Bank Nifty Scales Fresh All-Time High On Strong Q3 Updates; ICICI Bank, Yes Bank Lead Rally

Bank Nifty At Record High: Banking stocks saw strong buying interest on Friday after encouraging business updates for the December quarter pushed the Bank Nifty to a fresh record high.

The Bank Nifty climbed 0.73 per cent to an all-time high of 60,152.35, eclipsing its previous peak of 60,114.30 set on December 1, 2025.

The Nifty PSU Bank index advanced 1.08 per cent, while the Nifty Private Bank index rose 0.56 per cent, with both sectoral indices hitting new lifetime highs during the session.

Yes Bank led the gains on the Bank Nifty, jumping over 3 per cent to Rs 22.15 on the NSE. Union Bank of India and IndusInd Bank followed, rising 2.09 per cent and 1.39 per cent, respectively.

Punjab National Bank, ICICI Bank and Bank of Baroda also traded

higher, gaining up to 1 per cent.

Thirteen of the 14 Bank Nifty constituents were in positive territory, with Axis Bank being the sole laggard.

Over the past four sessions, the Bank Nifty has gained around 4 per cent.

Bank Nifty: What lies ahead?

“A sustained move above 60,000 could extend the uptrend, opening the door for a rally towards 60,600 in the near term. On the downside, 59,200–59,100 remains a crucial support zone. A break below this range could temporarily halt the bullish momentum,” said Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities.

The rally has been underpinned by robust third-quarter business updates from banks.

“Loan growth is recovering as banks across segments — public sector, private (large, mid-tier and regional) and small finance banks — remain confident about their strengthened balance sheets and are actively pursuing growth,” Kotak Institutional Equities said in a note dated December 31.

According to a recent RBI report, banks’ asset quality is expected to improve to a multi-decade high.

Among individual lenders, South Indian Bank’s December-quarter update was mixed, while Indian Bank reported numbers above its guidance. Punjab and Sind Bank’s performance was in line with its earlier projections.