South Indian Bank are rejoicing over the bank's extraordinary performance in recent months. After experiencing a significant decline between CY18 and CY21, during which the stock depreciated by approximately 71.45%, there was a notable turnaround in the subsequent year, leading to sustained upward momentum in the following years. In CY22, the stock rebounded strongly with a remarkable return of 112.43%, followed by another surge of 42% in the subsequent year.
In the current year, the stock has already witnessed a 35% increase in value. Taking the stock's June 2022 price of ₹7.60 apiece, the stock has skyrocketed 375% to trade at the current price of ₹36 apiece. The stock crossed the ₹30 mark on January 18, 2024, for the first time after six years.
Also Read: Goldman Sachs downgrades SBI, ICICI Bank, Yes Bank; upgrades Bajaj Finance and reiterates buy on HDFC Bank. Check detail Since the appointment of a new managing director in September 2020, the bank has been aligning its operations with its Vision 2025 program. The new management has revisited the business strategy, prioritising quality over quantity.
This strategic shift has translated into robust financial performance for the bank, evident with each passing quarter. "SIB, under the new management, has been realigning their balance sheet with quality lending and an improved CASA mix. The new book has seen higher yields with low slippages," said domestic brokerage firm Geojit Financial Services in its latest note.
Read more on livemint.com