South Indian Bank Reports Threefold Increase in Q3 Net Profit

South Indian Bank, one of India’s leading financial institutions, has announced its financial results for the third quarter. The bank reported a remarkable threefold increase in net profit for Q3, with the figure rising from Rs 102.75 crore to Rs 305.36 crore, marking a 197.19% increase. The bank’s CEO, P R Seshadri, attributed this growth to the bank’s strategic focus on quality assets across various segments, including Corporate, SME, Auto Loan, Credit Card, Personal Loan, and Gold Loan.

The bank’s gross non-performing assets (NPA) as a percentage of total assets saw a significant reduction, declining from 5.48% to 4.74% YoY. Meanwhile, net NPA decreased from 2.26% to 1.61% YoY. Return on equity for the quarter saw a remarkable improvement, rising from 6.42% to 16.38% YoY. Moreover, return on assets increased from 0.39% to 1.07%.

South Indian Bank also reported a notable improvement in its Provision Coverage Ratio (PCR), which increased from 74.51% to 77.97%. The bank witnessed growth in retail deposits, with a 7.25% increase to Rs 95,088 crore. NRI deposits also saw growth, rising by 4.55% to Rs 29,236 crore. The bank’s current and savings account (CASA) registration grew by 2.83%, driven by a 2.81% increase in savings bank deposits and a 2.96% increase in certificate of deposits (CD).

Gross advances for the quarter showed an upward trend, climbing by 10.8% to reach Rs 77,686 crore. The corporate segment experienced a remarkable 34.81% growth, reaching Rs 29,892 crore. It’s worth noting that 96% of the large corporate accounts in this segment were rated A and above.

Following the announcement of these strong financial results, shares of South Indian Bank witnessed a 13% surge in Thursday’s trading session. The stock rose by 12.50% YoY, reaching a high of Rs 31.93. The positive performance and growth of South Indian Bank highlight its successful strategy of focusing on quality credit growth and profitability.

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