South Indian Bank has registered a 46 per cent growth in its net profit at ₹95.06 crore in the first quarter of FY17 against ₹65.29 crore in the corresponding period last year.

The bank’s total business increased by ₹8,769 crore to ₹99,913 crore, achieving a growth of 9.62 per cent. Deposits rose ₹5,565 crore to ₹57,889 crore, logging a growth of 10.64 per cent. Current account and savings account (CASA) deposits increased by ₹1,798 crore to ₹13,454 crore, and these now stand at 23.24 per cent of total deposits.

NRI deposits as a percentage of total deposit increased to 25.95 per cent from 23.31 per cent.

Total advances rose ₹3,204 crore to ₹42,024 crore, registering a growth of 8.25 per cent.

Growth was driven by increased lending to the agriculture, small and medium enterprise (SME), housing and auto sectors, which registered substantial growth year-on-year. Agriculture and SME advances rose 22 per cent, while home and auto loan portfolios increased by 19 per cent and 28 per cent, respectively. Net non-performing assets (NPAs) remained flat on a sequential basis.

VG Mathew, Managing Director and CEO, attributed the better performance in a challenging environment to the realignment by the bank of its business strategies with emphasis on retail lending and CASA deposits. The asset quality stress in the corporate sector has come down substantially due to systematic reduction of stressed assets.

As on June 30, the capital adequacy ratio stood at 11.68 per cent.

The bank has appointed International Finance Corporation (IFC) as a consultant for providing advisory support for augmenting business across various verticals, including retail, agriculture and SME.

The stock ended up by 1.57 per cent at Rs 22.60 on the BSE.

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