MUMBAI: State Bank of India, the nation's top lender by assets, reported a 30 percent increase in quarterly profit, lagging estimates, although bad loans rose less than feared, sending its shares 6 percent higher.

State Bank, which accounts for about a quarter of loans and deposits in the country, said net profit rose to 29.10 billion Indian rupees ($468.4 million) from 22.34 billion rupees a year earlier.

Analysts on average had expected a net profit of 32.74 billion rupees, according to data compiled by Thomson Reuters.

Gross bad loans ratio was 4.9 percent in the December quarter, compared with 4.89 percent in the September quarter.

Copyright Reuters, 2015