South Indian Bank on Wednesday announced the first quarter results of the current fiscal with a net profit of Rs 81.65 crore, an increase of 11.5 % over Rs 73.26 crore reported during the corresponding period of the previous fiscal.
Operating profit for the first quarter has grown from Rs 317.63 crore to Rs 403.68 crore .The net interest income registered a growth of 10% to Rs 587 crore. Net interest margin improved from 2.53% to 2.62% Y-o-Y. Other income registered a growth of 57% during the quarter in review.
GNPA and NNPA stood at 4.93% and 3.09% as on June 30,2020 as against 4.96% and 3.41% as on June 30, 2019.
VG Mathew, MD & CEO, while announcing the results mentioned that there has been good growth in the retail, agriculture and MSME portfolios.
He added that the growth in the desired portfolios and the reduction in the corporate exposure has further strengthened bank’s balance sheet. The retail portfolio has grown at 10% Y-o-Y and is already accounting for 32% of the loan book, in tune with the bank’s stated objective of becoming a retail banking powerhouse. Agriculture and MSME portfolios have grown by 15% and 9% Y-o-Y and the combined portfolio now constitutes 40% of loan book.
“Bank has also been able to meet the targeted levels of recovery/ upgrades which has helped in containing the GNPA level. The provision coverage ratio of the bank has improved markedly to 58.76% from 45.08% Y-o-Y,” he added.