SBI Takes a Good Lead
The country's largest bank, the State Bank of India pleasantly surprised the street on Friday by reporting an improvement in asset quality as well as net interest income. The operating profit, which rose 37% to 10,628 crore from 7,761 crore also beat expectations. After a disappointing set of numbers last year the banking behemoth has done well to pull up its socks and live up to the expectations of its customers and shareholders under its new chairperson. Besides, the bank has won several prestigious awards in the banking category, even giving private and foreign banks a run for their money.
The biggest test for the bank will come in the coming quarters as it strives to raise equity to meet Basel norms. But given the bank's long history and its enviable reach it should have no trouble in mopping up funds. Way to go, SBI!