South Indian Bank registers robust asset quality improvement

Result season kickstarted with South Indian bank reported its Q3FY18 results on Tuesday. The mid-cap private sector bank posted robust earnings and stellar asset quality improvement over the previous quarter.

Net Income Interest (NII) for the quarter rose by 22 per cent YoY and 1.2 per cent QoQ to Rs. 509 crore compared to Rs. 417 crore in the corresponding quarter in last fiscal. This was largely aided by 6.6 per cent YoY rise in interest income to Rs. 1,576 crore, while interest expended for the quarter remained same which aided better per NII for the quarter.

Asset quality improved drastically over the year and the quarter. The GNPA’s for the quarter declined by a percentage point YoY to Rs. 1,774 crore. The GNPA’s as percentage to total advances declined by 58 bps to 3.4 per cent compared to 3.98 per cent in the corresponding quarter in last fiscal and 17 bps improvement over the quarter. NNPA’s also decreased by 17 bps to 2.35 per cent for Q3FY18.

Provisions for the quarter declined by 25 per cent YoY and 66 per cent QoQ to Rs. 154 crore compared to Rs. 453 crore in the previous quarter and Rs. 206 crore in Q3FY18. The resultant bottom-line jumped by 3.3 per cent and manifold jump on QoQ basis to Rs. 115 crore in Q3FY18