Andhra Bank is ruling the banking space in the markets today

Shares of Indian Andhra Bank, 61 percent 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.

Andhra Bank said its first quarter Net Profit rose 89 percent to 203 crore rupees compared with 107 crore rupees in the same quarter a year ago. Total Income during April-June gained 7.7 percent to 4,529 crore rupees from 4,205 crore rupees in the year ago period.

The bank's Gross Non Performing Assets fell to 5.75 percent versus 5.98 percent in the same quarter previous year. Similarly, the Net NPAs showed an downward trajectory, falling to 2.99 percent in the first quarter compared with 3.89 percent in the year ago period, the bank said in a statement to the exchanges.

Andhra Bank Futures were the top gainers in the derivatives market with Open Interest rising 14 percent and the counter showing a heavy build up of long positions. They were up 3.3 rupees, or 4.8 percent, at 72.70 rupees. Nearly 23.5 lakh Andhra Bank shares changed hands in the first two hours of trade on the NSE compared with a 5-day average of 12.33 lakh shares.

Despite a stellar performance Andhra Bank's market capitalisation has slipped 14 percent in the past one year to 4,162 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)