SBI stock rises to over five-month high on Q2 asset quality

The State Bank of India stock extends gains up 3 per cent on  bank's Q2  earnings. It has touched the highest intraday level since May 26.

Better-than-expected asset quality in Q2 helps, say traders. Fresh slippages stood at Rs 7,700 crore ($1.25 billion) compared with Rs 9,932 crore in Q1, the company said. Also, fresh restructuring at Rs 3450 crore compared with Rs 5702 crore in Q1, the company says.

The lender reported a 30.5 per cent increase in profit, but lagged estimates as provisions for bad loans increased.

(1 US dollar = Rs 61.6400)

(Reuters)