South Indian Bank's net up 31% at Rs 127 crore

Capital adequacy ratio stands at 13.16% (under BASEL II standards) as on Sept 30 against regulatory requirement of 9%

Don't want to miss the best from Business Standard?

Thrissur-based South Indian Bank (SIB) has reported a 30.93% increase in net profit at Rs 127 crore in the second quarter of FY14, compared to Rs 97 crore registered in the corresponding quarter of the last financial year.

The profit growth was because the bank was able to maintain its net interest margin at three% by strategically managing the portfolio mix of liabilities, said V A Joseph, managing director and CEO. He said the bank would improve its growth momentum in the coming quarters as well.

During the quarter, the bank’s total business rose by Rs 8,500 crore - from Rs 67,110 crore to Rs 75,610 crore - on a year-on-year (y-o-y) basis, registering a growth of 12.66%, the bank said in a statement. While the deposits grew 12.96% from Rs 38,490 crore to Rs 43,478 crore, advances expanded from Rs 28,620 crore to Rs 32,132 crore, registering a growth of 12.27%.

The bank earned a total income of Rs 2,642 crore during the April-September 2013 period, a 15.41% increase over the Rs 2,289 crore reported in the corresponding period of the previous year.

SIB’s operating profits expanded by Rs 57 crore during the first half of FY14 - from Rs 407 crore to Rs 464 crore - registering a growth of 14%.

The bank’s annualised basic earnings per share fell to Rs 3.59 during the quarter from Rs 3.80 in the year-ago period. On the other hand, the book value of equity per share increased from Rs 21.19 on September 30, 2012 to Rs 24.20 as on September 30 this year.

The capital adequacy ratio of the bank stood at 13.16% (under Basel-II standards) as on end-September this year, compared to the regulatory requirement of nine%.

The bank has opened 25 branches and 78 ATMs till September 30, 2013 and it proposes to open 25 more branches and 122 ATMs in the second half of the current financial year, Joseph added.