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Business News/ Markets / Stock Markets/  Nifty PSU Bank advances for 5th straight day; 11 stocks including BoB, SBI, PNB end in the green
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Nifty PSU Bank advances for 5th straight day; 11 stocks including BoB, SBI, PNB end in the green

Indian state-run banks continued their winning streak for the fifth consecutive session on Wednesday, with 11 out of 12 constituents of Nifty PSU Bank index finishing today's trade in the positive territory.

Both the Nifty 50 and S&P Sensex concluded today's trading session in positive territory, each registering nearly a 1% gain. (Mint)Premium
Both the Nifty 50 and S&P Sensex concluded today's trading session in positive territory, each registering nearly a 1% gain. (Mint)

Indian state-run banks continued their winning streak for the fifth consecutive session on Wednesday, with 11 out of 12 constituents of Nifty PSU Bank index finishing today's trade in the positive territory. Consequently, Nifty PSU Bank reached a fresh all-time high of 6,310 points, concluding the session with a gain of 2.27% at 6,271 points.

In total, the index has surged by 8% over the last five sessions. In terms of index contributors, Bank of Baroda played a significant role, contributing 46.81 points to the index rally today as investors responded positively to the bank's Q3 numbers released during the market hours today. 

Also Read: Stock market today: Nifty 50, Sensex jump about 1% each ahead of Budget 2024, US Fed outcome

The bank posted a 19% jump in profit to 4,579 crore for the December-ending quarter as compared to a net profit of 3,853 crore in the same period last year.

The bank's net interest income during the reporting quarter jumped to 11,101 crore, a 2.6% improvement compared to NII of 10,818 crore.  The net interest margin of the bank came in at 3.10% in Q3, a drop of 27 basis points compared to 3.37% in Q3 FY23. However, it improved sequentially by 3 basis points.

The bank's provisions came down to 666 crore from 2,404 crore in Q3 FY23. The provision coverage ratio (PCR) improved to 93.39% in Q3 FY24 from 92.34% in Q3 FY23.

On the asset quality front, the bank's gross non-performing assets (GNPA) ratio stood at 3.08% in Q3 FY24 as against 4.53% in Q3 FY23. The net non-performing assets (NNPA) ratio improved to 0.70% in Q3 FY24 from 0.99% in Q3 FY23.

Also Read: Budget 2024: Angel One lists 4 top technical stock picks; check full list

Besides, State Bank of India shares also surged by 2.20% to reach 640.50 apiece. Currently, the stock is just 3% away from its all-time high of 660 apiece. Simultaneously, Punjab National Bank (PNB) extended its winning streak for the fifth consecutive trading session, reaching its highest level since February 2018.

The stock's upward momentum began after the release of the Q3 numbers on January 25, with a 12% increase to 114.40 apiece. The state-run lender reported an impressive 253% YoY surge in standalone net profit, reaching 2,223 crore.

Likewise, Canara Bank stock has also been moving higher since the release of Q3 numbers, and in today's trade, it hit a new record high of RS 485 apiece by surging 1.70%. Other PSBs that have reported Q3 numbers so far include Union Bank, Indian Bank, Central Bank of India, IDBI Bank, and Bank of Maharashtra.

Also Read: Budget 2024: Analyst decodes derivatives trading strategy on February 1

In the preceding quarter (Q2FY24), the combined profit of 12 Indian public sector banks (PSBs) jumped 31% YoY to 33,643 crore. Looking at the H1FY24 performance, the 12 PSU lenders posted a net profit of 68,061 crore, an increase of 66% over H1FY23's net profit of 40,991 crore.

Meanwhile, both the Nifty 50 and S&P Sensex concluded today's trading session in positive territory, each registering nearly a 1% gain.

Commenting on today's market performance, Vinod Nair, Head of Research at Geojit Financial Services, said, "A positive build-up was reflected in Indian markets prior to the interim budget. Although expectations are low, the market anticipates a lower fiscal deficit supported by buoyant tax revenues. The overall trend in the market is akin to a seesaw, and the buy-on-dips strategy is effective as of now."

"The pharma sector stood out with a positive earnings outlook. Global market cues are mixed ahead of the FOMC meeting, and US 10-year yields were marginally down. An immediate rate cut seems improbable, but indications about the future trajectory could ease volatility," he added.

 

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

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Published: 31 Jan 2024, 06:02 PM IST
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