South Indian Bank net profit up 17.4% on higher net interest income
South Indian Bank reported a 23% increase in net profit for the June quarter, driven by improved asset quality and higher net interest income. The bank successfully reduced its non-performing assets while focusing on high-quality credit growth in corporate and retail segments.
Why it matters
Strong financial performance in regional banking sectors serves as an indicator of broader economic health and credit stability.
South Indian Bank (SIB) net profit increased 23% to ₹378 crore as asset quality improved and net interest income increased in the quarter ending on June 30, compared to ₹322 crore in the year-ago period.
The bank’s net interest income increased 23% to ₹1025 crore in the reporting quarter as against ₹833 crore in the year-ago period. The gross advances increased 17% to ₹1,04,368 crore in the reporting quarter.
The bank’s gross non-profitable assets as a share of total advances reduced to 1.35% in the June quarter of the current fiscal year against about 3.6% in the corresponding period last year. The net NPA reduced to 0.26% from 0.68%, highlighting healthy asset quality.
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