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Saturday, Jan 24, 2004

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Corporate Results - Private Banks

Despite big provisioning, SIB net rises 19 pc

Our Bureau

Kochi , Jan. 23

THE net profit of the Thrissur-based South Indian Bank rose by 18.5 per cent to touch Rs 64.8 crore (Rs 54.7 crore) during the first nine months of the current fiscal.

It is significant that the net profit has been arrived at after making a hefty provision of Rs 91.62 crore against NPAs under the new 90-day asset impairment norms, the bank's Chairman, Mr A. Sethumadhavan, said.

The gross profit had grown by 22.7 per cent to Rs 197.5 crore (Rs 161.23 crore). The total business had grown by 18 per cent to touch Rs 11,136 crore (Rs 9,440 crore) for the period ended December 2003.

While the total income increased to Rs 673.53 crore (Rs 615.11 crore), the total expenditure grew to Rs 475.78 crore (Rs 453.88 crore).

The strident growth in non-interest income to Rs 169.37 crore (Rs 131.16 crore) contributed to a healthy increase in the overall profitability, a fax from the bank said.

While the ratio of operating profit to average working fund increased from 3.23 to 3.31 per cent, the net interest margin decreased from 2.7 per cent to 2.49 per cent in tune with the declining interest rate scenario.

Although the bank could bring down the average cost of deposits from 7.7 per cent to 6.76 per cent, there was a corresponding decline in the yield on advances from 10.95 per cent to 9.85 per cent. The yield on investments declined from 10.28 per cent to 8.7 per cent.

The technology upgradation of the bank is nearing completion, it aid.

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