State Bank of India (SBI) posted its steepest fall in quarterly net profit in more than two years due to worsening asset quality and a slump in treasury operations.
SBI, which accounts for a quarter of the country's loans and deposits, said on Wednesday its net profit fell 35 per cent to 23.75 billion rupees in the quarter ended September. Net interest income, or the difference in interest earned and paid out, rose 11.6 per cent.
Analysts, on average, had expected profit of about 27 billion rupees.
Indian state banks, with their high exposure to the power and infrastructure sectors, have been particularly hit by the country's economic slowdown. SBI's outgoing chairman said last month that asset quality pressures are likely to continue.
Net nonperforming loans, as a percentage of total assets, worsened to 2.91 per cent from 2.83 per cent in the preceding quarter.
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