Money & Banking

South Indian Bank posts net loss of ₹187.06 crore in second quarter of FY22

Our Bureau Kochi | Updated on October 21, 2021

GNPA improved by 137 bps to 6.65 per cent as at September 30

Thrissur-based South Indian Bank posted a net loss of ₹187.06 crore in the second quarter of FY22 against a net a profit of ₹65.09 crore during the corresponding period of FY21.

The operating profit stood at ₹111.91 crore as against ₹390.94 core for Q2FY21.

As per the RBI direction, provision for depreciation on investments amounting to ₹175.56 crore for Q2FY22 has been shown under “other income” in the profit and loss account, which was originally classified under “provisions and contingencies. Further, amounts recovered from written-off accounts were reclassified under “provisions and contingencies” against previous year classification under “other income”. Excluding these amendments, operating profit would have been ₹346 crore, a press statement said.

The bank has made an additional provision of ₹160 crore which resulted in improved PCR, from 60.11 per cent as on June 30 to 65 per cent as on September 30, 2021. Had this additional provision of ₹160 crore not been provided, the net loss of the bank would be ₹27.06 crore.

NPAs improve

GNPA improved by 137 bps to 6.65 per cent as at September 30 compared to 8.02 per cent as at June 30. CASA ratio improved to 30.8 per cent as at September 30 compared to 27.8 per cent.

According to Murali Ramakrishnan, MD & CEO, the prevailing Covid pandemic scenario impacted the growth in the business and personal loan segment. However, the bank could register reasonable growth in the desired segments like well-rated corporates and gold loan portfolios during the period.

The bank has also been able to meet targeted levels of recovery/upgrades which has helped in containing the GNPA level. The Capital Adequacy Ratio stands comfortable at 15.74 per cent as on September 30, 2021. The bank plans to raise additional capital during FY21-22 to further strengthen the capital base, he added.

Published on October 21, 2021

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