South Indian Bank posts ₹102 crore net profit in October-December quarter

The Thrissur-headquartered lender had reported a nonaccomplishment of ₹50.31 crore successful the year-ago period, portion its nett for the preceding September 4th had stood astatine ₹223 crore.

Its main enforcement and managing manager Murali Ramakrishnan said the slope decided to instrumentality a proviso of ₹312 crore for the 4th due to the fact that of a December 4, 2022 RBI circular asking lenders to bash ageing provisions for information receipts (SRs) dating earlier 2017.

He said since 2004, the slope had sold non-performing assets of ₹1,955 crore to plus reconstruction companies, of which the equilibrium measurement aft redemptions had stood astatine ₹1,455 crore for which the proviso had to beryllium done.

The slope volition person to acceptable speech different ₹48 crore successful the 4th fourth towards specified provisions and ₹15 crore successful full FY24 if the banal of the SRs remains the same, helium said, hoping for a proviso write-back of ₹100 crore successful FY24 to assistance the profits.

The bank's halfway nett involvement income jumped 44 per cent to ₹825 crore during the reporting quarter, portion the non-interest income was antagonistic ₹34.18 crore due to the fact that of the further wealth acceptable speech arsenic provisions for ageing information receipts.

The recognition maturation came astatine implicit 18 per cent, but the deposit maturation lagged astatine 3 per cent. Ramakrishnan exuded assurance that the slope volition beryllium capable to garner capable liabilities to substance recognition growth, saying deposits person an elasticity wherever a hike successful rates tin assistance span immoderate shortfall.

The nett involvement margins (NIM) widened to 3.52 per cent for the quarter, and Ramakrishnan said the slope volition beryllium capable to adjacent FY23 with a NIM of 3.20 per cent.

Its wide superior adequacy was implicit 16 per cent and the lender does not person immoderate contiguous plans of going for an infusion, helium said.

The South Indian Bank scrip tanked 8.54 per cent to adjacent astatine ₹16.60 a portion connected the BSE, arsenic against gains of 0.06 per cent connected the benchmark successful Tuesday's trade.