Nifty Bank hits fresh peak, crosses 57,400 mark for first time; here is why stocks are rising

Shares of public sector banks (PSU) gained as banking stocks continue to rally, with Nifty Bank hitting a new all-time high again on Friday, June 27. The index crossed the 57,400 level for the first time and settled at 57,443.90. It had hit an intraday high of 57,475.40.

At the time of writing this article, the Nifty PSU Bank index was up 1.24% at 7,068.95 levels. It had touched an intraday high of the 7,107.50 level before closing at 7,015.50 levels.

All the stocks in the sector were trading in green as investors remain hopeful ahead of the sector’s meeting with the finance minister.

Finance Minister Nirmala Sitharaman is scheduled to meet heads of public sector banks (PSBs) on Friday to review their financial performance and progress of various government flagship schemes amid rate moderation by the Reserve Bank of India.

This is going to be the first review meeting after the RBI earlier this month carried out a jumbo policy rate cut of 50 basis points and unexpectedly reduced the cash reserve ratio for banks to make available more money to lend in a bid to boost the economy.

On June 6, the RBI's six-member monetary policy committee, headed by Governor Sanjay Malhotra, lowered the benchmark repurchase or repo rate by 50 basis points to 5.5%.

The cumulative profit of PSBs rose to a record level of ₹1.78 lakh crore in the fiscal year ended March 2025, registering a growth of 26% over the previous year.

All 12 public sector banks had earned a total profit of ₹1.41 lakh crore in FY 24. The year-on-year increase in profit in absolute terms was about ₹37,100 crore in FY25.

On the Nifty PSU Bank gauge, Punjab & Sind Bank was the top contributor, soaring 6.06%. UCO Bank (4.91%) and Union Bank of India (1.2%) were the other top gainers.

Shares of Bank of Baroda, Central Bank of India also advanced by 1.11% each, while Bank of Maharashtra rose 1.04% at the end of the session.

Further, State Bank of India (0.94%) Indian Overseas Bank (0.79%), Punjab National Bank (0.37%) and Canara Bank (0.25%) also settled higher on Friday.