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South Indian Bank registered a 9.59 per cent growth in its net profit at ₹111.38 crore in the third quarter ended December 31.
The realignment of business strategies with emphasis on retail lending and CASA contributed to the good performance in a challenging environment, VG Mathew, Managing Director and CEO of the bank, told reporters here on Wednesday.
The bank had posted a net profit of ₹101.63 crore in the corresponding quarter of the last fiscal.
SME loans, home loans, loan against property and agriculture and auto loans also proved to be growth drivers in the reporting quarter, Mathew said. Total advances increased by ₹4,633 crore to ₹45,234 crore, a credit growth of 11.41 per cent, he said.
Besides the five segments, the bank’s focus in the next fiscal will be on the export sector and disbursal of corporate loans in the range of ₹25-100 crore to garner more business, Mathew said. In the reporting quarter, total business increased by ₹14,786 crore to ₹1,08,829 crore, a growth of 15.72 per cent. Deposits grew 19 per cent to ₹63,595 crore. CASA expanded 34 per cent to ₹16,486 crore. CASA now stands at around 25.92 per cent of total deposits. NRI deposits rose 20.28 per cent despite slowdown in remittances from the Gulf region, he said.
Gross NPAs increased 2 bps on sequential basis, while net NPAs came down 25 bps. The capital adequacy ratio stood at 11.05 per cent as on December 31.
The board of directors, at its meeting on December 21, approved a rights issue to the existing shareholders to support business expansion and meet the bank’s future capital requirements. The rights issue will be in the ratio of 1:3.
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