Tags:
Journalism of Courage
State Bank of India,the country’s largest lender,reported a 42 per cent rise in quarterly profit,beating forecasts,on gains from trading in bonds and currencies.
The bank,which along with its associates controls almost a quarter of Indian bank loans and deposits,said on Thursday net profit rose to Rs 23.3 billion ($480.4 million) in fiscal first quarter ending June,from Rs 16.41 billion reported a year ago.
That beat a Reuters poll forecast of a net profit of Rs 20.1 billion for the fiscal first quarter.
State Bank,which has close to 12,000 branches across India and abroad,has the lowest cost of funds among the nation’s lenders.
The bulk of its funds comes from savings bank deposits that pay annual interest of 3.5 per cent,compared with 11.75 per cent a year it charges on loans to its best customers.
Shares in State Bank,which the market values at $21.8 billion,have risen 31.6 per cent so far this year compared with a 58.6 per cent rise in the main share index and a 50.6 per cent increase in the bank index.
