The Kerala-based South Indian Bank (SIB) recorded a net loss of Rs 187.06 crore in the second quarter (Q2) of the current fiscal year, compared to a net profit of Rs 65.09 crore during of the corresponding period of the previous year due to the increase in bad debts.
The bank reported operating profit of Rs 111.91 crore for Q2 FY 22 versus Rs 390.94 crore for Q2 FY21. Murali Ramakrishnan, Managing Director and Chief Executive Officer of the Bank, while announcing the results, said that the prevailing COVID pandemic scenario in the country has had an impact on the growth of the business and personal loan segment. individuals. However, the Bank could record reasonable growth in desired segments such as well rated Corporate Portfolios and Gold Loans during the period.
According to the recent RBI guideline, a provision for depreciation on investments in the amount of Rs 175.56 crore for the second quarter of fiscal 22 was presented under “other income” in the income statement, which was at the origin classified under “provisions and contingencies”. In addition, the amounts recovered from written off accounts have been reclassified as “provisions and contingencies” compared to the classification for the previous year as “other income”. Excluding these changes, operating profit would have been Rs 346 crore.
The Bank’s GNPA improved by 137 basis points to 6.65% as at September 30, 2021 from 8.02% as at June 30, 2021. The CASA ratio for the Bank improved to 30.8% as at 30 September 2021 compared to 27.8 percent in September.
During this quarter, the Bank could improve the provision coverage ratio to 65.02 percent from 60.11 percent in the same period last year. The Bank’s capital adequacy ratio stood at 15.74% as at September 30, 2021.
Murali added that the Bank has seen major changes over the past year in key functional areas, including major advancements in digital banking, the establishment of a vertical asset structure, the overhaul of the branch structure to gain efficiency, development of new business supply channels, data science capacity building, employee engagement and motivation, and robust recovery mechanism.
Dear reader,
Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting edge commentary on relevant current issues.
However, we have a demand.
As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital editor
