State Bank of Mysore ruling the banking space at Dalal street

Shares of State Bank of Mysore, majority controlled by the Government of India, were the top gainers in the banking space after the PSU lender reported a sharp surge in first quarter profit coupled with a fall in non performing assets.

State Bank of Mysore said its first quarter Net Profit rose 26 percent to 94 crore rupees compared with 74.8 crore rupees in the same quarter a year ago. Net Interest Income April-June gained 9.5 percent to 578 crore rupees from 527 crore rupees in the year ago period.

The Net NPAs showed a downward trajectory falling to 2.1 percent in the first quarter compared with 2.16 percent in the previous three months. The bank's Gross Non Performing Assets rose marginally to 4.21 percent versus 4 percent in the past sequential quarter, it said in a statement to the exchanges.

State Bank of Mysore surged 31 rupees, or 7.2 percent, at 495 rupees. Nearly 50,000 shares changed hands by 1 pm on the NSE compared with a 5-day average of 14,420 shares.

Despite a stellar performance State Bank of Mysore's market capitalisation has slipped 19 percent in the past one year to 2,213 crore rupees as investors dumped PSU banking stocks on the back of the rising sectoral NPA problem and a critical slowdown in the main industrial sectors of Infrastructure, steel, power and construction.

(Image credits: Indiatimes)