Shares of public sector banks made a strong comeback in Tuesday’s session, November 25, even as the broader market remained in a range-bound trade. After closing the last three days lower, the Nifty PSU Bank index resumed its strength with a 1.8% surge to the 8,517 level.
Among individual stocks, Bank of Maharashtra led the gains with a 2.3% rise to ₹59.6 apiece, followed by Indian Bank, Bank of Baroda, Punjab & Sind Bank, Canara Bank, Central Bank of India, and Union Bank of India, all of which surged over 1%.
Meanwhile, State Bank of India (SBI) jumped 2% to record another all-time high of ₹989 apiece.
State-owned banks have emerged as top performers in 2025 as investors remain optimistic that a pickup in credit growth, recovery in margins, strengthening asset quality, contained slippages, and normalised credit costs will continue to support earnings momentum and re-rating prospects for the sector in the coming quarters.
These factors have also driven 50% of the constituents of the index to deliver over 20% returns in the current calendar year, pushing the index’s yearly return to 30% and making it the top sectoral performer with multiple record highs.
If the performance of PSU banks continues to hold in the following weeks, it will push the index to record its fifth straight year of gains.
Six PSU banks deliver returns of up 65% in 2025
Indian Bank stood as the top performer among its peers in 2025 as sustained demand, a trend that has remained intact since 2021 has led the stock to deliver sold returns.
Continuing its stellar performance, the stock has advanced another 64.75% so far this year to ₹882, marking its fifth straight year of positive gains and resulting in a cumulative return of 940%.
Canara Bank shares have also seen a massive spike in value, putting the stock on track to record its biggest yearly jump since 2022. Over the last eleven months, it has risen 48% and is likely to extend its streak to a fifth consecutive year of gains.
Rebounding from last year’s losses, Bank of India has delivered a solid return of 44% in 2025 so far and is on course to report its strongest annual performance since 2022.
State Bank of India, the largest public sector bank and the most valued among its peers, has rewarded shareholders with a 24% return, pushing the bank’s market capitalisation past ₹9 lakh crore for the first time.
Other PSU banks, such as Union Bank of India, Punjab National Bank, and Bank of Baroda, have also delivered solid returns between 20% and 27% in the current calendar year so far.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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