PSU Bank Index Surges 24% Since September; Bank of Baroda, Canara Bank Near Record Highs

The Nifty PSU Bank index continued its strong momentum, rising 2.1% to an all-time high of 8,356.50 on Monday’s trade. Since September, the index has surged nearly 24%, driven by robust Q2FY26 earnings from public sector banks.

Leading the rally, Bank of Baroda jumped 5% to ₹292.75, and Canara Bank rose 3% to ₹141.45, both trading close to their record highs. Other state-run lenders like Bank of India, Union Bank, Uco Bank, Punjab & Sind Bank, Bank of Maharashtra, Indian Overseas Bank, and Indian Bank gained between 2–5%.

SBI Also at Record Levels Ahead of Results

Shares of State Bank of India (SBI) touched a new high of ₹948.7, up 1%, ahead of its Q2 results scheduled for November 4, 2025. At 9:42 AM, the Nifty PSU Bank index was the top-performing sector, up 1.4%, compared with a marginal 0.01% gain in the Nifty 50.

FII Limit Hike Proposal May Add Momentum

In a major policy move, the government is reportedly considering raising the FII limit in PSBs from 20%, while maintaining a minimum 51% state ownership. This could attract more foreign capital and strengthen banks under the Viksit Bharat 2047 vision.

Also Read: Top SIP Stocks for November 2025!

Conclusion

The PSU banking rally shows no signs of slowing down, with Bank of Baroda, Canara Bank, and SBI leading the charge. Strong earnings, government reform prospects, and improved fundamentals continue to boost investor confidence in the sector, positioning public lenders for sustained growth in the coming quarters.

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