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Business News/ Companies / Company Results/  South Indian Bank Q2FY24 earnings: Net profit up 23.3% to 275 crore; NII grows 14.3%
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South Indian Bank Q2FY24 earnings: Net profit up 23.3% to ₹275 crore; NII grows 14.3%

Provisions for Q2FY24 decreased by 72% YoY, amounting to ₹51 crore, in contrast to ₹179 crore during the same period last year.

The bank reported the highest-ever advances of ₹74,947 crore in Q2 FY24 compared to ₹67,963 crore, reflecting a growth of 10%. (Mint)Premium
The bank reported the highest-ever advances of 74,947 crore in Q2 FY24 compared to 67,963 crore, reflecting a growth of 10%. (Mint)

South Indian Bank has announced its Q2FY24 financial results, posting a 23.3% increase in net profit to 275 crore. In comparison, the bank reported a net profit of 223 crore during the corresponding period last year and 202 crore in Q1FY24.

Net interest income (NII), the difference between interest earned from lending and interest paid to depositors, increased by 14% YoY to 830 crore, compared to 726 crore in Q2FY23, while the net interest margin improved to 3.33% in Q2FY24 from 2.98% in Q2FY23.

Its other income jumped 39.21% YoY to 355 crore from 255 crore in Q2 FY23. Pre-provision operating profit increased to 460 crore from 425 crore in the same quarter last year. Provisions for Q2FY24 decreased by 72% YoY, amounting to 51 crore, in contrast to 179 crore during the same period last year.

On the asset quality front, the bank's gross non-performing assets (NPA) decreased by 71 basis points YoY, reaching 4.96% in Q2FY24. Net NPA also fell by 81 basis points to 1.70%. 

On the deposits front, the bank's retail deposits grew by 6,337 crore from 87,111 crore to 93,448 crore YoY in Q2 FY24, showing an increase of 7.3% YoY. NRI deposits grew by 1,285 crore to 28,785 crore YoY, registering an increase of 4.7% YoY, while the CASA grew by 1.8% on a YoY basis in Q2FY24, with growth in savings bank by 1.8% and CD by 1.7%, respectively.

On the advances front, the bank reported the highest-ever advances of 74,947 crore in Q2 FY24 compared to 67,963 crore, reflecting a growth of 10%. The corporate segment went up by 6,859 crore to 27,491 crore, an increase of 33.2% YoY, according to the company's earnings report. 

P R Seshadri, MD & CEO of the bank, while announcing the results, stated that the strategy adopted by the bank continues to enable the business performance. During the period, the bank registered growth in all the desired segments with a focus on quality asset across all verticals: corporate, SME, auto loan, credit card, personal loan, gold loan, etc.

He also stated that, in line with the strategic intent of the bank, viz., “profitability through quality credit growth", the bank could onboard fresh advances with a low risk profile of around 64% of its advances portfolio since October 2020, amounting to Rs. 48,246 crore with a GNPA of only 0.18%.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint.

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Published: 19 Oct 2023, 03:38 PM IST
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