South Indian Bank reports 75% growth in net profit for Q1 FY24
South Indian Bank It declared a net profit of Rs.202.35 crore for the first quarter of FY24 registering a growth of 75 per cent as compared to Rs.115.35 crore in the corresponding period of the previous year.
Operating profit for the quarter increased by 55 per cent from Rs.316.82 crore in Q1 FY23 to Rs.490.24 crore in Q1 FY24. Overall global growth rate decreased by 74 basis points from 5.87 per cent to 5.13 per cent YoY. NNPA fell 102 basis points from 2.87% to 1.85% year over year.
Net interest income increased from ₹603.38 crore to ₹807.77 crore, registering a growth of 34 per cent. NIM improved by 60 basis points, from 2.74% to 3.34%.
Retail deposits grew by Rs.5,583 crore from Rs.86,460 crore to Rs.92,043 crore. NRI deposits grew by Rs.784 crore from Rs.27,598 crore to Rs.28,382 crore.
Total advances grew by ₹9,397 crore from ₹64,705 crore to ₹74,102 crore, showing an increase of 15 per cent. Corporate segment increased by Rs.8,919 crore from Rs.18,603 crore to Rs.27,522 crore. Personal loan books grew by Rs.930 crore from Rs.1,005 crore to Rs.1,935 crore. Loan portfolio increased by ₹2,517 crore from ₹11,961 crore to ₹14,478 crore.
Murali Ramakrishnan, Managing Director and Chief Executive Officer, said the strategy adopted by the bank continues to enable business performance. During the period, the bank can record growth in all required sectors with a focus on building high-quality assets across all sectors such as Corporate, Small and Medium Enterprises, Auto Loans, Credit Cards, Personal Loan and Gold Loan.
In line with the strategic objective, ‘profitable growth through good credit’, the bank can manage about 61 per cent of its advances portfolio since October 2020 which is Rs.45,268 crore with a GNPA of just 0.16 per cent. He added that capital adequacy stabilized at 16.49 percent in June 2023 compared to 16.25 percent in June 2022.