Public-sector banks outperformed broader indices this week, advancing 2.1% driven by strong quarterly earnings and improved credit outlook. State Bank of India’s upgraded loan growth guidance boosted confidence in the sector, followed by gains in Bank of Baroda and Canara Bank. Analysts attributed the momentum to healthy provisioning, declining NPAs, and sustained retail loan demand. 

PSU lenders are expected to maintain earnings strength as credit costs stabilize and government infrastructure spending provides additional tailwinds through the December quarter.