In a groundbreaking achievement, South Indian Bank has set a new record by declaring a net profit of Rs. 305.36 Crore for the third quarter of the fiscal year 2023-24, marking an outstanding growth of 197.19 per cent compared to the same period last year.
The operating profit for the quarter witnessed an impressive surge of 137.87 per cent, escalating from Rs. 203.24 Crore in Q3 FY 23 to a staggering Rs. 483.45 Crore in Q3 FY 24. The bank’s net profit for the quarter exhibited a substantial increase of 197.19 per cent, reaching Rs. 305.36 Crore compared to Rs. 102.75 Crore in Q3 FY 23.
The Gross Non-Performing Assets (GNPA) showed a commendable reduction by 74 basis points (bps) from 5.48 per cent to 4.74 per cent on a year-on-year basis. Similarly, Net Non-Performing Assets (NNPA) decreased by 65 bps from 2.26 per cent to 1.61 per cent.
Return on Equity (RoE) for the quarter witnessed a significant improvement, escalating by 996 bps from 6.42 per cent to 16.38 per cent on a year-on-year basis. Additionally, Return on Assets (RoA) for the quarter increased by 68 bps from 0.39 per cent to 1.07 per cent on a year-on-year basis. The Provision Coverage Ratio (PCR) also saw a notable improvement, increasing by 346 bps from 74.51 per cent in Q3 FY 23 to 77.97 per cent in Q3 FY 24.
The bank reported substantial growth in its deposit portfolio. Retail deposits grew by Rs. 6,428 Crore, reaching Rs. 95,088 Crore, showing a remarkable increase of 7.25 per cent on a year-on-year basis. NRI deposits also witnessed a healthy growth of Rs. 1,272 Crore, reaching Rs. 29,236 Crore, a growth of 4.55 per cent on a year-on-year basis.
Gross advances surged by Rs. 7,569 Crore from Rs. 70,117 Crore to Rs. 77,686 Crore, marking an impressive growth of 10.80 per cent on a year-on-year basis. The corporate segment saw substantial growth, increasing by Rs. 7,718 Crore, from Rs. 22,174 Crore to Rs. 29,892 Crore, a remarkable growth of 34.81 per cent in well-rated borrower accounts.
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P R Seshadri, MD & CEO of the Bank, expressed satisfaction with the results, attributing the success to the strategic initiatives adopted by the bank. He highlighted the growth across various segments, including Corporate, SME, Auto Loan, Credit Card, Personal Loan, and Gold Loan, emphasizing the bank’s focus on quality assets.
In line with the bank’s strategic intent of “Profitability through quality credit growth,” Seshadri highlighted the onboarding of fresh advances with a low-risk profile.
