South Indian Bank shares rise 3% as board clears rights issue; check details

Shares of South Indian Bank Ltd rose 3% in the early trade today after the private sector lender said its board has cleared the fund raising of Rs 1,750 crore via issue of equity shares of the bank on a rights basis to its existing eligible shareholders. South Indian Bank stock hit an intraday high of Rs 27.45, rising 2.88% against the previous close of Rs 26.68 on BSE. Earlier, the stock opened higher at Rs 27.19 on BSE. Total 15.52 lakh shares of the firm changed hands amounting to a turnover of Rs 4.22 crore on BSE. Market cap of the bank stood at Rs 5679.70 crore on BSE.

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South Indian Bank shares have a beta of 1, indicating average volatility in a year.

In terms of technicals, the relative strength index (RSI) of the South Indian Bank stock stands at 55.2, signaling it's trading neither in the overbought nor in the oversold zone. South Indian Bank shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

"We wish to inform you that the Board of Directors of the Bank at their meeting held on December 27, 2023, has inter-alia approved the proposal for fund raising for an amount not exceeding Rs. 1,750.00 Crores (Rupees One Thousand Seven Hundred and Fifty Crores Only) by way of issue of Equity Shares of the Bank ("Equity Shares"), on a right basis ("Right Issue") to its existing eligible shareholders as on the record date (to be fixed in due course) in accordance with applicable provisions of the Companies Act, 2013, as amended, SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended and other applicable laws," said the bank on December 27.

The lender reported a 23.2 percent rise in net profit to Rs 275 crore for the July-September 2023 quarter against Rs 223 crore in the September 2022 quarter. Net interest income (NII) climbed 14.46% to Rs. 831 crore for the Q2 FY 2024 compared to Rs. 726 crore on Y-o-Y basis. Net Interest Margins (Quarterly) rose 10 bps Y-o-Y to 3.31% in the September 2023 quarter against 3.21% in the September 2022 quarter.

The lender's gross non-performing assets (GNPA) fell to 4.96 percent of the total value in Q2 from 5.67 percent in Q2FY23. Net NPAs stood at 1.70 percent in Q2 against 2.51 percent a year ago.

The stock has gained 50% in a year and risen 203% in a span of two years. The banking stock touched its 52-week high of Rs 28.50 on December 18, 2023 and fell to a 52 week low of Rs 13.79 on March 29, 2023.