South Indian Bank Q3 net up 32%, eyes Rs 1,000 cr QIP

South Indian Bank has registered 32% jump in net profit at Rs 280 crore for the third quarter ended December 31 and plans to raise Rs 1,000-crore through qualified institutional placement (QIP).

"We have registered the highest-ever quarterly profit at Rs 279.70 crore and are looking at raising Rs 1,000 crore through QIP issue to fund our expansion plans over the next three-year period," South Indian Bank CEO and Managing Director VA Joseph said.

"Our capital-raising plan of course depends on the revival of market condition," Joseph said.

The bank's total business increased 27.49% to Rs 58,883 crore in Q3 FY12, over the same period last fiscal. The deposits have gone up by Rs 6,836 crore from Rs 26,998 crore to Rs 33,834 crore. The advances increased by 30.55% at Rs 25,050 crore in Q3 FY12.

The bank's CASA increased from Rs 6,045 crore in Q3 last fiscal to Rs 7,280 crore, up 20.43%.

SIB said it earned Rs 2,754 crore during the 9-month period, as against Rs 1,879 crore in the previous year, a growth of 46.61%.

The capital adequacy ratio of the bank stood at 12.03% (under BASEL II standards) against the regulatory requirement of 9%.

The robust growth in business, coupled with low NPA enabled the bank to attain the present level of performance, Joseph said.

Its gross non-performing asset (NPA) ratio improved from 1.33% to 0.94% sequentially, while the net NPA ratio changed little at 0.24% during the three months period.

The bank is looking at 25% growth in FY12 and plans to increase the number of branches to 700 and ATMs to 625 by fiscal-end.

Source: Business Standard