South Indian Bank has reported a robust performance for the first quarter, marking significant growth across key financial metrics and reaching a major business milestone.

Profit and Operating Performance

The bank recorded a net profit of ₹322.00 crores, representing a 10% increase from ₹294.00 crores in the same quarter last year. The operating profit saw an even more substantial rise, jumping 32% from ₹508.00 crores to ₹672.00 crores year-on-year.

Business Growth and Milestone Achievement

South Indian Bank crossed a significant milestone this quarter, with its total business surpassing the ₹2 lakh crore mark. The bank's total business grew by 9% to reach ₹2,02,119.00 crores. This growth was driven by a 9% increase in total deposits, which rose to ₹1,12,922.00 crores, and an 8% growth in gross advances, reaching ₹89,198.00 crores.

Asset Quality Improvement

The bank's asset quality showed notable improvement:

• Gross Non-Performing Assets (NPA) reduced to 3.15% from 4.5% year-on-year
• Net NPA declined to 0.68% from 1.44% year-on-year
• Provision Coverage Ratio (PCR), excluding write-offs, improved by 988 basis points to 78.93%
• PCR, including write-offs, reached 88.82%

Key Financial Metrics

Deposit and Loan Portfolio Performance

• CASA (Current Account Savings Account) deposits grew by 9% year-on-year to ₹36,204.00 crores
• Gold loan portfolio stood at ₹17,446.00 crores, showing a 7% year-on-year growth
• Home loans experienced significant growth of 66% year-on-year
• Auto loans increased by 27% year-on-year

Treasury Operations and Provisioning

The bank generated ₹256.00 crores in treasury income during the quarter, which was strategically used to strengthen its provisioning. This move demonstrates the bank's prudent approach to risk management and balance sheet strengthening.

Management Outlook

The management of South Indian Bank has expressed optimism about the bank's future performance. They expect credit growth to exceed 12% for the fiscal year and aim to maintain the Return on Assets (ROA) around 100 basis points.

P R Seshadri, Managing Director & CEO of South Indian Bank, commented on the results during the earnings conference call, stating, "We have had a decent quarter during the first quarter. It was difficult, but the outcomes have been reasonably good for us. We are hoping that the actions that we have taken thus far will help the Bank grow from strength to strength as we go forward."

With its strong quarterly performance and strategic initiatives in place, South Indian Bank appears well-positioned for continued growth and improved profitability in the coming quarters.

South Indian Bank , a prominent player in the Indian banking sector, has released its financial results for the first quarter, showcasing robust performance and improved asset quality.

Financial Highlights

The bank reported a 10% year-over-year increase in net profit to ₹322.00 crore for Q1. However, the Net Interest Income (NII) saw a 4% YoY decrease to ₹832.00 crore. Despite this dip in NII, South Indian Bank managed to improve its bottom line, demonstrating effective cost management and operational efficiency.

Asset Quality Improvement

One of the most noteworthy aspects of the bank's Q1 performance is the marked improvement in its asset quality metrics:

This reduction in both GNPA and NNPA ratios indicates the bank's strengthened risk management practices and improved recovery efforts. The substantial decrease in NNPA, in particular, suggests effective provisioning and resolution of stressed assets.

Conclusion

South Indian Bank's Q1 results paint a picture of a financial institution on a growth trajectory, with improvements across key performance indicators. Despite the slight decrease in NII, the bank's ability to increase its net profit by 10% YoY is commendable. The combination of higher profitability and enhanced asset quality positions South Indian Bank well for sustained performance in the coming quarters. Investors and stakeholders may view these results as a positive sign of the bank's resilience and strategic focus on core banking fundamentals.