Thrissur-based SOUTH INDIAN BANK (SIB) has registered its highest ever quarterly net profit of Rs 82.49 crore for the three months ended June, clocking a growth of 41.15 per cent over the year-ago period.
The bank had posted a net profit of Rs 58.44 crore in the April-June quarter last year.
SIB's business has increased by Rs 13,556 crore from Rs 40,217 crore to Rs 53,733 crore on year-to-year basis, a growth of 33.71 per cent, the bank's CEO and Managing Director V A Joseph said while announcing the first quarter results.
While deposits went up by 35.54 per cent to Rs 31,662 crore from Rs 23,331 crore (y-o-y) during the quarter, advances increased by 31.18 per cent from Rs 16,886 crore last year to Rs 22,151 crore.
Low-cost, or CASA (current account saving account), deposits increased from Rs 5,852 crore to Rs 6,789 crore, registering a growth of 16.02 per cent, he said.
The bank earned a total income of Rs 820.34 crore during the quarter as against Rs 581.78 crore last year, a growth of 41.01 per cent. It maintained the net interest margin (NIM) at the same level of 2.8 per cent as in the first quarter of June, 2010-11, he added.
The bank planned to raise Rs 1,000 crore through QIP (Qualified Institutional Placement), which will be completed by September this year.
Joseph said the bank planned to open 57 more branches in the current fiscal to take the total number of branches to 700.
Currently sib is trading at Rs.24 and with an EPS around 2.6 and PE ratio near 10.So i continue my buy rating on south indian bank upto a short term target of 32 on scrip.