South Indian Bank registers Rs 50-crore loss in Q3

South Indian Bank on Thursday announced a net loss of Rs 50.31 crore in its third quarter results largely due to higher provisions.

The Thrissur-based lender had reported a net loss of Rs 91.62 crore during the third quarter of FY21 and a net loss of Rs 187.06 crore in the preceding second quarter.

Murali Ramakrishnan, MD & CEO of the bank, said that the bank could reduce the net loss due to good recovery and collections. But for the additional provision of Rs 43 crore in Q3,the net loss of the Bank would have been Rs 18.05 crore only, he added.

“The bank managed to contain fresh slippages for the quarter to Rs 380 crore, much below the anticipated Rs 400-450 crore. During the nine-month period ended December 31, 2021, the bank could make a robust recovery and upgradation in NPA accounts amounting to Rs 896 crore compared to Rs 218 crore during the corresponding period of previous year and the same had helped the bank in containing the GNPA level,” he added.

Gross non-performing assets (NPA) as a percentage of gross advances is reported at 6.56 % for Q3FY22, from 6.65% in the preceding quarter and 4.90% in the year -ago period. Net NPA as a percentage of gross advances stands at 3.52 %, against 3.85% in the preceding quarter and 2.12 % in the year-ago quarter. Meanwhile, during this quarter Bank increased the provision coverage ratio from 65.02% to 68.08% on quarter-on-quarter basis with the help of additional provision of Rs 43 crore and capital adequacy ratio improved from 14.47% to 15.68% on year-on-year basis.

Ramakrishnan said that the bank could register growth in the desired segments of liabilities like CASA & retail deposits and assets like gold loan, agri, auto loan portfolio and the share of highly rated accounts in corporate segment during the period.

from Banking & Finance – The Financial Express https://ift.tt/33Uevjo