State Bank of India Profit Beats Analysts' Estimates
Aug. 12 (Bloomberg) -- State Bank of India, the nation's largest, posted its highest profit growth in four quarters to beat analysts' estimates as accelerating economic growth boosted its earnings from retail banking.
Net income climbed 25 percent to 29.1 billion rupees ($622 million) for the three months ended June 30, from 23.3 billion rupees a year earlier, the Mumbai-based bank said in a filing to the Bombay Stock Exchange today. That beat the 24.4 billion rupee average of 25 estimates compiled by Bloomberg News. Shares rose to a record in intraday trading.
The earnings growth may bolster Chairman Om Prakash Bhatt's efforts to raise 200 billion rupees from a rights offer by March as he seeks to tap credit demand in an economy forecast to expand at the fastest pace in three years. The state-run lender, which accounts for a fifth of India's banking assets, added 1,049 branches in the 12 months to March to win new clients.
Shares of State Bank rose 3.5 percent to 2,689.95 rupees as of 1:07 p.m. local time today, after earlier climbing to 2,702 rupees, the highest since January 1991. They have gained 58 percent in the past year, surpassing the 20 percent increase in India's benchmark Sensitive Index.
To contact the reporters on this story: Ruth David in Mumbai at firstname.lastname@example.org