Banking shares, especially those of public sector undertaking (PSU) banks, are in the limelight and have rallied up to 17% after Indian Overseas Bank (IOB) reported strong set of numbers for the quarter ended March 2014.
IOB, Allahabad Bank, Central Bank of India, United Bank of India, Vijaya Bank, Punjab and Sindh Bank, Dena Bank and Bank of Maharashtra have rallied more than 5% each, while IDBI Bank, Andhra Bank, Canara Bank, Syndicate Bank, Union Bank of India and Bank of India are up 2-5% each on the NSE.
At 1050 hours, the NSE CNX PSU Bank index has gained 2.34% compared with 0.85% rise in benchmark CNX Nifty.
IOB, the largest gainer among the pack, has soared 17% to Rs 64.20 after reporting an over four-fold jump in net profit at Rs 268 crore for the fourth quarter ended March 31, 2014 (Q4), due to lower provisioning, higher income and cash recovery. The state-owned bank had posted a profit of Rs 59 crore in the year-ago period.
Net interest income (interest earned minus interest expended) increased by 8.9% yoy to Rs 1,411 crore.
The bank had provided only Rs 313 crore towards non-performing assets (NPAs) as against Rs 780 crore in the previous year. The bank's gross NPA stood at Rs 9,020 crore as compared to Rs 6,608 crore.
The bank’s gross NPA in percentage terms decreased to 4.98% in March quarter from 5.27% in December quarter. Net NPA was at 3.20% compared with 3.24% in the previous quarter.
IOB, Allahabad Bank, Central Bank of India, United Bank of India, Vijaya Bank, Punjab and Sindh Bank, Dena Bank and Bank of Maharashtra have rallied more than 5% each, while IDBI Bank, Andhra Bank, Canara Bank, Syndicate Bank, Union Bank of India and Bank of India are up 2-5% each on the NSE.
At 1050 hours, the NSE CNX PSU Bank index has gained 2.34% compared with 0.85% rise in benchmark CNX Nifty.
IOB, the largest gainer among the pack, has soared 17% to Rs 64.20 after reporting an over four-fold jump in net profit at Rs 268 crore for the fourth quarter ended March 31, 2014 (Q4), due to lower provisioning, higher income and cash recovery. The state-owned bank had posted a profit of Rs 59 crore in the year-ago period.
Net interest income (interest earned minus interest expended) increased by 8.9% yoy to Rs 1,411 crore.
The bank had provided only Rs 313 crore towards non-performing assets (NPAs) as against Rs 780 crore in the previous year. The bank's gross NPA stood at Rs 9,020 crore as compared to Rs 6,608 crore.
The bank’s gross NPA in percentage terms decreased to 4.98% in March quarter from 5.27% in December quarter. Net NPA was at 3.20% compared with 3.24% in the previous quarter.
