South Indian Bank slides after Q3 PBT down 5%

South Indian Bank fell 0.54% at Rs 11.01 after profit before tax (PBT) fell 5.2% to Rs 122.20 crore in Q3 December 2019 from Rs 128.89 crore in Q3 December 2019.

Net profit rose 8% to Rs 90.54 crore in Q3 December 2019 over Q3 December 2018. Tax expenses fell 29.71% to Rs 31.66 during the period under review.

Total income rose 13.8% to Rs 2187.73 crore in Q3 December 2019 as compared to Rs 1921.93 crore reported in the corresponding period last fiscal.

Net interest income jumped 16% to Rs 602 crore in Q3 FY20 from Rs 520 crore in Q3 FY19. Net interest margin of the bank improved to 2.72% in Q3 FY20 from 2.66% in Q3 FY19.

Total CASA deposits rose 13% to Rs 21,422 crore in Q3 December 2019 as compared to Rs 18,905 crore in Q3 December 2018.

While the total deposits of the bank grew 11% to Rs 80,451 crore, total advanced rose by 9% to Rs 65,334 crore in Q3 FY20 over Q3 FY19.

Gross non-performing assets (NPAs) stood at Rs 3243 crore as on 31 December 2019 as against Rs 3145 crore as on 30 September 2019 and Rs 2930 crore as on 31 December 2018.

The ratio of gross NPAs to gross advances stood at 4.96% as on 31 December 2019 as against 4.92% as on 30 September 2019 and 4.88% as on 31 December 2018.

The ratio of net NPAs to net advances stood at 3.44% as on 31 December 2019 as against 3.48% as on 30 September 2019 and 3.54% as on 31 December 2018.

The bank's provisions and contingencies (excluding tax provisions) rose 28.45% to Rs 260.94 crore in Q3 December 2019 over Q3 December 2018. Provision coverage ratio of the bank was at 50.4% as on 31 December 2019.

The bank's overall slippage ratio stood at 0.55% in Q3 December 2019 down from 0.65% in Q2 September 2019 and 1.09% in Q3 December 2018.

The bank has exercised the option to make provision in respect of three non-performing advances identified as fraud during the quarter and has spread the sum over a period of four quarters. Accordingly the bank has debited Rs 15.23 crore to the profit and loss account, being 25% of the outstanding net book value of the said advances and the remaining unprovided amount of Rs 45.67 crore will be debited to the profit and loss account in the next three quarters in equal installments.

In a separate announcement, the private lender informed that its board has approved raising of upto Rs 500 crore via unsecured, perpetual, non-convertible, Basel III compliant, Tier I bonds.

South Indian Bank provides retail and corporate banking, para banking activities, such as debit card, third-party product distribution, in addition to treasury and foreign exchange business.

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