
Shares of South Indian Bank are in news today after the lender reported its Q2 business updates. Also, the bank said Infomerics Ratings has assigned a 'Stable' outlook as it expects that the bank will continue to grow its business on the back of comfortable capitalisation and established presence while maintaining healthy asset quality and profitability.
Meanwhile, gross advances rose 13.07% on a yearly basis to Rs 84,741 crore. The lender reported a 8.62% growth in deposits at Rs 1.05 lakh crore in the September 2024 quarter compared to Rs 97,085 crore in the same period last year.
The stock closed 0.24% lower at 24.54 on Tuesday against the previous close of Rs 24.60 on BSE. Total 14.81 lakh shares of the firm changed hands amounting to a turnover of Rs 3.65 crore on BSE. Market cap of the bank stood at Rs 6420 crore on BSE.
South Indian Bank shares have a beta of 1.1, indicating very high volatility in a year.
The stock has gained lost 1.72% in a year but risen 181% in a span of two years.
CASA ratio in the last quarter fell 18 basis points to 31.85% from 32.03% in the year-ago quarter. A higher CASA ratio indicates a lower cost of funds since lenders do not usually give any interest on current account deposits and the interest on savings accounts is low.
In June 2024 quarter, South Indian Bank's gross advances rose 11.4% on a yearly basis to Rs 82,510 crore. The lender had also reported an 8.4% growth in deposits at Rs 1.04 lakh crore during the period.
Core net interest income in Q1 had grown by 7% to Rs 808 crore, on the back of an 11% growth in overall advances and 0.08% decline in the net interest margin at 3.26%. The net profit for the first quarter stood at Rs 294 crore, up 46% year on year.
Other income climbed 16.8% to Rs 422 crore. On the asset quality front, the proportion of gross non-performing assets in the June quarter stood at 4.5%, lower as compared to 5.13% in the year-ago period.
Infomerics ratings has assigned “Issuer ratings” as it derives comfort from sustained improvement in the earnings profile of the bank, granular and diversified loan book, comfortable capitalisation and moderate resource profile. However, the ratings are constrained by average, albeit improving asset quality and regionally concentrated operations.