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For Kerala-headquartered South Indian Bank, the quarter-ended September 2011 proved to be a landmark period in more ways than one. The bank's net profit almost touched the Rs 95-crore mark for the first time in its history, said SIB's Chief Executive and Managing Director, Dr V. A. Joseph.
(The earlier high was Rs 82.4-crore profit clocked during the first quarter of the current fiscal.)
Besides achieving 24.4 per cent growth in net profit to reach Rs 94.95 crore during the just-ended quarter compared with Rs 76.30 cr in the corresponding quarter of the previous fiscal, the bank has also managed to keep its gross and net NPAs (non-performing assets) below the one per cent mark.
‘We've managed this at a time when most banks expect their NPAs to surge as compared to the earlier quarter,” the Chief Executive added.
The bank's gross NPA fell to 0.99 per cent (1.27 per cent) and net NPA, to 0.25 per cent (0.38 per cent).
During the second quarter, deposits grew at 32 per cent to Rs 33,038 crore (Rs 25,060 crore), and advances at 30 per cent to Rs 23,348 crore (Rs 18,029 crore)
The total business of the bank increased to Rs 56,386 crore, up 30.8 per cent and by Rs 13,297 crore year-on-year.
The CASA increased by Rs 1,059 crore from Rs 5,979 crore to Rs 7,038 crore, up 18 per cent.
“Robust growth in business coupled with low NPA has enabled SIB to achieve the present numbers, targets,” Dr Joseph reiterated.
The bank has maintained the Net Interest Margin (NIM) at 3 per cent, and improved the provision coverage from 71 per cent a year ago to 74.7 per cent at the end of the Q2 of 2011-12. The CAR (capital adequacy ratio) is at 13.48 per cent.
Though CAR is higher than the regulatory requirement, it has declined from 15.86 per cent registered at the end of the second quarter of the earlier fiscal.
“We are not looking to raise tier II capital immediately. We can manage without it this fiscal,” Dr Joseph said in reply to a query.
The bank is looking to increase its branch network to 700, and ATMs to 600 by the end of the current fiscal. It is targeting Rs 75,000-crore business by the end of the next fiscal.
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