South Indian Bank Reports Impressive 45.29% Profit Surge

South Indian Bank reported a significant 45.29% increase in its net profit for the June quarter, reaching Rs 294 crore. The growth was driven by lower provisions, a 7% rise in net interest income, and strong deposit and advance growth. The lender also saw improvements in asset quality and capital adequacy.

South Indian Bank reported a remarkable 45.29% jump in its net profit for the June quarter, amounting to Rs 294 crore, bolstered by reduced provisions.

The bank's net profit in the corresponding period last year was Rs 202 crore, as per a financial statement.

Its core net interest income saw a 7% increase to Rs 808 crore, driven by an 11% growth in overall advances and a slight decline of 0.08% in the net interest margin to 3.26%. Additionally, other income advanced by 16.8% to Rs 422 crore.

Overall deposits witnessed an 8.41% rise, reaching Rs 1.03 lakh crore.

A key factor in the bank's profit growth was a 43% reduction in provisions to Rs 113 crore.

Regarding asset quality, the gross non-performing assets (NPA) ratio improved to 4.50%, down from 5.13% in the previous year.

The bank's capital adequacy stood strong at 18.11% as of June 30, 2024.

The South Indian Bank's stock closed 1.27% lower at Rs 26.50 on the BSE, compared to a 0.78% rise in the benchmark index.

(With inputs from agencies.)