SBI hits 3-1/2 year high on better-than-expected asset quality

Reuters Market Eye - State Bank of India's shares gain as much as 2.9 pct to their highest intraday level since April 2011.

Better-than-expected asset quality in Q2 continues to help, say traders.

Asset quality continues to get better with six consecutive improvements in impairment asset formation ratio - Jefferies.

Separately, SBI said improving loan quality will take time for Indian banks.

SBI shares up 3.2 percent at 10:57 a.m. after a 2.5 percent rise on Friday.

Stock up 61.8 percent YTD vs a 32.7 percent gain in the Nifty.

(Reporting by Abhishek Vishnoi)