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South Indian Bank conducted a conference call on 22 January 2025 to discuss
the financial results for the quarter ended December 2024. PR Sheshadri, MD
& CEO of the company addressed the call:
Highlights:
The bank has recorded the highest ever net profit in
Q3FY2025, while recording 12% growth to Rs 342 crore for Q3FY2025.
The bank has recorded 6% growth in deposits to Rs 105387
crore end December 2024, despite the bank having recorded reduction in bulk
deposit by Rs 1000 crore in Q3FY25.
The advances of the bank have increased by 12% to Rs 86966
crore end December 2024.
The overall business of the bank has increased by 9% to Rs
192363 crore end December 2024.
The net interest margin of the bank was steady on a yoy
basis at 3.19%, while there is a sequential decline in the margin due to
increase in cost of funds.
The bank has improved ROA to 1.12% and RoE to 13.93% in
Q3FY2025.
The bank is well capitalized with a capital adequacy ratio
of 18% with Tier I ratio at 16.68% end December 2024.
The Casa deposits increased by 4% to Rs 32832 crore end
December 2024.
The PCR excluding technical write offs has improved by 465
bps yoy to 71.73% and including technical write offs increased to 81.07% end
December 2024.
The GNPA ratio has declined by 44 bps yoy to 4.3% and net
ratio by 36 bps yoy to 1.25% end December 2024.
The gold loan book has increased 10% yoy to Rs 16966 crore
end December 2024. The LTV ratio stood at 70.6% and ticket size was at 1.8
lakh.
The auto loans and housing loans are the key focus areas of
the bank with reasonable success. The bank has recorded a 125% surge in the
home loan disbursements and 67% jump in auto loan disbursements in Q3FY2025.
The personal loan book stood at Rs 2249 crore and credit
card at Rs 1486 crore end December 2024.
The bank has a significant amount of loan book linked to the
repo rate and corporate loan book is linked to the T-bills and it would have an
impact on margins when the RBI reduces policy rate.
The bank is very tightly managing the cost and for the
second straight quarter, the revenue growth has been higher than expenses
growth. The bank has targeted to reduce cost to income ratio by 1000 bps over
three years.
The bank aims to raise the share of high yield businesses, o
he focus is on retail and MSME businesses.
The natural rate of deposit growth of the bank is at 8 to
10% given the pricing that the bank offers.
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