 "South Indian Bank Q4 results: Net profit rises 22.4% to Rs 333 crore")
South Indian Bank (SIB), on Thursday, posted a consolidated net profit of Rs 333.89 crore for the March quarter. This is 22.4 per cent rise from Rs 272.04 crore a year ago, the company statement said.
The bank’s operating profit of the fourth quarter increased by 95.02 per cent from Rs 287.94 crore in FY22 to Rs 561.55 crore in FY23.
In a regulatory filing, South Indian Bank said, “The net interest income (NII) went up from Rs 825.15 crore to Rs 857.18 crore registering a growth of 3.88 per cent on quarter-on-quarter (Q-o-Q) basis.”
The bank has identified potential candidates for managing director’s post and will send final list of candidates to Reserve Bank of India (RBI) soon, said South Indian Bank executive in a BSE filing.
South Indian Bank’s net interest margin (NIM) improved by 15 bps from 3.52 per cent to 3.67 per cent on Q-o-Q basis.
The board of directors had recommended 30 per cent dividend subject to approval of the shareholders in AGM. Previously the dividend was declared in FY19 at 25 per cent, the statement said.
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“The strategy of the business by the bank had contributed to the above performance. During the period, bank could register growth in all the desired segments with focus on building quality asset across all verticals like Corporate, SME, Auto Loan, Credit Card, Personal Loan Gold Loan etc.,” said Murali Ramakrishnan, MD & CEO South Indian Bank.
“Profitability through quality credit growth”, the bank could churn around 58 per cent of its advances portfolio since October 2020 amounting to Rs 41,566 crore with a GNPA of only 0.09 per cent, he added.
Focus on quality asset book as well as collection efficiency brought down the provisions from Rs 41 crore in FY22 to Rs 39 crore on Q-o-Q basis, the statement added.
The bank’s return on equity improved by 1387 bps from 6.42 per cent to 20.29 per cent Q-o-Q basis and return on assets increased by 87 bps from 0.39 per cent to 1.26 per cent Q-o-Q basis.