South Indian Bank (SIB) reported a net profit of 75 per cent to Rs 202.35 crore for the first quarter of the fiscal year ended June 30 this year.
The bank’s operating profit increased by 55 per cent from Rs 316.82 crore in the April to June quarter of FY22 to Rs 490.24 crore in the corresponding period of FY23. Its net interest income increased by 34 per cent during the April to June quarter from Rs. 603 crore last year to Rs. 808 crore this year.
On a year-over-year basis, the bank’s gross non-performing asset decreased during the time from 5.87 to 5.13 per cent. On the other hand, NNPA decreased year over year from 2.87 to 1.85 per cent. While announcing the results, Murali Ramakrishnan, MD and CEO, said that the strategy the bank has chosen has continued to support business performance.
While concentrating on creating quality assets across all verticals, including corporate, SME, auto loan, credit card, personal loan, and gold loan, the Bank was able to record growth in all of the intended areas over the period.
On a year-over-year basis, net interest margin also increased by 60 basis points, from 2.74 per cent to 3.34 per cent. From Rs 296.23 crore in the first quarter of FY23 to Rs 361.71 crore in the first quarter of FY24, recovery and upgrading of NPA accounts increased.
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The bank’s retail deposit increased by Rs 5,583 crore, or 6 per cent, year over year, during the quarter under review, rising from Rs 86,460 crore to Rs 92,043 crore. NRI deposits increased by Rs 784 crore, or 3 per cent, year over year, from Rs 27,598 crore to Rs 28,382 crore. CASA increased by 3 per cent, while Savings Bank and Current Account both saw 2 per cent and 6 per cent growth, respectively.
