Most of the PSB (public sector bank) stocks surged in Monday’s trading session steering the Nifty PSU Bank index into the green with shares of Bank of Baroda, Punjab National Bank rallying 3-9% while shares of SBI slumped about 3%. In the late morning deals, the benchmark NIfty PSU Bank index swung into gains despite a plunge in shares of heavyweight lender SBI. Other than the shares of SBI, all PSU (Public Sector Undertaking) bank stocks traded higher. Shares of Bank of Baroda advanced as much as 10.65% to the day’s high of Rs 172.9 while the stock of Punjab National Bank jumped 3.85% to the day’s high of Rs 162.85.
Other major PSB gainers were, IDBI Bank up 6%, Indian Bank up 4.5%, Union Bank of India up 3.4%, Syndicate Bank up 3.3%, Canara Bank up 3.25% while Bank of India, Andhra Bank, Oriental Bank of Commerce and Allahabad Bank rose 2-3%. In the meantime, shares of State Bank of India fell nearly 4% after India’s largest bank reported weak third-quarter results as more than Rs 25,000 crore of loans slipped into the non-performing assets category in the reporting quarter, majorly due to under-reporting of NPAs (non-performing assets) or divergence to the tune of Rs 23,330 crore for FY17. The gross NPA ratio crossed double digits at 10.35% from 7.23% a year ago.
Shares of State Bank of India saw a vertical decline following the first earnings reaction as the nation’s largest lender posted a net loss of Rs 1,886.57 crore. The stock of SBI plunged as much as 3.84% to a day’s low of Rs 285 on BSE. The state-run banking giant had reported a net profit of Rs 2,152 crore in the same quarter last fiscal year. On a standalone basis, the bank reported a wider loss at Rs 2,416 crore for the quarter ended 31 December 2017.
Meanwhile today, India’s stock market opened higher following a sharp recovery on Wall Street on Friday last week with Dow Industrials rising 33o-points and better Q3 earnings by some of the blue-chip companies. The S&P BSE Sensex gained 272.48 points to hit the day’s high of 34,278.24 whereas NSE Nifty marked the day’s peak of 10,538.1, up by 83.15 points. Shares of ONGC, Tata Steel, Sun Pharma, Bharti Airtel, Axis Bank, L&T, Yes Bank, Asian Paints, Dr Reddy’s, Hero MotoCorp and Maruti Suzuki were the major gainers among Sensex constituents rising up to 5%.