South Indian Bank had declared quarterly results with a net profit of Rs. 115.35 Crore as against Rs. 10.31 Crore during the corresponding period of the previous year with a Y-o-Y growth of 1018.82%.
Highlights of Q1 results
- Deposits
– CASA grew by 17.92% on a Y-o-Y basis aided with growth in both Savings Deposits and Current Deposits by 18.12% and 16.86% respectively.
– Core Deposit up by 8.11% Y-o-Y
– NRI Deposits up by 3.50% Y-o-Y
- Advances
– Gross advances up by 10.95% Y-o-Y
– Corporate Segment up by 30.76% Y-o-Y. Further, share of AAA rated accounts in large corporate segments (Rs.100 Crs and above) grew by 31% Y-o-Y
– Auto Loans up by 30.93% Y-o-Y
– Personal Loan book grew by 210.42 % Y-o-Y
– Gold Loan portfolio up by 27.73 % Y-o-Y
– Bank had issued 1,00,000+ credit cards with outstanding book of Rs.330 Cr
Key Ratios & other parameters:
- Return on Equity improved by 697.27 bps from 0.71% to 7.68% Y-o-Y basis.
- Return on Assets increased by 42.45 bps from 0.04% to 0.46% Y-o-Y basis.
- NIM improved from 2.55% to 2.74% on Y-o-Y basis.
- Capital Adequacy Ratio improved from 15.47% to 16.25% on Y-o-Y basis.
- Provision Coverage Ratio improved from 60.11% to 70.11% on Y-o-Y basis.
- CASA ratio improved by 399 bps from 30.40% to 34.39% Y-o-Y basis.
- GNPA improved by 215 bps from 8.02% to 5.87% Y-o-Y basis.
- NNPA improved by 218 bps from 5.05% to 2.87% Y-o-Y basis.
- Loan Loss Provisions decreased by 55.92% from Rs.432.46 Crore to 190.63 Crore on Y-o-Y basis
Yearly – Y-o-Y growth Rs. in Crore
| Quarter Ended | Quarter Ended | |||
| 30.06.2022 | 30.06.2021 | Growth | % | |
| Advance | 64,704 | 58,319 | 6,385 | 10.95% |
| Retail Deposits | 56,125 | 54,250 | 1,875 | 3.46% |
| NRI Deposit | 27,598 | 26,664 | 934 | 3.50% |
| Current Deposits | 4,878 | 4,174 | 704 | 16.86% |
| Savings Deposits | 25,457 | 21,551 | 3,906 | 18.12% |
| CASA | 30,335 | 25,725 | 4,609 | 17.92% |
| Net Interest Income | 603 | 542 | 61 | 11.32% |
| Gross NPA % | 5.87 | 8.02 | -2 | -26.80% |
| Net NPA % | 2.87 | 5.05 | -2 | -43.14% |
| Provisions excl. tax | 139.41 | 495.90 | -356.49 | -71.89% |
| Net Profit after tax | 115.35 | 10.31 | 105.04 | 1018.82% |
Mr. Murali Ramakrishnan, MD & CEO of the Bank, while announcing the results, stated that the realignment of Business Strategies adopted by the Bank had contributed to the above improved performance. During the period, Bank could register growth in the desired segments of Liabilities like CASA & Retail Deposits and focus on building quality asset portfolio across all verticals like Corporate, Business Loan, Auto Loan, Credit Card, Personal Loan, Gold Loan etc.
Mr. Murali Ramakrishnan, also added that during the first quarter of FY23, the Bank registered a net profit of Rs.115.35 Crore, due to overall improvement in various parameters like CASA, Net Interest Income, reduction in provisions (excl. tax) etc. He also stated that, in line with the strategy of the Bank “Profitability through quality credit growth”, Bank could churn around 43% of its advances portfolio since October 2020 amounting to Rs. 27,787 Crore with a NIM of more than 3% and GNPA of only 0.02%. This coupled with a robust recovery / collection mechanism helped the Bank to reduce fresh slippages by 48.67% on Y-o-Y basis from Rs.879 Crore to Rs.435 Crore.
Further, Bank was able to beef up the CRAR to a comfortable level of 16.25% as on June 30, 2022 compared to 15.47% as on June 30, 2021.
Mr. Murali added that, the Bank believes that its strong and diversified franchise with large distribution network and technology prowess provides the ability to leverage opportunities for profitable growth in the coming quarters, with the headwinds in the economy tapering.
