The elevated provisions for NPAs have dragged down the net profit of the private sector lender South Indian Bank (SIB) in the third quarter of FY19. The bank posted a 27 per cent drop in PAT at ₹83.85 crore vis-a-vis ₹115 crore in the corresponding period of the previous fiscal.

However, the operating profit is marginally better than last year at ₹332 crore compared to ₹330 crore during Q3 of FY 18.

VG Mathew, MD & CEO, said that the bank has reckoned IL&FS exposure of ₹400 crore as NPA during the current quarter with a 15 per cent provision which dragged down the PAT. With this, SIB has finally come out of the stress in its large corporate portfolio which had been a major challenge during the last four years. The bank, he said, is now firmly on its path of business expansion driven by retail, MSME, agriculture and mid-corporate segments.

The other income increased by ₹28 crore to ₹187 crore and the business increased by ₹17,171 crore to ₹1,37,729 crore, achieving a growth of 14.24 per cent.

The deposits increased by ₹9,556 crore to ₹77,665 crore and CASA increased by ₹1,976 crore to ₹18,905 crore. CASA now stands at 24.34 per cent of total deposits. The NRI deposits showed a healthy growth with the NRI deposit accounting for 27.01 per cent of total deposits. The recently opened Representative Office in Dubai is helping the bank to consolidate the NRI base.

The advances increased by ₹7,615 crore to ₹ 60,064 crore.

The Capital Adequacy Ratio stands at 11.81 per cent as on December 31, 2018.

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