PSU banks extend rally as Bank of Baroda posts good Q1 results

Bank of Baroda, SBI, PNB, Syndicate Bank, Bank of India, Indian Bank, Union Bank of India and Canara Bank were up in the range of 2% to 8% on the NSE.

Shares public sector undertaking (PSU) banks have rallied by up to 8% on the National Stock Exchange (NSE) in early morning trade after the Bank of Baroda on Friday reported a more than two-fold jump in net profit at Rs 5.28 billion for the first quarter of 2018-19 (Q1FY19) as provisions for bad loans dropped.

The bank had reported a net profit of Rs 2.03 billion in the same quarter of 2017-18. It had reported a net loss of Rs 31.02 billion in last quarter (March 2018).

The stabilisation of asset quality leading to a fall in provisions