Shares of Punjab National Bank rules the banking space at Dalal street

Shares of Punjab National Bank were the top gainers in the derivatives space after the 2nd largest state-owned lender contained for the moment at least a growing, sector-wide problem of non performing assets.

PNB said its net non--performing assets, a key measure, for the first quarter stood at 4.05 percent compared with 4.06 percent in the previous three months. Its Gross Non performing assets over the same periods fell to 6.47 percent versus 6.55 percent.

Meanwhile, PNB's first quarter net profit fell to 721 crore rupees compared with 1,405 crore rupees in the year ago period. Net Interest Income during April-June slipped to 4,102 crores versus 4,380 crore rupees.

PNB Futures rose 6 percent, or 7 rupees, to 142.80 rupees with Open Interest surging 15 percent, pointing to increase in long positions on the counter

PNB's market capitalization has dropped 25 percent over one year to 24,675 crore as investors exited PSU banks on fears of a rising trend in delinquencies and non performing assets.

(Image credits: Indiatimes)