South Indian Bank has declared its Q3 results with a net profit of ₹102.75 crore against a net loss of ₹50.31 crore in the corresponding period of the previous year.
Murali Ramakrishnan, Managing Director & CEO said the bank had made an additional provision amounting to ₹311.74 crore for depreciation on Security Receipts (SR) prior to March 31, 2017 pursuant to clarification on Master Direction of Transfer of Loan Exposure 2021 published by RBI on December 05, 2022.
If this extraordinary provision related to SRs acquired prior to March 31, 2017 is not netted off, the bank would have registered a profit before tax (PBT) of ₹474 crore and profit after tax (PAT) of ₹306 crore, recording the highest ever quarterly profit.
“The strategy of realigning the business also contributed to improved performance. The bank could register growth in the desired segments of liabilities such as current account and savings account (CASA) and retail deposits and focus on building quality asset portfolio across all verticals like corporate, SME, auto Loan, credit card, personal loan, gold loan, etc,” he said.
He also added that during the third quarter, the bank registered the highest ever quarterly net interest income of ₹825.15 crore and profit before tax of ₹161.81 crore, followed by a net profit of ₹102.75 crore, on the back of an overall improvement in various parameters like CASA, net interest income, reduced provisions (excl. tax) etc.
In line with the strategic intend called, “profitability through quality credit growth”, he said the bank could churn around 54 per cent of its advances portfolio since October 2020 amounting to ₹37,748 crore with a GNPA of only 0.06 per cent. This coupled with a robust recovery/collection mechanism had helped to reduce the fresh slippages by 17.63 per cent on Y-o-Y basis from ₹387 crore to ₹320 crore.