Oriental Bank of Commerce shares surged as much as 9 per cent on Monday after the public lender reported improvement in asset quality in the July-September quarter.
OBC managed to stem the surge in non-performing assets, with gross NPAs declining marginally to Rs 8,558 crore from Rs 8,577 crore in the June quarter of this fiscal.
Net NPAs (gross NPA minus provisions) stood at Rs 5,189 crore as against Rs 5,358 crore in the June quarter.
As a percentage of total advances, gross NPA was 5.70 per cent against 5.85 per cent sequentially, while net NPA improved 21 basis points sequentially to 3.55 per cent in the September quarter.
On the operational front, OBC reported a net profit of Rs 301 crore on net interest income (difference between interest earned on advances minus given on deposits) of Rs 1,383 crore meeting Street estimates.
The provisioning for bad loans and contingencies fell to Rs 569 crore, down from Rs 641 crore made by it in year ago period.
Over the last three months, OBC has underperformed the benchmark Bank Nifty over asset quality concerns. OBC shares closed 8.28 per cent higher at 145.85 apiece compared to 0.19 per cent fall in the broader Nifty.