The Hindu Business Line : Interest income boosts South Indian net 90%

Kochi, Oct. 10 The net profit of South Indian Bank dropped 14% in the second quarter of this fiscal ended September 30. However if the extraordinary gains made in the corresponding quarter of the previous year are removed, then the profit has grown by 90 per cent to Rs 35.69 crore (Rs 18.81 crore) during this second quarter. The extraordinary gains made in the previous year were from the sale of the bank’s stake in Bharat Overseas Bank, the Chairman, Dr V.A. Joseph, said at a press conference in Kochi.

Dr Jospeh said that the bank’s profit were up because of higher interest income. This had gone up partly on account of greater volumes as well as higher yield on advances. After a gap of couple of years, treasury income had also begun to look up, contributing to the bank’s profits, he said.

The profit for the half year grew by 95 per cent to Rs 66.06 crore (Rs 33.88 crore). The interest spread remained at almost the same level at 2.93 per cent. .

NPA down

The non performing assets were down to 0.71% of assets. “We are well on our way to attaining the target of Rs 25,000 crore in business volumes and 0.5 per cent in net NPA”, Dr Joseph said.

With the recent issue of two crore shares at a value of Rs 163 per share, the FII holding in the bank currently stands at 47.46 per cent, as against the permissible limit of 49 per cent.

International Finance Corporation, Fidelity, Blue Ridge, Indian Capital Opportunities Fund, Acasia Partners and First Gulf Bank had bought into the equity base of the bank.

With this issue, the capital adequacy ratio has grown to 14.36 per cent against the mandatory requirement of nine per cent.

The scrip closed at Rs 166.80 on the BSE.

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