South Indian Bank on Thursday reported a 22.59 percent increase in its March quarter net profit at Rs 333.53 crore, aided by a boost in core income. The net profit of the private sector lender for fiscal year 2022-2023 was Rs 775.31 crore, up from Rs 44.82 crore in the same period a year ago. the back of a growth of 17 percent and a broadening of the net interest margin by 0.17 percent to 3.67 percent.
Outgoing general manager and chief executive Murali Ramakrishnan said the bank will aim for credit growth of 12 percent, which is twice the rate of real GDP growth, and will seek to expand NIM for FY24 from 3.3 percent to 3.5 percent. cent for FY22. His other earnings rose to Rs 344 crore in the reporting quarter, up from Rs 203.85 crore in the same period a year ago.
On the asset quality front, Ramakrishnan said new slippages have been reduced to Rs 343 crore, much of which comes from retail advancements. The ratio of gross non-performing assets improved from 5.90 percent in the same period last year to 5.14 percent and 5.48 percent at the end of December. Ramakrishnan said the bank witnessed strong growth in its unsecured portfolio and aims to grow its home lending business in FY24. .
The bank has shortlisted a few candidates to replace Ramakrishnan, who is not seeking a second term, and will recommend names to the RBI before the four-month deadline for September, chairman Salim Gangadharan told reporters. He also refuted news reports from the bank council unhappy with Ramakrishnan, adding that the search process had to be started because the incumbent CEO did not want a second term.
The bank’s overall capital adequacy stood at a comfortable 17.25 percent and Ramakrishnan said it has no immediate plans to increase buffers. 0.06 percent correction on the benchmark.
