South Indian Bank Q4 net declines 87% to Rs 16 cr

The operating profit in FY15 decreased 7.5% to Rs 816 cr

The annual net profit of Thrissur-based South Indian Bank recorded an annual net profit of Rs 307.2 crore in 2014-15, against Rs 507.5 crore the previous financial year. The operating profit decreased by Rs 66.62 crore (7.6 per cent) to Rs 816.27 crore as of March 31, 2015.

V G Mathew, managing director and chief executive officer, South Indian Bank on Tuesday said the year was challenging due to stress in the corporate credit book, especially in sectors such as power and infrastructure.

Employee costs also added to the pressure on net profit.

“The decline in operating profit is because of the increased provisioning towards employee benefits, based on the recently concluded industry-wide wage settlement and actuarial liability on superannuation benefits due to softening of market yield.”

The net operating income of the bank increased by Rs 96.07 crore (5.5 per cent), from Rs 1,767.24 crore to Rs 1,863.31 crore. The growth in non-interest income was Rs 128.61 crore (34.9 per cent) during the year. Mathew said this financial year (2015-16) would be one of consolidation.  

The bank had introduced several measures aimed at refocusing on the retail segment for advances as well as deposits with very encouraging results.