The Hindu Business Line : South Indian net rises 45% in Q2

Kochi, Oct 14 South Indian Bank has recorded a 45 per cent growth in net profit and 27 per cent growth in total income during the second quarter of the current fiscal.

Growth in advances, fall in Non Performing Assets and increasing corpus of low cost deposits have helped to shore up margins and bolster the bank’s bottom line.

Net NPA was lower at 0.40 per cent as against 0.71 per cent for the corresponding quarter of last year. Gross NPA have also fallen sharply to 1.86 per cent from 3.41 per cent.

Dr. V. A. Joseph, Managing Director and CEO, said: “There has been a robust growth in our Current Account and Savings Account portfolio and this has helped us in reducing the cost of funds.

Low cost deposits of the bank has increased by Rs 804 crore from Rs 3,181 crore to Rs 3, 985 crore, registering a growth of 25.29 per cent. Our focus during the current financial year is to increase the CASA funds by adding 5 lakh new customers.

For achieving this target, the bank has launched ‘Group Salary Savings Account’, a premium savings bank product designed to meet the needs of salaried employees and their employers”.

The total business grew by 16 per cent to Rs 26,836 crore (Rs 23,078 crore). Deposits registered a slower growth of 13 per cent to Rs 15,715 crore while advances grew by 22 per cent to Rs 11,121 crore.

The book value has risen from Rs 123.34 to Rs 138.42.

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