PSU Bank stocks rebound in FY26 after weak FY25 performance

In today’s analysis, we observed a notable trend in the Nifty PSU Bank Index. So far in the first three months of FY26, the index has gained approximately 11%, marking a strong recovery compared to FY25, when it had declined by around 11%. Digging deeper into the index's performance, we found that 8 out of the 12 constituent stocks have delivered positive returns during this period. Notably, 4 of these stocks — Canara Bank, Bank of Maharashtra, Union Bank of India, and Indian Bank — have surged more than 15% each in under three months.On the flip side, there were some underperformers as well. Three stocks in the index have seen declines of over 10% during the same timeframe, highlighting a mixed but largely positive performance across the sector. (Data Source: ACE Equity) Banking Bounce