South Indian Bank cuts loss to Rs 50 crore

Private sector lender South Indian Bank reported Rs 50.3 crore net loss in the December quarter, owing to fall in both interest income and other income while its asset quality deteriorated sharply. The loss was however 45 per cent less compared to the year ago period's loss of Rs 91.6 crore.
Its operating profit dipped 16 per cent at Rs 280 crore as against Rs 332 crore. Net interest income fell 4 per cent at Rs 573 crore over the same period.

Net interest margin, a key profitability parameter, remained flat at 2.64 per cent in the quarter under review compared to the year ago period.

The bank's gross non-performing assets rose to 6.56 per cent at the end of December 2021 against 4.9 per cent a year back. Net NPA rose to 3.52 per cent from 2.12 per cent. Despite higher stress on asset quality, the bank has made lower provisions at Rs 330 crore in the quarter against 424 crore in the corresponding period in 2020.

Its advances fell 7 per cent to Rs 57409 crore. The bank's capital adequacy ratio remained healthy at 15.68 per cent.