State Bank of India reported a jump in profits that beat estimates on higher margins and lending income even as a measure of non-payments for loans rose slightly.
Net income at India’s largest lender rose 83% to 166.9 billion rupees ($2 billion) for the three months ended March 31, beating the average estimate of 150.5 billion rupees by analysts in a Bloomberg survey.
Fresh slippages, which tracks unpaid interest on loans, rose 3% from the previous quarter. Shares of the bank fell as much as 2.5%, the biggest drop in almost two months.
The Mumbai-based lender is the last among large private and state-backed banks to report quarterly earnings. Its peers HDFC Bank Ltd. and ICICI Bank Ltd. have reported a surge in their profits amid consumer demand for loans in the world’s most populous country.
Read More: ICICI Bank Fourth Quarter Profit Jumps 30%
Meanwhile, banks are also weighing an uncertain economic outlook and the prospect of a increase in potential defaults over time.
The bank’s net interest margin expanded to 3.84% at the end of the quarter, compared to 3.4% a year earlier.
Other key metrics:
- Provisions for loan losses fell 19% from the previous quarter to 12.8 billion rupees
- Net interest income was 403.9 billion rupees, a gain of 29% from a year earlier.
(adds shares, additional numbers from earnings from third paragraph.)
