SBI beats forecasts with 25% rise in net profit

State Bank of India, the nation's top lender by assets, reported a better-than-expected 25 per cent increase in quarterly profit on the back of higher interest income and a drop in bad loans, driving its shares up over 4 per cent.

Net profit rose to Rs 3,879 crore ($589.5 million) for its second quarter ended September 30, from Rs 3,100 crore a year earlier, SBI said in a statement on Friday.

Analysts on average had expected the lender to report a net profit of Rs 3,639 crore, according to data compiled by Thomson Reuters.

Gross bad loans as a percentage of total loans dropped to 4.15 per cent from 4.29 per cent in the June quarter. Provisions for bad loans dropped almost 7 per cent.

($1 = Rs 65.8000 )

(Reuters)