South Indian Back has improved its Q3 net profit by 9.6% as it closed the quarter with a net profit of Rs 111.38 crore.
With the growth drivers being SME loans, Home Loan and LAP, Agriculture and Auto Loan, the total advances increased by Rs 4,633 crore to Rs 45,234 crore in the third quarter ended December 31. “CASA and the realignment of business strategies adopted by the bank contributed to the good performance,” said V G Mathew, MD & CEO, South Indian Bank.
CASA of the Bank increased by Rs 4,179 crore to Rs 16, 486 crore, registering a growth of 33.96 % YoY. NRI deposit of the Bank increased by 20.28% despite slowdown in NRI remittances from the Gulf region. The total business of the Bank increased by Rs 14,786 crore to Rs 10,8829 crore achieving a growth of 15.72% YoY. “The bank’s focus in the next fiscal will be on the export sector and disbursal of corporate loans in the range of 25-100 crore to garner more business, Mathew added.
In order to meet Bank’s future capital requirements and to support business expansion, the bank have approved Rights issue to the existing shareholder of the Bank. Rights issue is to be in the ratio of 1:3 ie one Equity shares for every three Equity shares. This FY the Bank is planning to open 50 outlets and 100 ATMs.