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South Indian Bank has
posted 87% dip in the net profit to Rs 10.31 crore in the quarter ended June
2021 (Q1FY2022), compared with net profit of Rs 81.65 crore in Q1FY2021. The
bank has posted 8% decline in the net interest income (NII) and credit cost
increased to 3.4% in Q1FY2022.
The loan book of the bank
has dipped 11%, while the credit-deposit ratio declined to 68.9% from 79.8% a
year ago leading to 8% decline in the NII. The cost-to-income ratio of the bank
eased to 48.5% in Q1FY2022 from 55.5% in Q4FY2021 and 53.7% in Q1FY2021.
On the liabilities front,
the bank has exhibited improvement in CASA deposits ratio above 30% level for
the first time to 30.4% end June 2021.
Asset
quality weakens: Asset quality of the bank has remained under pressure with high
fresh slippages of loans in Q1FY2022.
Fresh slippages of
advances remained elevated at Rs 883 crore in Q1FY2022 compared with slippages
of Rs 2123 crore (including proforma slippages of Rs 1379 crore) in Q4FY2021
and Rs 161 crore in Q1FY2021.
The recoveries and
upgradations and write-offs stood at Rs 350 crore in Q1FY2022.
The standard restructured
advances book of the bank rose to Rs 1899 crore at end June 2021 from Rs 1277
crore end March 2021.
The securities receipt
book of the bank stood at Rs 1117.3 crore with provisions of Rs 633.3 crore end
June 2021.
Provision coverage ratio
improved to 61.1% end June 2021.
The risk weighted assets
of the bank rose to Rs 47349.9 crore end June 2021 from Rs 47167.5 crore end
March 2021.
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Asset Quality
Indicators: South Indian Bank
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Jun-21
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Mar-21
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Dec-20
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Sep-20
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Jun-20
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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4677.12
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4143.24
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3103.45
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3182.16
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3245.44
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13
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44
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Net NPA (Rs Crore)
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2854.64
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2734.52
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1305.03
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1655.39
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1992.86
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4
|
43
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% Gross NPA
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8.02
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6.97
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4.90
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4.87
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4.93
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105
|
309
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% Net NPA
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5.05
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4.71
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2.12
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2.59
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3.09
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34
|
196
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% PCR
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60.11
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58.73
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72.03
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65.20
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58.80
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138
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131
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% CRAR - Basel III
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15.47
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15.42
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14.47
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13.94
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13.49
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5
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198
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% CRAR - Tier I -
Basel III
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15.47
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12.80
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11.60
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11.20
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10.80
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267
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467
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business
Highlights:
Business
volume declines: Business volumes of the bank declined 4% yoy at Rs 142930 crore
at end June 2021 over June 2020. The moderation in business growth was driven
by 11% dip in advances to Rs 58319 crore at end June 2021. The deposits moved
up 3% Rs 84611 crore at end June 2021. The credit deposit ratio declined to
68.9% from 71.8% a quarter ago and 79.8% a year ago.
CASA
ratio improves: CASA deposits of the bank moved up 16% at Rs 25725 crore gaining
the share in overall deposits to 30.4% at end June 2021 compared to 29.7% a quarter
ago and 26.9% a year ago.
Investment
book of the bank increased 4% to Rs 21332 crore end June 2021. The HTM
book declined 6% to Rs 15466 crore, AFS jumped 39% to Rs 5852 crore and HFT
book stood at Rs 14 crore. The modified duration of the AFS book stood at 0.52
years and overall investment book at 3.12 years.
Network
expansion: Bank has network of 924 branches and 1291 ATMs with employee base
of 7682 employees at end June 2021.
Book
Value per share stood at Rs 26.3 per share at end June 2021, while
adjusted Book value (adjusting for NNPA, 10% of restructured advances and
estimated restructuring) was at Rs 11.4 per share at end June 2021.
Quarterly
Performance:
NII
declines on dip in loan book: Bank has reported 8% decline in
Net Interest Income (NII) at Rs 542.00 crore for the quarter ended June 2021.
The interest earned declined 13% to Rs 1633.39 crore, while interest expenses
dipped 16% to Rs 1091.39 crore in the quarter ended June 2021.
Core fee
income improves, treasury income jumps: The non-interest income of the
bank surged 59% to Rs 453.08 crore in Q1FY2022, as the treasury income zoomed
69% to Rs 237 crore. However, the core fee income improved 12% to Rs 92 crore
in Q1FY2022 and other income jumped 93% to Rs 110 crore, while forex income moved
up 100% to Rs 14 crore in Q1FY2022.
Net total income increased
14% to Rs 995.08 crore in the quarter ended June 2021.
Expense
ratio declines: The operating expenses of the bank rose 3% to Rs 482.96 crore in
the quarter ended June 2021. The expense ratio declined to 48.5% in the quarter
ended June 2021 from 53.7% in Q1FY2021.
The operating profit moved
up 27% to Rs 512.12 crore in Q1FY2022.
Provisions
remain elevated: The provisions and contingencies jumped 70% to Rs 497.97 crore in
the quarter under review. The provisions for NPA moved up 32% to Rs 430 crore,
while the standard assets provisions increased to Rs 56 crore, investment
provisions Rs 2 crore and other provisions of Rs 3 crore in Q1FY2022.
With the elevated
provisions, the bank has posted 87% decline in profit before tax at Rs 14.15
crore in Q1FY2022.
An effective tax rate was
at 27.1%, while the net profit dipped 87% to Rs 10.31 crore in the quarter
ended June 2021.
Financial
Performance FY2021:
For the year ended March
2021 (FY2021), the bank posted 41% dip in the net profit at Rs 61.91 crore. The
net interest income rose 4% to Rs 2406.91 crore, while non-interest income
moved up 13% to Rs 1185.48 crore in FY2021. The operating expenses increased
15% to Rs 1974.48 crore, while provision and contingencies rose 2% to Rs
1531.25 crore in FY2021. The profit before tax declined 42% to Rs 86.66 crore
in FY2021. The expense ratio rose to 55.0% in FY2021 compared to 51.1% in
FY2020. After considering 28.6% of effective tax rate down from 30.1% in FY2020,
the net profit declined 41% to Rs 61.91 crore in FY2021.
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South Indian Bank:
Results
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Particulars
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2106 (3)
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2006 (3)
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Var %
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2103 (12)
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2003 (12)
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Var %
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Interest Earned
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1633.39
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1886.88
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-13
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7305.45
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7763.80
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-6
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Interest Expended
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1091.39
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1299.99
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-16
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4898.54
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5446.30
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-10
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Net Interest Income
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542.00
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586.89
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-8
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2406.91
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2317.50
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4
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Other Income
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453.08
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284.98
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59
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1185.48
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1045.75
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13
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Net Total Income
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995.08
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871.87
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14
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3592.39
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3363.25
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7
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Operating Expenses
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482.96
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468.19
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3
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1974.48
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1717.61
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15
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Operating Profits
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512.12
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403.68
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27
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1617.91
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1645.64
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-2
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Provisions &
Contingencies
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497.97
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293.08
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70
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1531.25
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1496.09
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2
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Profit Before Tax
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14.15
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110.60
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-87
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86.66
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149.55
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-42
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EO
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0.00
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0.00
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-
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0.00
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0.00
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-
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Profit after EO
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14.15
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110.60
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-87
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86.66
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149.55
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-42
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Provision for Tax
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3.84
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28.95
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-87
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24.75
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44.96
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-45
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Net Profit
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10.31
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81.65
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-87
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61.91
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104.59
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-41
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EPS*(Rs)
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0.2
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1.6
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0.3
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0.5
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* Annualized on current equity of
Rs 209.27 crore. Face Value: Rs 1 per share, Figures in Rs crore
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Source: Capitaline
Corporate Database
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