 "South Indian Bank net profit up 45.6%")
Thrissur-based South Indian Bank (SIB) has posted a 23.3 per cent rise in net profit during the second quarter of financial year 24 to Rs 275 crore, up from Rs 223 crore during the same quarter last financial year, owing to improvement in credit quality.
The bank's operating profit during the period under review was seen up by 8.2 per cent from Rs 426 crore during the second quarter of financial year 23 to Rs 460 crore during the second quarter of financial year 24. During the period, the bank's gross non-performing asset came down by 71 basis points (bps) from 5.67 per cent to 4.96 per cent on a year-on-year basis. The bank's NNPA too dropped by 81 bps from 2.51 per cent to 1.70 per cent on a year-on-year basis.
"One major factor is significant improvement in credit quality in the overall book. Net interest margin, portfolio quality and customer addition all remained strongly positive during the quarter," said P R Seshadri, managing director and chief executive officer of the bank. Recovery and upgradation in NPA accounts increased from Rs 374 crore in Q2 FY23 to Rs 475 crore in Q2 FY24.
The bank's net interest income during the period went up from Rs 726 crore to Rs 830 crore, registering a growth of 14.3 per cent on a year-on-year basis. Its net interest margin (NIM) increased by 35 bps from 2.98 per cent to 3.33 per cent on a year-on-year basis. The bank's return on equity improved by 262 bps from 10.81 per cent to 13.43 per cent on a year-on-year basis. Its return on assets increased by 20 bps from 0.65 per cent to 0.85 per cent on a year-on-year basis.
The bank's retail deposit grew by Rs 6,337 crore from Rs 87,111 crore to Rs 93,448 crore on a year-on-year basis, showing an increase of 7.3 per cent. Its NRI deposit grew by Rs 1,285 crore from Rs 27,500 crore to Rs 28,785 crore on a year-on-year basis, showing an increase of 4.7 per cent. CASA grew by 1.8 per cent on a year-on-year basis with growth in savings bank by 1.8 per cent and CD by 1.7 per cent respectively.
Gross advances grew by Rs 6,984 crore from Rs 67,963 crore to Rs 74,947 crore, showing an increase of 10.3 per cent on a year-on-year basis. The corporate segment went up by Rs 6,859 crore from Rs 20,632 crore to Rs 27,491 crore, showing an increase of 33.2 per cent on a year-on-year basis, in well-rated borrower accounts. Its personal loan book grew by Rs 684 crore from Rs 1,423 crore to Rs 2,107 crore, showing an increase of 48.1 per cent on a year-on-year basis. The gold loan portfolio went up by Rs 2,087 crore from Rs 12,911 crore to Rs 14,998 crore, showing an increase of 16.2 per cent on a year-on-year basis.
