MUMBAI Feb 14 State Bank of India (SBI)
, the country's largest lender, on Friday posted a
fourth straight consecutive drop in net income as an increase in
bad loans clipped profitability.
SBI followed its state-run peers Punjab National Bank
, Canara Bank and Bank of India in
posting weak profits amid high defaults by corporates battling
reduced cashflows, high inflation and delays in government
approvals for projects.
SBI said on Friday that net profit fell more than a third to
22.34 billion rupees ($358.21 million) in the quarter ended
December, lagging analysts' estimate of 25.3 billion rupees.
Non-performing loans as a percentage of total assets rose to
5.7 percent from 5.6 percent in the preceding quarter.
Last month, India's top private sector lender ICICI Bank
warned that corporate defaults would rise in the
coming quarters as borrowers succumb to the pressure of a
sluggish economy. ICICI posted its slowest profit growth in four
years in the December quarter.
SBI shares, valued by the market at about $17 billion, were
trading down 1.3 percent at 1,485 rupees.
($1 = 62.36 rupees)
(Reporting by Swati Pandey; Editing by Miral Fahmy)