Money & Banking

South Indian Bank Q1 net declines 77.30%

V.Sajeev Kumar Kochi | Updated on July 21, 2018

South Indian Bank has posted a decline in its net profit in Q1 of FY19 at ₹23.04 crore against ₹101.47 crore in the corresponding period of the previous fiscal.

The major reason for the decline in profit was the substantial reduction in Treasury Trading profit by ₹73 crore and incremental MTM provision in the Treasury Book to the tune of ₹41 crore due to adverse market conditions, besides incremental one time employee cost of ₹33 crore due to increase in gratuity ceiling and wage revision. But for the impact of these items, the net profit would have been ₹ 119 crore for Q1.

According to V G Mathew, MD & CEO, the bank is continuing its focus on retail and MSME advances. Retail advances have grown by 27 per cent and MSME advances have grown by 21 per cent. The bank is also vigorously pursuing the asset quality issues pertaining to corporate sector. As a result of this, the gross and net NPA levels have shown an increase by 93 bps and 73 bps respectively.

Sequentially the bank’s low cost deposit has grown by 4 per cent in Q1 of current financial year. Non Resident CASA also has shown a growth of 5 per cent on a quarter to quarter basis, he said.

The overall business performance is in line with the guidance with a clear shift of focus to retail, MSME and agriculture. The gross business increased by ₹15,689 crore to ₹1,28,652 crore. The deposits increased by ₹6,697 crore to ₹72,488 crore. CASA increased by ₹1,297 crore to ₹17,883 crore and advances increased by ₹9,172 crore to ₹56,164 crore.

The Capital Adequacy Ratio stands at 12.23 per cent as on June 30.

Published on July 21, 2018

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like