Nifty PSU Bank index rally over 4%; SBI, Canara Bank, BOB up more than 4%

At 11:05 am; Nifty PSU Bank index, the largest gainer among sectoral indices, was up 4.2% at 3,059, as compared to 0.41% rise in the Nifty 50 index.

Shares of public sector banks have rallied by up to 5% on the National Stock Exchange (NSE), after Canara Bank reported a net profit of Rs 2.81 billion in June quarter (Q1FY19) on the back of higher net interest income (NII). Analysts on average had expected the state-owned bank to post a loss during the quarter.

Canara Bank had profit net profit of Rs 2.52 billion in year ago quarter and net loss of Rs 48.6 billion in previous quarter.

NII of the bank grew 43% year on year (yoy) at Rs 38.83 billion from Rs 27.14 billion in year