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South Indian Bank Q3 net up 64 per cent

THIRUVANANTHAPURAM: The South Indian Bank (SIB) has recorded a net profit of Rs.40.72 crore during the third quarter (Q3) of the current financial year, as against Rs.24.84 crore during the corresponding period last year.

The Q3 net profit has increased by nearly 64 per cent over last year’s.

At a press conference here on Wednesday, SIB chairman V.A. Joseph said the net profit for the first three quarters (from April to December, 2007) of the current financial year came to Rs.106.78 crore. The corresponding period of last financial year had brought a net profit of Rs.58.72 crore. (This is excluding certain ‘extra ordinary profit’ the bank had earned last year from the sale of the shares of Bharat Overseas Bank it had in its possession.)

Mr. Joseph said this was the first time the bank’s annual profit had crossed Rs.100 crore and that too in nine months.

With all its branches brought under Core Banking Solution, the SIB was the first bank in the country to announce its Q3 results of this financial year, he added.

The total business of the bank went up by Rs.5,878 crore during the last one year. From Rs.18,626 crore on December 31, 2006, it went up to Rs.24,504 crore on December 31, 2007. The growth comes to 31.56 per cent.

While deposits went up by Rs.3,960 crore from Rs.10,925 crore to Rs.14,484 crore registering a growth of 32.58 per cent, advances increased by Rs.2,318 crore from 7,702 crore to Rs.10,020 crore, showing an increase of 30.10 per cent.

During the first nine months of the financial year, the bank’s total income came to Rs.1,043.29 crore, compared to Rs.748.63 crore recorded during the corresponding period last year. The income thus grew by 39.36 per cent.

Gross non-performing assets came down from 4.29 to 2.53 per cent and net non-performing assets from 1.49 per cent to 0.49 per cent.

Capital adequacy ratio of the bank is 14.92 per cent against the regulatory requirement of nine per cent.

In spite of additional issue of capital, the book value per share increased from Rs.102.45 to Rs.127.85, Mr. Joseph noted.

The SIB had recently issued 2 crore equity shares with a face value of Rs.10 per share at a premium of Rs.153 per share, raising an investment of Rs.326 crore.

Among the investors under this issue were International Finance Corporation (4.8 per cent), Fidelity (2.77 per cent), Moon Capital (1.83 per cent), De Shaw (1.66 per cent), Birla Sunlife (1.33 per cent), Acasia Partners (1.1 per cent) and First Gulf Bank (1.1 per cent). Foreign Institutional Investors now had 47.46 per cent equity holding in the SIB as against the permissible limit of 49 per cent.

Mr. Joseph said the bank would open 13 more branches during the current financial year to take the total number of its branches to 500.

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