Nifty PSU Bank Index Surges 3.62% on RBI Swap Boost

Nifty PSU Bank Index Jumps 3.62% as RBI Liquidity Measures Hit Home The Nifty PSU Bank Index rose 3.62% on June 9, its sharpest single-session move in weeks, after the Reserve Bank of India's concessional foreign exchange swap facility and FCNR(B) deposit hedging subsidies gave state-owned lenders a direct earnings tailwind. This wasn't a broad market rally — it was a targeted re-rating of public sector banks based on a specific policy event with measurable balance-sheet implications. The timing matters. Foreign institutional investors sold ₹4,566 crore in the cash segment that same session. Domestic institutional investors absorbed ₹6,159 crore. The net result: PSU banks didn't just hold ground, they led the market higher. That's not a coincidence — it reflects deliberate DII positioning in names that stand to benefit most from RBI's liquidity architecture. The Nifty index itself held above 23,200, a level that has acted as a meaningful support zone through May and June volatility. The PSU Bank move helped anchor that floor. Which Stocks Moved — and Why It Wasn't Random [State Bank of India](/stock/SBIN) (NSE: SBIN), the index's largest constituent by weight, was central to the rally. SBI has the biggest FCNR(B) deposit book among public sector lenders, which means the RBI's hedging cost subsidy has a direct and outsized impact on its net interest margin math. When hedging costs fall, the all-in cost of foreign currency deposits drops, and that flows through to profitability. [Bank of Baroda](/stock/BANKBARODA) (NSE: BANKBARODA) and [Punjab National Bank](/stock/PNB) (NSE: PNB) also saw strong buying. Both have meaningful international operations and forex liability books, making them natural beneficiaries of the FX swap window. [Canara Bank](/stock/CANBK) (NSE: CANBK), [Union Bank](/stock/UNIONBANK) (NSE: UNIONBANK), and [Indian Bank](/stock/INDIANB) (NSE: INDIANB) participated in the rally as well, though the scale of benefit tracks each bank's foreign curr...