State Bank of India Profit Rises 30% ::

State Bank of India topped market expectations with a 30% jump in its second quarter net profit, but rising bad loans at the country's largest lender by assets worried investors.
Shares of the state-run bank fell 3.9% to end at 2,156.35 rupees ($39.66) on the Bombay Stock Exchange, where the benchmark index dropped 0.9%.
SBI said its gross bad loans rose to 5.15% of total loans at the end of September, compared with 4.19% a year earlier and 4.99% on June 30.
The stress on SBI's loan book indicates the financial pain of lenders due to slowing economic growth in India. The impact is greater for state-run lenders, which have larger loan exposures to corporates, than private-sector banks who lend mostly to individual customers.
SBI's portfolio of bad loans is likely to increase further as it doesn't write off loans to the same extent as other state-run banks, said analyst Vaibhav Agrawal of Mumbai-based Angel Broking Ltd.
"We are still building in an increase in its gross bad-loans ratio... up to possibly 6% over the next two to three quarters," added.
Despite its higher band loans, the bank cut its loan-loss provisioning by 37% to 18.70 billion rupees in the July-September quarter. This has boosted its profit.
SBI said its net profit rose to 36.58 billion rupees ($673 million) from 28.10 billion rupees a year earlier. The average of estimates in a poll of six analysts was for profit of 35.28 billion rupees.
SBI Chairman Pratip Chaudhuri said the bank set aside a smaller amount against bad loans because it had "front-loaded" its provisioning, as in it made a larger provision in the April-June quarter.
The bank's net interest income, the equivalent of revenue for companies in other sectors--rose just 5.0% to 109.74 billion rupees as loan growth remained muted. SBI also suffered due to strong deposit growth, which drove up its cost of funds and narrowed its interest margin.

SBI has 700 billion rupees of excess cash, Mr. Chaudhuri said, adding that he expects loan growth to be stronger in October-March.

Buy TCS Around 1323 for the target of 1330

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Hi HAM, GE... It was your day.....
Hope you got profits in lakhs!

hi friend ..

Hi pankaj, Hi

Hi PRM, can see 125

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Hi Priyanka, pankaj, KB, GE

Hi Kartik, GE :)