South Indian Bank's stocks surge as net profit tripled to Rs305 crore in Q3

Shares of South Indian Bank rallied nearly 8% in Thursday's trade after the private sector lender reported a 200 per cent jump in net profit during the third quarter of the current fiscal. on the improvement in asset quality.

The bank's net profit tripled to Rs305.for the thrid quarter as agaisnt Rs.103 Crore in the same period a year ago. The scrip is up 15 per cent in past five trading sessions.

However, during the quaerter under review, the lender's net interest income slided marginally by 0.7 per cent to Rs 819 crore from 825 crore in the third quarter of the previous year.

The bank's gross non-performing asset (NPA) stood at 4.74 percent, down from 5.48 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 1.61 percent, improving from 2.26 percent on a year-on-year basis.

Its personal loan book grew by Rs 578 Crore from Rs 1,609 Crore to Rs. 2,186 Crore showing an increase of 35.91 percent on Y-o-Y basis. However gold loan portfolio grew by Rs. 2,316 Crore from Rs. 13,053 Crore to Rs. 15,369 Crore showing an increase of 17.74 percent on Y-o-Y basis.

P R Seshadri, MD & CEO of the Bank, while announcing the results, stated that the strategy adopted by the Bank continues to enable the business performance. During the period, Bank registered growth in all the desired segments with a focus on quality asset across all verticals Corporate, SME, Auto Loan, Credit Card, Personal Loan, Gold Loan etc.

He also stated that, in line with the strategic intent of the Bank viz, “Profitability through quality credit growth”, the Bank could on board fresh advances with low risk profile.