Shares of South Indian Bank fell over 4% to ₹25.88 as of 1:30 PM on January 21, 2025, following the announcement of its Q3 FY25 results. Despite reporting a rise in Net Interest Income (NII) and net profit, the stock witnessed selling pressure due to muted growth across key metrics.
Key Financial Highlights (Q3 FY25):
- Net Interest Income (NII):
The bank reported NII of ₹869.26 crore, up 6.14% YoY from ₹819.03 crore in Q3 FY24. This reflects consistent growth in its core lending operations. - Total Income:
₹2,817.96 crore, a 6.19% YoY increase compared to ₹2,653.68 crore in Q3 FY24. - Operating Profit:
₹528.84 crore, up from ₹483.45 crore in the same period last year. - Net Profit (PAT):
₹341.87 crore, registering a 12% YoY growth from ₹305.36 crore in Q3 FY24. - Gross Non-Performing Assets (NPA):
Gross NPA stood at ₹3,73,556 crore with a Gross NPA ratio of 4.30%. - Net NPA:
Net NPA was reported at ₹1,05,611 crore, representing 1.25% of net advances.
Market Reaction:
Despite positive growth in NII and PAT, the decline in share price indicates investor concerns regarding the bank’s asset quality and slower-than-expected growth in other income streams. Additionally, provisioning for contingencies increased to ₹660.4 crore, weighing on profitability.
Year-to-Date (YTD) FY25 Performance:
- Total Income: ₹8,358.28 crore, up from ₹7,506.62 crore in the corresponding period last year.
- Net Profit: ₹960.69 crore, reflecting robust growth.
- Operating Profit: ₹1,586.77 crore, showcasing improved efficiency.
Outlook:
South Indian Bank’s Q3 FY25 results highlight steady progress in its financial performance, driven by improved interest income and operational efficiency. However, higher provisions and investor concerns over asset quality continue to put pressure on the stock.
