Nifty Bank up 1%, nears all-time high; SBI, Canara, PNB log 52-week highs

Nifty Bank index hit an intra-day high of 57,458.85 on the NSE, and was just 170-odd points shy from it's all-time high level of 57,628.40 registered on July 2, 2025.

Banking shares, private as well as public sector banks (PSBs), were in demand, with the Nifty Bank index surging 1 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade.

 

At 02:07 PM; Nifty Bank, the top gainer among the indices eligible in derivatives segment, was up 1.2 per cent at 57,453.45, as compared to 0.92 per cent rise in the Nifty 50. The Nifty Bank index hit an intra-day high of 57,458.85 on the NSE. The index is 169.55 points away from its all-time high level of 57,628.40 hit on July 2, 2025. 

 

Kotak Mahindra Bank, Axis Bank, HDFC Bank and ICICI Bank from the private sector banks were up in the range of 1 per cent to 4 per cent in intra-day trade. State Bank of India (SBI), Indian Bank, Bank of Maharashtra, Canara Bank and Punjab National Bank (PNB) hit their respective 52-week highs.

 

 

Among individual stocks, Axis Bank rallied 4 per cent to ₹1,216.90 in intra-day trade after the private sector lender reported improvement in growth and asset quality trend in September 2025 quarter (Q2FY26), however, one-time regulatory provision impacted earnings momentum.

 

Advances rose 12 per cent YoY (5 per cent QoQ) to ₹11.1 trillion, led by strong SME and mid-corporate growth, while deposits increased 11 per cent YoY (4 per cent QoQ) to ₹12.1 trillion. NIM contracted 7 bps QoQ to 3.73 per cent, though the decline was less than expected due to proactive repricing of term deposits. Asset quality improved, with GNPA/NNPA at 1.46 per cent/0.44 per cent, while net slippages declined 54 per cent QoQ to ₹2,808 crore and credit cost stood at 73 bps. Profit after tax stood at ₹5,090 crore, down 26 per cent YoY, primarily due to this one-time provisioning impact.

 

With credit cost normalizing to 73 bps, asset quality trends remain benign. The bank reiterated its medium-term aspiration to outpace system credit growth by 300 bps, aided by balance-sheet granularity, improved liability mix, and calibrated risk appetite, ICICI Securities said in a note.

 

HDFC Bank aims to deliver system-aligned credit growth in FY26 and outperform the industry in FY27. Growth is expected to be driven by strong traction in urban retail and unsecured lending, improving rural demand supported by a favorable monsoon and buoyant MSME activity. Additionally, a pickup in discretionary spending and consumption is likely to further benefit performance, given the largest credit card business among peers, the brokerage firm said in its Muhurat Picks 2025, with a target price of ₹1,150 per share.

 

Analysts at InCred Equities expect a comfortable asset quality outcome for large banks (private as well as SOE). In unsecured segments (particularly credit card and personal loans), large private banks now appear to be more comfortable lending aggressively in these segments.

 

Kotak Mahindra Bank can deliver relatively better margin progression over the medium term vs. peer large private banks. Given its small market share & strong liability franchise, the bank has the potential to sustainably deliver 2-3ppt better volume growth than large private peers. The brokerage firm therefore expects some revival of growth premium. At the current valuation, the risk- reward ratio appears attractive despite RoE differential vs. large private peers, analysts said with ‘ADD’ rating on the bank and target price of ₹2,370 per share.

 

Meanwhile, the Bank Nifty is likely to face significant resistance in the 56,800–57,000 range. If the index continues to move higher, ICICI Bank & HDFC Bank from the private banking sector is expected to support the uptrend. Similarly, in the public sector banking space, SBI is anticipated to show strength and contribute to any potential upside, Hardik Matalia, Derivative Analyst, Choice Broking said on Bank Nifty weekly outlook.