South Indian Bank reports Q2 net loss on higher bad loans

Kerala-based South Indian Bank (SIB) posted a net loss of Rs 187.06 crore during the second quarter (Q2) of the current financial year, as against a net profit of Rs 65.09 crore during the corresponding period of the previous year due to higher bad loans.

The bank declared an operating profit of Rs 111.91 crore for the Q2 FY 22 as against Rs 390.94 crore for the Q2 FY21. Murali Ramakrishnan, managing director and chief executive officer of the Bank, while announcing the results stated that the prevailing COVID Pandemic scenario in the country, impacted the growth in the Business and Personal loan segment. However, the Bank could register reasonable growth in the desired segments like well rated Corporates and Gold Loan portfolios during the period.

As per the recent RBI direction, provision for depreciation on investments amounting to Rs 175.56 crores for Q2 FY 22 has been shown under “other income” in the profit and loss account, which was originally classified under “provisions and contingencies”. Further, amounts recovered from written off accounts were reclassified under “provisions and contingencies” against previous year classification under “other income”. Excluding these amendments operating profit would have been Rs 346 crore.

The GNPA for the Bank improved by 137 bps to 6.65 per cent as at September 30, 2021 compared to 8.02 per cent as at June 30, 2021. CASA ratio for the Bank improved to 30.8 per cent as at September 30, 2021 compared to 27.8 per cent as at September.

During this quarter the Bank could improve the Provision Coverage Ratio to 65.02 per cent as on as against 60.11 per cent during the same time last fiscal. The Capital Adequacy Ratio of the Bank stands at 15.74 per cent as on September 30, 2021.

Murali added that the Bank has seen major shifts over the last one year in the key functional areas including major strides in digital banking, setting up vertical asset structure, revamping branch structure to bring efficiencies, developing new business sourcing channels, strengthening data science capabilities, employee engagement and motivation and robust recovery mechanism.

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South Indian Bank Q1 net profit plunges 87%

Private sector South Indian Bank (SIB) on Thursday reported an 87.4 per cent year-on-year decline in net profit to Rs 10.31 crore for the June quarter as interest income fell while proportion of bad assets soared.

The bank had posted a net profit of Rs 81.65 crore in the same quarter of the previous fiscal year 2020-21. However, there was a rise sequentially as net profit during January-March 2021 stood at Rs 6.79 crore.Total income during Q1 FY22 came down to Rs 2,086.47 crore from Rs 2,171.86 crore in Q1 FY21, the bank said in a regulatory filing.

Interest income fell to Rs 1,633.39 crore from Rs 1,886.88 crore. Likewise, the income on investments and from other sources also dropped during the reported quarter.Its proportion of bad assets grew significantly, with the gross non-performing assets (NPAs) or bad loans jumping to 8.02 per cent of the gross advances as of June 30, 2021, as against 4.93 per cent in the year-ago period.

In value terms, the gross NPAs increased to Rs 4,677.12 crore from Rs 3,245.44 crore.Net NPAs also rose to 5.05 per cent (Rs 2,854.64 crore) from 3.09 per cent (Rs 1,992.86 crore).Provisions for bad loans and contingencies were raised to Rs 497.97 crore for the June quarter of FY22 as against 293.08 crore for the year-ago period.

Further, the lender said it has incorporated a wholly-owned non-financial subsidiary 'SIB Operations and Services Ltd' on May 28, 2021. It has not yet commenced business, it added.

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South Indian Bank back in black on lower provisioning

South Indian Bank on Friday reported a net profit of Rs 6.79 crore for the fourth quarter of FY21, against a loss of Rs 143.69 crore in the year-ago period, largely because of lower provisioning for bad loans. Provisions and contingencies for the fourth quarter stood at Rs 412.29 crore, compared with Rs 723.80 crore in the corresponding period of FY20 and Rs 499.48 crore in Q3 of FY21.

The Thrissur based lender had reported a net loss of Rs 91.62 crore during the third quarter of FY21. For the whole FY21, the bank has reported a net profit of Rs 61.91 crore, against Rs 104.59 crore in FY20.

The asset quality deteriorated, with GNPA ratio seen at 6.97%, compared to 4.90% in the preceding quarter and 4.98% in the year-ago period. Net NPA ratio for Q4 was at 4.71%, against 2.1% in Q3 and 3.34% in Q4 of FY20.

The provision coverage ratio improved from 54.22% to 58.73% on a year-on-year (y-o-y) basis.

Murali Ramakrishnan, MD & CEO, said the bank has been able to meet the targeted levels of recovery or upgrades which have helped in containing the GNPA level despite higher slippages during the year on account of Covid.

He added that the lower quarterly profit was mainly on account of credit cost on the fresh slippages during the fourth quarter, as a result of additional stress in the economy due to the pandemic.

The capital adequacy ratio stood at 15.42% as on March 31, 2021. The lender raised Rs 240 crore during the quarter which strengthened the common equity.

Total deposit base at the end of the March quarter is seen higher by 9% y-o-y at Rs 69,827 crore, while advances declined by 9% to Rs 59,418 crore.

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South Indian Bank Q2 profit falls 23%

South Indian Bank (SIB) on Thursday reported a 23% year-on-year decline in its net profit for the second quarter at Rs 65.09, mainly on additional provisioning. The Kerala-based lender had reported a net profit of Rs 84.48 crore in the year-ago period.

SIB has increased its provisioning for bad loans to Rs 326 crore from Rs 320 crore as of September-end last year. Operating profit for the second quarter has grown from Rs 411.45 crore to Rs 413.97 crore.

Gross NPA of the bank stands at 4.87% as against 4.92% last year and net NPA improved to 2.59% as against 3.48% in the year-ago period.

Murali Ramakrishnan, who had recently taken charge as MD & CEO of the bank, while announcing the results, mentioned that despite reduction in profit from treasury segment, the bank could register a net profit of Rs 65.09 crore for the quarter, mainly on account of the higher net interest income due to reduction in the cost of deposits and improved recoveries.

The net interest income improved from Rs 584.30 crore to Rs 663.11 crore during the quarter, registering a growth of 13% year-on-year. Net interest margin improved from 2.61% to 2.78%.

Ramakrishnan said that despite the Covid-19 pandemic scenario in the country, the bank could register a reasonable growth. He added that the bank has also been able to meet the targeted levels of recovery which has helped in containing the GNPA level. The provision coverage ratio of the bank has improved markedly to 65.21% from 48.07% year-on-year.

The capital adequacy ratio of the bank stands at 13.94% as on September 30, 2020. The bank has also taken approval from the shareholders for raising the equity capital during the financial year for an amount not exceeding Rs 750 crore, bank sources said.

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South Indian Bank Q1 results: Reports net profit

South Indian Bank on Wednesday reported a 11 per cent rise in net profit at Rs 82 crore in June quarter of the current fiscal year.

The private sector lender had posted a net profit of Rs 73 crore in the corresponding quarter of fiscal year 2019-20.

Total income during the quarter under review rose 22 per cent to Rs 872 crore as against Rs 718 crore in the year-ago period, the bank said in a regulatory filing.

Interest income grew 10 per cent to Rs 587 crore from Rs 536 crore in the year-ago quarter.

Gross non-performing assets (NPAs) remained stable at 4.93 per cent of the gross advances at the end of June quarter as against 4.96 per cent a year ago.

Net NPAs declined to 3.09 per cent from 3.41 per cent a year ago.

Total deposits rose 8 per cent to Rs 82,469 crore during the quarter from Rs 76,544 crore, the bank said in an investor presentation.

Total CASA (current and savings account) deposits grew 12 per cent to Rs 22,179 crore as on June 30, 2020.

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South Indian Bank Q3 profit up 8%

Private sector lender South Indian Bank on Thursday posted a 7.9 per cent rise in net profit to Rs 90.54 crore for the third quarter ended December 31.

The bank had recorded a net profit of Rs 83.85 crore in the corresponding period of the previous financial year.

Total income of the lender improved to Rs 2,187.73 crore during the quarter under review, as against Rs 1,921.93 crore in the year-ago period, South Indian Bank said in a regulatory filing.

Gross non-performing assets (NPAs) rose to 4.96 per cent of the total advances, compared to 4.88 per cent at the end of the third quarter of previous fiscal.

However, net NPAs declined to 3.44 per cent in October-December 2019 from 3.54 per cent a year ago.

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South Indian Bank Q2 profit up

South Indian Bank reported a 20.5 percent year-on-year (YoY) rise in net profit at Rs 84.48 crore in the second quarter of FY20 against a net profit of Rs 70.13 crore in the July-September quarter a year ago.

The bank's net interest income (NII) grew 15.37 percent YoY while other incomes rose 57.9 percent. The operating profit improved 32.82 percent YoY during the September quarter to Rs 411.45 crore.

However, Gross NPAs increased to 4.92 percent from 4.61 percent at the end of the September quarter while the net NPA stood at 3.48 percent against 3.16 percent in the year-ago period.

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South Indian Bank Q1 profit rises to 3-fold

Improved performance in treasury and credit areas has enabled Kerala-based South Indian Bank to improve its operating profit as well as net profit in the first quarter of the current fiscal.

The bank has achieved a net profit of ₹73.26 crore in Q1 of FY19, against ₹23.04 crore during the corresponding period of the previous year. The bank’s operating profit has also grown to ₹317.63 crore from ₹269.64 crore.

Net interest income registered a growth of 8.38 per cent and other income registered a growth of 24.68 per cent. Gross NPA was stable, with a rise of only four basis points.

According to VG Mathew, Managing Director and CEO, the growth in MSME, Retail and Agriculture advances is in line with the focus. The bank has been able to contain slippages within the guidance of ₹250 crore accretion in NPA per quarter. The bank has also been able to meet the targeted levels of recovery/upgrades, which helped contain the GNPA and NNPA. The provision coverage ratio has improved to 45 per cent from 39 per cent a year ago.

He added that the retail strategy has strengthened its balance sheet. The retail portfolio has grown at 25.46 per cent, and already accounts for 30 per cent of the loan book.

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