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Shares of South Indian Bank saw a slight increase today, opening at ₹25.10, a 0.6% rise from the previous session’s closing value, following the announcement of increased lending rates. The stock began trading this morning at 09:30 IST with indications of stable asset quality.
The modest uptick comes on the heels of the bank’s recent financial performance report. On October 19, South Indian Bank reported a substantial 23.2% year-over-year increase in net profit for the second quarter of the fiscal year 2024, totaling ₹275 crore (INR100 crore = approx. USD12 million). This growth is attributed to a notable improvement in asset quality, as evidenced by the reduction in Gross Non-Performing Assets (GNPA) from 5.67% to 4.96% compared to last year’s same quarter.
The bank’s strategic focus on personal and gold loans has contributed to this positive outcome. Personal loans experienced an increase of ₹684 crore, bringing the portfolio size to ₹2,107 crore. Additionally, gold loans expanded by ₹2,087 crore year-over-year, resulting in a robust portfolio valued at ₹14,998 crore.
InvestingPro Insights
In light of the recent performance of South Indian Bank (SIBK), InvestingPro provides useful real-time data and tips. The bank’s market cap stands at a respectable $270.57 million, with a P/E ratio of 12.15 as of Q3 2023. The bank has also seen a revenue growth of 6.74% over the last twelve months leading up to Q3 2023.
InvestingPro Tips highlight that the bank has been consistently increasing earnings per share and is a prominent player in the Banks industry. Despite a slowdown in revenue growth recently, the bank has shown a high return over the last year, and analysts predict the company will remain profitable this year.
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