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South Indian Bank, a private sector lender, has announced strong financial performance for the second quarter ended September 2024, reporting an 18% surge in net profit to Rs 325 crore compared to Rs 275 crore in the corresponding period last year. The bank's robust performance reflects its strategic initiatives and positive market conditions. This growth was driven by a healthy increase in total income and a successful reduction in Non-Performing Assets (NPAs).
The bank's total income surged to Rs 2,804 crore in the second quarter, significantly higher than the Rs 2,485 crore recorded in the same period last year. This robust growth in total income is a testament to the bank's successful expansion strategies and the positive economic environment. The bank's interest income also witnessed a considerable increase, reaching Rs 2,355 crore during the quarter compared to Rs 2,129 crore in the previous year's corresponding period. This healthy growth in interest income indicates the bank's ability to effectively manage its assets and generate returns from lending activities.
A key highlight of the bank's performance was the substantial decline in Non-Performing Assets (NPAs). By the end of September 2024, gross NPAs stood at 4.40% of gross loans, a notable decrease from 4.96% a year ago. This positive development showcases the bank's proactive approach to managing asset quality and minimizing credit risks. Similarly, net NPAs or bad loans also witnessed a significant decline, reaching 1.31% from 1.70% at the end of the second quarter of the previous fiscal. This improvement in asset quality strengthens the bank's financial stability and enhances its ability to support future growth.
Source: South Indian Bank Q2 Profit Rises 18% to Rs 325 Crore