The NIFTY PSU Bank index rose as much as 2.2% on Monday, October 5, reaching an intraday high of 8,117. The climb was driven by gains in state‑run lenders Canara Bank, Bank of India, Bank of Baroda, Punjab National Bank. Shares of these banks traded higher after they announced strong credit growth in the second quarter of the current financial year. This performance lifted the index to a record high, reflecting confidence in the banking sector's resilience. The index closed 1% above the intraday peak at 8,015, outperforming the NIFTY50 which remained flat.

Bank of Baroda reported that its global advances rose 18.27% year‑on‑year to ₹15.12 lakh crore, while deposits increased 17% to ₹17.51 lakh crore. Domestic advances grew 13.51% to ₹11.87 lakh crore, with retail advances—including personal loans and credit cards—climbing 19% to ₹3.24 lakh crore. The bank’s domestic loan book advanced 16.83% to ₹12.63 lakh crore, and its global loan book rose 19.35% to ₹13.73 lakh crore.

Canara Bank, headquartered in Bengaluru, said its global business jumped 16% annually to ₹30.70 lakh crore at the end of the September quarter. The domestic loan book advanced 16.83% to ₹12.63 lakh crore, while the global loan book rose 19.35% to ₹13.73 lakh crore. The bank’s portfolio of domestic retail, agriculture and MSME loans increased 21% to ₹8.12 lakh crore in the same period.

Bank of India’s retail loan portfolio in the September quarter rose 19% to ₹4.12 lakh crore, and its total domestic loan book advanced 17.7% to ₹7.03 lakh crore. The state‑run lender’s total business jumped 21.07% to ₹18.91 lakh crore from ₹15.62 lakh crore a year earlier. Domestic deposits also showed strength, with gross domestic deposits rising 23.3% to ₹9 lakh crore.

Amid the robust figures, global investment bank Goldman Sachs noted that aggregate PSU domestic credit growth stood at about 16% year‑on‑year versus 15% in the previous quarter. System credit growth accelerated by roughly 200 basis points to 18% as of September 15, and PSU domestic deposit growth rose to about 13% year‑on‑year from roughly 10%, the firm said. Goldman Sachs added that PSU banks continue to cede incremental loan market share to the system, while liquidity advantage of state‑owned banks has diminished as liquidity coverage ratios converge.