South Indian Bank Posts 13% Jump In Gross Advances In September Quarter

South Indian Bank Ltd.'s gross advances jumped 13.07% on a yearly basis to Rs 84,741 crore in the July-September quarter, according to the provisional quarterly business update filed with the exchanges on Tuesday.

The bank reported an 8.62% growth in deposits at Rs 1.05 lakh crore in the second quarter, as compared to Rs 97,085 crore in the same period last year.

The CASA ratio—tthe proportion of deposits that come from low-cost current and savings accounts—ddipped by 18 basis points to 31.85% from 32.03% in the year-ago quarter. A higher CASA ratio indicates a lower cost of funds since lenders do not usually give any interest on current account deposits and the interest on savings accounts is low.

In the quarter ended June 2024, South Indian Bank's gross advances climbed 11.4% on a yearly basis to Rs 82,510 crore. The lender had also reported an 8.4% growth in deposits at Rs 1.04 lakh crore during the period.

The bank's core net interest income during the first quarter had grown by 7% to Rs 808 crore, on the back of an 11% growth in overall advances and 0.08% decline in the net interest margin at 3.26%.

The net profit for the first quarter stood at Rs 294 crore, up 46% year on year. The lender's other income rose 16.8% to Rs 422 crore.

On the asset quality front, the proportion of gross non-performing assets in the June quarter stood at 4.5%, lower as compared to 5.13% in the year-ago period.

Shares of South Indian Bank rose as much as 0.9% during the day to Rs 24.8 apiece on the NSE. However, it pared the gains to close 0.2% lower at Rs 24.53, compared to a 0.05% decline in the benchmark Nifty 50.

The stock has fallen by 1.28% in the last 12 months and by 0.54% year-to-date.