South Indian Bank's credit rating upgraded to CARE A+; Stable outlook

CARE Ratings Limited has upgraded the credit rating of South Indian Bank's Basel III Tier 2 debt instruments, amounting to ₹1,290.00 Crores, from CARE A (Stable) to CARE A+ (Stable). This positive revision in the ratings is attributed to several key factors.

 

The upgrade reflects South Indian Bank's improved profitability during FY23, with the bank reporting a profit of ₹775 crores compared to ₹45 crores in FY22. Notably, the return on total assets (ROTA) saw a significant improvement, increasing from 0.05% in FY22 to 0.75% in FY23.

 

Furthermore, the bank's focus on higher-rated corporates and the gold loan segment has led to a reduction in risk-weighted assets, thereby strengthening its capitalization levels. As of March 31, 2023, the capital adequacy ratio (CAR) stood at 17.25%, up from 15.86% in the previous year, and CAR remained robust at 16.49% as of June 30, 2023.

Top stories
Company

L&T Partners with PS Technology to Revolutionise Railways

6 mins read . 02 Aug 2024 . 12:45 PM

Company

Jindal Saw Q1 FY24 PAT Rises 67% to Rs 441 Cr

4 mins read . 02 Aug 2024 . 12:41 PM

Company

Pfizer Q1 FY25 PAT Zooms 61% to Rs 151 Cr

4 mins read . 02 Aug 2024 . 12:36 PM

Related Blogs
blog-logo

Candlestick Patterns

blog-logo

11 mins read . 03 Oct 2024

Ascending Triangle Pattern - Definition, Tips, Component & How to Trade

  • 0 people read
blog-logo

IPO

blog-logo

5 mins read . 19 Sep 2024

Vision Infra Equipment Solutions Limited IPO

  • 0 people read
Kickstart your equities journey today You've got this
By submitting this I agree to the terms & conditions