The overall improvement in various parameters such as CASA, NIM, reduction in provisions has helped South Indian Bank to register a net profit of ₹115.35 crore in Q1 of FY23 against ₹10.31 crore registered in the corresponding quarter previous fiscal.

Murali Ramakrishnan, Managing Director & CEO, said the realignment of business strategies had contributed to improved performance and the bank could register growth in the desired segments of liabilities and focus on building quality asset portfolio across all verticals such as corporate, business loan, auto loan, credit card, personal loan, gold loan etc.

“We are working on a double digit growth this year with a focus on advances. We are experiencing traction in all our asset growth. The turnaround strategy will be settled with this continuing performance”, he added.

CASA was up 18 per cent aided by growth in both savings deposits and current deposits. Gross advances were up by 11 per cent, witnessing a 31 per cent growth in corporate segments. He said that personal loan book jumped by 210 per cent, while gold loan portfolio up by 28 per cent.

In line with the strategy “Profitability through quality credit growth”, the bank could churn around 43 per cent of its advances portfolio since October 2020 amounting to ₹27,787 crore with a NIM of more than 3 per cent and GNPA of only 0.02 per cent. This, coupled with a robust recovery mechanism, helped the bank to reduce fresh slippages by 48.67 per cent from ₹879 crore to ₹435 crore, he said.

The bank was able to beef up the CRAR to a comfortable level of 16.25 per cent as on June 30 compared with 15.47 per cent as on June 30, 2021, he added.

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