South Indian Bank has reported a strong second quarter for the fiscal year 2023-24, demonstrating significant year-on-year (Y-O-Y) growth across multiple financial metrics. The bank's net profit rose by 23.2% to Rs.275 Cr and operating profit increased by 8.2% to Rs.460 Cr, as reported on Friday. According to InvestingPro's real-time metrics, the bank's market capitalization stands at 272.18M USD, and its P/E ratio is positioned at 12.29, indicating a low earnings multiple as per InvestingPro Tips.
The bank's Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) decreased to 4.96% and 1.70%, respectively. There was also an increase in net interest income by 14.3% to Rs.830 Cr, while the Net Interest Margin (NIM) improved by 35 basis points to 3.33%. Additionally, the Return on Equity (RoE) and Return on Assets (RoA) improved to 13.43% and 0.85%, respectively. These figures align with the InvestingPro data, showing a return on assets of 0.61%.
In terms of deposits, the bank saw retail deposits grow by Rs.6,337 Cr to Rs.93,448 Cr, marking a 7.3% Y-o-Y increase. Corporate segment deposits rose by 33.2%, and NRI deposits increased by Rs.1,285 Cr to Rs.28,785 Cr, a Y-o-Y growth of 4.7%. Furthermore, the bank reported a Current Account Savings Account (CASA) growth of 1.8%.
The bank's loan portfolio also saw expansion in Q2 FY24 with a Rs.684 Cr increase in the personal loan book and a Gold Loan portfolio increase of Rs.2,087 Cr, representing a Y-o-Y growth of 48.1% and 16.2%, respectively.
In line with its strategic intent to onboard low-risk profiles, South Indian Bank has added fresh advances amounting to Rs.48,246 Cr since October 2020, maintaining a GNPA of only 0.18%. The bank also issued over 3,32,000 credit cards with an outstanding book of Rs.1,164 Cr.
On the recovery front, the bank saw an increase in Non-Performing Asset (NPA) account recoveries, rising to Rs.475 Cr from Rs.374 Cr in Q2 FY23. The capital adequacy ratio stood at 16.69%, and A and above-rated accounts constituted 96.1% of the total accounts.
The financial results include those of its subsidiary SIBOSL and reflect a significant Y-o-Y growth in rupees for the South Indian Bank. Additionally, as per InvestingPro Tips, the bank is a prominent player in the Banks industry with a strong return over the last three months and is trading near its 52-week high. For more detailed insights, InvestingPro offers a comprehensive list of additional tips that can further guide investment decisions.
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