South Indian Bank shares gain 6% in early trade; here’s why

Shares of South Indian Bank Ltd zoomed over 6% in early deals on Thursday after the lender finalised the candidates for the post of MD and CEO. The bank will submit the application to the RBI seeking approval for the same. The stock opened higher at Rs 17.50 today against the previous close of Rs 17.25 on BSE. It hit an intraday high of Rs 18.40 in early deals.

The banking stock has risen 129% in one year and lost 2.66% since the beginning of this year. The share has climbed 11.45% in a month. Total 95.52 lakh shares of the firm changed hands amounting to a turnover of Rs 17.36 crore on BSE. Market cap of the firm rose to Rs 3833.90 crore on BSE.

In terms of technicals, the relative strength index (RSI) of the South Indian Bank stock stands at 59.1, signaling it's neither trading in the overbought nor in the oversold zone. South Indian Bank shares have a beta of 0.8, indicating low volatility in a year. South Indian Bank shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

“We wish to inform that pursuant to the recommendations of the Search Committee which was constituted by the Board of Directors of the Bank and the Nomination and Remuneration Committee of the Bank, and pursuant to the Banking Regulation Act 1949 and the extant Reserve Bank of India (RBI) norms, the Board of Directors of the Bank has today approved the panel of candidates, in the order of preference, for the position of the Managing Director & Chief Executive Officer (MD & CEO) of the Bank. As per the extant RBI norms, the Bank will be submitting its application to Reserve Bank of India with the names of the candidates in the order of preference, seeking approval for the appointment of the new MD & CEO,” said the lender in a communication to BSE.

On May 12, the lender reported its Q4 and annual earnings.

Net profit rose 23 per cent to Rs 333.9 crore (highest ever) in the March quarter against Rs 272 crore in the corresponding quarter last year. Net interest income climbed 43.4 per cent on-year to Rs 857.2 crore against Rs 597.7 crore in the corresponding quarter last year.

Provisions and contingencies fell to Rs 38.99 crore in Q4FY23 against Rs 77.71 crore in Q4FY22 and Rs 41.43 crore in Q3FY23.

The board recommended a dividend of Rs 0.30 per equity share with a face value of Re 1 each for the year ended on March 31, 2023.

Gross NPAs came at 5.14% and net NPAs stood at 1.86% for the March 2023 quarter --- compared to 5.90% and 2.97% in the same period a year ago.

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