South Indian Bank Q1 profit rises 11%, makes additional Rs 29 crore provisions for COVID-19

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26 Aug, 2025 12:21

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Private sector lender South Indian Bank on July 8 reported a 11.5 percent year-on-year increase in Q1 FY21 profit due to sharp jump in other income. However, higher provisions limited profit growth.

Profit for the quarter ended June 2020 stood at Rs 81.65 crore, which increased from Rs 73.26 crore reported in same period last year.

Net interest income during the quarter rose 9.6 percent to Rs 586.89 crore compared to corresponding period previous fiscal.

Non-interest income shot up 56.7 percent year-on-year to Rs 284.98 crore in quarter ended June 2020, which included profit on sale of investments, earnings from foreign exchange and derivative transactions, commission from non-fund based banking activities, income from sale of PSL Certificates etc.

Pre-provision operating profit during the quarter increased 27.1 percent to Rs 403.68 crore compared to same period previous fiscal.

Provisions and contingencies jumped 43 percent year-on-year to Rs 293.08 crore in Q1FY21, but sequentially the same fell 59.5 percent.

South Indian Bank said it made provisions of Rs 31.56 crore towards NPAs identified as fraud accounts over a period of four quarters. "It is 25 percent of the provision required towards eight accounts identified as fraud) and the remaining unprovided amount of Rs 364.24 crore will be debited to the profit and loss account for the ensuing quarters in the same proportion," it explained.

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The bank said it was carrying an additional provision amounting to Rs 29.08 crore during the June quarter to meet any future impact of the pandemic, against Rs 55.70 crore in March quarter 2020.

Asset quality improved during the quarter ended June 2020 with gross non-performing assets (NPA) as a percentage of gross advances falling 5 bps sequentially to 4.93 percent, while net NPAs declined 25 bps QoQ to 3.09 percent in Q1.