South Indian Bank posted a net loss of Rs.187 crore for Q2Fy22 because as a prudent measure the bank has made an additional provision of Rs 160 crore.
Gross NPA fell from 8.02% to 6.65% while Net NPA too fell from 5.05% to 3.85%.
Bank could improve the provision coverage ratio to 65.02% as on September 30, 2021, as against 60.11% as on June 30, 2021.
Murali Ramakrishnan, managing director and chief executive officer of the Bank, while announcing the results stated that the prevailing COVID Pandemic scenario in the country, impacted the growth in the Business and Personal loan segment. However, the Bank could register reasonable growth in the desired segments like well rated Corporates and Gold Loan portfolios during the period.
The market gave this performance a thumbs down, opening 9% lower at Rs.9.57 and hitting an intraday low at Rs.9.22, down almost 12.5%. Its 20% LC for the day is at Rs.8.42.