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Updated: May 6, 2013 23:36 IST

South Indian Bank net profit rises 25 %

Special Correspondent
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V. A. Joseph
V. A. Joseph

Thrissur-based South Indian Bank on Monday reported a net profit of Rs.502.27 crore for 2012-13, an increase of 25 per cent over the previous year. While deposits increased by 21 per cent during the year, advances were up by 17 per cent.

Net interest income was higher by 25 per cent at Rs.1,281 crore.

The bank’s net interest margin improved from 3.10 per cent to 3.21 per cent during the period.

V. A. Joseph, Managing Director and CEO, said although the increase in deposits was primarily because of the sharper increase in relatively high-cost “bulk deposits,” the bank’s margins had improved during the year.

Referring to the increase in net NPA — from 0.28 per cent in 2011-12 to 0.78 per cent at the end of 2012-13 — Mr. Joseph said this was mainly due to a single account by NAFED amounting to Rs.150 crore that had turned non-performing during the third quarter.

He said the bank would take advantage of the Finance Ministry’s decision to allow private bank’s to avail themselves of interest subvention for agricultural loans in the current year. “Gold loans to the agriculture sector account for about 25 per cent of our loan book, and we plan to register further growth in this area,” Mr. Joseph said.

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