223.10 Crore Net Profit For South Indian Bank: South Indian Bank posted a net profit of Rs 223.10 crore in the second quarter of the financial year 2022-23. This gain has surpassed the loss of Rs 187.06 crore in the same quarter last year. Profit before tax for the quarter that ended September was Rs 246.43 crore. This is the bank’s highest-ever profit. Quarterly net interest income was Rs 726.37 crore. This is the bank’s highest-ever quarterly net interest income. With a net interest margin of 3.21 percent, this achievement also boosted the return on equity (ROE) by 1707 points. Return on Assets (ROA) also recorded a good year-on-year growth from 0.36 percent to 0.64 percent.
CASA (Current Account and Savings Account) deposits increased by 14.10 percent to Rs 30,548 crore compared to the previous year. Savings deposits increased by 14 percent and current deposits by 14.65 percent to Rs 25,538 crore and Rs 5,010 crore respectively. Retail investment grew by 5.71 percent to Rs 87,111 crore and NRI investment grew by 2.52 percent to Rs 27,500 crore.
16.56 percent annual growth in total loans. The increase in corporate loans is 42.07 percent. The share of accounts rated A and above in the large corporate segment increased from 75 percent to 93 percent. Auto loans increased by 31.07 percent. Personal loans increased by 187.21 percent and gold loans by 36.34 percent. It also disbursed loans worth Rs.472 crore through the issuance of more than 1.40 lakh credit cards.
South Indian Bank MD and CEO Murali Ramakrishnan said strategic moves implemented with business policy reorientations helped improve performance. He said that we were able to achieve expected growth in CASA and Retail Investments segments and improve asset quality with a focus on Corporate, SME, Auto Loans, Credit Cards, Personal Loans, and Gold Loans segments.
Murali Ramakrishnan said that under the policy of increasing profitability through quality loan growth, 50 percent of the total loan portfolio has been restructured through quality loans of Rs 33,768 crore since October 2020. He added that this achievement was achieved by maintaining the net interest margin on restructured loans at 3.60 percent and gross non-performing assets at only 0.03 percent.
He said that through the effective recovery system implemented by the bank, the new bad loans decreased by 34.09 percent to Rs. 350.17 crore from Rs. 531.31 crores in the previous year.
Net interest income recorded an annual increase of 37.79 percent. Non-interest income increased by 62.31 percent to Rs 255.10 crore. The capital adequacy ratio is 16.04. The provision ratio increased from 65.02 percent to 72.79 percent year-on-year. The CASA ratio increased by 370 points to 34.5 percent from 30.8 percent. Gross non-performing assets decreased by 98 points from 6.65 percent to 5.67 percent and net non-performing assets improved by 134 points from 3.85 percent to 2.51 percent.
The bank’s CRAR increased to 16.04 percent from 15.74 percent. Leading credit rating agencies CARE and India Ratings have revised the rating outlook of the bank from ‘Negative’ to ‘Stable’.
Murali Ramakrishnan said that the bank’s strong and diversified operations combined with its wide distribution network and technological expertise will help the bank to take advantage of new opportunities and achieve profitable growth in the coming quarters as the economic stress ends.