south indian bank q1 results: South Indian Bank Q1 Results: Net profit jumps 75% YoY on higher interest margins

Thrissur-based South India Bank recorded a 75% growth in net profit for the quarter ended June 30, on higher interest income. Net Profit for the quarter amounted to Rs 202.35 crore compared to Rs 115.35 crore in the same period a year ago. Net interest income went up 34 percent from Rs. 603.38 crore in the June’22 quarter to Rs. 807.77 crore in the latest quarter.

Speaking to ET , Murali Ramakrishnan, MD & CEO of the Bank said that the bank managed to improve its net interest margin. “ Net interest margin for the quarter increased to 3.34 percent during the quarter from 2.74 percent in the same period a year ago” while the cost of funds rose from 4.5 percent in June’22 quarter to 4.85 percent in the June 23 quarter, the corresponding yield on advances rose at a faster pace from 8.05 percent to 9.17 percent, he said.

The treasury yield also improved to 5.37 percent during the June quarter from 4.98 percent in the same period a year ago. The bank’s retail deposit 6 percent y-o-y from Rs. 86,460 crore to Rs 92,043 crore. While gross advances grew by 15 percent y-o-y from Rs 64,705 Crore to Rs. 74,102 Crore.

Gross non-performing loans were down by 74 bps (one basis point in 0.01 percent) from 5.87 percent to 5.13 percent on a year-on-year basis. The bank could also manage to improve its recoveries of bad loans Mr Ramakrishnan said. The Bank could churn around 61 percent of its advances portfolio since October 2020 amounting to Rs 45,268 crore with a gross non performing assets of 0.16 percent.

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