SBI Shows Record First-Quarter Profit, Shares At All-Time High

State Bank of India (SBI) posted a four-fold jump in slippages, or new bad loans, for the first quarter ended June as its home loan and small business segments struggled.

The country's largest lender State Bank of India reported a record first-quarter profit on Wednesday and bet on economic activity picking up to contain a spike in bad loans, sending its shares to an all-time high. Domestic banks have struggled to contain bad loans, especially in their retail portfolios, as the pandemic and resultant lockdowns hit economic activity and limited borrowers' ability to repay loans. SBI posted a four-fold jump in slippages, or new bad loans, for the first quarter ended June as its home loan and small business segments struggled. "If economic activity is back on track, our ability to maintain better performance in terms of asset quality will be maintained," Chairman Dinesh Khara told reporters after the results.