Jan 11, 2017 03:30 PM IST IST | Source: Moneycontrol.com

South Indian Bank Q3 net up 10% on treasury income; NPA improves

Private sector lender South Indian Bank's third quarter profit grew by 9.6 percent to Rs 111.38 crore compared with year-ago period, driven by other income and operating profit. Asset quality improved, though provisions were higher during the quarter.

Moneycontrol Bureau

Private sector lender South Indian Bank's third quarter profit grew by 9.6 percent to Rs 111.38 crore compared with year-ago period, driven by other income and operating profit. Asset quality improved, though provisions were higher during the quarter.

Net interest income, the difference between interest earned and interest expended, increased 2.6 percent year-on-year to Rs 417.52 crore with stable loan growth of 11.5 percent despite demonetisation.

Segments like home loan & loan against property saw robust growth 33 percent and MSME portfolio grew by 15 percent in Q3. The bank targets FY17 loan growth at 15 percent.

Earnings performance was mixed. Profit was estimated at Rs 111.5 crore and net interest income at Rs 442.4 crore, according to average of estimates of analysts polled by CNBC-TV18.

Non-interest income (other income) during the quarter jumped 68.6 percent to Rs 258.5 crore and operating profit grew by 43.3 percent to Rs 376.97 crore compared with same quarter last year.

Asset quality improved in October-December quarter as net non-performing assets (NPA) declined to 2.52 percent from 2.77 percent, though gross NPA increased to 3.98 percent from 3.96 percent on sequential basis.

In absolute terms, net NPA dropped 7.5 percent quarter-on-quarter to Rs 1,115.7 crore while gross NPA rose 2.4 percent to Rs 1,787 crore in Q3FY17.

South Indian Bank said slippages for the quarter stood at Rs 196 crore (against Rs 226 crore in previous quarter) as one EPC account of Rs 100 crore slipped in Q3.

Provisions for bad loans shot up 94.2 percent year-on-year and 61 percent quarter-on-quarter to Rs 206.6 crore in the quarter ended December 2016.

At 13:20 hours IST, the stock was quoting at Rs 21.60, up Rs 0.60, or 2.86 percent amid high volumes on the BSE.

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