WhatsApp Image 2023-02-26 at 9.49.20 AM (1)
WhatsApp Image 2023-02-26 at 9.49.20 AM

SIB registers a Q2 loss of Rs 187.06 cr

Thrissur: South Indian Bank has announced the Q2 FY 22 results with a net loss of Rs. 187.06 Crore as against Net Profit of Rs. 65.09 Crore during the corresponding period of the previous year.

The details of Q2 loss was released by the bank here in  press release on October 21 here.

Bank declared an operating profit of Rs.111.91 Crores for the Q2 FY 22 as against Rs 390.94 crs for the Q2 FY21. As per the recent RBI direction, provision for depreciation on investments amounting to Rs.175.56 Crores for Q2 FY 22 has been shown under “other income” in the profit and loss account, which was originally classified under “provisions and contingencies”.

Further, amount recovered from written off accounts were reclassified under “provisions and contingencies” against previous year classification under “other income”. Excluding these amendments operating profit would have been Rs 346.00 crs.

As a prudent measure Bank has made an additional provision of Rs 160 crs which resulted in improved PCR from 60.11% as on 30.06.21 to 65.02% as on 30.09.21. Had this additional provision of Rs 160 crs not been provided, the net loss of the Bank would be Rs 27.06 crs.

The GNPA for the Bank improved by 137 bps to 6.65% as at September 30, 2021 compared to 8.02% as at June 30, 2021. CASA ratio for the Bank improved to 30.8% as at September 30, 2021 compared to 27.8% as at September.

Mr. Murali Ramakrishnan, MD & CEO of the Bank, while announcing the results stated that the prevailing COVID Pandemic scenario in the country, impacted the growth in the Business and Personal loan segment. However, the Bank could register reasonable growth in the desired segments like well rated Corporates and Gold Loan portfolio during the period.

Bank has also been able to meet the targeted levels of recovery/ upgrades which has helped in containing the GNPA level. During this quarter Bank could improve the Provision Coverage Ratio to 65.02% as on 30.09.2021 as against 60.11% as on 30.06.2021.

The Capital Adequacy Ratio of the Bank stands comfortable at 15.74% as on September 30, 2021. Bank plans to raise additional capital during FY 21-22 to further strengthen the capital base.

Mr. Murali added that Bank has seen major shifts over last one year in the key functional areas including major strides in digital banking, setting up vertical asset structure, revamping branch structure to bring efficiencies, developed new business sourcing channels,

strengthening data science capabilities, employee engagement & motivation and robust recovery mechanism. Bank believes that its strong and diversified franchise large distribution

network, structural changes to bring about growth, infusion of talent and technology capabilities with improved tools, provides the ability to leverage opportunities for profitable growth in the coming quarters, with the headwinds in the economy tapering.

About South Indian Bank

South Indian Bank is a leading Kerala based Private sector bank with a pan India presence. The Bank’s shares are listed on The Stock Exchange Mumbai (BSE) and The National Stock Exchange of India Ltd. Mumbai (NSE). South Indian Bank has 932 branches, 1173 ATMs and 121 CDMs/CRMs across India and a representative office in Dubai, UAE.

South Indian Bank is a pioneer in technology-based banking, offering an array of digital products and services. It has one of the youngest workforces in the banking sector in the country. The Bank’s Vision 2024 will focus on 6Cs including capital, CASA, cost-to-income, competency building, customer focus, and compliance.

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