Markets News

State Bank of India posts profit for first quarter

BENGALURU, Aug 2 (Reuters) - State Bank of India (SBI) on Friday reported a profit for the first-quarter, compared with a loss a year earlier, as India’s largest lender by assets earned more interest income, while provisions for bad loans dropped.

Net profit stood at 23.12 billion rupees ($332.14 million), for the three months ended June 30, compared with a loss of 48.76 billion rupees reported last year due to lower trading income and treasury losses, the bank said here on Friday.

About 22 analysts, on an average, had expected the Mumbai-based lender to post a profit of 40.83 billion rupees, Refinitiv data showed.

Gross bad loans as a percentage of total loans, a measure of asset quality, stood at 7.53% by June-end, flat over the previous quarter and lower than 10.69% in the same period last year.

Interest earned rose 6.5% to 626.38 billion rupees, while provisions for bad loans dived 10.7% in the quarter. ($1 = 69.6100 Indian rupees) (Reporting by Chris Thomas in Bengaluru, Editing by Sherry Jacob-Phillips)