South Indian Bank has reported a net profit of ₹105 crore for FY20 against ₹248 crore in the previous year.

The decline came as a result of MTM (Marked to Market) provisions of ₹₹255 crore for Security Receipts and Covid-related provisions of ₹76 crore, which saw Q4 position slipping into the red, despite an all-time high operating profit of ₹533 crore. The bank registered a net loss of ₹144 crore during Q4 against net profit of ₹71 crore in Q4 last year.

VG Mathew, MD & CEO, said that but for the one-off provisions, the bank would have registered net profit of ₹104 crore for the quarter and ₹351 crore for the year.

The gross NPA remained stable at 4.98 per cent (4.92 per cent for FY19) and net NPA improved from 3.45 per cent to 3.34 per cent. The Provision Coverage Ratio (PCR) improved markedly from 42.46 per cent to 54.22 per cent during FY20.

Net Interest Income expanded 19 per cent and the operating profit increased 63 per cent. Net Interest Margin improved by 8 bps.

The bank had extended moratorium to all eligible customers. He said 36 per cent of the advances are covered by moratorium. The CRAR also improved significantly from 12.42 per cent to 13.41 per cent during the year.

The focus remains firmly on the retail, agriculture and MSME portfolios, and the same is visible in the growth numbers.

Published on June 26, 2020

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