3% rise in interest expenses to Rs 1032.98 crore saw net interest income (NII) rise 13% to Rs 503.22 crore.

Other income grew 92% to Rs 280.47 crore, which took net total income up 33% to Rs 783.69 crore. Operating expenses grew 10% to Rs 323.422 crore, after which OP jumped 55% to Rs 460.27 crore.

Provision and contingencies jumped 254% to Rs 453.68 crore after which PBT fell 96% to Rs 6.59 crore.

As tax expenses fell 96% to Rs 2.27 crore, net profit too fell 96% to Rs 4.32 crore.

Exceptional provisioning

There was an exceptional provisioning done for Rs 252.39 crore during the quarter against the NPA sold to an ARC during the earlier year.

Major account in the sold pool is under the resolution process under the Insolvency and Bankruptcy Code which requires an upfront prudential provisioning of 50% on account of which the MTM value of SR got affected by 25%. With the incremental provisioning made, the provision coverage of the pool crossed 50%.

Six months results

For the six months ended September 2017 South Indian Bank registered a 4% rise in Interest income to Rs 3026.87 crore.

1% fall in interest expenses to Rs 2062.94 crore saw net interest income (NII) rise 18% to Rs 963.93 crore.

Other income grew 57% to Rs 499.77 crore, which took net total income up 29% to Rs 1463.70 crore. Operating expenses grew 7% to Rs 623.94 crore, after which OP jumped 51% to Rs 839.76 crore.

Provision and contingencies jumped 180% to Rs 677.99 crore after which PBT fell 49% to Rs 181.77 crore.

As tax expenses fell 49% to Rs 55.98 crore, net profit too fell 49% to Rs 105.79 crore.

Asset Quality

Gross NPA stood at Rs 1766.32 crore as of September 2017 quarter against Rs 1695.71 crore in June 2017 quarter and Rs 1745.28 crore as of September 2016 quarter.

In percentage terms, %GNPA stood at 3.57% as of September 2017 quarter against 3.61% in June 2017 quarter and 3.96% as of September 2016 quarter.

Net NPA stood at Rs 1255.84 crore as of September 2017 quarter against Rs 1182.51 crore in June 2017 quarter and Rs 1206.35 crore as of September 2016 quarter.

In percentage terms, %NNPA stood at 2.57% as of September 2017 quarter against 2.54% in June 2017 quarter and 2.77% as of September 2016 quarter.

Book Value

Book Value per share stands at Rs 27.6 per share at end September 2017.

Adjusted Book value (adjusting for NNPA and 10% of restructured advances) stood at Rs 20.3 per share at end September 2017.

Valuation

The share price trades at Rs 30.