 "South Indian Bank net profit up 45.6%")
South Indian Bank (SIB) said on Thursday its net profit increased almost two-fold (197 per cent) in the third quarter of Financial Year 2023-24 (Q3 FY24) at Rs 305.36 crore, compared to Rs 103 crore in the same period in FY23.
The Thrissur-based bank’s operating profit in Q3 FY24 was up by 138 per cent at Rs 483 crore, compared to Rs 203 crore in Q3 FY23. Gross non-performing assets (NPA) reduced by 74 basis points (bps), from 5.48 per cent to 4.74 per cent year-on-year (YoY). Net NPA dropped by 65 bps from 2.26 per cent to 1.61 per cent YoY.
“The strategy adopted by the bank continues to enable business performance. During the period (Q3 FY24), the bank registered growth in all desired segments with a focus on quality assets across verticals: Corporate, SME, auto loan, credit card, personal loan, gold loan,” said P R Seshadri, managing director and chief executive officer of SIB.
In line with its strategy of “profitability through quality credit growth”, the bank could make fresh advances with a low risk profile.
Provision coverage ratio improved by 346 bps, from 74.51 per cent in Q3 FY23 to 77.97 per cent in Q3 FY24. Retail deposits in Q3 FY24 grew by Rs 6,428 crore to Rs 95,088 Crore YoY, marking a 7.25 per cent increase. In the same period, NRI deposits increased from Rs 27,964 crore to Rs 29,236 crore. Current account savings account grew by 2.83 per cent in Q3 FY24 compared to last year.
The bank’s gross advances grew by Rs 7,569 crore to Rs 77,686 crore, marking an increase of 10.80 per cent YoY. Its corporate segment grew by Rs 7,718 crore to Rs 29,892 crore, showing an increase of 34.81 per cent.
