South Indian Bank Ltd.’s stock increased by almost 8% on Thursday following the lender’s announcement of a than 200% increase in net profit for the quarter ending December 23 due to an improvement in asset quality.
In comparison to ₹103 crore during the same period last year, the bank’s net profit tripled to ₹305.4 crore for the third quarter. The bank’s shares were trading 7.75% higher at ₹30.60 per share at 12:40 PM. In the last five trading sessions, the share has increased by 15%.
The bank’s net interest income (NII), or interest earned less interest expended, decreased by 0.7% to ₹819 crore from ₹825 crore during the October–December period.
Gross non-performing assets (GNPA) for the lender decreased from 4.96% of total value in Q2FY24 to 4.74% in Q3. Bad loans, or net NPAs, decreased to 1.61% in Q3 from 1.70% in Q2.
Pre-provision operating profit (PPOP) for the bank was ₹483 crore as opposed to ₹203 crore for the same period last year-South Indian Bank.
