Banking shares, mainly public sector undertakings (PSU), have rallied up to 15% each after sector giant State Bank of India (SBI) reported a better-than-expected net profit for the quarter ended March 31, 2014 (Q4).
SBI, Canara Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, Allahabad Bank, IDBI Bank and Indian Overseas Bank surged 5-15% each on the National Stock Exchange (NSE).
The CNX PSU Bank index, the largest gainer among sectoral indices, is up almost 8% compared to 1% rise in benchmark CNX Nifty and 1.4% rise in Bank Nifty.
The country’s biggest lender SBI has reported fourth quarter net profit of Rs 3,041 crore, against average analyst estimates of Rs 2,787 crore mainly due to higher net interest income and improvement in assets quality.
The bank's net interest income (interest earned minus interest expended) for the reporting quarter rose 16% year-on-year to Rs 12,903 crore from Rs 11,078 crore for Q4 of FY2012-13.
The asset quality of the bank for the quarter improved on a sequential basis. As proportion to gross and net advances, the gross and net NPA declined by 20 basis points and 47 basis points respectively. The gross NPA and net NPA for the quarter ended March 2014 stood at 4.95% and 2.57% respectively.
The shares of SBI has surged nearly 11% to Rs 2,777, its highest level since May 2011, on the NSE.
Among other individual banking stocks, Canara Bank has soared 15% to Rs 477, followed by Oriental Bank of Commerce (10% at Rs 356), while Andhra Bank (Rs 93.65), Bank of India (Rs 351) and Syndicate Bank (Rs 150) gained 7% each.
SBI, Canara Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, Allahabad Bank, IDBI Bank and Indian Overseas Bank surged 5-15% each on the National Stock Exchange (NSE).
The CNX PSU Bank index, the largest gainer among sectoral indices, is up almost 8% compared to 1% rise in benchmark CNX Nifty and 1.4% rise in Bank Nifty.
The country’s biggest lender SBI has reported fourth quarter net profit of Rs 3,041 crore, against average analyst estimates of Rs 2,787 crore mainly due to higher net interest income and improvement in assets quality.
The bank's net interest income (interest earned minus interest expended) for the reporting quarter rose 16% year-on-year to Rs 12,903 crore from Rs 11,078 crore for Q4 of FY2012-13.
The asset quality of the bank for the quarter improved on a sequential basis. As proportion to gross and net advances, the gross and net NPA declined by 20 basis points and 47 basis points respectively. The gross NPA and net NPA for the quarter ended March 2014 stood at 4.95% and 2.57% respectively.
The shares of SBI has surged nearly 11% to Rs 2,777, its highest level since May 2011, on the NSE.
Among other individual banking stocks, Canara Bank has soared 15% to Rs 477, followed by Oriental Bank of Commerce (10% at Rs 356), while Andhra Bank (Rs 93.65), Bank of India (Rs 351) and Syndicate Bank (Rs 150) gained 7% each.