South Indian Bank Q3 profit up 9.59% to Rs111.38 crore
Mumbai: Private sector lender South Indian Bank said profit in the quarter ended December 2016 grew by 9.59% to Rs111.38 crore compared with Rs101.63 crore in year-ago period but asset quality worsened.
Net interest income (NII)—the difference between interest earned and interest expended—during the quarter increased 2.66% year-on-year to Rs417.52 crore. Earnings were below Bloomberg analysts’ expectations as they predicted profit to be Rs113.80 crore.
Asset quality weakened during the quarter as gross non-performing assets (NPAs) increased to 3.98% in the quarter ended December 2016 from 2.75% quarter ended December 2015 and net NPA rose to 2.52% from 1.80% in corresponding quarter last year.
In absolute terms, gross NPAs jumped 61.28% year-on-year to Rs1,786.98 crore and net NPAs were up 55.82% at Rs1,115.66 crore in the quarter ended December 2016.
Provisions for bad loans during the quarter increased 94.22% year-on-year and 61.01% quarter-on-quarter to Rs206.63 crore.
Other income like non-interest income grew by 68.61% to Rs258.51 crore.
At 2.25pm, the stock was trading at Rs21.50, up 2.63% on the BSE while the benchmark index Sensex was up 0.89% to 27,139.70 points.