Corporation Bank shares are up 61 per cent so far this month to trade at 4-month high on Tuesday after the Supreme Court judgment on Essar Steel.
Corporation Bank shares are up 61 per cent so far this month to trade at 4-month high of Rs 26.45 on Tuesday after the Supreme Court judgment on Essar Steel. The scrip zoomed 68 per cent in the last three trading days. The PSU bank’s stock surged 94 per cent from the 52-week low of Rs 13.60 on October 15, 2019. Shares of Corporation Bank were trading at Rs 26.45, up 4.40 points, or 19.95 per cent on NSE at the time of reporting.
Last week, the Supreme Court ruled out the October order on Essar Steel resolution by the NCLAT and said that decisions of the committee of creditors (CoC) hold primacy in the case. While SBI, Canara Bank and Punjab National Bank have exposure of Rs 13,220 crore, 3798 crore and Rs 2936 crore, respectively to Essar Steel. Union Bank of India, Bank of India and Corporation Bank, have exposure of Rs 2122 crore, Rs 1985 crore and 1566 crore.
Earlier this month, Corporation Bank reported a rise of 26 per cent in its net profit to Rs 129.76 crore for the second quarter ended September 30, on the back of lower provisioning for bad loans. The bank had posted a net profit of Rs 103.01 crore in the corresponding quarter of 2018-19. Its total income also rose to Rs 4,712.97 crore in the second quarter of 2019-20 from Rs 4,216.79 crore in the corresponding quarter of 2018-19, the bank said in a regulatory filing.
The lender’s asset quality witnessed improvement as the gross non-performing assets (NPAs) fell to 15.43 per cent (Rs 20,822.83 crore) of the gross advances at the end of September 2019, compared with 17.46 per cent (Rs 21,714.16 crore) by the year-ago period.