SBI, BoB, CSB Bank, AU SFB surge up to 8%, hit record highs; here's why

Financial shares rally on Monday: In the past one week, the BSE Financial index has outperformed the market by gaining 2.2%, as compared to 0.7% rise in the BSE Sensex.

Shares price movement of financial stocks today

  Shares of financial companies were in demand and rallied up to 8 per cent on the BSE in Monday’s intra-day trade after they reported a healthy provisional business update for the quarter ended December 2025 (Q3FY25).

 

AU Small Finance Bank, CSB Bank, IDBI Bank, Muthoot Finance, Tata Capital and Ujjivan Small Finance Bank from the private sector lenders and non-banking financial companies (NBFCs) hit their respective 52-week highs.

 

Bank of India, Bank of Maharashtra, Punjab National Bank and Union Bank India from the public sector banks (PSBs) also touched their respective 52-week highs. State Bank of India (SBI), the PSBs giant, and Bank of Baroda (BoB) hit fresh life-time highs today.

 

 

The BSE Financial Services index hit a record high of 13,347.24 in intra-day deals. In the past one week, the index has outperformed the market by gaining 2.2 per cent, as compared to 0.7 per cent rise in the BSE Sensex.

 

At 09:38 AM; Financials index was down 0.1 per cent, as compared to the 0.2 per cent decline in the benchmark index.  CATCH STOCK MARKET UPDATES TODAY LIVE

What’s driving financial stocks?

 

Among individual stocks, CSB Bank stock hit a record high of ₹519.95, as the stock rallied 8 per cent in intra-day deals on the back of heavy volumes.

 

CSB Bank reported its provisional business performance for Q3FY26, with gross advances rising to ₹37,208 crore, up 29 per cent year-on-year (YoY) (7.2 per cent quarter-on-quarter (QoQ)), led by continued strength in gold loans, which increased to ₹19,023 crore, up 46 per cent YoY (15.6 per cent QoQ). Total deposits stood at ₹40,460 crore, up 21 per cent YoY (2.0 per cent QoQ), supported by term deposits at ₹32,144 crore, up 27 per cent YoY (2.8 per cent QoQ). CASA deposits were largely stable at ₹8,316 crore, up 3 per cent YoY (-0.9 per cent QoQ).

 

While the sequential dip in CASA and continued reliance on term deposits could weigh on cost of deposits, strong sequential credit momentum—driven primarily by the gold loan portfolio—remains the bank’s key strength. Sustaining growth beyond gold lending continues to be important for portfolio diversification, ICICI Securities said in a note.

 

Shares of BoB hit a new high of ₹311.90, gaining 2 per cent after the state-run lender reported healthy business growth in Q3FY26 with global advances at ₹13.43 trillion, up 14.6 per cent YoY (5.1 per cent QoQ), while global deposits stood at ₹15.46 trillion, up 10.3 per cent YoY (3.1 per cent QoQ). Domestic advances grew 13.5 per cent YoY, led by robust traction in the domestic retail segment, which increased 17.3 per cent YoY to ₹2.85 trillion.

 

Broad-based growth across domestic deposits and retail advances highlights continued franchise strengthening, with retail momentum anticipated to provide a healthy cushion to margins, ICICI Securities said.  ALSO READ | PC Jeweller share price jumps 8% after reporting increase in Q3 revenue 

Meanwhile, AU Small Finance Bank reported a strong provisional performance for Q3FY26, with total deposits rising to ₹1.38 trillion, up 23.3 per cent YoY (4.5 per cent QoQ). CASA deposits increased to ₹39,950 crore, up 16.1 per cent YoY (2.5 per cent QoQ), though CASA ratio moderated to 28.9 per cent from 29.4 per cent in Q2. On the asset side, gross advances grew to ₹1.25 trillion, up 24.0 per cent YoY (6.5 per cent QoQ). The stock hit a new high of ₹1,025.65, as it jumped 3 per cent on the BSE in intra-day deals.

 

According to analysts at Motilal Oswal Financial Services, the loan growth trends of NBFCs during the quarter remained mixed across segments, though pockets of demand revival were evident. Gold financiers are expected to deliver yet another quarter of strong loan growth. Vehicle Financiers reported improved disbursement momentum, supported by pent-up demand, GST rate cuts, and festive-season tailwinds. Additionally, disbursements in unsecured segments have also regained momentum during the quarter. 

 

In contrast, Microfinance institutions continued to see subdued disbursements and AUM growth due to elevated rejection rates, as lenders prioritized asset quality over growth. Disbursements for both large housing finance companies (HFCs) and affordable HFCs were relatively weaker (than earlier expectations), impacted by heightened competition from banks and the loss of business from festive holidays during the quarter. Asset quality remained broadly stable across all product segments, the brokerage firm said.