Kerala-based South Indian Bank (SIB) has declared a net profit of ₹23.04 crore for the first quarter of the financial year 2018-19 as against ₹101.47 crore during the corresponding period last year.
In a press release here, the bank said the reason for the decline in profit was the reduction in the treasury trading profit by ₹73 crore and incremental MTM (mark to market) provision in the Treasury Book by ₹41 crore owing to adverse market conditions, besides incremental one-time employee cost of ₹33 crore because of increase in gratuity ceiling and wage revision.
“But for these, the net profit would have been ₹119 crore for the first quarter,” the bank said. Low-cost deposit grew by 4%.
CASA growth
The non-resident CASA (the ratio of deposits in current and saving accounts to total deposits) saw a growth of 5% on a quarter-to-quarter basis. The bank was continuing its focus on retail and MSME (Micro, Small & Medium Enterprises) advances.
Retail advance grew by 27 per cent year-to-year and MSME advance was up by 21 per cent, it said.
The bank was also pursuing the asset quality issues pertaining to corporates, it said.
As a result of this, the gross and net NPA (non-performing assets) rose by 93 bps (basis points) and 73 bps, respectively, it said.
The gross business increased by Rs 15,689 crores to Rs 1,28,652 crores, the release said.
The deposits rose from Rs 6,697 crores to Rs 72,488 crores, CASA from Rs 1,297 crores to Rs 17,883 crores and advances from by Rs 9,172 crores to Rs 56,164 crores, it added.
