South Indian Bank reports Rs 115 crore net profit in Q1
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Synopsis
Its net interest margin, a key profitability parameter, improved to 2.74% from 2.55% a year back. Asset quality, which remained a drag for quite some time, has improved, with gross non-performing assets ratio falling to 5.87% from 8% a year back. Net NPA was at 2.87% against 5.05%.
The Kerala-based lender's operating profit however fell 38% at Rs 317 crore. Total income shrank Rs 1868 crore from Rs 2084 crore a year back.
Managing director Murali Ramakrishnan attributed the net profit to overall improvement in parameters like CASA ratio, net interest income and reduction in provisions. The bank is targeting “profitability
through quality credit growth”, the MD said.
Its gross advances rose 11% year-on-year to Rs 64704 crore with the corporate loan segment growing 31%. The bank could churn around 43% of its loan portfolio since October 2020 amounting to Rs 27,787 crore with a NIM of more than 3% and GNPA of only 0.02%. It could also restrict slippages to Rs 435 crore from Rs.879 crore.