South Indian Bank net profit rises 6.67%

South Indian Bank

Kochi: Driven by strong growth in Net Interest Income (NII) and other incomes, South Indian Bank (SIB) has registered a 6.67 per cent rise in net profit in the first quarter of FY 17 at Rs. 101.47 crore as against Rs. 95.06 crore in the corresponding period of the previous fiscal.

The Bank’s NII for the quarter increased by 23.3 per cent year-on-year to Rs. 460.7 crore compared to Rs. 373 crore in Q1FY16. The operating profit registered a growth of Rs. 120 crore, up 46.25 per cent. In spite of remarkable growth in NII, non-interest income and operating profit, due to incremental provisioning needed for the above stressed assets, the net profit for the quarter has been muted. The total business of the Bank increased by Rs. 13,142 crore to Rs. 1,13,055 crore, achieving a growth of 13.15 per cent year-on-year.

Announcing the results, V G Mathew, MD and CEO, pointed out that the realignment of business strategies with emphasis on retail lending and CASA (current account, savings account) deposits contributed to the good performance despite a challenging environment in the banking sector. “The Bank has fully recognised the corporate stressed assets as NPA during the quarter,’’ he added.

Total advances increased by Rs. 5,240 crore to Rs. 47,264 crore, registering a credit growth of 12.47 per cent year-on-year. Deposits increased by Rs. 7,902 crore to Rs. 65,791 crore, registering a growth of 13.65 per cent y-o-y. CASA deposits rose by Rs. 3,132 crore to Rs. 16,586 crore, a growth of 23.28 per cent. CASA now stands at 25.21 per cent of total deposits whereas NRI deposits showed a healthy growth of 15.73 per cent, accounting for 26.45 per cent of total deposits.