The Hindu : Business : South Indian Bank's profit trebles

Online edition of India's National Newspaper
Tuesday, Jul 25, 2006

Business

Business

South Indian Bank's profit trebles

Staff Reporter

Total business increases by 28 per cent

NPAs come downto 5.42 per cent Deposits riseto Rs. 10,240 crores Total income increases to Rs. 227.03 crores

PATHANAMTHITTA: South Indian Bank has recorded a net profit of Rs. 15.05 crores in the first quarter of the financial year 2006-07.

At a press conference here on Monday, bank Chairman V.A. Joseph said the net profit was nearly three times the previous year's figure of Rs. 5.31 crores.

Dr. Joseph said the total business of the bank had shown an increase of 28 per cent in the first quarter, touching Rs. 16,545 crores from Rs. 13,249 crores, a rise of Rs. 3,296 crores.

The deposits had increased by Rs. 2,243 crores to Rs. 10,240 crores. The gross advances had registered an increase of Rs. 1,053 crores to reach Rs. 6,305 crores, he added.

The total income of the bank in the first quarter had increased to Rs. 227.03 crores from Rs. 198.41 crores, a growth of 14.42 per cent.

He said the bank's non-performing assets (NPAs) had come down to 5.42 per cent from 6.61 per cent, while the net non-performing asset had come down to 2.07 per cent from 3.44 per cent.

The capital adequacy ratio of the bank had gone up from 9.71 per cent to 12.04 per cent, and yield on advances had come down to 9.1 per cent from 8.9 per cent.

The cost of deposit rate had come down to 5.3 per cent from 5.4 per cent.

Dr. Joseph said the bank would launch its Pravasi Swagath Scheme for Non-Resident Indians in Pathanamthitta in a few months.

He said it had signed a memorandum of understanding with Tata Mutual Fund, Franklin Templeton Mutual Fund and Sundaram Mutual Fund, and would sign another one with Reliance Mutual Fund on Tuesday. The bank had filed an application with the Reserve Bank of India for permission for opening its representative office in Sharjah.

Dr. Joseph said the bank would open 25 more branches in 2006-07, and an equal number of them in the next financial year, taking the total number of branches to 500 by 2008.

The bank had installed 149 automated teller machines and would install 51 more of them by March 31, 2007.

The Chairman said the bank would undertake the management of the Hadi Express Exchange Company in Dubai this year itself.

Regional office opened

The 12th regional office of the bank was opened in Pathanamthitta on Monday.

Rubber Board Chairman Sajan Peter inaugurated the office. Kerala Press Academy Chairman Thomas Jacob delivered the keynote address.

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