The News International Team
12:30pm PNB under pressure post earnings
Public sector lender Punjab National Bank missed street expectations on all parameters with the second quarter net profit rising 13.8 percent as against expected growth of 142 percent as provisions remained at elevated levels. Profit increased to Rs 575.3 crore during the quarter as against Rs 505.5 crore in same quarter last year due to higher other income.
Net interest income, the difference between interest earned and interest expended, grew by 3.4 percent to Rs 4,151 crore in the quarter ended September 2014 compared to Rs 4,015 crore in same quarter last year. NII growth was expected at 10 percent, according to the average of estimates of analysts polled by CNBC-TV18.
Other income (non-interest income) jumped 73.3 percent to Rs 1,558.4 crore from Rs 899.33 crore during the same period. The stock declined 3.5 percent.
12:00pm Market Check
The market erased morning gains due to fall in index heavyweights like ITC, Reliance Industries, Infosys and HDFC twins. The 30-share BSE Sensex rose 20.73 points to 26450.58 and the Nifty advanced 10.15 points to 7889.55.
About 1387 shares have advanced, 1048 shares declined, and 110 shares are unchanged on the Bombay Stock Exchange.
State-run ONGC fell nearly 3 percent on profit taking. Shares of ITC, Infosys, HDFC, Reliance Industries, Mahindra and Mahindra, Coal India and Dr Reddy’s Labs declined 0.7-1.9 percent.
Lupin (down 1.7 percent), Sun Pharma (down 1 percent) and HDFC Bank (down 0.25 percent) were under pressure as Foreign Investment Promotion Board has postponed its meeting. FIPB was going to consider proposals of HDFC Bank, Sun Pharma and Lupin.
However, ICICI Bank, Bharti Airtel, Sesa Sterlite, Wipro, Gail, Axis Bank, BHEL, NTPC, Hindalco Industries and Tata Power gained 1-4 percent.