South Indian Bank rallies 10% on robust Q4 results

Shares of South Indian Bank Ltd rallied over 10 percent in early trade on May 12 on the back of robust Q4 results. The private sector lender reported a 22.74 percent increase in net profit at Rs 333.89 crore on May 11 for the March 2023 quarter. The bank’s net profit was Rs 272.04 crore in the year-ago period.

At 10:11 am, the bank’s share was trading over 10 percent up at Rs 18 a piece on the NSE.

South Indian Bank’s operating profit increased by more than 95 per cent to Rs 561.55 crore during Q4FY23 from Rs 287.94 crore a year ago, it said in a regulatory filing. Net interest income went up from Rs 825.15 crore to Rs 857.18 crore, registering a growth of 3.88 per cent on quarterly basis.

The bank also declared a net profit of Rs 775.09 crore for the given fiscal, highest-ever in its history. The growth in net profit came at 1623.11 per cent compared to the previous year. Gross Non-Performing Asset (NPA) came down by 76 bps from 5.90 percent to 5.14 percent on year-on-year basis. Similarly, net NPA dropped by 111 bps from 2.97 percent to 1.86 percent.

Stock Performance

The bank’s stock has significantly underperformed Bank Nifty index over the last five years, losing 30.66 percent of its value. Meanwhile, the Nifty Bank index has provided returns of 67.72 percent over the same duration.