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.