Nifty PSU Bank hits new all-time high amid Q2 results; J&K Bank, Union Bank, Canara Bank surge 4-5%; SBI, BOB shine too

Nifty PSU Bank has hit a new historic high and was slightly away from earmarking 3,000-mark for the first time.

Oct 27, 2021 02:10 IST India Infoline News Service

PSU Bank stocks were in the fast lane amid corporate earnings as investors take comfort in asset quality improvement and a further uptick in deposits and advances that led to healthy growth in broader terms. Also, privatisation hopes lifted the sentiments. On Wednesday, Nifty PSU Bank has hit a new historic high and was slightly away from earmarking 3,000-mark for the first time.

At around 2.24 pm, Nifty PSU Bank was trading at 2,936.60 higher by 57.35 points or 1.99%. The index has touched a new 52-week high of 2,963.75. On the index, 11 scrips advanced while one scrip declined and one scrip stood unchanged.

J&K Bank was the top gainer soaring nearly 5% followed by Union Bank at 4.5%. Canara Bank jumped nearly 4%.

Union Bank is in focus after trimming its home loan interest rates to an all-time low. The minimum rate at which home loans will be offered is now 6.4%.

Canara Bank recorded a nearly threefold rise in net profit in Q2 to Rs1,332.6cr compared to a profit of Rs444.4cr in the same quarter a year ago. The lender's net interest income stood at Rs6,273.8cr down 0.5% yoy. The Bank's gross non-performing assets (GNPA) ratio reduced to 8.42% as of Sep 2021 down from 8.50% as of June 2021, 8.93% in March 2021.

Stocks like Bank of India and Bank of Baroda jumped more than 2% each. While SBI, Indian Overseas Bank and Indian Bank climbed more than 1% each.

PNB and PSB advanced 1% and 0.8%. Bank of Maharashtra was broadly flat but in green. UCO Bank stock was unchanged from the previous closing.

Central Bank of India, however, was the only laggard tumbling nearly 3%. The Bank's net profit jumped 56.32% to Rs200.78cr during Q2 as against Rs128.44cr during the previous quarter ended September 2020. Net NPA reduced from 5.60% to 4.51% on a Y-o-Y basis registering an improvement of 109 bps and from 5. 09% to 4.51% on a Q-o-Q basis registering an improvement of 58 bps.

Moreover, as per reports, the government is likely to introduce two key financial sector bills which supposedly will include the proposed guidelines for facilitating privatisation of state-owned banks that was announced in the Budget 2021-22. The bills are expected to be discussed during the forthcoming Winter Session of Parliament.

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