Nifty PSU Bank Jumps 2% as All 12 Stocks Advance; PNB, SBI, IOB Lead Midweek Surge
By Shishta Dutta | Published at: Jul 16, 2025 03:38 PM IST
Mumbai, July 16: : The Nifty PSU Bank index experienced a significant and broad-based rally this afternoon, climbing 2.00% to 7,280.95. All 12 constituent stocks of the index were trading in positive territory, contributing to a gain of 142.60 points from the previous close of 7,138.35. This surge was primarily fuelled by sustained buying interest in State-owned lenders.
Index Snapshot (as of 3:10 PM IST, Jul 16, 2025)
| Metric | Value |
|---|---|
| Open | 7,140.90 |
| Day High | 7,304.80 |
| Day Low | 7,136.45 |
| Last Traded Price | 7,280.95 |
| Previous Close | 7,138.35 |
| Change | +142.60 |
| % Change | +2.00% |
| 52-Week High | 7,542.55 |
| 52-Week Low | 5,530.35 |
| Total Volume | 15.71 Cr |
| Traded Value | ₹2,534.47 Cr |
The rally in PSU banks comes amid a positive shift in sentiment driven by expectations of further capital infusions from the government, easing bond yields, and optimism regarding liquidity transmission following the Reserve Bank of India’s (RBI) recent Cash Reserve Ratio (CRR) cut. The RBI’s repo rate cut by 50 basis points to 5.5% on 6 June 2025, along with a phased 100 basis point CRR cut starting September 2025, has injected significant liquidity into the banking system, potentially lowering borrowing costs and encouraging credit expansion.
All 12 PSU Bank Stocks in Green
| Stock | Last Price (₹) | Change (₹) | % Change | 52W Range (₹) | Volume |
|---|---|---|---|---|---|
| Indian Overseas Bank | 40.11 | +1.06 | +2.71% | 33.5 – 72.6 | 1.05 Cr |
| Punjab & Sind Bank | 33.00 | +0.85 | +2.64% | 25.22 – 73.64 | 41.7 Lakh |
| Punjab National Bank | 115.07 | +2.83 | +2.52% | 85.46 – 128.80 | 2.96 Cr |
| UCO Bank | 32.75 | +0.78 | +2.44% | 26.81 – 60.68 | 1.27 Cr |
| Bank of Baroda | 249.51 | +5.19 | +2.12% | 190.7 – 266.95 | 1.03 Cr |
| SBI | 833.45 | +17.00 | +2.08% | 680 – 899 | 1.24 Cr |
| Bank of India | 117.96 | +2.17 | +1.87% | 90.05 – 130.24 | 57.6 Lakh |
| Indian Bank | 645.35 | +11.65 | +1.84% | 473.9 – 658.5 | 15.8 Lakh |
| Canara Bank | 116.92 | +2.05 | +1.78% | 78.6 – 119.3 | 3.02 Cr |
| Union Bank of India | 148.47 | +2.24 | +1.53% | 100.81 – 158.65 | 99.4 Lakh |
| Central Bank of India | 38.75 | +0.46 | +1.20% | 32.75 – 67.64 | 1.22 Cr |
| Bank of Maharashtra | 57.49 | +0.32 | +0.56% | 42 – 70.8 | 1.77 Cr |
Indian Overseas Bank (IOB) and Punjab & Sind Bank (PSB) led the charge, each gaining over 2.6%. They were closely followed by Punjab National Bank (PNB), UCO Bank, and Bank of Baroda. Index heavyweight State Bank of India (SBI) also made a significant contribution, rising by ₹17 to reach ₹833.45.
Market Context and Outlook
As of 3:10 PM IST, the Nifty 50 was trading at 25,218.50, up 0.09%, signalling broad stability in the benchmark index. The PSU Bank Index, however, has outperformed most sectoral peers today.
The Nifty PSU Bank remains 3.47% below its 52-week high and has risen 2.93% over the past 30 days, although it is still down 3.85% YoY.
Despite today’s gains, the Nifty PSU Bank index remains 3.47% below its 52-week high of 7,542.55. While it has risen 2.93% over the past 30 days, it is still down 3.85% year-on-year. This suggests that while there’s renewed investor interest, the sector is still recovering from previous dips. For context, the Nifty PSU Bank index had a 1-year return of -5.4% as of 24 June 2025, but robust long-term growth with a 3-year return of +182.03% and a 5-year return of +363.60% (as of 24 June 2025).
The strong performance today, with all constituents gaining and heavy trading volumes across major banks, points towards robust institutional buying and strong investor interest, likely propelling this midweek rally. The ongoing government initiatives, such as the EASE reforms (Enhanced Access and Service Excellence), aimed at strengthening PSU banks through digital transformation, improved asset quality, and a focus on priority sector lending, continue to support the sector’s outlook. Although some reports for Q1 FY26 anticipate muted earnings for banks due to weak loan growth and margin compression, the long-term outlook for PSU banks remains positive, with expectations of recovery in the second half of FY26.
About Nifty PSU Bank Index
The Nifty PSU Bank Index represents the performance of public sector banks listed on the National Stock Exchange. Major constituents include SBI, PNB, Bank of Baroda, Canara Bank, and Indian Bank. It serves as a key barometer for tracking the financial health and market sentiment surrounding government-owned lenders.
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