Shares of Canara Bank hit a more than four-year high of Rs 338.30 in intraday trade on Monday, gaining 1% on the BSE on expectations of strong future earnings and a stable outlook. Shares of the state-owned lender have been at their highest level since February 2018.

It has gained 83% over the past six months, compared with a 15% gain for the S&P BSE Sensex. It has gained 10% over the past week, compared with a 0.4% gain for the benchmark index.

In the July-September quarter (Q2FY23), public sector banks reported an 89% YoY increase in net profit to Rs 2,525 crore in Q2FY23, mainly driven by higher net interest income-propelled revenue thriving.

The bank’s net interest income rose 18.5% year-on-year to Rs 7,434 crore compared to Rs 6,273 crore last year. The bank’s net interest margin (NIM), which measures profitability, was 2.86%, compared with 2.78% in the previous quarter and 2.77% a year earlier. The bank expects margins to remain healthy, given the rising interest rate environment.