South Indian Bank Q1 net profit declines to Rs 230.4 mn from Rs 1 bn

The bank said the reason for the decline in profit was the reduction in the Treasury trading profit by Rs 730 million

Kerala-based has declared a net profit of Rs 230.4 million for the first quarter of the financial year 2018-19 as against Rs 1.0147 billion during the corresponding period last year.

In a press release, the bank said the reason for the decline in profit was the reduction in the Treasury trading profit by Rs 730 million and incremental MTM (mark to market) provision in the by Rs 410 million owing to adverse market conditions, besides incremental one-time employee cost of Rs 330 million because of increase in gratuity ceiling and wage revision.

“But for these, the net profit would have been Rs 1.19 billion for the first quarter,” the release said.
 

Low-cost deposit grew by 4 per cent, it said.

The non-resident (the ratio of deposits in current and saving accounts to total deposits) saw a growth of 5 per cent on a quarter-to-quarter basis, it said.

The bank was continuing its focus on retail and (Micro, Small & Medium Enterprises) advances, the release said.

Retail advance grew by 27 per cent year-to-year and advance was up by 21 per cent, it said.
 

The bank was also pursuing the asset quality issues pertaining to corporates, it said.

As a result of this, the gross and net (non-performing assets) rose by 93 bps (basis points) and 73 bps, respectively, it said.

The gross business increased by Rs 156.89 billion to Rs 1.28 trillion, the release said.

The deposits rose from Rs 669.7 million to Rs 724.88 billion, from Rs 12.97 billion to Rs 178.83 billion and advances from by Rs 917.2 million to Rs 561.64 billion, it added.

First Published: Sat, July 21 2018. 22:45 IST

View Source: https://www.business-standard.com/article/markets/south-indian-bank-q1-net-profit-declines-to-rs-230-4-mn-from-rs-1-bn-118072100532_1.html

Related Post

Be the first to comment

Leave a Reply

Your email address will not be published.


*