MUMBAI - South Indian Bank (SIB) has reported significant developments in its financial performance and strategic initiatives, highlighting a strong focus on retail sectors and corporate loans. The bank's recent emphasis on digitalization and process improvements was underscored by Managing Director & CEO P R Seshadri today.
SIB's growth has been notable in its gold loan book, which saw an 18% year-on-year increase to Rs 15,369 crore ($1 = ₹83.11). This expansion is part of the bank's broader strategy to strengthen its retail loan portfolio. The bank's asset quality has also seen marked improvement, with gross non-performing assets (NPA) declining to 4.74% and the net NPA ratio falling to approximately 1.6%.
The bank's net profits for the third quarter of the fiscal year 2023-24 have surged, recording a substantial 197.42% jump to Rs 305.6 crore compared to the same quarter in the previous year. This profit increase marks a significant milestone for the bank's financial health and operational efficiency.
In a strategic move to bolster its corporate loan portfolio, SIB has maintained a focus on high-quality credit, with "96-97% rated A" and a smaller portion "5 to 6 percent rated AAA," according to CEO P R Seshadri. The bank's commitment to quality in its corporate lending practices is evident in these figures.
Additionally, SIB has expanded its consumer banking services, issuing over 377,000 credit cards with an outstanding balance of Rs 1,427 crore. This indicates the bank's successful penetration into the consumer credit market and its ability to cater to the growing demand for credit card services.
In line with its expansion strategy, SIB is set to increase its physical presence with the opening of a new branch in Ayodhya, reflecting the bank's commitment to extending its reach and serving a wider customer base.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.