New Delhi, Aug. 26 -- PSU bank stocks saw healthy buying interest in morning deals on Wednesday, 26 August, driving the sectoral index, the Nifty PSU Bank, up nearly 2% despite cautious market sentiment.

The Nifty PSU Bank index rose by 1.8% in the morning trade, with stocks such as Bank of Maharashtra, Bank of India, Canara Bank, Punjab National Bank (PNB), and State Bank of India (SBI) jumping between 1% and 6%.

The PSU banking stocks are not witnessing a sudden spurt. In fact, the Nifty PSU Bank index has risen by 4% this month so far, compared to a 0.60% rise in the Nifty Private Bank index and a flat, with a negative bias, Nifty 50.

The rise in PSU bank stocks can largely be attributed to healthy Q1FY27 results.

Despite a challen...