PSU bank stocks surge despite market headwinds.

PSU bank stocks surge despite market headwinds. Five major lenders rallied up to 4% on Monday after reporting strong March quarter updates, with the Nifty PSU Bank Index gaining half a percent while broader indices declined. Bank of Baroda led gains with a 4% jump, driven by 14% year-on-year global business growth to Rs 30.78 lakh crore and 16% advance growth. Bank of Maharashtra surged 4.3% on 18% total business growth and 22% advance increase. Union Bank of India, UCO Bank, and Punjab National Bank also posted solid gains on robust deposit and advance growth. The sector had faced significant headwinds in March, falling 20% as US-Iran tensions pushed global bond yields higher, impacting PSU bank portfolios heavy in government securities. Recent strong quarterly performance signals recovery momentum and renewed investor confidence in the sector.