India’s Nifty PSU Bank Index extended gains on October 31, 2025, rising 2.3% intraday. The rally was driven by robust institutional buying, improved asset quality outlook, and strong Q2 earnings from key public sector banks. Analysts expect continued momentum as credit growth and fiscal support remain favorable.
                                        
                        
	The Nifty PSU Bank Index (.NIFTYPSU) climbed 2.3% in today’s session, reflecting renewed investor confidence in India’s public sector banking space. The rally comes on the back of strong Q2 earnings, declining NPAs, and positive credit growth trends, particularly in retail and MSME segments.
	 
	Major constituents like State Bank of India (SBI), Bank of Baroda, and Punjab National Bank saw notable upticks, supported by foreign institutional inflows and government assurances on recapitalization and digital transformation. Analysts also cited improved provisioning coverage ratios and stable net interest margins as key drivers of sentiment.
	 
	The index has outperformed broader benchmarks over the past month, signaling a sectoral rotation toward value-heavy financials.
	 
	Key Highlights:
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		Index Movement: Nifty PSU Bank Index up 2.3% intraday
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		Top Performers: SBI, Bank of Baroda, PNB
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		Drivers: Strong Q2 results, lower NPAs, institutional buying
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		Sector Outlook: Positive on credit growth, fiscal support, and digital initiatives
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		Investor Sentiment: Favorable amid macro stability and banking reforms
	The PSU banking rally underscores growing confidence in India’s financial sector revival.
	 
	Sources: Moneycontrol, ET Now