The Hindu Business Line : South Indian Bank Q1 net rises 102%

Kochi, July 10 The net profit of South Indian Bank has grown by 102 per cent to Rs 30.37 crore during the first quarter of the current financial year, from Rs 15.05 crore in the previous year. The total income grew by 41.85 per cent to Rs 322 crore (Rs 227 crore) and the gross profit was up at Rs 53 crore (Rs 42 crore).

Addressing a press conference here, the Chairman, Dr V.A. Joseph, said that the bank would soon be approaching the market with a placement of additional two crore shares either as preferential allotment or by way of Qualified Institutional Placement.

While it would be finalising the merchant banker for the issue by the weekend, the whole exercise is expected to be completed by September.

The placement will be related to the current market price and would be extended either to FIIs or domestic institutions, or a combination of both. The FII holding in the bank has touched 43 per cent against an upper limit of 49 per cent.

On a quarter-to-quarter basis, the total business of the bank grew by 25.94 per cent to Rs 21,343 crore (Rs 16,947 crore). While deposits grew by 25.33 per cent to Rs 12,834 crore (Rs 10,240 crore), advances rose 26.87 per cent to Rs 8,509 crore (Rs 6,707 crore). The bank has targeted a turnover of Rs 25,000 crore for the year.

The gross NPA fell from 5.42 per cent to 3.7 per cent while net NPA was down from 2.07 per cent to 0.83 per cent. The bank plans to bring down the net NPA to 0.5 per cent at the end of the year.

The capital adequacy ratio was 11.06 per cent which is expected to rise to 13 per cent even under the Basel II norms after the additional equity issue.

The EPS has gone up from Rs 8.55 to Rs 17.62 and the book value has risen from Rs 93 to Rs 107.

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