South Indian Bank Q3 Results: Net profit rises 12%, deposit growth weak

South Indian Bank Ltd. reported its October-December quarter results on Tuesday, January 21. The lender reported an increase in its bottomline, while its asset quality also improved from the previous September quarter.

The lender's net profit rose by 12% to ₹342 crore from ₹305 crore during the year-ago period. Total income for the quarter also increased to ₹2,818 crore, a growth of 7%, compared to ₹2,636 crore reported in the year-ago quarter.

The bank's Net Interest Income (NII) or the core income increased by 6% from last year to ₹869 crore from ₹819 crore last year. On a sequential basis, NII was down 1.5% from ₹882 crore in the September quarter.

South Indian Bank's asset quality improved sequentially with Gross Non-Performing Assets (NPA) improving to 4.30% from 4.40% earlier, while its Net NPA also improved to 1.25% from 1.31% in the last quarter.

The lender's deposits came in at ₹1.05 crore, which is up 6.3% on a year-on-year basis but down 0.06% quarter-on-quarter.

Advances rose 12% year-on-year and 2.7% quarter-on-quarter at ₹84,396 crore.

Provisions for the quarter rose 36% year-on-year to ₹66 crore. However, on a sequential basis, it fell 40%.

Following the earnings announcement, shares of South Indian Bank Ltd. are currently trading 4.18% lower at ₹25.88. The stock has risen 3% so far this year.