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SBI Q4 net down 8 percent, but ahead of estimates

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Reuters NEW DELHI
Last Updated : May 23 2014 | 1:25 PM IST

NEW DELHI (Reuters) - State Bank of India (SBI), the nation's top lender, reported its fifth consecutive quarter of declining profit as slower loan growth and a rise in bad loans take a toll on Indian lenders.

SBI, which accounts for about a quarter of India's loans and deposits, said standalone net profit fell about 8 percent from a year earlier to 30.41 billion rupees ($519.8 million) in its fiscal fourth quarter to March 31, but ahead of analysts' estimate of 28.03 billion rupees.

Net non-performing loans as a percentage of total assets rose to 2.57 percent in March quarter from 2.1 percent in the year-ago quarter, but was lower than 3.24 percent for the December quarter.

Lenders in India are betting that a new government that is set to take over next week will help revive an economy facing its worst slowdown since the 1980s, spurring loan growth and checking a rise in bad loans.

SBI shares were trading 3.1 percent up as of 1:10 p.m. in a Mumbai market that gained 0.65 percent.

(Reporting by Devidutta Tripathy; Editing by Matt Driskill)

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First Published: May 23 2014 | 1:14 PM IST

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