South Indian Bank's half-yearly net profit rises 24%

KOCHI: South Indian Bank has recorded a net profit of Rs. 220.18 crore for the half year ended September 30, 2012 as against Rs. 177.44 crore for the corresponding period of previous year, registering a growth of 24.08%.

The total business of the bank increased by Rs. 10,724 crore from Rs. 56,386 crore to Rs. 67,110 crore on year-to-year basis recording a growth of 19.02%. While the total deposits went up by 16.5% to Rs 38,490 crore, the advances increased by 22.58% to Rs. 28,620 crore. CASA of the bank increased by 9.17% to Rs. 7,684 crore.

Dr. V.A. Joseph, MD & CEO stated that despite subdued growth of the economy during the first half, the bank could achieve this performance due to improvement in net interest margin. He expressed the hope that the bank will be able to achieve the total business target of Rs. 75,000 crore, 750 branches and 750 ATMs by March 31, 2013 as envisaged in the bank's vision document 2008.

The bank earned a total income of Rs. 2,289 crore during the half year ended September 2012 as against Rs. 1,751crore for the corresponding period of the previous year registering a growth of 30.75%. The net interest income increased by 28.20% to Rs. 595 crore.

The net interest margin increased from 2.97% to 3.09% year-on-year. The capital adequacy ratio of the bank stood at 14.43% (under BASEL II standards) against the regulatory requirement of 9%.