South Indian Bank Q1 FY24 PAT soars 45% YoY to Rs 294 Cr

On Thursday, July 18, South Indian Bank announced a 45.30% increase in standalone net profit to Rs 294 crore for the quarter ended June 2024, compared to Rs 202 crore in the same period previous year.

Key Takeaways from South Indian Bank’s Financial Performance

• South Indian Bank reported a 45.30% surge in standalone net profit to Rs 294 crore for the quarter ending June 2024.
• In the first quarter of fiscal year 24, net interest income amounted to Rs 866 crore.
• Retail deposits increased 8.37% to Rs 99,745 crore, while non-resident Indian (NRI) deposits increased 4.55% year on year to Rs 29,236 crore.
• CASA deposits increased 6.51% year on year, with savings accounts up 4.87% and current accounts up 14.80%.

Net interest income, which is the difference between interest received on loans and interest paid to depositors, reached Rs 866 crore in Q1 FY24, up from Rs 808 crore in the same period last year.

The net interest margin for the quarter was 3.26%, a little decrease from 3.34% in Q1 FY24. Additionally, other revenue climbed by 16.80% year on year, reaching Rs 422 crore.

Pre-provision operating profit increased to Rs 507.68 crore from Rs 490.24 crore in the previous year.

On the asset quality front, the bank's gross non-performing assets (NPAs) decreased by 63 basis points year on year to 4.50%, while net NPAs decreased by 41 basis points to 1.44%.

Retail deposits increased 8.37% year on year to Rs 99,745 crore. Non-resident Indian (NRI) deposits also increased by Rs 1,720 crore to Rs 29,236 crore, up 4.55% year on year.

CASA (Current Account Savings Account) deposits increased by 6.51% year on year, with savings accounts up 4.87% and current accounts up 14.80%.

In terms of advances, the corporate category showed a significant rise of Rs 6,462 crore, from Rs 27,522 crore to Rs 33,984 crore, representing a 23.48% year-on-year gain. Furthermore, the percentage of 'A' and above-rated accounts in the major business category increased from 94% to 96% during the same time.

The personal loan portfolio increased by Rs 377 crore, from Rs 1,935 crore to Rs 2,312 crore, representing a 19.5% growth year on year. Similarly, the gold loan portfolio grew by Rs 1,839 crore, from Rs 14,478 crore to Rs 16,317 crore, representing a 12.70% year-on-year gain.

The return on equity increased by 110 basis points, from 11.80% to 12.90% year on year. The return on assets grew by 27 basis points, from 0.73% to 1%, year on year. Furthermore, the provision coverage ratio, excluding write-offs, increased by 390 basis points, from 65.15% to 69.05% year on year.
 

About South Indian Bank Limited

South Indian Bank Limited, founded in 1929, is a banking business that provides a variety of banking and financial services, including retail banking, corporate banking, and treasury operations. The bank is divided into four business segments: Treasury, Corporate/ Wholesale Banking, Retail Banking, and Other Banking Operations. 

The Treasury section includes interest profits on the bank's investment portfolio, gains or losses on investment activities, and earnings from foreign exchange transactions. Corporate / Wholesale Banking makes loans to the corporate sector. The Retail Banking division makes loans to non-corporate consumers. 

The Other Banking Operations section comprises revenue from non-banking operations such as debit cards, third-party product distribution, and associated expenses. The bank has a network of roughly 942 banking branches and over 1,175 automated teller machines (ATMs) in India.

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