South Indian Bank posted a net profit of ₹223.10 crore during Q2 of FY23 against a loss of ₹187.06 crore during the corresponding period of the previous year. Profit before tax (PBT) of ₹246.43 crore and net interest income of ₹726.37 crore were the highest ever in a quarter. Backed by a net interest margin (NIM) of 3.21 per cent, the Return on Equity (RoE) increased by 1,707 bps, while Return on Assets (RoA) improved to 0.64 per cent from -0.36 per cent year-on-year.

Murali Ramakrishnan, MD & CEO, said a business realignment helped register growth in liabilities segments such as CASA and retail deposits, and focus on building a quality asset portfolio across the corporate, SME, auto loan, credit card, personal and gold loan verticals.

Registers overall improvement

During Q2 FY23, the bank registered the highest ever quarterly net interest income and PBT due to an overall improvement in CASA, net interest income and reduced provisions (excluding tax), Ramakrishnan said. In line with the strategic intent, viz, ‘Profitability through quality credit growth,’ the bank has churned around 50 per cent of its advances portfolio since October 2020, amounting to ₹33,768 crore, with a NIM of 3.60 per cent and GNPA of only 0.03 per cent. Coupled with a robust recovery/ collection mechanism, this helped reduce fresh slippage by 34.09 per cent on a Y-o-Y basis, from ₹531.31 crore to ₹350.17 crore.

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Murali Ramakrishnan, Managing Director & CEO, South Indian Bank 

South Indian Bank’s Q1 net jumps to ₹115 crore

The CRAR has been beefed up to 16.04 per cent from 15.74 per cent on Y-o-Y basis. During the quarter, CARE and India Ratings revised the rating outlook from ‘Negative’ to ‘Stable’. Ramakrishnan said the bank believes that its strong and diversified franchise, with a large distribution network and technology prowess, provides the ability to leverage opportunities for profitable growth in the coming quarters, with headwinds in the economy tapering.

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