Tuesday, October 4, 2011

Breaking news

Why Sbi will Fall?


State Bank of India (SBI), the country’s largest lender, which disappointed investors and analysts with its earnings for the fourth quarter of 2009-10, got a warning today from Moody’s, the global rating agency.

Moody’s said SBI’s rating would come under ‘some pressure’ if the government-owned bank’s bottom line did not improve.

The public sector bank reported only a marginal growth in net profit for 2009-10 . For the fourth quarter, net profit plunged 32 per cent year-on-year to Rs 1,867 crore, the first such drop in three years. This was attributed mainly to higher provisioning and increase in staff cost.