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South Indian Bank has reported net profit of Rs 102.75 crore for the quarter
ended December 2022 (Q3FY2023) against the net loss of Rs 50.31 crore in
Q3FY2022. The net profit had stood at Rs 223.10 crore in the previous quarter
Q2FY2023. The profitability for Q3FY2023 has been impacted due to aging related
provisions of Rs 312 crore for securities receipt book.
On the core performance front, the bank has posted healthy
44% growth in net interest income (NII), while the core fee income of the bank
also improved 10% in Q3FY2023. The Net Interest Margin (NIM) of the bank jumped
to 3.52% in Q3FY2023 compared to 2.64% in the corresponding quarter of previous
year.
On business front, the bank as has posted 9% growth in
business with strong 18% surge in loan book. The asset quality of the bank has
improved in Q3FY2023. Bank has substantially improved the credit to deposit
ratio to 77.3% at end December 2022 from 67.0% at end December 2021. The CASA
ratio of the bank has improved to 33.8% at end December 2022 from 32.0% at end
December 2021.
Asset quality improves: The
bank has improved asset quality with reduction in fresh slippages of loans and
better NPA reductions in Q3FY2023.
The fresh slippages of loans stood at Rs 331 crore in
Q3FY2023 compared with 370 crore in previous quarter and Rs 396 crore in the
corresponding quarter last year.
The recoveries, upgradations and write-off of NPAs were at
Rs 344 crore in Q3FY2023.
The standard restructured loan book of the bank declined to Rs
1781 crore end December 2022 from Rs 1997 crore end September 2022.
Provision coverage ratio improved to 74.51% at end December
2022 compared to 72.79% a quarter ago and 68.08% a year ago.
The capital adequacy ratio of the bank stood at 16.3% with
Tier I ratio at 13.7% at end December 2022.
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Asset Quality
Indicators: South Indian Bank
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|
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Dec-22
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Sep-22
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Jun-22
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Mar-22
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Dec-21
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Variation
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QoQ
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YTD
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YoY
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Gross NPA (Rs Crore)
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3843.57
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3856.13
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3798.64
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3648.09
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3883.01
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0
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5
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-1
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Net NPA (Rs Crore)
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1529.90
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1647.13
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1800.54
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1777.77
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2018.75
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-7
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-14
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-24
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% Gross NPA
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5.48
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5.67
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5.87
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5.90
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6.56
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-19
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-42
|
-108
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% Net NPA
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2.26
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2.51
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2.87
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2.97
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3.52
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-25
|
-71
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-126
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% PCR
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74.51
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72.79
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70.11
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69.55
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68.08
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172
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496
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643
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% CRAR - Basel III
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16.25
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16.04
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16.25
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15.68
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15.68
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21
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57
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57
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% CRAR - Tier I -
Basel III
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13.71
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13.42
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15.47
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13.22
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12.72
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29
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49
|
99
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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:
Strong loan growth driving business growth: The business of the bank has increased 9% YoY to Rs 160789
crore end December 2022, driven by 18% surge in advances to Rs 70117 crore.
Deposits rose 3% to Rs 90672 crore at end December 2022.
CASA deposits ratio improves yoy, ease sequentially: The CASA deposits of the bank increased 9% YoY to Rs 30660
crore at end December 2022. The CASA ratio improved to 33.8% at end December
2022 compared to 32.0% at end December 2021, while declined marginally from
34.5% a quarter ago.
Strong loan growth: Advances
growth was driven by retail loans rising 7% YoY to Rs 15725 crore at end
December 2022, while credit to MSME rose 1% to Rs 18557 crore at end December
2022. The corporate credit zoomed 47% to Rs 22174 crore end December 2022.
Investment book of the bank increased 15% YoY to Rs 24288 crore at end
December 2022. The AFS book jumped 114% to Rs 5263 crore, while HTM book rose
2% to Rs 18916 crore at end December 2022. The duration of the overall
investment portfolio stood at 1.17 years end December 2022 compared with 1.7
years at end December 2021.
Margins improve: The
bank has showed sharp 40 bps YoY decline in cost of deposits to 4.27%, while
yield on advances rose 4 bps YoY to 8.84% in Q3FY2023. Thus, the NIM has
improved 88 bps YoY to 3.52%.
Branch expansion: The
bank has added 2 branches and 2 ATMs in Q3FY2023, taking overall tally to 928
branches and 1277 ATM`s end December 2022.
Book value of
the bank stood at Rs 30.3 per share at end December 2022, while the adjusted
book value (net of NNPA and 25% of restructured advances) was Rs 22.2 per share
at end December 2022.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 14% increase in the interest earned at Rs
1898.27 crore, while interest expenses declined 2% to Rs 1073.12 crore in
Q3FY2023. NII improved 44% to Rs 825.15 crore in the quarter ended December
2022.
Double digit growth in the core fee income: Bank has posted strong 10% growth in core fee income to Rs
140 crore, while the recoveries and other income jumped 124%. However, the
treasury segment witnessed loss of Rs 288 crore on account of provisioning of
Rs 312 crore for securities receipt book. Thus, the overall other income line
was negative at Rs 34.18 crore in the quarter ended December 2022.
Expenses ratio jumps: The
operating expenses of the bank increased 14% to Rs 587.73 crore, as other
expenses moved up 26% to Rs 252.08 crore, while employee expenses rose 7% to Rs
335.65 crore in Q3FY2023. Cost to income ratio was increased to 74.3% in
Q3FY2023 compared with 64.8% in Q3FY2022, causing 27% decline in the Operating
Profit to Rs 203.24 crore.
Provisions and contingencies decline: The bank has showed 88% decline in provisions to Rs 41.43
crore. The loan loss provisions dipped 78% to Rs 62 crore, while the bank has
written back standard asset provisions of Rs 17 crore and other provisions stood
at Rs 5 crore.
Effective tax rate was higher at 36.5%
in Q3FY2023. Net Profit was at Rs 102.75 crore during quarter ended December
2022.
Financial Performance 9MFY2023:
South Indian Bank has posted net profit of Rs 441.20 crore
in the nine months ended December 2022 (9MFY2023) compared with net loss of Rs
227.06 crore in 9MFY2022. The net interest income increased 31% to Rs 2154.90
crore, while non-interest income declined 44% to Rs 467.26 crore, pushing up
net total income by 6% to Rs 2622.16 crore in 9MFY2023. The operating expenses
increased 11% to Rs 1676.38 crore, while provision and contingencies dipped 71%
to Rs 360.13 crore, allowing profit before tax to increase to Rs 585.65 crore
in 9MFY2023 from pre-tax loss of Rs 302.22 crore in 9MFY2022. The
cost-to-income ratio rose to 63.9% in 9MFY2023 compared to 61.2% in 9MFY2022. The
bank has created tax provision of Rs 144.45 crore in 9MFY2023 against write
back of tax provisions of Rs 75.16 crore in 9MFY2022. After an effective tax rate
of 24.7%, the net profit has increased to Rs 441.20 crore in 9MFY2023.
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South Indian Bank: Results
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Particulars
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2212 (3)
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2112 (3)
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Var %
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2212 (9)
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2112 (9)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Interest Earned
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1898.27
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1671.13
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14
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5260.22
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4951.11
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6
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6586.54
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7305.45
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-10
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Interest Expended
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1073.12
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1098.26
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-2
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3105.32
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3309.09
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-6
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4346.78
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4898.54
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-11
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Net Interest Income
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825.15
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572.87
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44
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2154.90
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1642.02
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31
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2239.76
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2406.91
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-7
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Other Income
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-34.18
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221.98
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PL
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467.26
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830.15
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-44
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1034.10
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1229.17
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-16
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Net Total Income
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790.97
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794.85
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0
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2622.16
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2472.17
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6
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3273.86
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3636.08
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-10
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Operating Expenses
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587.73
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514.90
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14
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1676.38
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1512.54
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11
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2026.29
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1974.48
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3
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Operating Profits
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203.24
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279.95
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-27
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945.78
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959.63
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-1
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1247.57
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1661.60
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-25
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Provisions &
Contingencies
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41.43
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346.37
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-88
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360.13
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1261.85
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-71
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1339.56
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1574.94
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-15
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Profit Before Tax
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161.81
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-66.42
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LP
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585.65
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-302.22
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LP
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-91.99
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86.66
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PL
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Provision for tax
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59.06
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-16.11
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PL
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144.45
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-75.16
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PL
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-136.97
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24.75
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LP
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PAT
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102.75
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-50.31
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LP
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441.20
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-227.06
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LP
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44.98
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61.91
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-27
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EPS*(Rs)
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2.0
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-
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2.8
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-
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-
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0.3
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Adj BV (Rs)
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22.2
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15.8
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22.2
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15.8
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18.3
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14.1
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* Annualized on current equity of
Rs 209.27 crore. Face Value: Rs 1, Figures in Rs crore
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Source: Capitaline Corporate
Database
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