South Indian Bank Q4 results: Net profit down 14% at Rs 287.56 crore

The bank's gross non-performing asset in Q4 FY24 came down by 64 basis points from 5.14% to 4.50%

Thrissur-based South Indian Bank (SIB) has posted a 14 per cent dip in net profit during the fourth quarter of the financial year 2023-24 to Rs 287.56 crore, as against Rs 333.89 crore during the same period in 2022-23.

The bank’s operating profit in Q4 FY24 was down by 23 per cent to Rs 433.54 crore, compared to Rs 561.55 crore during the January to March quarter of FY23. Net interest income in Q4 FY24 went up by 2 per cent: from Rs 856.18 crore last year to Rs 874.67 crore in Q4 of 2023-24.

On the other hand, during the entire financial year 2023-24, the bank registered a net profit of Rs 1,070.08 crore with a growth of 38 per cent, compared to Rs 775.09 crore in FY 22-23. The bank’s operating profit increased by 24 per cent: from Rs 1,507.33 crore in FY23 to Rs 1,867.67 crore in FY24.

 

The bank’s gross non-performing asset in Q4 FY24 came down by 64 basis points from 5.14 per cent to 4.50 per cent on a year-on-year basis. On the other hand, NNPA dropped by 40 basis points from 1.86 per cent to 1.46 per cent on a year-on-year basis. The bank’s board of directors recommended a 30 per cent dividend, subject to approval of the shareholders.

P R Seshadri, managing director and chief executive officer of the bank, stated that the strategy adopted by the bank continues to enable the business performance. "During the period, the bank registered growth in all the desired segments with a focus on quality asset across all verticals: Corporate, SME, Auto Loan, Credit Card, Personal Loan, Gold Loan, etc.," he said. He also stated that, in line with the strategic intent of the bank viz, “Profitability through quality credit growth,” the bank could onboard fresh advances with a low-risk profile.

During the period, retail deposit grew by Rs 8,128 crore from Rs 89,615 crore to Rs 97,743 crore, posting a rise of 9.07 per cent on a year-on-year basis. NRI deposit also grew by Rs 1,538 crore from Rs 28,159 crore to Rs 29,697 crore, showing an increase of 5.46 per cent on a year-on-year basis.

In FY24, the bank’s gross advances increased by 12 per cent from Rs 72,092 crore in 2022-23 to Rs 80,426 crore in 2023-24. CASA grew by 8.16 per cent on a year-on-year basis.