South Indian Bank's profit surges as asset quality improves, yet shares end low
Gross NPA declined to 3.15% this quarter from 4.50% a year earlier.
Gross NPA declined to 3.15% this quarter from 4.50% a year earlier.
Gross NPA declined to 3.15% this quarter from 4.50% a year earlier.
The South Indian Bank on Thursday reported a 10 per cent increase in its first quarter profit to ₹322 crore as against the ₹294 crore reported in the same period last year. However, the shares of the company closed 0.68 per cent lower at ₹30.64, after rising to ₹31.40 intraday.
The bank reported a significant improvement in asset quality, with gross non-performing assets (GNPA) declining to 3.15 per cent this quarter from 4.50 per cent a year earlier. This reduction reflects a lower proportion of bad loans, which strengthens the financial institution’s balance sheet.
The Thrissur-based lender also reported an increase in its total income for the quarter to ₹2,984 crore compared to the ₹2,736 crore reported in Q1 2024. This also represents a slight increase from the ₹2,946 crore reported in the previous quarter.
The diluted earnings per share for Q1 stood at ₹1.23 compared to the ₹1.12 reported last year.
South Indian Bank CEO P R Seshadri said that the bank's strategy centres around continued profitability, superior asset quality and a resilient loan book. "The bank witnessed consistent growth across all targeted segments, with a sharp focus on acquiring quality assets in verticals such as Corporate Lending, Auto Loans, Housing Loans, and Gold Loans," he said.
The bank said that their gross advances rose by 8.01 per cent in the quarter to ₹89,198 crore, compared to ₹82,580 crore in the same period in the previous financial year. Gross advances represent the total sum of all loans and credit facilities extended by a bank to its customers. NRI deposits with the bank also saw a 21.3 per cent increase in the quarter to ₹32,293 crore from the ₹30,102 crore recorded in the same period last year.
The bank also said that its Current Account Savings Account (CASA) stood at ₹36,204 crore in the quarter, representing an increase of 9.06 per cent. Meanwhile, the CASA ratio remained unchanged at 32.06 per cent. However, this ratio represents an increase from the 31.37 per cent recorded in the previous quarter.