PNB, Bank of Baroda and other PSU banks surge over 3 percent on higher trade volumes

PSU banks have rallied over 3 percent.

PSU banks rallied over 3 percent as trade volume surged over monthly averages on September 13. Bank of Baroda, Union Bank of India, Punjab National Bank and Canara Bank rallied between 3 and 6 percent on September 13.

Punjab National Bank posted the most gains as it registered a 6.96 percent up move to Rs 71.50 at 2:24 pm. As many as 14 crore shares were traded today, higher than the weekly average of 7 crore and monthly average of 6 crore. Bank of Baroda, Union Bank of India and Canara Bank posted up move of 3.9 percent, 3.14 percent, 4.27 percent respectively. Three crore shares of Bank of Baroda were exchanged today, higher than its monthly average of two crore. A similar case with Canara Bank as one crore shares exchanged hands compared to the monthly average of 78 lakh.

PSU banks have been in a rally for the last six months. Canara Bank, Bank of Baroda, Punjab National Bank and Union Bank of India had delivered returns between 27 and 48 percent in the aforementioned time period. These returns are higher than the returns private banks have posted in the last six months. HDFC Bank, ICICI, Axis Bank and Kotak Mahindra Bank have given a return between 5 and 21 percent in the same period.
In the first quarterly results of FY24, PNB posted a 307 percent year-on-year increase in net profit to Rs 1,255 crore while Canara Bank saw a 74.8 percent rise to Rs 3,534.8 crore net profits.

In comparison, HDFC Bank saw net profit rising by 30 percent from the previous year to Rs 11,951.7 crore while ICICI Bank’s net profit increased by 40 percent to Rs 9,648 crore and Kotak Mahindra Bank’s net profit surged by 50.62 percent to Rs 4,150.19 crore.