Corporation Bank, Bank Of Baroda Shares Surge Despite Market Selloff

Shares of state-run lenders Corporation Bank and Bank of Baroda surged as much as 13.3 and 9.3 per cent each respectively after both the banks reported a in profits during the quarter ended September 2016.

Bank of Baroda post market hours on Friday reported that its net profit in September quarter surged four-fold to Rs 552.1 crore. The bank had reported net profit of Rs 124.4 crore during the same period last year.

Likewise, Corporation Bank yesterday reported that its net profit in second quarter jumped 9 per cent to Rs 206 crore.

Meanwhile, both the banks reported higher gross non-performing assets (GNPAs) during the quarter under review. Corporation Bank reported GNPAs of 10.81 per cent of total advances while Bank of Baroda's GNPAs more than doubled to 11.35 per cent.

Meanwhile, analysts say that ongoing demonetisation of Rs 500 and 1,000 bank notes is a positive step for banks as it will lead to a surge in cash deposits in the banks and banks will have more money to lend going forward which may boost profitability of the lenders.

As of 12:49 p.m., shares of Bank of Baroda traded 6 per cent higher at Rs 170.20 and Corporation Bank was up 11.5 per cent at Rs 47.05, outperforming the Nifty which was down 1.8 per cent.