South Indian Bank Q2 Results: Net profit rises 23% YoY to Rs 275 crore
South Indian Bank reported 23% growth in net profit for the quarter ended September'23 on better credit quality and improved profitability.
The bank declared net profit of Rs 275 crore for the September 2023 quarter compared to Rs. 223 crore in the same period a year ago.
The bank’s stock closed 1.35 percent higher on Thursday to close at Rs 26.35 a share.
“One major contributor to profitability is better credit quality which helped in improving profitability” said PR Seshadari, CEO and managing director of the Thrissur based bank .
Net interest margin or NIM, a measure of profitability from interest income from loans and mortgages improved by 35 bps from 2.98% to 3.33% on a year-on-year basis.
Gross non-performing assets or GNPA came down by 71 bps( one basis point is 0.01 percent) from 5.67% to 4.96% on year-on-year basis. Moreover recovery and upgradation in NPA accounts increased from Rs.
374 crore in Q2’ FY’ 23 to Rs. 475 crore in Q2’ FY’24.
Both advances and deposits rose by around 10 percent year-on-year.
The bank could on board fresh advances with low risk profile of around 64 percent of its advances portfolio since October 2020 amounting to Rs. 48,246 Crore with a GNPA of only 0.18 percent according to an official release by the bank.
The bank’s future strategy will be to continue its existing business model.
“ One area we will be focusing on is the liability side and build a strong franchise which will help us in building a high quality asset book ” Mr Seshadari said. The bank intends to focus more on technology and less on branches for its future growth.
