South Indian Bank Q2 net rises 40%

South Indian Bank [SIB]  has registered the highest ever quarterly net profit of Rs. 72.57 crore during the second quarter of the current fiscal as against Rs. 51.68 crore for the corresponding previous quarter registering a growth of 40.43 per cent.  The Net Profit for the first half of the current fiscal is Rs. 132.68 crore as against Rs. 90.30 crore,  registering a growth of 46.93 per cent, according to a press release issued by the bank.
 
The total business  has increased by Rs. 6,263 crore from Rs. 26,836 crore to Rs. 33,099 crore on year-to-year basis registering a growth of 23.34 per cent.  While the deposits has gone up by Rs. 3,973 crore from Rs. 15,715 crore to Rs. 19,688 crore, up by  25.28 per cent,   advances has increased by Rs. 2,290 crore from Rs. 11,121 crore to Rs. 13,411 crore registering a growth of 20.59 per cent. CASA of the bank has increased by Rs. 791 crore from Rs. 3,985 crore to Rs. 4,776 crore.

The bank earned a total income of Rs. 1,055.62 crore during the half year as against Rs. 844.99 crore for the previous year registering a growth of 24.93 per cent.   Net Interest Margin stood at 3.12 per cent  for the current half year as against 2.69 per cent  for the corresponding period of previous year. Earnings per share has increased from Rs. 15.98 to Rs. 23.48 during the half year.

The Bank had raised Tier II capital by way of issue of Subordinated Lower Tier II Bonds with ‘A+’ rating by CARE and Fitch rating agencies during the current quarter aggregating to Rs. 200 Crore.

The Capital adequacy ratio of the bank is as high as 16.26 per cent  (under BASEL I standards) and 17.86 per cent (under BASEL II standards) against the regulatory requirement of 9 per cent.  Due to extensive recovery measures bank could bring down Net NPA percentage to 0.43 per cent  from 1.13 per cent as on 31st March 2009.

The bank is planning to open 20 more branches during the next 2 quarters to take the total number of branches to 575. The Bank is in the process of raising resources by way of issue of Certificate of Deposits to further strengthen the interest spread, for which the highest rating of ‘PR1plus’ has been awarded by CARE Ratings.