South Indian Bank Q1 net falls to Rs 18 crore

24 July 2004

The operating profit stood at Rs 39.18 crore (Rs 52.09 crore).

The 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.

"However, 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.

The 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).

Net interest margin showed a healthy growth from 2.30 per cent to 2.66 per cent.

The 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.