NEW DELHI: South Indian Bank today reported a jump of 51 per cent in net profit at Rs 114.10 crore for March quarter on healthy interest income and less provisioning for bad loans.
The bank's net profit during January-March, 2016-17 stood at Rs 75.54 crore.
Income during March quarter of 2017-18 rose to Rs 1,767.65 crore as against Rs 1,608.42 crore in the year-ago period, the bank said in a regulatory filing. Interest income was higher by 8 per cent to Rs 1,588.98 crore from Rs 1,470.71 crore earlier.
Even as the lender's bad assets were on the rise, its provisioning for bad loans and contingencies in the reported quarter was reduced to Rs 148.63 crore as against Rs 165.30 crore in the year-ago period.
On asset front, the gross non-performing assets (NPAs) rose to 3.59 per cent of the gross advances as on March 31, 2018 from 2.45 per cent as on March-end 2017.
In absolute terms, the gross NPAs were valued at Rs 1,980.30 crore by end of 2017-18 from Rs 1,149.01 crore a year ago.
Net NPAs also increased to 2.60 per cent (Rs 1,415.80 crore) from 1.45 per cent (Rs 674.56 crore).
Meanwhile, the bank's board recommended a dividend of Rs 0.40 per equity share or 40 per cent for 2017-18. For the entire fiscal, the net profit however fell 15 per cent to Rs 334.89 crore from Rs 392.50 crore in 2016-17. Total income during the year was higher at Rs 7,030.06 crore, compared with Rs 6,562.64 crore in 2016-17.
The provisioning coverage for bad loans and contingencies for the year was also higher at Rs 980.90 crore against Rs 614.37 crore a year ago.
The private sector lender said it identified certain irregularities in the nature of fraud at one of the branches and the loss is determined at Rs 25.02 crore (earlier Rs 28.50 crore).
On divergence in asset classification and provisioning for NPAs for 2016-17, the bank said the gap with respect to gross NPAs was Rs 8.39 crore. While for net NPAs, the divergence came in at negative Rs 15.13 crore. Taking into account the divergence in provisioning of Rs 137.98 crore for the fiscal, the adjusted net profit for 2016-17 was reduced to Rs 293.91 crore from Rs 392.50 crore reported earlier.
"The bank has duly considered the impact of the divergences. One account classified as NPA by the regulator stands upgraded to standard category upon regularisation of irregularity in that account," the lender said.
Stock of South Indian Bank closed 3.52 per cent up at Rs 26.45 on BSE.