SIB Q1 Net Jumps 20%

Kochi, July 30: | Updated: Jul 31 2003, 05:30am hrs
Thrissur-based South Indian Bank (SIB) has recorded a 20.1 per cent jump in net profit for the first quarter of the current fiscal.

The bank clocked a net profit of Rs 22.6 crore compared to Rs 18.81 crore during the corresponding period of the previous year.

During the last fiscal, South Indian Bank had earned a net profit of Rs 72.33 crore.

A Sethumadhavan, chairman, South Indian Bank, said the banks operating profit during the period grew from Rs 44.65 crore to Rs 52.09 crore.

Despite the fall in spreads, the overall profitability of operations was maintained with the 52.1 per cent growth in non-interest income from Rs 29.8 crore to Rs 44.83 crore.

The ratio of operating profit to average working funds went up from 2.59 per cent to 2.74 and the net interest margin decreased from 2.87 per cent to 2.3.

Though the bank brought down the average cost of deposits from 8.29 per cent to 6.82, the yield on advances also declined from 12.14 per cent to 9.95 per cent.

The average yield on investments also fell from 10.82 per cent to 8.94 per cent.

However, the overall return on securities transactions declined only marginally from 13.92 per cent to 13.14 per cent.

The return on average assets improved from 1.17 per cent to 1.19 per cent and the book value of shares increased from Rs 81.96 to Rs 95.77.

During the year, the bank will be commissioning around 100 online ATMs. Presently it has 55 ATMs.