The focus given on quality assets across all verticals has enabled the Kerala-based South Indian Bank to achieve 18 per cent rise in its profit in Q2. The bank registered a net profit of ₹324.69 crore against ₹274.81 crore in the same period last fiscal.
Across the board there is a reasonable growth especially in gold loans, housing loans portfolio. On the retail asset side, the portfolio is growing quite nicely and it is quite visible, said PR Seshadri, MD & CEO.
In line with the strategic intent viz, “Profitability through quality credit growth”, the bank could onboard fresh advances with low risk profile. Capital adequacy stood at 18 per cent in September 2024 compared to 16.69 per cent in September 2023, he said.
Asked on the business environment in the country, he said there is a little bit of uncertainty in the market due to geopolitical worries which is impacting the stock markets. The linkages between the market and the real world is very hard to explain, he said.
Other metrics
The gross NPA came down by 56 bps from 4.96 per cent to 4.40 per cent and net NPA dropped by 39 bps from 1.70 to 1.31 per cent. Net interest income went up from ₹830.58 crore to ₹882.28 crore, registering a growth of 6.22 per cent.
Retail deposit grew from ₹93,448 crore to ₹1,01,652 crore, showing an increase of 8.78 per cent. NRI deposit grew 5.92 per cent to ₹30,488 crore. CASA grew by 7.81 per cent with growth in savings account by 4.44 per cent and current account by 25.02 per cent, respectively.
Gross advances jumped 13 per cent to ₹84,714 crore. Corporate segment went up by ₹6,470 crore from ₹27,491 crore to ₹33,961 crore — an increase of 23 per cent.
