South Indian Bank Q2FY24 earnings: Net profit up 23.3% to ₹275 crore; NII grows 14.3%
₹275 crore. In comparison, the bank reported a net profit of ₹223 crore during the corresponding period last year and ₹202 crore in Q1FY24. Net interest income (NII), the difference between interest earned from lending and interest paid to depositors, increased by 14% YoY to ₹830 crore, compared to ₹726 crore in Q2FY23, while the net interest margin improved to 3.33% in Q2FY24 from 2.98% in Q2FY23.
Its other income jumped 39.21% YoY to ₹355 crore from ₹255 crore in Q2 FY23. Pre-provision operating profit increased to ₹460 crore from ₹425 crore in the same quarter last year. Provisions for Q2FY24 decreased by 72% YoY, amounting to ₹51 crore, in contrast to ₹179 crore during the same period last year.
On the asset quality front, the bank's gross non-performing assets (NPA) decreased by 71 basis points YoY, reaching 4.96% in Q2FY24. Net NPA also fell by 81 basis points to 1.70%. On the deposits front, the bank's retail deposits grew by ₹6,337 crore from ₹87,111 crore to ₹93,448 crore YoY in Q2 FY24, showing an increase of 7.3% YoY.
NRI deposits grew by ₹1,285 crore to ₹28,785 crore YoY, registering an increase of 4.7% YoY, while the CASA grew by 1.8% on a YoY basis in Q2FY24, with growth in savings bank by 1.8% and CD by 1.7%, respectively. On the advances front, the bank reported the highest-ever advances of ₹74,947 crore in Q2 FY24 compared to ₹67,963 crore, reflecting a growth of 10%. The corporate segment went up by ₹6,859 crore to ₹27,491 crore, an increase of 33.2% YoY, according to the company's earnings report.
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