PNB shares (Punjab National Bank) today spurted by over 10 per cent after the company reported 13.5 per cent growth in net profit for the third quarter (Q3) ended December 31, 2012 on account of lower provisions and higher cash recovery.
Cheering the results, shares of the bank ended 9.37 per cent higher at Rs 912.45 on the BSE. During the day, the scrip zoomed 10.53 per cent to Rs 922.10.
At NSE, the scrip shot up by 10.24 per cent to close at Rs 919.
Following the jump in the stock price, the market value of the company climbed Rs 2,653 crore to Rs 30,948 crore.
On the volume front, 10.25 lakh shares of the company were traded on the BSE, while over 74 lakh shares changed hands on NSE.
"PNB delivered better-than-expected performance on the asset quality front, as their gross and net NPA ratios came off sequentially," said Vaibhav Agrawal, VP Research-Banking, Angel Broking.
PNB today reported 13.5 per cent growth in net profit at Rs 1,306 crore for the third quarter ended December 31, 2012.
The bank had posted a net profit of Rs 1,150 crore for the October-December quarter of the previous fiscal.
The increase in the net profit was attributed to decline in provisions against non-performing assets, higher cash recovery and reduction in cost of funds, PNB Chairman and Managing Director K R Kamath said.
The total income of the bank rose to Rs 11,519 crore during the October-December period from Rs 10,435.12 crore in the same period last year.
Rise in the stock was in contrast with an overall weak stock market where the Sensex ended at 19,894.98, down 110.02 points.