The Hindu Business Line : South Indian Q3 net up 20 pc

The net profit of South Indian Bank has gone up by 20 per cent to Rs 24.84 crore (Rs 20.65 crore) for the quarter ended December 2006. The net profit for the first nine months of the fiscal grew by 136 per cent to Rs 81.56 crore (Rs 34.59 crore).

Talking to Business Line, Dr V.A. Joseph, the Chairman said that the bank was able to record the growth trajectory by efficiently controlling the operational expenditure. The bank had undertaken a VRS in April 2006 through which 151 officers and clerical staff at peak salary levels had retired. "The gross expenses could be contained since the new recruits are at the entry level of salary grades. This trend is likely to persist into the years to come," Dr Joseph said.

The total operating profit for the quarter was up at Rs 69.17 crore (Rs 46.05 crore). The bank recorded a total income of Rs 271.05 crore (Rs 207.49 crore), even as the total expenditure rose to Rs 209.88 crore (Rs 160.44 crore).

The reserves urged to Rs 550.84 crore (Rs 387.12 crore). The capital adequacy ratio rose to 11.76 per cent, up from 9.98 per cent. The earnings per share rose to Rs 11.59, up from Rs 4.33. The bank has targeted a total business volume of Rs 20,000 crore for the current year. Rapid computerisation has enhanced the operational efficiency and shored up the non-interest income. Gross NPA has come down from 5.56 per cent to 4.29 per cent and net NPA has been brought down from 2.42 per cent to 1.49 per cent.

The bank would strive to contain slippages and reduce net NPA to less than one per cent, Dr Joseph said. The South Indian Bank share closed at Rs 97.10 on the BSE, up Rs 1.05.

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