Private sector lender, South Indian Bank on Tuesday said its standalone net profit jumped manifold to ₹115.35 crore in Q1FY23 as lower bad loans reduced provisioning requirement.
The lender had posted a net profit of ₹10.31 crore in Q1FY22.
However, when compared sequentially, the Q1 profit declined by 57 per cent from ₹272 crore recorded in January-March 2022 period.
The bank's total income in Q1FY23 fell to ₹1,868.15 crore as against ₹2,084.39 crore in Q1FY22 on the back of lower interest income and reduction in income from other sources, the Thrissur-based lender said in a regulatory filing.
Core income earned through interest fell to ₹,621.81 crore during the quarter from ₹1,633.39 crore. Other income fell by 45 per cent to ₹246.34 crore in three months to June of FY23.
A substantial improvement in the bad assets ratio, however, helped the lender post a multi-fold jump in net profit during the quarter.
The gross Non-Performing Assets (NPAs) fell to 5.87 per cent of the gross advances as of June 30, 2022 from 8.02 per cent registered at the end of June 2021. In value terms, the gross NPAs (or bad loans) came down to ₹3,798.64 crore from ₹4,677.12 crore a year ago.
Net NPAs were cut to 2.87 per cent (translating to ₹1,801 crore) from 5.05 per cent.
Thus, the provisioning and contingencies requirement in Q1 came down to ₹139.41 crore from ₹495.89 crore in Q1FY22. But, it was up sequentially from ₹77.71 crore in March 2022 quarter.
South Indian Bank scrip ended at ₹7.87 apiece on BSE, up by 0.25 per cent from previous close.