In­dia’s State Bank jumps as $4.7b bad-loan list beats peers

The Pak Banker - - FRONT PAGE -

State Bank of In­dia, the coun­try's largest lender, jumped the most in more than two months af­ter re­port­ing a bad­loan watch list that's smaller than its clos­est ri­vals.

Shares of the lender surged 6.4 per­cent to 195.90 ru­pees in Mumbai trad­ing, par­ing this year's losses to 13 per­cent. About 313 bil­lion ru­pees ($4.7 bil­lion) of State Bank's loans are un­der stress and two-thirds of it could sour, Arund­hati Bhat­tacharya, chair­man of the bank said in a brief­ing in Kolkata on Fri­day, af­ter it posted the big­gest profit drop since 2011. That com­pares with ICICI Bank Ltd.'s 440 bil­lion ru­pees. About 2 per­cent of loans at State Bank, which ac­counts for one fifth of all credit in In­dia, are at risk of sour­ing even af­ter a cen­tral bank au­dit prompted lenders to set aside higher pro­vi­sions for bad loans. ICICI Bank last month warned that up to 10 per­cent of its loans could be­come non per­form­ing, while Axis Bank Ltd. pre­dicts that more than 6 per­cent of loans may sour in com­ing quar­ters.

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