South Indian Bank has clocked a net profit of Rs 18.44 crore for the first
quarter of the current fiscal, against Rs 22.60 crore recorded for the corresponding
operating profit stood at Rs 39.18 crore (Rs 52.09 crore).
prime reason for the fall in profitability was the decline in profit on sale
of investments, which fell from Rs 33.25 crore last year to Rs 12.84 crore
this year, said A. Sethumadhavan, chairman.
it is worth mentioning that despite this and the steep increase in the yield
on Government securities during the quarter, necessitating adequate provisions,
the bank could achieve reasonable profits on its operations," he added.
interest income increased to Rs 180.19 crore (Rs 160.78 crore), interest expenditure
showed marginal growth to touch Rs 120.42 crore (Rs 117.02 crore).
interest margin showed a healthy growth from 2.30 per cent to 2.66 per cent.
book value of the share grew from Rs 95.77 to Rs 115.46.
Business per employee also grew from Rs 2.94 crore to
Rs 3.43 crore.
bank''s net worth also increased from Rs 343.58 crore to
Rs 413.33 crore.
was able to record a capital adequacy level of 12.09 per
cent, while the RBI-stipulated level is nine per cent.
the gross NPAs could be reduced from 10.05 per cent to
7.51 per cent, the net NPAs were pruned from 6.20 per
cent to 4.53 per cent, a bank release said.
the business front, the bank was able to notch a growth
of 18.3 per cent to Rs 12,055 crore (Rs 10,194 crore).
grew by 15.4 per cent to touch Rs 7,787 crore (Rs 6,750
crore), while advances rose by 23.9 per cent to Rs 4,268
crore (Rs 3,444 crore). Investments grew by 6.8 per cent
to Rs 3,541 crore (Rs 3,314 crore).
bank opened its 411th branch at Gurgaon during the quarter
and proposes to open 19 more branches during the year,
taking the total number to 430.