13% rise in interest expenses to Rs 1159.65 crore saw net interest income (NII) rise 7% to Rs 494.25 crore.

Other income fell 33% to Rs 145.90 crore, which took net total income down 6% to Rs 640.15 crore. Operating expenses grew 23% to Rs 370.51 crore, after which OP fell 29% to Rs 269.64 crore.

Provision and contingencies grew 3% to Rs 231.53 crore after which PBT fell 75% to Rs 38.11 crore.

As tax expenses fell 72% to Rs 15.07 crore, net profit rose 77% to Rs 23.04 crore.

FY 2018 results

For FY 2018 South Indian Bank registered a 6% rise in Interest income to Rs 6192.81 crore.

1% rise in interest expenses at Rs 4227.29 crore saw net interest income (NII) rise 17% to Rs 1965.52 crore.

Other income grew 17% to Rs 837.25 crore, which took net total income up 17% to Rs 2802.77 crore. Operating expenses grew 12% to Rs 1321.98 crore, after which OP grew 22% to Rs 1480.78 crore.

Provision and contingencies jumped 60% to Rs 980.90 crore after which PBT fell 17% to Rs 499.89 crore.

As tax expenses fell 21% to Rs 165.00 crore, net profit fell 15% to Rs 334.89 crore.

Gross NPA stood at Rs 2552.18 crore as of June 2018 quarter against Rs 1980.30 crore in March 2018 quarter and Rs 1695.71 crore as of June 2017 quarter.

In percentage terms, %GNPA stood at 4.54% as of June 2018 quarter against 3.59% in March 2018 quarter and 3.61% as of June 2017 quarter.

Net NPA stood at Rs 1813.88 crore as of June 2018 quarter against Rs 1415.80 crore in March 2018 quarter and Rs 1182.51 crore as of June 2017 quarter.

In percentage terms, %NNPA stood at 3.27% as of June 2018 quarter against 2.60% in March 2018 quarter and 2.54% as of June 2017 quarter.

Book Value

Book Value per share stands at Rs 27.8 per share at end June 2018.

Adjusted Book value (adjusting for NNPA and 10% of restructured advances) stood at Rs 17.7 per share at end June 2018.

Other details

Ministry of Labour and Employment, Government of India on March 29, 20 18 enhanced the gratuity ceiling payable to an employee under Payment of Gratuity Act, 1972 to'{ 20 Lakhs from earlier limit on 10 Lakhs. This change has resulted to an incremental gratuity liability amounting to Rs 27.26 crore. In FY 2017-18, the Bank had availed an option given by the Reserve Bank of India to spread the incremental gratuity expenditure over four quarters beginning with the quarter ended March 20 18. Accordingly, during the quarter ended March 31, 2018 the Bank has charged to the profit and loss account an amount of' Rs 6.81 crore and there was an unamortised gratuity expenditure of'Rs 20.45 crore. During the quarter ended June 2018, the bank has charged the entire unamortised gratuity expense of Rs 20.45 crore to the profit and loss account.

The mark to market depreciation on AFS/HFT investment category was rs 4.51 crore for the quarter ended December 3 1, 2017 , Rs 42.83 croe for the quarter ended March 31 2018 and Rs 61.04 crore for the quarter ended June2018. RBI has permitted banks an option to spread provisioning for mark to market losses on investments held in AFS and HFT for the quarters ended December 2017, March 2018 and June 2018 equally over up to four quarters, commencing With the quarter in which the loss was incurred. The bank has charged the entire unamortised amount as on March 31, 2018 and has availed the option to spread the mark to market loss on investments for the quarter ended June 30,,2018 over four quarters. Accordingly the Bank has charged the unamortised MTM loss as at March 31, 2018 of Rs 34.38 crore and proportionate MTM loss of Rs 15.26 crore relating to quarter ended June 30, 2018 to the profit and loss account during the quarter ended June 2018. The unamortised MTM loss as at June 30, 2018 is'Rs 45.78 crore.

RBI pernitted banks to continue the exposures to MSME borrowers to be classified as standard assets where the dues between September 2017 and December 2018 are paid not later than 180 days from their respective original due dates. Accordingly, the bank has retained advance on Rs 54.70 crore as standard as at June 2018. In accordance with the provisions of the circular, the bank had not recognised interest income of' Rs 2.19 crore and created a standard asset provision of'Rs 2.74 crore in respect of such accounts.

Valuation

The stock trades at Rs 18.5.