Indian banks hit record highs on optimism over loan growth, asset quality

Punjab & Sind Bank

02/01/2026 07:06

** India's bank stock .NSEBANK sub-index rises 0.74% to a record high of 60,152.35; set for fourth straight day of gains

** Thirteen of the 14 stocks in the index trade higher; Axis Bank AXBK.NS slips 0.1%

** HDFC Bank HDBK.NS and ICICI Bank ICBK.NS rise 0.7% and 0.9%, respectively; top contributors to sectoral index's gains

** "Loan growth is recovering as banks across segments —public, private (large, mid-tier, regional) and SFBs (small finance banks) — are confident in their strengthened balance sheets and actively pursuing expansion," Kotak Institutional Equities said in a note on December 31

** Banks' asset quality is set to improve to a multi-decade high as per a recent RBI report

** Private banks index .NIFPVTBNK and PSU banks .NIFTYPSU rise 0.6% and 1%, respectively, to hit lifetime highs

** Indian Bank INBA.NS, South Indian Bank SIBK.NS, and Punjab & Sind Bank PUNA.NS rise 3%-4% after quarterly business updates

 (Reporting by Vivek Kumar M)

 ((VivekKumar.M@thomsonreuters.com;))