Indian Bank led the gains, surging as much as 10%, while State Bank of India, Canara Bank, Bank of Baroda, Bank of Maharashtra, Punjab National Bank (PNB) and Bank of India advanced between 2% and 9%.
The rally came after Indian Bank reported a healthy set of numbers for the June quarter. The lender posted a 10% year-on-year increase in net profit to ₹3,273 crore, while net interest income (NII) grew 17% to ₹7,435 crore.
Asset quality continued to strengthen during the quarter, with the gross non-performing asset (GNPA) ratio improving to 1.86% from 1.98% in the March quarter. The net NPA ratio remained stable at 0.15%.
The bank also reported an improvement in profitability, with its domestic net interest margin (NIM) expanding to 3.41%, compared with 3.35% in both the preceding quarter and the year-ago period.
Meanwhile, provisions declined marginally on a sequential basis to ₹1,196 crore from ₹1,226 crore. The slippage ratio improved to 0.77% from 0.94% a year ago, while the credit-deposit (CD) ratio rose to 81.06% from 80.77% in the corresponding period last year.
Bank of Maharashtra is also scheduled to announce its results later today.
