Mumbai: South Indian Bank Ltd on Tuesday reported 96% decline in its September quarter net profit due to higher provisions.
Net profit for the quarter stood at Rs4.32 crore against Rs110.52 crore a year ago.
Provisions and contingencies surged over 253% to Rs453.68 crore from Rs128.33 crore a year ago. On quarter-on-quarter basis, it jumped over 102% from Rs2,898.22 crore.
“Provisions in the quarter included depreciation of Rs252.39 crore on account of diminution in net asset value of investments in security receipts on the basis of NAV declared by asset reconstruction company,” the bank said in a notice to BSE.
Net interest income (NII) or the core income a bank earns by giving loans increased 13% to Rs503.22 crore versus Rs445.18 crore last year. Other income rose 92.23% to Rs280.47 crore from Rs145.90 crore in the same period last year.
Gross non-performing assets (NPAs) rose marginally 1.21% to Rs1,766.32 crore at the end of the September quarter from Rs1,745.28 crore in the same quarter last year.
As a percentage of total loans, gross NPAs stood at 3.57% as compared to 3.61% in the previous quarter and 3.96% in the year-ago quarter. Net NPAs were at 2.57% in the June quarter compared to 2.54% in the previous quarter and 2.77% in the same quarter last year.
Advances for the quarter rose 12.42% to Rs48,954.26 crore from a year ago. Deposits rose 11.55% to Rs67,142.10 crore
During the quarter, the bank identified Rs28.50 crore fraud at one of its branch and it has filed a first investigation report and initiated suitable recovery proceedings.
On Tuesday, South Indian Bank shares closed 6.24% up at Rs 30.05 per share, while the benchmark Sensex index gained 0.24% to close at 31924.41 points.