South Indian Bank on Wednesday reported a year-on-year rise of 15.6% in its net profit for the December quarter to Rs 101.63 crore, led by a rise in net interest income (NII).
NII – the difference between interest earned and interest expended – rose 27.1% year-on-year to Rs 406.72 crore, mainly due to a muted rise in interest paid. Total income, on the other hand, rose by a mere 6.4% to Rs 1,560.98 crore.
The private sector lender witnessed a deterioration of asset quality in the quarter gone by. Its provisions rose to Rs 106.39 crore, up nearly 24% from the corresponding period last fiscal. Gross non-performing assets as a percentage of gross advances grew 95 basis points to 2.75% over the same period, while net NPA rose 76 basis points to 1.80%.
Shares of South Indian Bank closed 2.2% down on Wednesday at Rs 17.95 on BSE.