State Bank of India, the country's biggest lender, beat market expectations with a sharp rise in its fourth-quarter net profit, mainly due to a lower base last year and strong demand for loans.
SBI, in which the government is a majority shareholder, reported a net profit of Rs 4,050 crore for the three months to March, up from Rs 20.9 crore year earlier. The bank's year-ago profit was impacted by sharply higher provisions for bad loans.
SBI, which has given loans to some of India's most troubled borrowers including Kingfisher Airlines , said its net non-performing assets were at 1.82% of total loans at end of March compared with 1.63% a year earlier.
The lender was downgraded by Moody's Investors Services in October because of its thin capital base and worsening asset quality.
The stock is up 1.4% at Rs 187. SBI will pay a dividend of Rs 35 per share.
Gross NPA at 4.4% vs 4.61% (q-o-q)
Provisions at Rs 3,140 crore
