SIB earns all time high net profit in FY14

However, Q4 net falls 19% to Rs 125 crore

South Indian Bank cloaked an all time high net profit of Rs 507.50 crore in FY 2013-14. This is against a net profit of Rs 502.27 crore in the previous financial year, registering a marginal growth.

It earned a net profit of Rs 124.60 crore for Q4 of last financial year.  

Bank has recommended a dividend of Re 0.80 per share as against Rs 0.70 per share for the previous year.

Announcing the performance highlights, Dr. V A Joseph, MD & CEO has stated that the cautious strategy adopted by the bank in view of the stressful asset quality scenario prevalent in the market has yielded excellent results. The total business of the bank has increased moderately by Rs 7,675 crore from Rs 76,425 crore to Rs 84,100 crore on registering a growth of 10.04%.  

While the total deposits has gone up by Rs 3,228 crore from Rs 44,262 crore to Rs 47,491 crore registering a growth of 7.29%  the advances has increased by Rs 4,446 crore from Rs. 32,163 crore to Rs. 36,609 crore registering a growth of 13.82% . The core deposit grew from Rs 28,095 crore to Rs 33,741 crore registering a growth of 20.10%  and the  Current Account – Savings Accounts [CASA] of the bank also has increased by Rs 1,592 crore from Rs. 8,233 crore to Rs 9,825 crore which constitute 20.69%  of the total deposit.

The bank earned a total income of Rs 5,383.52 crore during the year as against Rs 4,769.22 crore for the previous year registering a growth of 12.88%.

Joseph that the growth in profit during the year was due to maintaining Net Interest Margin (NIM) over 3%  by strategically managing the portfolio mix of liabilities. Due to extensive measures taken on NPA recovery the Gross NPA and Net NPA have come down during the quarter from 1.66 and 1.18% as on 31.12.2013 to 1.19 and 0.78%  as on 31.03.2014.He  added that Bank is hopeful of maintaining the asset quality and the level of Gross and Net NPA below 1.20 and 1% respectively  during the current fiscal.

Annualised Basic Earnings per Share (EPS) was recorded at Rs 3.78 per share as on 31.03.2014.

Book Value per share increased from Rs 22.44 as at 31.03.14 to Rs 25.06 as at 31.03.2014.

The Capital adequacy ratio of the bank stood at 12.53% and 12.42 % under BASEL II and BASEL III standards respectively as on 31.03.2014 against the regulatory requirement of 9%.

The bank has opened 50 branches and 200 ATMs during the fiscal to take the total number of branches and ATMs to 800 and 1000 respectively as on 31.03.2014.

During the current financial year the bank is targeting a total business of Rs 1 lakh crore with 850 branches and 1200 ATMs. The proposed opening of branches in Arunachal Pradesh and Sikkim during the year, Manipur will be the only state where the bank will not have a presence by the end the year. As on date the bank has a total staff strength of 7,041 and is planning to take the number to 7,500 by the end of the current fiscal.