Bank Nifty hits new record high amid positive Q3 business updates; Yes Bank, ICICI lead gains: What lies ahead?

Bank Nifty hits new record high amid positive Q3 business updates.

• Bank Nifty reached a record high of 60,152.35, up 0.73% on strong Q3 updates.
• Yes Bank up 3%; 13 of 14 Bank Nifty stocks in the green
• Nifty PSU Bank and Private Bank indices also touched fresh lifetime highs

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Bank shares attracted strong buying interest on Friday after positive business updates for the December quarter, lifting the Bank Nifty index to a fresh record high.

The Bank Nifty rose 0.73 percent to hit an all-time high of 60,152.35, surpassing its previous peak of 60,114.30 recorded on December 1, 2025.

The Nifty PSU Bank index advanced 1.08 percent, while the Nifty Private Bank index gained 0.56 percent. Both indices touched fresh lifetime highs during the session.

Yes Bank was the top gainer on the Bank Nifty, rising more than 3 percent to Rs 22.15 on the NSE. Yes Bank has been added to the Bank Nifty index on December 31.

Union Bank of India and IndusInd Bank climbed 2.09 percent and 1.39 percent, respectively.

Punjab National Bank, ICICI Bank and Bank of Baroda were also among the gainers, rising up to 1 percent.

Thirteen of the 14 constituents of the Bank Nifty were trading in the green, with Axis Bank being the only stock in the red.

The Bank Nifty has risen about 4 percent over the last four sessions.

Bank Nifty: What lies ahead? 

"A sustained move above 60,000 is likely to trigger a continuation of the up move, opening the doors for a rally towards 60,600 in the near term. On the downside, the levels of 59,200–59,100 remain crucial support. A breach below this zone may pause the bullish momentum," said Sudeep Shah, Head — Technical and Derivatives Research at SBI Securities.

The rally was supported by strong business updates for the third quarter.

"Loan growth is recovering as banks across segments — public, private (large, mid-tier, regional) and SFBs — are confident in their strengthened balance sheets and are actively pursuing expansion," 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.

While South Indian Bank’s third-quarter update was mixed, Indian Bank’s numbers were higher than its guidance and Punjab and Sind Bank’s figures were within the guided range.

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