SBI Q1 net falls 32%, bad loans rise slightly

However, the shares of state-run bank rose more than 5% after the results on the lower-than-expected rise in bad loans

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

SBI shares rose more than 5% 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 Rs 36.92 billion reported a year earlier.

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

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