In today’s afternoon trading, shares of South Indian Bank surged by 12.5%, reaching a new 52-week high of ₹31.9 apiece, following the release of the bank’s Q3FY24 numbers. Notably, the stock surpassed the ₹30 mark for the first time in six years.
The bank posted a 197% increase in its standalone net profit to ₹305 crore in Q3FY24 as compared to a net profit of ₹102.75 crore in the same period last year. In the preceding quarter (Q2FY24), the bank posted a net profit of ₹275 crore.
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Net interest income (NII), the difference between interest earned from lending and interest paid to depositors, came in at ₹819 crore in Q3 as compared to ₹825 crore in the same period last year.
The net interest margin during the quarter came in at 3.19%, compared to 3.52% in Q3FY23. Its other income jumped sharply by 1423.6% YoY to 452.41 crore.
Pre-provision operating profit increased to ₹483 crore in Q3 from ₹203 crore in the same quarter last year. Provisions for Q3 FY24 stood at ₹49 crore, up from ₹51 crore in Q3FY23.
On the asset quality front, the bank’s gross non-performing assets (NPAs) decreased by 74 basis points YoY, reaching 4.74% in Q3FY24. Net NPAs also fell by 65 basis points YoY to 1.61%.
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The bank’s retail deposits grew by ₹6,428 crore to ₹95,088 crore, showing an increase of 7.25% on a YoY basis. Its NRI deposit grew by ₹1,272 crore to ₹29,236 crore, up by 4.55% on a YoY basis. CASA grew by 2.83% on a YoY basis, with growth in Savings Bank by 2.81% and CD by 2.96%, respectively.
On the advances front, gross advances grew by ₹7,569 crore to ₹77,686 crore, an increase of 10.80% on a YoY basis. The corporate segment grew by ₹7,718 crore to ₹29,892 crore, showing an increase of 34.81% on a YoY basis in well-rated borrower accounts, as per the bank’s Q3FY24 earnings filing.
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The bank’s personal loan book grew by ₹578 crore to Rs.2,186 crore, an improvement of 35.91% on a YoY basis.
The return on equity for the quarter improved by 996 basis points YoY to 16.38%. The return on assets for the quarter increased by 68 basis points YoY to 1.07%. The provision coverage ratio (PCR) improved by 346 basis points YoY to 77.97% in Q3 FY24.
At 02:30 pm, the stock was trading with a gain of 8% at ₹30.50 apiece.
Disclaimer: We advise investors to check with certified experts before taking any investment decisions.
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Published: 18 Jan 2024, 03:08 PM IST