Shares in government owned banking shares rallied sharply following a superb set of results by State Bank of India (SBI).
State Bank, the country's largest lender on Friday reported a net profit of Rs 3742 crores for the quarter ending March 31, 2015, which was way above consensus estimates.
Non performing assets also dipped sharply with gross non performing assets coming in at 4.25 per cent as against 4.90 per cent. Net non performing assets were placed at 2.12 per cent as against 2.80 per cent in the previous quarter.
The drop in the non performing assets by SBI is good news for government owned banks with Bank of Baroda, Oriental Bank of Commerce and Union Bank of India seeing their asset quality improving for the quarter ending March 31, 2015.