South Indian Bank (SIB) on Friday announced a net loss of Rs 143.68 crore for the fourth quarter of FY20, on account of higher provisions. The Kerala-based lender had reported a net profit of Rs 91 crore in the fourth quarter of 2018-19. While announcing the results, VG Mathew, MD & CEO, said that the bank absorbed exceptional provisions of Rs 255 crore on account of market-to-market depreciation on security receipts and Rs 76 crore on account of the Covid-19 pandemic during the quarter.
“The provision has been made for Security Receipts (SRs) in respect of NPAs sold by the Bank to an ARC in March 2017. Major accounts in the sold pool are under Insolvency and Bankruptcy proceedings. The delay in the resolution process of such accounts has affected their valuations on account of which the market value of SRs came down by 25%,” he added.
Mathew also said the bank has made necessary provision of Rs 10.38 crore for extended moratorium and interest deferment to eligible borrowers in accordance with Covid relief measures announced by RBI.