New Delhi: Shares in Oriental Bank of Commerce jumped over 7.5 per cent Monday after the state run lender surpassed profit expectations and reported a decline in stresses assets in the June quarter.
The mid-cap lender's earnings will give some confidence to shaken investors after state-run lenders, including Punjab National Bank, the second-biggest in the public sector, and smaller Central Bank of India reported a rash of bad loans, sending their shares sharply lower.
Government-owned banks account for 70 per cent of the market in India but their lending decisions are not always driven by commercial considerations.
Net profit rose 10 per cent to Rs 391 crore over Rs 355 crore last year. Analysts had expected the PSU lender to report Rs 360 crore in profit.
The bank said gross non-performing assets, as a percentage of total advances, grew at 2.97 per cent in the June quarter, lower that the 3.17 per cent growth the bank recorded in the March quarter. Net NPAs also grew at a slower pace at 2.05 per cent against 2.21 per cent in the previous quarter.
The bank set aside slightly higher Rs 332 crore towards provisioning in the June quarter against Rs 314 crore last year.
At 12.10 p.m., the stock traded 7.1 per cent higher at Rs 228.20 on the BSE, while the broader BSE banking index was up 2 per cent in a strong market.
(With inputs from Thomson Reuters)
The mid-cap lender's earnings will give some confidence to shaken investors after state-run lenders, including Punjab National Bank, the second-biggest in the public sector, and smaller Central Bank of India reported a rash of bad loans, sending their shares sharply lower.
Government-owned banks account for 70 per cent of the market in India but their lending decisions are not always driven by commercial considerations.
Net profit rose 10 per cent to Rs 391 crore over Rs 355 crore last year. Analysts had expected the PSU lender to report Rs 360 crore in profit.
The bank said gross non-performing assets, as a percentage of total advances, grew at 2.97 per cent in the June quarter, lower that the 3.17 per cent growth the bank recorded in the March quarter. Net NPAs also grew at a slower pace at 2.05 per cent against 2.21 per cent in the previous quarter.
The bank set aside slightly higher Rs 332 crore towards provisioning in the June quarter against Rs 314 crore last year.
At 12.10 p.m., the stock traded 7.1 per cent higher at Rs 228.20 on the BSE, while the broader BSE banking index was up 2 per cent in a strong market.
(With inputs from Thomson Reuters)
