The Hindu Business Line : South Indian Bank H1 net at Rs 14 cr

SOUTH Indian Bank has posted a net profit of Rs 13.94 crore (loss of Rs 13.12 crore) for the first half of the current year. Net profit for the second quarter touched Rs 8.63 crore.

Emphasising that the bank had posted impressive growth on all fronts, the Chairman and CEO, Dr V.A. Joseph, said earnings per share had grown to Rs 2.92 and the annualised EPS worked out to Rs 5.84.

Cost of deposits declined to 5.29 per cent from 5.86 per cent and the interest spread increased from 2.68 per cent to 3.10 per cent. Yield on advances increased from 8.90 per cent to 8.97 per cent. Average advances increased to Rs 5,685 crore (Rs 4,660 crore), while average deposits increased to Rs 8,030 crore (Rs 7,758 crore).

Revealing that the lower pace of deposit growth is a strategic move towards hiving off high-cost deposits, Dr Joseph said, "Our focus has now shifted from government securities to retail credit in view of the current market conditions."

In tune with asset segments showing a clear shift from treasury to other banking operations, income from other banking operations grew to Rs 302 crore (Rs 240 crore), while treasury income declined from Rs 145 crore to Rs 93 crore.

While provisions and contingencies decreased from Rs 78.55 crore to Rs 44.09 crore, gross NPA percentage decreased from 7.29 per cent to 6.35 per cent.

Similarly, net NPA percentage decreased from 4.61 per cent to 3.09 per cent. The NPA coverage ratio at the end of September stood at 50.61 per cent as against that of 35.82 per cent.

Disclosing that the capital adequacy increased from 9.90 per cent to 10.28 per cent, Dr Joseph said, "We are planning to achieve 13 per cent by next March by way of public issue of equity shares."

Net worth increased from Rs 381.77 crore to Rs 468 crore on account of rights issue and also by raising Tier II Bonds for Rs 65 crore during the year.

The share price of South Indian Bank went up from Rs 64.15 to Rs 66.70 on the Bombay Stock Exchange.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
UTI Bank `top arranger' in H1

Financial services offshoring moves up the value chain

Rupee tad lower; bond prices down

South Indian Bank H1 net at Rs 14 cr

Banks pare home loan exposure

SBI Life targets Rs 200-500 cr of IMD redemption

Chidambaram may discuss capital raising at bankers' meet

GTB defaulters keen to negotiate settlement: OBC chief

T-bill auctions fully subscribed

Left not softening stand on merger of PSU banks

`Public issue by January likely'

Union Bank gets nod for public issue