South Indian Bank net jumps manifold to Rs 115 crore in April-June

New Delhi: Private sector lender South Indian Bank on Tuesday said its standalone net profit jumped manifold to Rs 115.35 crore in June 2022 quarter as lower bad loans reduced provisioning requirement.

The lender had posted a net profit of Rs 10.31 crore in the year-ago quarter ended in June 2021.

However, when compared sequentially, the June quarter profit declined by over 57 per cent from Rs 272 crore recorded in January-March 2022 period.

Bank's total income in April-June period of the current fiscal year also fell to Rs 1,868.15 crore as against Rs 2,084.39 crore in first quarter of FY22 on the back of lower interest income and reduction in income from other sources, the Thrissur-based lender said in a regulatory filing.

Core income earned through interest fell to Rs 1,621.81 crore during the quarter from Rs 1,633.39 crore. Other income fell by over 45 per cent to Rs 246.34 crore in three months to June of FY23.

A substantial improvement in the bad assets ratio, however, helped the lender post a multi-fold jump in net profit during the quarter.

The gross Non-Performing Assets (NPAs) fell to 5.87 per cent of the gross advances as of June 30, 2022 from 8.02 per cent registered at the end of June 2021. In value terms, the gross NPAs (or bad loans) came down to Rs 3,798.64 crore from Rs 4,677.12 crore a year ago.

Net NPAs were cut to 2.87 per cent (translating to Rs 1,801 crore) from 5.05 per cent (Rs 2,855 crore).

Thus, the provisioning (other than tax) and contingencies requirement in the quarter came down to Rs 139.41 crore from Rs 495.89 crore in June 2021 quarter. But it was up sequentially from Rs 77.71 crore in March 2022 quarter.

South Indian Bank scrip ended at Rs 7.87 apiece on BSE, up by 0.25 per cent from previous close.