Trissur-based South Indian Bank’s (SIB) net profit rose more than 24% year-on-year to Rs 95 crore on the back of higher loan book growth. This is the highest ever net profit the bank has recorded in a single quarter.
“The robust growth in business coupled with low non-performing assets (NPA) enabled the bank to attain the present level of performance. The bank is planning to increase the number of branches to 700 and ATMs to 600 by the fiscal end,” said V A Joseph, MD & CEO, SIB, in a statement.
Bank’s net interest income (NIM) rose from 2.80% to 3% quarter-on-quarter, suggesting that the bank has successfully passed on the successive policy rate hikes by the Reserve Bank of India to its customers. Its net interest income (NII) was up, 31.4% Y-o-Y at Rs 259 crore.
Interestingly, SIB’s asset quality remained unaffected despite such rate hikes. Its net NPA improved to 0.25% compared to 0.29% in the June quarter while gross NPA too reduced from 1.07% to 0.99% sequentially.
Loan book expanded 30% Y-o-Y to Rs 23,348 crore beating RBI’s credit growth projection of 18% for FY12, though on a lower base. Deposits too grew at 32% to Rs 33,038. CASA (current account and savings account) rose nearly 18% to Rs 7,038 crore. A growth in CASA helps bring down cost of funds as it typically pays 0-4% rate of interest.
The bank has 610 branches and 401 ATMs currently.
Source: www.moneycontrol.com
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