Earnings Review
South Indian Bank PAT up only 12% YoY as NII growth sluggish
This story was originally published at 15:44 IST on 21 January 2025
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--South Indian Bank Apr-Dec total income INR 83.58 bln vs INR 75.08 bln yr ago
--South Indian Bank Apr-Dec net profit INR 9.61 bln vs INR 7.83 bln yr ago
--South Indian Bank Basel III capital adequacy ratio 18% as on Dec 31
--South Indian Bank net NPA ratio 1.25% as on Dec 31 vs 1.31% quarter ago
--South Indian Bank gross NPA ratio 4.30% as on Dec 31 vs 4.40% quarter ago
--South Indian Bank Oct-Dec provisions INR 660.4 mln vs INR 485.5 mln yr ago
--South Indian Bank Oct-Dec total income INR 28.18 bln vs INR 26.37 bln
--South Indian Bank Oct-Dec net profit INR 3.42 bln vs INR 3.05 bln year ago
By Pratiksha
NEW DELHI – South Indian Bank's net profit for the quarter ended December rose by only 12% on year to INR 3.42 billion, mainly due to muted 6.1% growth in net interest income. A sharp 36% jump in provisions and contingencies also put pressure on the bottom line of the bank, which announced its quarterly results on Tuesday.
The Kerala-based bank's provisions and contingencies for the quarter rose to INR 660.4 million, against INR 485.5 million a year ago. Anand Rathi Share and Stock Brokers had expected the lender's net profit for the quarter ended December to rise only 4.6% on year to INR 3.20 billion. The marginal rise in net profit led to the bank's shares trading lower on the bourses. The shares closed at INR 25.80 on the National Stock Exchange, down 4.5% from Monday.
The lender's bottom line was supported by improvement in asset quality. The bank's gross non-performing asset ratio declined to 4.30% as on Dec. 31 from 4.40% as on Sept. 30 and 4.74% at the end of December 2023. The net NPA ratio fell to 1.25% from 1.31% as on Sept. 30 and 1.61% at the end of December 2023.
The bank's net interest income--the difference between interest earned and expended--for the quarter rose just 6.1% on year to INR 8.69 billion. The private bank's total income for Oct-Dec was INR 28.18 billion, up 6.9% on year.
The bank's Basel-III capital adequacy ratio was 18.0% as on Dec. 31. South Indian Bank's gross advances rose 11.9% on year to INR 869.65 billion as of Dec. 31, as per provisional figures released by the bank on Jan. 1. The bank's total deposits grew 6.3% on year to INR 1.05 trillion.
The lender's net profit for Apr-Dec rose to INR 9.61 billion from INR 7.83 billion a year ago, while total revenue increased to INR 83.58 billion from INR 75.08 billion a year ago, registering a growth of 11.3%. End
Edited by Ashish Shirke
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