South Indian Bank net up 6-fold

South Indian Bank recorded a 485% increase in net profit at Rs 50.90 crore in FY06 as against Rs 8.70 crore last year, according to an official statement by the bank today.

V A Joseph, chairman of South Indian Bank, said the bank had fully absorbed the share issue expenditure incurred during the year besides absorbing the burden of salary revision.

"The bank's commendable performance during FY06 is on account of the thrust given to NPA recovery and also by effectively bringing out reduction in cost of deposits. Due to shift of focus from treasury segment, the bank could curtail the burden of depreciation, which was the main reason for the lower performance during the previous year," Joseph said.

The bank's total business crossed the Rs 16,000 crore mark and the year-on-year growth of Rs 2,093 crore from March 2005 to March 2006 was 15.11%. The deposits of the bank increased by Rs 1,086 crore and advances by Rs 1,007 crore, during the same period.

The bank has targetted a business of Rs 20,000 crore - Rs 12,000 crore deposits and Rs 8,000 crore advances - for FY07, Joseph said.