South Indian Bank Share Price Surges As Q2 Net Profit Beats Estimates

South Indian Bank's share price gained for the fourth consecutive session as it reported a 18.2% year-on-year rise in its net profit to Rs 325 crore in the quarter ended September, beating Bloomberg's consensus analysts expectations of Rs 254.3 crore.

The lender's gross non-performing assets were a little lower at 4.4%, compared to 4.5% a quarter ago. Its net NPA came in at 1.3%, compared to 1.4% a quarter ago. Net interest income for the period rose 6% on the year to Rs 882 crore.

Other income for the period came in at Rs 449.47 crore, compared to Rs 355.77 crore in the corresponding quarter a year ago, according to the company's exchange filing. Operating margin for the quarter expanded to 19.62%, as against 18.55% a quarter ago and 18.53% in the year ago period.

The stock extended its gains for a fourth consecutive session, adding 5% in the rally.

On Wednesday, the stock rose sharply immediately after the results came out. It was up as much a 5.43% to Rs 25.25 apiece, the highest level since Sept. 26. It pared gains to trade 3.43% higher at Rs 24.74 apiece, as of 12:41 p.m. This compares to a 0.5% decline in the NSE Nifty 50.

The shares have risen 1% on a year-to-date basis and 11.2% in the last 12 months. Total traded volume so far in the day stood at 2.03 times its 30-day average. The relative strength index was at 55.39.

Out of six analysts tracking the company, four maintain a 'buy' rating and two recommend a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 3.4%.