Nifty PSU Bank Index Surges as SBI, BOB, BOI, Canara Bank, Union Bank Gain Up to 4% on NSE

Public sector bank (PSU) shares have been in the spotlight as the Nifty PSU Bank index saw a notable rise, outperforming the broader market.  

Key players like State Bank of India (SBI), Bank of Baroda (BOB), Bank of India (BOI), Canara Bank, and Union Bank of India experienced gains of up to 4% on the National Stock Exchange (NSE). 

PSU Bank Shares Movement 

On April 20, 2026, the Nifty PSU Bank index recorded a 2% increase, reaching 9,039.15 during intra-day trade. This surge followed the release of steady quarterly results by major banks such as HDFC Bank, ICICI Bank, and Yes Bank for the quarter ending March 2026.  

At 1:43 PM, the Nifty PSU Bank index was the top performer among sectoral indices, with a 1% rise compared to a 0.18% increase in the Nifty 50. 

State Bank of India (SBI) led the rally with a 4% rise to ₹1,120.95. Other public sector banks like Bank of Maharashtra, Bank of Baroda (BOB), Bank of India (BOI), Canara Bank, and Union Bank of India saw gains ranging from 1% to 3%. 

Performance in April 

In April, the Nifty PSU Bank index has outperformed the market, soaring 15% compared to a 9.6% rise in the Nifty 50. The index had previously reached an all-time high of 9,918.65 on February 26, 2026. 

Factors Behind the Surge 

The recent performance of PSU banks is attributed to strong quarterly results from key private sector banks. Yes Bank reported a 44.7% year-on-year increase in profit after tax (PAT) to ₹1,068 crore, supported by a 23.1% growth in operating profit. Net interest income (NII) rose 15.9% year-on-year to ₹2,638 crore, with an improvement in net interest margin (NIM) to 2.7%. 

Read More: Funds Outflow: PSU Mutual Funds Record ₹4,498 Crore Departure in March! 

Asset Quality and Financial Metrics 

Yes Bank's asset quality improved, with gross non-performing assets (GNPA) and net non-performing assets (NNPA) reducing to 1.3% and 0.2%, respectively.  

The cost-to-income ratio also saw a significant improvement, declining to 63.0%. These positive metrics have contributed to the favourable outlook for PSU banks. 

Conclusion 

PSU bank shares have shown significant growth, with the Nifty PSU Bank index outperforming the broader market. The strong financial performance of major banks and improved asset quality have been key drivers behind this surge. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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