Mumbai: South Indian Bank reported a slight increase in net profit for the March quarter due to higher net interest income.
Net profit rose to Rs75.54 crore for the three months ended 31 March from Rs72.97 crore a year ago.
Net interest income, or the core income a bank earns by giving loans, increased 17.31% to Rs439.1 crore from Rs374.29 crore a year ago.
Provisions and contingencies fell marginally to Rs165.30 crore in the March quarter from Rs206.63 crore in the previous quarter.
As a percentage of total loans, gross NPAs were at 2.45% at the end of the March quarter, as against 3.98% in the previous quarter and 3.77% in the year-ago quarter. Net NPAs came in marginally lower at 1.45% in the quarter compared to 2.52% in the preceding three months, but significantly lower than the March 2016 quarter’s 2.89%.
Capital adequacy ratio was at 12.37%, more than the 10.25% required according to central bank norms.
The bank has decided to give a dividend of Rs0.40 per share, according to a notification issued on stock exchange.
At 1.48pm, shares of South Indian Bank lost 1.36% to Rs25.45 apiece on the BSE, while the benchmark Sensex index gained 0.38% to 30,304.36 points.