State Bank of India Q4 net jumps 46 pct, beats f'cast

KOLKATA, May 9 (Reuters) - State Bank of India (SBI.BO: Quote, Profile, Research), India's largest lender, reported a 45.6 percent rise in quarterly profit beating forecasts on robust loan demand as borrowers sought to beat tight liquidity in a slowing economy.

The bank, which along with its associates controls almost a quarter of Indian bank loans and deposits, said on Saturday January-March net profit was 27.42 billion rupees ($556 million), up from 18.83 billion rupees a year ago.

That beat a Reuters poll forecast of a net profit 21.9 billion rupees for the fiscal fourth quarter.

State Bank, which has 11,000 branches across India and abroad, has the lowest cost of funds among the nation's lenders.

The bulk of its funds comes from savings bank deposits that pay annual interest of 3.5 percent, compared with 12.25 percent a year it charges on loans to its best customers.

Shares in State Bank, which the market values at $17.1 billion, have risen 2.9 percent so far this year compared with a 23.1 percent rise in the main share index .BSESN and a 10 percent increase in the bank index .

The shares ended 3.1 percent lower at 1,325.15 rupees on Friday in a Mumbai market that fell 2 percent. ($1=49.3 rupees) (Reporting by Sujoy Dhar and Narayanan Somasundaram; Editing by Peter Blackburn)