95-Years Old Private Sector Bank Hikes Savings Account Interest Rates Up To 6%

South Indian Bank, which was founded in 1929, has hiked the interest rates on savings accounts. With its main office located in Thrissur, Kerala, India, South Indian Bank Limited is a significant private-sector bank. The bank is now offering up to 6% benefits on savings accounts after raising its interest rates. For those who have savings accounts and are hoping for better returns, this is excellent news.

South Indian Bank Savings Account Interest Rates

Effective from 01st March 2024, the bank is offering an interest rate of 2.50% per annum on savings bank deposits of up to and including Rs 2.00 lakh and 2.75% per annum on savings account balance of above Rs. 2.00 lakh - less than Rs. 5.00 crore. South Indian Bank is promising an interest rate of 4.50% per annum on savings account deposits of Rs. 5.00 crore - less than Rs. 25.00 crore and a maximum return of 6.00% per annum on end-of-the-day balance of Rs. 25.00 crore and above.

The bank's board recently approved the conditions for raising Rs 1,151.01 crore through a rights issue. 523.1 million fully paid-up rights shares, valued at Rs 22, would be awarded by the bank. The South Indian Bank, located in Thrissur, will start its rights issue on March 6, 2024, and it will end on March 20, 2024. For the rights issue, February 27, 2024 was set as the record date.

The bank's net profit in Q3FY24 was Rs 305.36 crore, which was 197% more than Rs 102.75 crore in the same quarter last year. Year-on-year (YoY), the gross non-performing assets (NPA) dropped by 74 basis points (bps), from 5.48 per cent in Q3FY23 to 4.74 per cent in Q3FY24. Net NPA plummeted from 2.26 per cent to 1.61 percent YoY, a 65 bps fall.