South Indian Bank Q4 net profit dips 14% to ₹287 crore, NII rises to ₹875 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Private lender South Indian Bank Ltd on Thursday (May 2) reported a 14% year-on-year (YoY) dip in net profit at ₹287.5 crore for the fourth quarter that ended March 31, 2024. In the corresponding quarter, South Indian Bank posted a net profit of ₹333.9 crore, the bank said in a regulatory filing.

Net interest income (NII), the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, rose 2.1%, coming at ₹875 crore against ₹857 crore in the corresponding quarter of FY23.

The gross non-performing assets (GNPA) stood at 4.50% in the March quarter against 4.74% in the December quarter. Net NPA came at 1.46% against 1.61% quarter-on-quarter.

The bank reported a marginal increase in its other income, reaching ₹346 crore, representing a modest 0.2% year-on-year growth. However, compared to the previous quarter, other income saw a notable decline of 23.5%.

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Operating expenses for the quarter stood at ₹787.2 crore, marking a 22.8% increase year-on-year. However, on a quarter-on-quarter basis, there was a marginal decrease of 0.1%. Notably, employee expenses saw a significant reduction of 10.2% compared to the previous quarter.

The bank’s operating profits witnessed a downturn, amounting to ₹433.5 crore, reflecting a decrease of 22.8% year-on-year and 10.3% quarter-on-quarter. Provisions for the quarter totalled ₹40.6 crore, representing a moderate 4.2% year-on-year increase. However, compared to the previous quarter, provisions witnessed a notable decline of 16.3%.

The cost-to-income ratio, a key efficiency metric, stood at 64.5%, reflecting a significant increase from 53.3% year-on-year and a slight uptick from 61.98% quarter-on-quarter. South Indian Bank maintained a healthy Capital to Risk (Weighted) Assets Ratio (CRAR) at 19.91%. This figure represents a notable improvement from 17.25% year-on-year and 15.6% quarter-on-quarter.

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The Credit-Deposit (CD) ratio stood at 76.6%, showing a marginal increase from 76.2% year-on-year and 75.98% quarter-on-quarter. The bank reported a marginal increase in its other income, reaching ₹346 crore, representing a modest 0.2% year-on-year growth. However, compared to the previous quarter, other income saw a notable decline of 23.5%.

The board of directors of the bank has recommended a dividend of ₹0.30 per equity share of face value of ₹1 each (30%) for the financial year ended March 31, 2024 (Previous Year: ₹0.30 per equity share of face value ₹1 each (30%)), subject to the approval of shareholders at the ensuing annual general meeting.

Shares of South Indian Bank Ltd ended at ₹29.14, down by ₹1.63, or 5.30%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow