The Hindu Business Line : South Indian Bank fourth quarter net profit doubles

Kochi, April 18 The net profit of South Indian Bank has grown by 98.76 per cent to Rs 44.84 crore (Rs 22.56 crore) for the fourth quarter of 2007-08. Addressing a press conference, Dr V.A. Joseph, Chairman of the bank, said that the net profit for the last fiscal had grown by 86 per cent to Rs 151.62 crore as against Rs 86.49 crore (which was excluding the extra ordinary profit from the sale of Bharat Overseas Bank shares during 2006-07).

The board of directors has also recommended a dividend of 30 per cent.

“Due to aggressive recovery measures resorted to during the course of the year, the bank could bring down the gross NPA from 3.94 per cent to 1.78 per cent and the net NPA from 0.98 per cent to 0.33 per cent,” Dr Joseph said.

The current spike in cash reserve ratio is expected to affect the banking industry as a whole and should not be seen in isolation to individual banks.

While there has been a relative decline of inflows into NRI accounts for the year as a whole, he said that there was a major spurt in such inflows during March.

The capital adequacy of the bank has risen to 13.80 per cent as against the RBI mandated level of 9 per cent. The bank could increase the book value per share from Rs 108.65 to Rs 128.43 despite the infusion of fresh capital.

During the year the bank issued two crore equity shares with a face value of Rs 10 each and a premium of Rs 153 per share, aggregating Rs 326 crore to qualified institutional buyers.

The total business of the bank grew from Rs 20,549 crore to Rs 25,910 crore, registering a growth of 26.10 per cent.

While deposits grew by 23.83 per cent to Rs 15,156 crore, advances grew by 29.45 per cent to Rs 10,754 crore.

The bank has a set a total business target of Rs 30,500 crore for the current year and branch expansion from 500 to 530.

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