Five state-run banks report better-than-expected earnings

BanksFive government-run banks, viz. Bank of Baroda, Bank of India, Allahabad Bank, Syndicate Bank and Union Bank, have reported better-than-expected results for the three months ended September 30 this year.

Bank of India reported an increase of more than 105 per cent in net profit to Rs 622 crore for its July to September quarter, as compared with a net profit of Rs 302 crore in the corresponding quarter of last year. Profit after tax jumped mainly on account of combination of higher net interest income and other incomes. Net interest income jumped 15.07 per cent, from Rs 2,196 crore to Rs 2,527 crore.

Kolkata-based Allahabad Bank posted a jump of 17.7 per cent in net profit, from Rs 234.20 crore to Rs 275.81 crore. Net interest income jumped from Rs 1,174 crore to Rs 1,309 crore.

Bank of Baroda, the country's second biggest lender, posted 10.2 per cent fall in net profit, from Rs 1,301.39 crore to Rs 1,168.1 crore. Even this was better than analysts' expectations. Even after the reported decline in profit, the bank's shares jumped as much as 7 per cent intra-day.

Union Bank of India also suffered a decline of 62.45 per cent in its net profit at Rs 208.12 crore. But even this result was much better than analysts' projections.

Syndicate Bank posted a marginal 1.4 per cent rise in net profit at Rs 470.12 crore, as against Rs 463.37 crore in the corresponding quarter of last year.

The banks' better-than-expected earnings pushed CNX PSU Bank index up by more than 10 per cent.

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