South Indian Bank posts net profit of nearly Rs 7 cr for March quarter

By: |
May 21, 2021 4:45 PM

South Indian Bank (SIB) on Friday reported a net profit of Rs 6.79 crore in last quarter of the financial year ended March 2021.

We thought we could restructure Rs 1,200 crore, but we could only restructure Rs 351 crore. Yes, our provisions were lower for the fourth quarter.We thought we could restructure Rs 1,200 crore, but we could only restructure Rs 351 crore. Yes, our provisions were lower for the fourth quarter.

South Indian Bank (SIB) on Friday reported a net profit of Rs 6.79 crore in last quarter of the financial year ended March 2021. The private sector lender had posted a net loss of Rs 143.69 crore in the same period of the preceding fiscal year. On a sequential basis also, the bank had reported a net loss of Rs 91.62 crore in the third quarter ended December 2020.

Its total income during January-March 2021 fell 10.4 per cent to Rs 2,098.25 crore as against Rs 2,341.88 crore in the year-ago period, SIB said in a regulatory filing. The bank’s asset quality showed worsening with the gross non-performing assets (NPAs) spiking to 6.97 per cent of the gross advances as of March 31, 2021, against 4.98 per cent by the end of March 2020.

In value terms, the gross NPAs were worth Rs 4,143.24 crore, higher than Rs 3,261.77 crore a year ago. Net NPAs or bad loans also moved up at 4.71 per cent (Rs 2,734.52 crore), from 3.34 per cent (Rs 2,150.78 crore). However, provisions for bad loans and contingenices in last quarter of 2020-21 were brought down to Rs 412.29 crore, against Rs 723.80 crore put aside for the year-ago period. Even as the full-year provisions were higher at Rs 1,531.25 crore from Rs 1,496.09 crore in FY20.

For the full-year 2020-21, the lender posted a 41 per cent decline in its net profit at Rs 61.91 crore as against Rs 104.59 crore in 2019-20. Total income during the year was also down at Rs 8,490.93 crore as against Rs 8,809.55 crore.

No dividend has been recommended by the board of directors for the financial year ended March 31, 2021, the bank said. It had not declared final dividend in preceding fiscal ended March 2020 as well. SIB said non-declaration of dividends were in line with RBI notification last year, in view of the ongoing stress and heightened uncertainty on account of COVID-19. And, the advisory to the banks that they should continue to conserve capital to support the economy and absorb losses. Shares of the bank on Friday ended 2.12 per cent down at Rs 11.10 apiece on the BSE.

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