South Indian Bank net up 25 percent in fiscal 2013

Bangalore, May 6 (IANS) South Indian Bank Ltd, a leading Kerala-based private sector bank, reported net profit of Rs.502 crore for 2012-13, posting 25 percent year-on-year (YoY) growth over previous fiscal at Rs.402 crore.

In a regulatory filing to the Bombay Stock Exchange, the Thrissur-headquartered bank said its total income for last fiscal under review increased to Rs.4,769 crore, registering 24.5 percent YoY growth from Rs.3,831 crore in same period in FY 2012.

Similarly, operating profit grew 30 percent YoY to Rs.849 crore from Rs.652 crore year ago.

Non-tax provisioning, however, shot up 103 percent YoY to Rs.161 crore from Rs.79 crore in FY 2012.

“Our total business grew 19 percent YoY to Rs.76,425 crore in FY 2013 from Rs.64,136 crore in FY 2012, with deposits growing 21.3 percent YoY to Rs.44,262 crore from Rs.36,501 crore and advances increasing 16.4 percent YoY to Rs.32,163 crore from Rs.27,635 crore,” South Indian Bank chief executive V.A. Joseph told reporters here Monday after the board meeting.

CASA (current accounts & savings accounts) registered 19.7 percent increase to Rs.8,233 crore from Rs.7,179 crore in FY 2012.

Net interest margin grew marginally YoY to 3.21 percent from 3.10 percent year ago and net interest income (NII) by 25 percent YoY to Rs.1,281 crore from Rs.1,022 crore year ago.

“In spite of subdued economy during the fiscal under review, the bank could achieve record growth across the board due to improvement in net interest margin (NIM),” Joseph said.

For fourth quarter (January-March), net profit grew 26 percent YoY to Rs.154 crore from Rs.122 crore in like quarter of previous fiscal and operating profit increased 26 percent YoY to Rs.206 crore from Rs.163 crore.

Total income for the quarter under review (Q4) jumped 19.5 percent YoY to Rs.1,286 crore from Rs.1,076 crore in same period year ago. NII grew 17 percent YoY to Rs.334 crore from Rs.285 crore in same period of FY 2012.

The bank’s non-performing assets (gross & net NPAs) increased sharply to 1.36 percent and 0.78 percent from 0.97 percent and 0.28 percent respectively.

“Sharp increase in our NPAs is due to one major account of the (state-run) NAFED (National Agricultural Cooperative Marketing Federation of India Ltd), with an outstanding amount of Rs.150 crore in third quarter (Oct-Dec),” Joseph clarified.

In value terms, gross NPA increased YoY to Rs.434 crore from Rs.267 crore and net NPA to Rs.250 crore from Rs.76.5 crore.

The bank has set a total business target of Rs.92,000 crore for this fiscal (2013-14), projecting 25 percent YoY growth.

“We plan to open 50 branches and 200 ATMs (automatic teller machines), taking the total number of branches to 800 and ATMs to 1,000 by the end of this fiscal,” Joseph added.

The bank also has a major presence in the Gulf region, with 70 percent of its overseas deposits (Rs.6,200 crore) originating from non-resident Indians (NRIs) in the United Arab Emirates and Saudi Arabia.

“We have tie-up with 31 inter-bank exchanges and are managing a clearing house in the UAE with offices in Dubai, Abu Dabhi and Riyadh in Saudi to service our NRI customers in the region,” bank’s executive director Abraham Thariyan said.

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