The Thrissur-based South Indian Bank has earned a net profit of Rs.1,951.4M ($42.9M) in the April-December period as against Rs.1,445M ($31.7M) in the same period of last fiscal, registering a growth of 35.04 percent. "The net profit for the nine-month period has exceeded the annual net profit of Rs.1947.5M ($42.8M) in 2008-09," V.A. Joseph, Managing Director & CEO of the South Indian Bank (SIB) said here, while announcing the quarterly results
The bank’s total business increased to Rs.355.1 BN ($7.8 BN) as against Rs. 277.8 BN ($6.1 BN), registering a growth of 27.82 per cent. Total deposits increased from Rs.164.4 BN ($3.6 BN) to Rs.206.4 BN ($4.5 BN) by the end of last year and advances increased to Rs.148.6 BN ($3.3 BN), from Rs.113.4 BN ($2.5 BN). Deposits have grown up by 25.55 per cent and advances went up by 31.11 per cent.
Total income during April-December increased to Rs. 15.8 BN ($347M) as against Rs.13.3 BN ($292M), registering an increase of 19.08 per cent. Net interest margin stood at 3.09 per cent as against 2.88 percent for the corresponding period of last year. Annualised basic Earnings per Share (EPS) increased to Rs. 23.03 as against Rs. 17.05 of the previous year.
60 more branches
South Indian Bank has clocked 15.8 per cent increase in net profit at Rs. 624.6M ($13.7M) in the third quarter of the current financial year against Rs. 542M ($11.9M) in the corresponding quarter last year. "The bank plans to open 60 branches in six months taking the total number of branches to 635," Dr. Joseph said. He added that SIB would soon tie up with Hutton National Bank of Sri Lanka and Qatar Commercial Bank for overseas remittances. Recently, the State government had granted permission to SIB to accept commercial taxes.
The bank could bring down net NPA percentage to 0.39 per cent from 1.13 per cent as on March 31, 2009. The bank has already achieved an NPA coverage ratio of 74.27 per cent which is well above the stipulated rate of 70 percent prescribed by the RBI to be achieved by September 2010.
The bank has established a CBS network of 574 branches as of today as against the annual target of 575. The branch net work now covers 26 States including far east regions like Assam, Meghalaya etc. "The bank has launched online share trading facility in association with Geojit PNB Paribas," Dr. Joseph said.