CNX PSU Bank index surges nearly 5%; Bank of Baroda soars 14%

SBI, BOI, OBC, Canara Bank, IDBI Bank, IOB, Syndicate Bank and Allahabad Bank up 3%-5% on the NSE.

Banking shares, mainly public sector undertakings (PSU), were trading higher with the CNX PSU Bank index surging by nearly 5% on the National Stock Exchange (NSE).

At 1131 hours, CXN PSU Bank index rallied 4.9% at 3,458 points compared with a 1.4% rise in the CNX Nifty and 1.9% gain in Bank Nifty.

Bank of Baroda (BOB), the largest gainer in the PSU banks pack, soared 14% to Rs 165 on the NSE, after the state-owned bank said that the bank's assets quality improved during the quarter ended March 2015 on a sequential basis.

The percentage of gross and net non-performing assets ratios stood at 3.72% and 1.89% during the March 2015 quarter compared to 3.85% and 2.11% respectively in the December 2014 quarter, BOB said in a statement.

The net profit during the quarter under review, however, declined sharply by 48% year on year at Rs 598 crore on account of higher provisioning for bad loans and flat net interest income. The bank had reported profit of Rs 1,157 crore in the year-ago quarter.

Syndicate Bank has rallied nearly 5% to Rs 108 in intra-day deals after the bank on Saturday announced a marginal increase of 2% in net profit at Rs 417 crore for the fourth quarter ended March, compared to Rs 409 crore in the corresponding quarter last year.

State Bank of India (SBI), Bank of India (BOI), Oriental Bank of Commerce (OBC) and Union Bank of India have gained 4% each, while Canara Bank, IDBI Bank, Indian Overseas Bank (IOB) and Allahabad Bank are up 3% each on the NSE.