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State Bank of India first-quarter profit misses estimates, bad loans rise

Reuters 

- of (SBI), the nation's biggest lender by assets, on Friday reported first-quarter profit that missed analysts' estimates, following a decline in net interest and rise in bad loans.

The are the first since merged with five of its subsidiary banks and also took over a niche lender for women from April 1.

For the merged entity, net profit was 20.06 billion rupees ($312.84 million) in the three months through June, from 3.74 billion rupees a year earlier. Pre-merger, the bank's year-earlier profit was 25.21 billion rupees.

The result compared with the 30.29 billion rupee average analyst estimate, Thomson data showed.

Net interest fell 3.5 percent to 176.06 billion rupees.

SBI, which accounts for about a fifth of India's banking sector assets, said for the merged entity, gross bad loans as a percentage of total loans was 9.97 percent at the end of June from 9.11 percent three months earlier and 7.40 percent at the end of June last year.

Indian banks have been hit by higher provisions and regulatory scrutiny as bad loans reached a record $150 billion in December. Earlier this year, the government gave the central greater power to push defaulting borrowers into bankruptcy proceedings.

shares were down 4.8 percent at 0815 GMT in a Mumbai market that was down 1 percent.

($1 = 64.1225 Indian rupees)

(Reporting by Tanvi Mehta in BENGALURU and Devidutta Tripathy in MUMBAI; Editing by Christopher Cushing)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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