State Bank of India declared it's Q1 Net profit results. The SBI Q1 results have surpassed analyst expectations however the shares plunged on the grounds of rise in bad loans too.
State Bank of India has posted a second surge in the net profit from 15.84 billion rupees a year to 37.52 billion rupees. This is higher than the expectations of the analysts who had expected a net profit of 36.17 billion rupees. However there has been an improvement in the bad debts in the quarter ending March. UBS had downgraded SBI's rating from Buy to Sell on grounds of weak monsoon adding woes to it's high bad loans. The slowdown in Indian economy and falling monsoon rains are said to add to the already high bad loans by the bank.
The net interest income experienced a rise of 14.6 per cent to 111.19 billion rupees.
State Bank of India NSE shares also experienced a downfall of 2.7 per cent in Mumbai market on Friday afternoon. The investors have been experiencing some nervousness in view of the State Bank of India’s exposure to embattled Kingfisher Airlines and Air India.