South Indian Bank has announced its financial results for the second quarter of fiscal 2024, registering a 23.3% increase in net profit ₹275 crore. In comparison, the bank reported a net profit of ₹223 crore in the corresponding period last year and ₹202 crore in Q1FY24.

Net interest income (NII), the difference between interest income from lending and interest paid to depositors, increased 14% year-on-year ₹830 crore, compared to ₹726 crore in Q2FY23 while net interest margin improved to 3.33% in Q2FY24 from 2.98% in Q2FY23.

Other income increased 39.21% year-on-year ₹355 crore from ₹255 crore in the second quarter of FY23. Operating profit before provisions increased ₹460 crore from ₹425 crore in the same quarter last year. Provisions for the second quarter of FY24 decreased by 72% year-on-year and amounted to ₹51 crore, as opposed to ₹179 crore in the same period last year.

In terms of asset quality, the bank’s gross non-performing assets (NPA) declined by 71 basis points year-on-year to reach 4.96% in Q2FY24. Net NPA also fell by 81 basis points to 1.70%.

In the deposit sector, the bank’s retail deposits grew ₹6,337 crore from ₹87,111 crore ₹93,448 Crore YoY in Q2FY24, up 7.3% YoY. NRI deposits grew by ₹1,285 crore to ₹28,785 crore YoY, up 4.7% y-o-y, while CASA grew 1.8% y-o-y in Q2FY24, with savings banks growing 1.8% and CD growing respectively 1.7% increased.

In the area of ​​advances, the bank reported the highest advances ever ₹74,947 crore in Q2 FY24 as compared to ₹67,963 crore, registering a growth of 10%. The corporate segment increased by ₹6,859 crore to ₹27,491 crore, up 33.2% year-on-year, according to the company’s earnings report.

PR Seshadri, Managing Director and CEO of the bank, while announcing the results said that the strategy adopted by the bank continues to enable business development. During the period under review, the bank recorded growth across all desired segments with a focus on quality assets across verticals: Corporate, SMEs, Auto Loans, Credit Cards, Personal Loans, Gold Loans, etc.

He also stated that in line with the bank’s strategic intent of “Profitability through Quality Loan Growth”, the bank could raise new loans with a low risk profile amounting to around 64% of its loan portfolio as of October 2020 at Rs. 48,246 crore with a Gross national product of only 0.18%.

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