PSU Banks Stage Impressive Market Comeback
Public sector banking stocks made a remarkable recovery during Tuesday's trading session on November 25, demonstrating significant strength while the broader market remained range-bound. The Nifty PSU Bank index surged by 1.8% to reach 8,517 points, marking a strong rebound after three consecutive days of decline.
Individual Performers Lead the Charge
Bank of Maharashtra emerged as the top gainer among public sector banks, climbing 2.3% to reach ₹59.6 per share. The bank was closely followed by several other state-owned lenders including Indian Bank, Bank of Baroda, Punjab & Sind Bank, Canara Bank, Central Bank of India, and Union Bank of India, all of which recorded gains exceeding 1%.
In a significant development, State Bank of India (SBI) jumped 2% to achieve another historic milestone, reaching an all-time high of ₹989 per share. This performance underscores the growing investor confidence in India's largest public sector bank.
Record-Breaking Performance in 2025
Public sector banks have established themselves as the standout performers in 2025, with investor optimism running high due to multiple positive factors. The sector has benefited from improved credit growth, margin recovery, strengthened asset quality, controlled slippages, and normalized credit costs – all contributing to sustained earnings momentum and re-rating potential.
The impressive performance metrics are reflected in the numbers: approximately 50% of the index constituents have delivered returns exceeding 20% in the current calendar year. This has propelled the Nifty PSU Bank index to a remarkable 30% yearly return, making it the top-performing sectoral index with multiple record highs throughout the year.
If this positive trend continues in the coming weeks, the index is poised to record its fifth consecutive year of gains, cementing the sector's remarkable turnaround story.
Top Performers and Their Stellar Returns
Indian Bank has distinguished itself as the star performer among public sector banks in 2025. The bank's stock has delivered an impressive 64.75% return so far this year, reaching ₹882 per share. This represents the bank's fifth straight year of positive gains, culminating in a cumulative return of 940% over this period.
Canara Bank has also witnessed substantial value appreciation, with its shares rising 48% over the past eleven months. The bank is on track to record its most significant yearly jump since 2022 and is likely to extend its winning streak to a fifth consecutive year.
Showing strong recovery momentum, Bank of India has delivered a solid 44% return in 2025 after last year's losses. The bank is positioned to report its strongest annual performance since 2022.
State Bank of India, as the largest public sector bank and the most valued among its peers, has rewarded investors with a 24% return. This performance has pushed the bank's market capitalization beyond the historic ₹9 lakh crore mark for the first time.
Other notable performers include Union Bank of India, Punjab National Bank, and Bank of Baroda, all of which have delivered robust returns ranging between 20% and 27% in the current calendar year.
The consistent performance across the public sector banking space indicates a fundamental transformation in the sector's operational efficiency and profitability, attracting sustained investor interest and positioning these banks for continued growth in the coming quarters.
