South Indian Bank Q2 Results: PAT Rises 23% To Rs. 275 Cr Through Quality Credit Growth

Following the announcement that its net profit for the second quarter of FY 2023-24 was Rs. 275 crore, up 23.2% from Rs. 223 crore in the second quarter of FY 2022-23, South Indian Bank's shares wrapped up with an upside gap of 1.35 percent at Rs. 26.35 per share on Thursday. The bank said that during Q2 of FY23 to Q2 of FY24, its operating profit grew by 8.2%, from Rs. 426 crore to Rs. 460 crore. Its net interest income jumped from Rs. 726 Cr in Q2FY23 to Rs. 830 Cr in Q2FY24, representing a 14.3% YoY growth.

According to South Indian Bank, its NNPA declined by 81 bps from 2.51% to 1.70% on a YoY basis and its GNPA dropped by 71 bps from 5.67% to 4.96%. On a YoY basis, the bank's NIM climbed by 35 bps, from 2.98% in Q2FY23 to 3.33% in Q2FY24. On a YoY basis, its Return on Equity climbed by 262 bps, from 10.81% to 13.43%, while its Return on Assets increased by 20 bps, from 0.65% to 0.85%.

According to the bank, retail deposits grew by Rs. 6,337 crore from Rs. 87,111 crore to Rs. 93,448 crore, representing a growth of 7.3% on a YoY basis, while NRI deposits climbed by Rs. 1,285 crore from Rs. 27,500 crore to Rs. 28,785 crore, representing a growth of 4.7% YoY. According to South Indian Bank, its CASA grew by 1.8% on a Y-o-Y basis with growth in savings bank by 1.8% and CD accounts by 1.7%.

The bank said its gross advances grew by Rs. 6,984 Crore from Rs. 67,963 in Q2FY23 to Rs. 74,947 Crore in Q2FY24, showing an increase of 10.3% on Y-o-Y basis.

Mr. P R Seshadri, MD & CEO of South Indian Bank said, "During the period, Bank registered growth in all the desired segments with a focus on quality asset across all verticals Corporate, SME, Auto Loan, Credit Card, Personal Loan, Gold Loan etc."

He also stated that "in line with the strategic intent of the Bank viz, "Profitability through quality credit growth", the Bank could on board fresh advances with low risk profile of around 64% of its advances portfolio since October 2020 amounting to Rs. 48,246 Crore with a GNPA of only 0.18%. Capital adequacy of the Bank stood at 16.69% in September 2023 compared to 16.04% in September 2022."