What the RBI’s Raghuram Rajan Said About State Bank of India’s Results

MUMBAI—The head of India’s central bank made a strongly worded attempt to calm financial markets Thursday, as investors dumped bank stocks on concerns about the rising pile of bad assets on their balance sheets.

Stocks of Indian banks got pummeled after State Bank of India, the country’s largest lender, said its profit fell by two thirds last quarter because it had to set aside more money to make up for unrecoverable loans.

A gauge of banking shares at the Mumbai stock exchange fell 3.8% Thursday, bringing its loss this year to 18.3%.

SOURCE - http://blogs.wsj.com/

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