South Indian Bank,Indian Bank

Though there has been a dent in the asset quality, the market largely concentrated only on the profitability and chose to celebrate. The bank for Q4FY13, posted a 26% (YoY) rise in net profit at Rs.154 crore. NII was up 17% at Rs.334 crore. The main driver of profitability was other income, which rose 46% at Rs.121 crore. NIM for the quarter came in at 3.21% v/s 3.10% in Q4FY12. Its loan book expanded 17% at Rs.31,816 crore. Deposits grew 21% at Rs.44,262 crore and this is helped buoy mainly by NRIs.

On the asset quality front, Gross NPA increased from 0.97% to 1.36% and the rise in net NPA was sharper from 0.28% to 0.78%.  Its provision for bad loans rose from Rs.12 crore to Rs.66 crore and this was on account of the higher provisioning which it had to make for National Agricultural Cooperative Marketing Federation of India Ltd (Nafed)) loans. The total amount for Nafed was Rs.150 crore of which it has provided for Rs.90 crore and the balance Rs.60 core is to be provided in current fiscal. Due to this, provision coverage ratio stands at 53.19% compared to the other PSU banks which provide over 80%. CAR of the bank for the quarter stood at 13.91% v/s 13.85% in Q3Fy13.