Improved performance in treasury and credit areas has enabled Kerala-based South Indian Bank to improve its operating profit as well as net profit in the first quarter of the current fiscal.
The bank has achieved a net profit of ₹73.26 crore in Q1 of FY19, against ₹23.04 crore during the corresponding period of the previous year. The bank’s operating profit has also grown to ₹317.63 crore from ₹269.64 crore.
Net interest income registered a growth of 8.38 per cent and other income registered a growth of 24.68 per cent. Gross NPA was stable, with a rise of only four basis points.
According to VG Mathew, Managing Director and CEO, the growth in MSME, Retail and Agriculture advances is in line with the focus. The bank has been able to contain slippages within the guidance of ₹250 crore accretion in NPA per quarter. The bank has also been able to meet the targeted levels of recovery/upgrades, which helped contain the GNPA and NNPA. The provision coverage ratio has improved to 45 per cent from 39 per cent a year ago.
He added that the retail strategy has strengthened its balance sheet. The retail portfolio has grown at 25.46 per cent, and already accounts for 30 per cent of the loan book.
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