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State Bank of India (SBI), the nation's top lender, reported its fifth consecutive quarter of declining profit but said its asset quality improved, sending its stock more than 5% higher.
SBI, which accounts for about a quarter of India's loans and deposits, said standalone net profit fell about 8% from a year earlier to Rs 3,041 crore in its fiscal fourth quarter to March 31.
The net profit was ahead of analysts' estimates of Rs 2,803 crore.
SBI, which has pledged to boost vigilance of bad loans after a string of disappointing results, said net non-performing loans as a percentage of total assets fell to 2.57% in the March quarter from 3.24% in the preceding quarter, but was still higher compared to 2.10% in the year-ago quarter.
Net interest income rose 16.5% from a year earlier to Rs 11,078 crore. Domestic net interest margin, a key gauge of profitability, was stable at 3.49%, the bank said.
Shares in SBI, valued at more than $32 billion, rose as much as 5.6% after the results. The stock has surged almost 50% so far this year, while the NSE bank index has risen nearly a third on hopes of a recovery in the fortunes of the sector.
