector banks reached a historic ₹1.78 lakh crore, marking a 26% increase year-over-year. In absolute terms, the sector added nearly ₹37,100 crore in incremental profits—an achievement that underpins the government’s confidence in pursuing further reforms.

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