South Indian Bank on Tuesday reported a 96% year-on-year fall in net profits for the three months to September to Rs 4.32 crore. The lender’s provisions increased by 253% y-o-y to Rs 453.68 crore.
The bank said in an exchange filing the provisions in the quarter included depreciation of Rs 252.39 crore on account of diminution in net asset value of investments in security receipts on the basis of NAV declared by Asset Reconstruction Company.
VG Mathew, managing director and chief executive officer at the bank said that with the incremental provisioning made, the provision coverage of the pool crossed 50% which increases the prospects of the recovery. “Had the exceptional provision not been there, the PAT would have been `169 crore for the current quarter. The operating profit of the bank has increased by Rs 163 crore (54.9 % ) to `460 crore,” he added.
Net interest income (NII) of the bank increased 13 % to Rs 503.22 crore as against Rs 445.18 crore in the year ago period. Other income during the quarter in review increased 92.23% to Rs 280.47 crore from Rs 145.90 crore in corresponding quarter of last fiscal.
Total income increased to Rs 1,816.67 crore during September quarter of the current fiscal, as against Rs 1,596.08 crore in the year-ago period, the bank said. Advances for the quarter are seen higher by 12.42 % YoY at Rs 48,954.26 crore while deposits increased by 11.55% to Rs 67,142.10 crore.
Gross NPAs rose 1.21% to Rs 1,766.32 crore from Rs 1,745.28 crore last year.
As a percentage of total loans, gross NPAs stood at 3.57% as compared to 3.61% in the previous quarter and 3.96% a year ago.