PSU Bank Index Zooms 24 Percent Since September Bank Of Baroda Canara Nears Record High

The Nifty PSU Bank Index has surged around 24 % since September, driven by strong earnings from major public-sector banks such as Bank of Baroda and Canara Bank. The advance reflects improved asset quality, healthy credit growth in retail and MSME segments, and favourable government support. Analysts say while margins may face pressure, the sector’s valuations remain modest, making it a structural play on India’s credit recovery. Investors should watch interest-rate trends and state-owned bank reforms that could further influence performance.