Kerala

SIB registers 11.5% rise in net profit for Q1

The South Indian Bank has announced the first quarter (Q1) results with a net profit of ₹81.65 crore as against ₹73.26 crore during the corresponding period of the previous year with a year-on-year growth of 11.45%. The operating profit for the first quarter has grown from ₹317.63 crore to ₹403.68 crore.

The operating profit of the bank improved by 27% year-on-year during the quarter while the net interest income registered a growth of 10%. The net interest margin improved from 2.53% to 2.62% and other income registered a growth of 57%.

The gross NPA of the bank stood well contained at 4.93% (vis-a-vis 4.96% last year) and the net NPA improved to 3.09% as against 3.41% a year ago.

V.G. Mathew, MD & CEO, while announcing the results, mentioned that there had been good growth in the retail, agriculture and MSME portfolios. As part of the business strategy to reduce the exposure in the corporate advances, the bank had brought down the share of such advances from 32.36% as on June 30, 2019 to 27.74% as on June 30, 2020.

He said that the growth in the desired portfolios and the reduction in the corporate exposure had further strengthened the bank’s balance sheet. The retail portfolio had grown at 10% and was already accounting for 32% of the loan book, in tune with the bank’s stated objective of becoming a retail banking powerhouse. Agriculture and MSME portfolios had grown by 15% and 9% and the combined portfolio now constituted 40% of the loan book.

The bank has also been able to meet the targeted levels of recovery/upgrades which had helped in containing the GNPA level. The provision coverage ratio of the bank also improved markedly to 58.76% from 45.08%.

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Printable version | Nov 24, 2020 6:57:45 AM | https://www.thehindu.com/news/national/kerala/sib-registers-115-rise-in-net-profit-for-q1/article32024790.ece

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