MUMBAI: Kerala-based old-generation private e-sector lender South Indian Bank has reported Rs 325 crore net income for the September quarter, up 18.15 per cent or Rs 275 crore in the same quarter a year ago, on improved asset quality and higher loan demand.
Following the announcement, shares of the bank surged 6.5 per cent to Rs 25.51 on the BSE despite the benchmark closing sharply lower by 318 points.
In a statement, the Thrissur-based bank said its total income increased to Rs 2,804 crore during the quarter under review from Rs 2,485 crore a year ago, of which interest income was Rs 2,355 crore, up from Rs 2,129 crore in the same period a year ago.
PR Seshadri, the chief executive of the bank said during the reporting period, the bank registered growth in all the desired segments with a focus on quality assets across all verticals such as corporate, housing, auto, personal loan and gold loans.
The bank said its overall asset quality improved with gross non-performing assets (NPAs) coming down to 4.40 per cent from 4.96 per cent and net NPAs inching down to 1.31 per cent from 1.70 per cent.
Net interest income went up from Rs 830.58 crore to Rs 882.28 crore, registering a growth of 6.22 per cent, while non-interest income rose from Rs 355.77 crore to Rs 449.47 crore, logging in a growth of 26.34 per cent.
During the quarter the bank wrote-offs jumped by 447 bps from 66.77 per cent to 71.24 per cent but the provision coverage ratio, including write off, improved by 290 bps from 77.82 per cent to 80.72 per cent.
Retail deposits grew by Rs 8,204 crore from Rs 93,448 crore to Rs 1,01,652 crore, showing an increase of 8.78 per cent. NRI deposits grew by Rs 1,703 crore from Rs 28,785 crore to Rs 30,488 crore, up 5.92 per cent. The low-cost Casa deposits grew 7.81 per cent of which savings deposits clipped at 4.44 per cent and current account by 25.02 per cent.
Gross advances grew by Rs 9,767 crore from Rs 74,947 to Rs 84,714 crore, an increase of 13.03 per cent, of which corporate loans went up by Rs 6,470 crore from Rs 27,491 crore to Rs 33,961 crore, an increase of 23.54 per cent.
Personal loans grew by Rs 190 crore from Rs 2,107 crore to Rs 2,297 crore, showing an increase of 9.02 per cent, gold loans rose by Rs 1,611 crore from Rs 14,998 crore to Rs 16,609 crore, an increase of 10.74 per cent; home loans grew by Rs 2,090 crore from Rs 4,982 crore to Rs 7,072 crore, registering a growth of 41.94 per cent and vehicle loans grew by 18.11 per cent from Rs 1,548 crore to Rs 1,828 crore.