The elevated provisions for NPAs have dragged down the net profit of the private sector lender South Indian Bank in the third quarter of FY19. The bank posted a 27% drop in PAT at Rs.83.85 crore vis-a-vis Rs.115 crore in the corresponding period of the previous fiscal.
However, the operating profit is marginally better than last year at Rs.332 crore compared to Rs.330 crore during Q3 of FY 18.
VG Mathew, MD & CEO, said that the bank has reckoned IL&FS exposure of Rs.400 crore as NPA during the current quarter with a 15 per cent provision which dragged down the PAT. With this, SIB has finally come out of the stress in its large corporate portfolio which had been a major challenge during the last four years. The bank, he said, is now firmly on its path of business expansion driven by retail, MSME, agriculture and mid-corporate segments.
The other income increased by Rs.28 crore to Rs.187 crore and the business increased by Rs.17,171 crore to Rs.1,37,729 crore, achieving a growth of 14.24 per cent.
The deposits increased by Rs.9,556 crore to Rs.77,665 crore and CASA increased by Rs.1,976 crore to Rs.18,905 crore. CASA now stands at 24.34 per cent of total deposits. The NRI deposits showed a healthy growth with the NRI deposit accounting for 27.01 per cent of total deposits. The recently opened Representative Office in Dubai is helping the bank to consolidate the NRI base.
The advances increased by Rs.7,615 crore to Rs. 60,064 crore.
The Capital Adequacy Ratio stands at 11.81 per cent as on December 31, 2018.
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