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