South Indian Bank has posted 38 per cent growth in net profit at ₹1,070.08 crore in FY 24, against ₹775.09 crore in FY23.
According to P.R. Seshadri, Managing Director & CEO, the bank registered growth across segments, with a focus on quality assets in verticals such as Corporate, SME, Auto Loan, Credit Card, Personal Loan, and Gold Loans. The bank has achieved its best performance in areas such as business, net profit, net interest income, CRAR, provision coverage ratio and NIM.
In a telephonic interaction with businessline, Seshadri said, “we have done a lot of things to clean up and repair our balance sheet. These efforts are finally paying off with a reduction in sticky assets. We have also benefited from reducing credit cost. Other income has dropped because of ructions in the treasury markets, which was not as favourable as in the previous quarter. All these have contributed to a decent set of numbers”.
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On the outlook for next year, he said, “we have a set of things that we have to do going forward. But I don’t want to put any numbers to that. Our focus will continue to be on churning our product mix so that our NIM rises from the current level. We will be a number close to 4 per cent as far as NIM is concerned”.
The gold loan book grew 12-13 per cent and the bank is now at a figure a little north of ₹15,513 crore. NRI deposits also grew steadily and contributed around 25 per cent to total business. “We will be re-engaging with our NRI clients by re-jigging our existing portfolio, as well as introducing new products. With such efforts, we expect to maintain traction on the NRI deposits side,” Seshadri added.