South Indian Bank profit rises 75% to Rs 202 crore in Q1

New Delhi: South Indian Bank on Thursday reported a 75 per cent increase in net profit at Rs 202 crore in the June quarter, helped by a decline in bad loans.

The Kerala-based private sector lender had posted a net profit of Rs 115 crore in the year-ago period.

Total income in the first quarter of the current fiscal rose to Rs 2,386 crore from Rs 1,868 crore in the same period a year ago, South Indian Bank said in a regulatory filing.

Interest earned by the bank grew to Rs 2,025 crore over Rs 1,622 crore in June 2022.

Net interest income went up from Rs 603 crore to Rs 807 crore, registering a growth of 33.87 per cent annually.

The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 5.13 per cent of gross advances at the end of the June quarter from 5.87 per cent a year ago.

Similarly, net NPAs or bad loans declined to 1.85 per cent as against 2.87 per cent in the year-ago period.

Net Interest Margin of the bank improved by 60 basis points to 3.34 per cent from 2.74 per cent recorded in first quarter of previous fiscal.

Recovery and upgradation in NPA accounts increased from Rs 296 crore in Q1 FY23 to Rs 362 crore in Q1 FY24, it said.