South Indian Bank net profit up 17.4% on higher net interest income

South Indian Bank (SIB) net profit increased 23% to ₹378 crore as asset quality improved and net interest income increased in the quarter ending on June 30, compared to ₹322 crore in the year-ago period.

The bank’s net interest income increased 23% to ₹1025 crore in the reporting quarter as against ₹833 crore in the year-ago period. The gross advances increased 17% to ₹1,04,368 crore in the reporting quarter.

The bank’s gross non-profitable assets as a share of total advances reduced to 1.35% in the June quarter of the current fiscal year against about 3.6% in the corresponding period last year. The net NPA reduced to 0.26% from 0.68%, highlighting healthy asset quality.

“During the reporting period, the Bank witnessed consistent growth across all targeted segments, with a sharp focus on acquiring quality assets in verticals such as corporate lending, auto loans and gold loans. Aligned with our strategic intent of ‘profitability through quality credit growth’, we have successfully onboarded new advances with low-risk profiles, ensuring a well-balanced and healthy credit portfolio,” said P.R. Seshadri, MD & CEO of the bank.