South Indian Bank net income jumps 45% to Rs 294 crore

Mumbai: The Thrissur, Kerala-based old generation private sector lender South Indian Bank has reported 45.4 percent on-year growth in net income at Rs 294 crore for the June quarter boosted by improved asset quality and higher income from rising credit disbursals.

In a statement issued Thursday, the bank said its asset quality saw all-round improvement with gross NPAs coming down by 63 bps from 5.13 percent to 4.50 percent during the reporting quarter, which also brought down the net NPAs by 41 bps from 1.85 percent to 1.44 percent.

Higher loan sales saw net interest income rising from Rs 807.77 crore in June 2023 to Rs 865.77 crore, registering a growth of 7.18 percent on-year, said PR Seshadri, the managing director of the bank.

He attributed the better set of numbers to the all-round performance with asset quality improving and assets across all verticals like corporate, auto and gold loans firing from all cylinders along with the credit card business.

The bank’s retail deposit grew by Rs 7,702 crore to Rs 99,745 crore, showing an increase of 8.37 percent, while NRI deposits grew by Rs 1,721 crore to Rs 30,102 crore, logging in an increase of 6.06 percent. The low-cost Casa deposits grew 6.51 percent.

Gross advances grew by Rs 8,478 crore to Rs 82,580 crore, showing an increase of 11.44 percent, of which corporate loans went up by Rs 6,462 crore to Rs 33,984 crore, showing an increase of 23.48 percent. Personal loans grew by Rs 377 crore to Rs 2,312 crore, showing an increase of 19.5 percent, while the gold loan portfolio rose by Rs 1,839 crore to Rs 16,317 crore, an increase of 12.70 percent.

South Indian Bank has 955 branches, two ultra-small branches, three satellite branches, 1166 ATMs and 132 cash recycling machines across the country and a representative office in Dubai.