South Indian Bank has managed to reduce its net loss to ₹50.31 crore in Q3 of FY22 against the figure of ₹91.62 crore in the corresponding period of the previous year. The net loss during Q2 was ₹187.06 crore.

The bank had made an additional provision of ₹43 crore. Had this additional provision not been provided, the net loss would have been ₹18.05 crore only, said Murali Ramakrishnan, MD& CEO of the bank.

The strategy adopted to improve the business in all key areas has started yielding results, witnessing growth in the desired segments of liabilities such as CASA and retail deposits and assets such as gold loan, agri, auto loan portfolio and the share of highly rated accounts in corporate segment during the period, he told BusinessLine in a telephonic interaction.

“A combination of factors has helped to reduce the losses. We could make a robust recovery and upgradation in NPA accounts amounting to ₹896 crore during the nine months period compared to ₹600 crore for the full year in the last fiscal. We are aiming to achieve ₹1,200 crore by the end of the current fiscal,” he said.

Asset quality

It had also helped the bank in containing the GNPA level, which improved by 9 bps to 6.56 per cent as at December 31, 2021 against 6.65 per cent as at September 30. The Capital Adequacy Ratio stands at 15.68 per cent as on December 31, 2021.

Asked on the impact of Covid on the business, Ramakrishnan said, “Q3 is better than Q2 as far as collections are concerned. The collection efficiency is 87 per cent in Q1, which improved to 95.1 per cent in Q2 and it entered 100.6 per cent in Q3.”

On NRI deposits, he said the remittances has improved witnessing a 4.97 per cent in those deposits. Today NRI contribution is 31 per cent of total deposits.

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