BackSouth Indian Bank records 225% sequential growth in Q4 PAT, declares dividend; key highlights here
South Indian Bank witnessed a strong growth in Q4 PAT to ₹334 crore, while asset quality continued to improve. The performance was in line with the strategic intent of the bank.
PremiumKerala-based private sector lender, South Indian Bank registered a huge growth of 224.95% sequentially in net profit to ₹333.89 crore in the fourth quarter of FY23. Year-on-year, the PAT recorded a growth of 22.74%. For the full year, the lender has touched a key milestone in its history with the highest-ever growth in key verticals. The bank has also declared a dividend of 30% for its shareholders.
The lender's PAT was at ₹272.04 crore in Q4FY22 and ₹102.75 crore in Q3FY23 respectively.
Net interest income (NII) also posted a significant upside of 43.40% YoY to ₹857.18 crore in Q4FY23. Sequentially, the growth however was merely 3.88%. NII stood at ₹597.74 crore in March 2022 quarter and ₹825.15 crore in December 2022 three-month period.
Furthermore, provisions and contingencies declined drastically to ₹38.99 crore in Q4FY23, compared to ₹77.71 crore in Q4FY22 and ₹41.43 crore in Q3FY23.
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In terms of asset quality, key parameters improved further with gross NPA coming at 5.14% and net NPA at 1.86% for the March 2023 quarter --- compared to 5.90% and 2.97% in the same period a year ago.
Murali Ramakrishnan, MD & CEO of the Bank, while announcing the results, stated that the strategy of the Business by the bank had contributed to the above performance. During the period, Bank could register growth in all the desired segments with a focus on building quality assets across all verticals like Corporate, SME, Auto Loan, Credit Card, Personal Loan Gold Loan, etc.
He further said, in line with the strategic intent of the bank viz, “profitability through quality credit growth", the bank could churn around 58% of its advances portfolio since October 2020 amounting to ₹41,566 crore with a GNPA of only 0.09%."
Overall, in FY23, the bank posted the highest-ever net profit of ₹775.09 crore in its history, while NII was also the highest ever at ₹3,012.08 crore. The lender also garnered a record-high CRAR of 17.25%, a record-high net interest margin of 3.30% in the last 17 years, and the highest ever provision coverage ratio of 76.78%.
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Murali thanked all its shareholders, customers, employees, and all other stakeholders for the continuous support extended, which enabled the Bank to turn around and achieved good results.
In a meeting held on Thursday, the bank's board members recommended a 30% dividend subject to the approval of the shareholders in AGM. Previously the dividend was declared in FY19 @ 25%.
On BSE, South Indian Bank's share price ended at ₹16.31 apiece up by 1.4%.
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