Home / Business and Economy / PSU Banks Surge: 28% Gains Lead Market Rally!
PSU Banks Surge: 28% Gains Lead Market Rally!
20 Dec, 2025
Summary
- Nifty PSU Bank index leads sectoral performance with 28% gains in 2025.
- State-owned banks significantly outperform private peers and benchmark indices.
- PSU banks are on track for a fifth consecutive year of positive annual returns.
The Nifty PSU Bank index has demonstrated exceptional performance in 2025, surging by 28% and significantly outperforming the benchmark Nifty 50's 10% rise. State-owned banks are currently the top picks in the Indian stock market, with Canara Bank, Indian Bank, and State Bank of India leading the charge and outpacing their private sector counterparts. This strong performance is underpinned by investor optimism regarding sustained earnings momentum, driven by anticipated credit growth, margin recovery, and improving asset quality.
