In a noteworthy financial performance, South Indian Bank, a leading private sector lender, announced a robust net profit of Rs 305.6 crore for the third quarter of the fiscal year 2023-24. This represents a remarkable surge of 197.42% compared to the Rs 102.75 crore reported in the same period last year.
The bank’s gross non-performing asset (NPA) witnessed a positive trend, declining to 4.74% from the previous year’s 5.48%. Concurrently, the net NPA for the quarter improved to 1.61%, showcasing a reduction from 2.26% on a year-on-year basis.
Shares of South Indian Bank responded positively to the earnings report, with a 1.06% increase, trading at Rs 29.36 apiece on the BSE at 12:22 pm.
P R Seshadri, MD & CEO of the Bank, highlighted the successful execution of the bank’s strategic plan, resulting in growth across various segments such as Corporate, SME, Auto Loan, Credit Card, Personal Loan, and Gold Loan. The bank’s commitment to quality assets in these sectors has contributed to its overall positive business performance.
Seshadri emphasized the bank’s strategic focus on “Profitability through quality credit growth,” revealing that the institution successfully onboarded fresh advances with a low-risk profile during the period.
The bank’s personal loan book exhibited robust growth, increasing by Rs 578 Crore from Rs 1,609 Crore to Rs. 2,186 Crore, marking a substantial 35.91% year-on-year increase. Simultaneously, the gold loan portfolio expanded by Rs. 2,316 Crore, growing from Rs. 13,053 Crore to Rs. 15,369 Crore, reflecting a notable 17.74% increase on a year-on-year basis.