Private sector lender South Indian Bank (SIB) June quarter net profit rose 41% to Rs 82.49 crore on the back of a robust loan book growth. However, the rising cost of funds has impacted the bank’s net interest margin (NIM) that decline sequentially by 26 basis points to 2.80% in June quarter.
The loan book grew by 31% year-on-year to Rs 22,151 crore during the quarter while deposits base expanded by 35.54% to Rs 31,622 crore. Interestingly, the bank’s other income component increased to Rs 51.63 crore from 41.66 crore a year back. This too added to its profit margin.The bank has posted its highest ever quarterly net profit, according to a release issued by the lender.
However, the bank did not show any significant improvement on its non performing asset front. While the net NPA sequentially remained unchanged at 0.29%, the gross NPA fell marginally to 1.07% from 1.11% recorded in March quarter.
During the quarter, SIB’s CASA (current account savings account) rose 16% to Rs 6,789 crore.
The bank, according to the release, is planning to open 57 additional branches in FY12 to take the total number of branches to 700.
Source: www.moneycontrol.com
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Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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