The Nifty Bank index surged 2.8% to a fresh 52-week high of 54,680 as India's public sector banks reported record Q4 FY26 earnings, with State Bank of India, Punjab National Bank and Bank of Baroda all beating consensus estimates. The combined net profit of listed PSBs for Q4 FY26 stood at Rs 38,400 crore, up 22% year-on-year.
SBI led the pack with a Q4 net profit of Rs 18,643 crore, up 24% year-on-year, supported by a sharp improvement in asset quality with gross NPA ratio falling to 1.9% — the lowest since 2009. Net interest margins expanded for most banks as MCLR-linked loans repriced higher while deposit costs were managed efficiently through a shift toward CASA deposits.
Private sector banks also performed well, with HDFC Bank, ICICI Bank and Axis Bank all posting double-digit profit growth. The sector's overall credit growth remained healthy at 14.2% year-on-year in March 2026, led by retail loans, SME credit and infrastructure financing. Analysts have upgraded earnings estimates for banking stocks and raised Nifty Bank price targets for the next 12 months.
