India : State Bank of India Q1 net falls 32 percent, bad loans rise slightly

MUMBAI : State Bank of India (SBI), the nation’s top lender by assets, reported on Friday first-quarter net profit fell 32 percent, in line with estimates, and its bad loans rose slightly.

SBI shares rose more than 5 percent after the results on the lower-than-expected rise in bad loans.

The lender, which accounts for more than a fifth of India’s total bank loans and deposits, said standalone net profit was 25.21 billion rupees for the three months to June 30, against 36.92 billion rupees reported a year earlier.

Analysts on average had expected a net profit of 25.4 billion rupees, according to data compiled by Thomson Reuters.

Gross bad loans as a percentage of total loans rose to 6.94 percent as of end-June, from 6.50 percent in March.