PSU banks gain post SBI Q4 results; Nifty PSU Bank index surges 5%

SBI has moved higher by 6% to Rs 260, bouncing back 8% from early morning low of Rs 241 on the NSE

Shares of public sector banks have rallied by upto 6% on the National Stock Exchange (NSE) after State Bank of India (SBI), the largest state-owned bank, reported a net loss of Rs 77.18 billion in March quarter (Q4FY18) due to higher provisioning for bad loans. The bank had net loss of Rs 34.42 billion in the same quarter last fiscal.

Net interest income were down 5% at Rs 199.74 billion, a lower than expected, as against Rs 210.65 billion in the corresponding quarter of previous fiscal. Net interest margin improved to 2.5% from 2.45% in December quarter.

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