 "PSU banks gain; Canara Bank, Bank of India up 3%")
Shares of public sector undertaking (PSUs) banks were trading higher by up to 4% on the National Stock Exchange (NSE) in an otherwise subdued market in early trade.
Oriental Bank of Commerce, Bank of India, Punjab National Bank (PNB), IDBI Bank, Canara Bank and Allahabad Bank were up 3%-4%, while State Bank of India (SBI), Union Bank of India, Indian Overseas Bank, Syndicate Bank, Bank of Baroda and Andhra Bank up 1%-2% on the NSE.
At 10:02 AM, the Nifty PSU Bank, the largest gainer among sectoral indices, was up 1.1% as compared to 0.1% fall in the Nifty 50 and Nifty Bank index.
Canara Bank was up 3% at Rs 263 after the bank reported mixed set of numbers for the quarter ended June 30, 2016 (Q1FY17).
The bank’s asset quality remained more or less table with gross non performing assets (NPA) ratio marginally up at 9.7% from 9.40% in March quarter. Net NPA ratio increased to 6.69% from 6.42% in previous quarter.
Net profit for Q1FY17 stood at Rs 229 crore, sequentially up from a net loss of Rs 3,905 crore in March 2016 quarter. The bank had reported net profit Rs 479 crore in June 2015 quarter.
“While the quarter seems to have brought some relief in the asset quality, the net NPA % of 6.69% indicates more provisions going ahead which should which could keep the bottom-line under pressure,” Angel Broking said in a client note.
Oriental Bank of Commerce, Bank of India, Punjab National Bank (PNB), IDBI Bank, Canara Bank and Allahabad Bank were up 3%-4%, while State Bank of India (SBI), Union Bank of India, Indian Overseas Bank, Syndicate Bank, Bank of Baroda and Andhra Bank up 1%-2% on the NSE.
At 10:02 AM, the Nifty PSU Bank, the largest gainer among sectoral indices, was up 1.1% as compared to 0.1% fall in the Nifty 50 and Nifty Bank index.
Canara Bank was up 3% at Rs 263 after the bank reported mixed set of numbers for the quarter ended June 30, 2016 (Q1FY17).
The bank’s asset quality remained more or less table with gross non performing assets (NPA) ratio marginally up at 9.7% from 9.40% in March quarter. Net NPA ratio increased to 6.69% from 6.42% in previous quarter.
Net profit for Q1FY17 stood at Rs 229 crore, sequentially up from a net loss of Rs 3,905 crore in March 2016 quarter. The bank had reported net profit Rs 479 crore in June 2015 quarter.
“While the quarter seems to have brought some relief in the asset quality, the net NPA % of 6.69% indicates more provisions going ahead which should which could keep the bottom-line under pressure,” Angel Broking said in a client note.
