Corporation Bank is euphoric

Corporation Bank is the top gainer on the BSE currently and at an intra day high at Rs.47.50, it was just a tad away from its 52-week high of Rs.47.80. Volumes have spurted up by almost 5 times.

The reason for this euphoria is the very good numbers for Q2FY17. The PSU bank posted a 9% (YoY) rise in net profit at Rs.206 crore . Total income rose 10% at Rs.5751 crore. Its operating profit rose by a huge 59% at Rs.1267 crore.

The market was happy about the improvement in the asset quality too. Gross NPA was down from 11.01% to 10.81% (QoQ) while Net NPA also improved from 7.22% to 6.91%. The Bank’s provision coverage ratio was at 57.39%. Its provisions have also come down from Rs.895 crore to Rs.827 crore and this betterment in asset quality is the main reason for celebration on the counter