South Indian Bank reported a 23.3 per cent increase in net profit of ₹275 crore in its Q2FY24 financial reports. The bank recorded a net profit of ₹202 crore in Q1FY24 and ₹223 crore in the same time, the previous year.
The Net Interest Income (NII), surged by 14 per cent year over year (YoY) to ₹830 crore from ₹726 crore in Q2FY23. Meanwhile, the net interest margin jumped to 3.33 per cent in Q2FY24 from 2.98 per cent in Q2FY23.
Its other income increased from ₹255 crore in Q2 FY23 to ₹355 crore, a 39.21 per cent YoY increase. Compared to the same quarter previous year, pre-provision operating profit climbed to ₹460 crore from ₹425 crore. Provisions for Q2FY24 were ₹51 crore, down 72 per cent YoY from ₹179 crore in the same time the previous year.
Regarding asset quality, the gross non-performing assets (NPA) of the bank experienced a YoY decline of 71 basis points, culminating in a Q2FY24 NPA of 4.96 per cent. To 1.70 per cent, net NPA also decreased by 81 basis points.
The bank’s retail deposits increased by ₹6,337 crore, or 7.3 per cent YoY, from ₹87,111 crore to ₹93,448 crore. NRI deposits increased by ₹1,285 crore to ₹28,785 crore YoY, representing a 4.7 per cent YoY rise. In Q2FY24, the CASA expanded by 1.8 per cent YoY, driven by growth in savings banks by 1.8 per cent and CDs by 1.7 per cent.
The bank also recorded the largest advances ever in Q2 FY24, at ₹74,947 crore, up 10 per cent from ₹67,963 crore. The company’s financial report showed that the corporate segment increased by ₹6,859 crore to ₹27,491 crore, or 33.2 per cent YoY.
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