South Indian Bank Q2 net rises 21%, NII improves

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Published: October 18, 2019 2:10:14 AM

The provision coverage ratio improved to 48.07% from 41.86% a year ago. Mathew said the bank’s strategy of bringing down the corporate exposure and increasing the retail, MSME and agri portfolios has strengthened its balance sheet.

South Indian Bank, Q2, NII improve, Banking news, Finance news, MSME, GNPA levelGross NPAs registered an increase to 4.92% from 4.61% at the end of the second quarter of last fiscal.

South Indian Bank on Thursday announced a 20.5 % year-on-year increase in its net profit for the second quarter of the current fiscal to Rs 84.48 crore. The Kerala-based lender had reported a net profit of Rs 0.13 crore during the year-ago period.

The net interest income (NII) grew 15.37% Y-o-Y while other income rose 57.9%.The operating profit improved 32.82% Y-o-Y during the second quarter to Rs 411.45 crore.

Gross NPAs registered an increase to 4.92% from 4.61% at the end of the second quarter of last fiscal. Net NPA at the end of the second quarter stood at 3.48%, against 3.16% in the year-ago period.

VG Mathew, MD & CEO, said the growth in retail, agriculture and MSME advances was in line with the focus of the bank. The lender has also been able to meet the targeted levels of recovery and upgrades, which helped reduce the GNPA level.

The provision coverage ratio improved to 48.07% from 41.86% a year ago. Mathew said the bank’s strategy of bringing down the corporate exposure and increasing the retail, MSME and agri portfolios has strengthened its balance sheet.

The pure retail portfolio grew at 20.07% Y-o-Y and is already accounting for 30% of the loan book, taking the bank closer to its stated objective of becoming a retail banking powerhouse.

The agriculture and MSME portfolios grew by 20% and 16% Y-o-Y and the combined portfolio now constitutes 39% of the loan book.

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