Confident of achieving the guided loan growth of 18% for FY18, said VG Mathew, MD & CEO, South Indian Bank.
South Indian Bank reported a good set of number in the third quarter with Gross slippages at Rs 258 crore and fresh slippages at Rs 98 crore.
VG Mathew, MD & CEO, South Indian Bank said they had guided for Q3 and Q4 slippages to be in range of Rs 250 crore as a worst case scenario. Going forward in Q1 of FY19, slippages are expected to reduce to half and from thereon it will be steady, he added.
With regards to loan growth, he said the overall growth for the quarter stood at 16 percent and are confident of achieving the guided loan growth of 18% for FY18.
The net interest margins too improved from 2.72 percent to 2.87 percent year on year (YoY) and is in line with guidance, he added.
In terms of segmental growth, he said the MSME grew 25.17 percent and agri by 21.05 percent, mortgages grown by 54.69 percent.
The net profit for the bank stood at Rs 115 crore in the third quarter FY18 as compared to Rs 114 crore for the same quarter last fiscal. The gross NPAs came in at 3.4 percent versus 3.57 percent of earlier quarter. While net NPA stood at 2.35 percent versus 2.57 percent quarter on quarter.
Net interest income (NII) for the bank was up 22 percent at Rs 509.4 crore compared to Rs 417.5 crore for the same quarter in FY17.
The capital adequacy for the bank stood at around 12.51, he said, adding that the bank has an approval in place for raising capital to tune of 20 crore shares (Rs 1 per share) from shareholders if the need be, which will amount to 11 percent dilution.The board will take a decision regarding this later in the day, said Mathew.