South Indian Bank (SIB) had declared quarterly results with a net profit of ₹115.35 crore as against ₹10.31 crore during the corresponding period of the previous year with a year-over-year growth of 1,018.82%.
Murali Ramakrishnan, MD & CEO of the bank, while announcing the results, stated that the realignment of business strategies adopted by the bank had contributed to the improved performance. During the period, the bank registered growth in the desired segments of liabilities such as current account savings accounts (CASA) and retail deposits and focussed on building quality asset portfolio across all verticals such as corporate, business loan, auto loan, credit card, personal loan, gold loan and so on.
Mr. Ramakrishnan said that during the first quarter of financial year 2023 (FY23), the bank registered the net profit of ₹115.35 crore due to overall improvement in various parameters such as CASA, net interest Income, reduction in provisions and so on. He also stated that in line with the strategy of the bank – ‘profitability through quality credit growth’ – it could churn around 43% of its advances portfolio since October 2020 amounting to ₹27,787 crore with a net interest margin (NIM) of more than 3% and gross non-performing assets (GNPA) of only 0.02%. This, coupled with a robust recovery/collection mechanism, helped the bank reduce fresh slippages by 48.67% on year-over-year basis from ₹879 crore to ₹435 crore.
Further, the bank was able to increase the capital-to-risk weighted assets ratio (CRAR) to a comfortable level of 16.25% as on June 30, 2022, compared to 15.47% as on June 30, 2021.
Mr. Ramakrishnan said the bank believes that its strong and diversified franchise with large distribution network and technology prowess provides the ability to leverage opportunities for profitable growth in the coming quarters, with the headwinds in the economy tapering.
