SBI beats forecast, Q3 net up 14%

SBI beats forecast, Q3 net up 14%

Mumbai: State Bank of India, the country's top lender, posted a 14 per cent rise in quarterly net profit on Saturday, beating forecast, bolstered by credit demand growth and fee income.

The bank and rivals ICICI Bank and HDFC Bank are seeing a surge in demand for loans in a rapidly growing economy, but rising interest rates are a concern for the sector.

State Bank posted a net profit of Rs 28.28 billion ($620 million) in the fiscal third quarter ended December, versus Rs 24.79 billion a year earlier.

A Reuters poll of 16 brokerages had forecast profit to grow 10 percent to Rs 27.15 billion.

Shares of State Bank of India, valued at $35 billion, rose nearly 24 per cent in 2010, compared with a 17 per cent rise in the main market and 33 per cent gain in the banking sector index.

Source: Agencies