Shares of South Indian Bank Ltd rose more than 10% in early trade on May 12 on the back of strong fourth-quarter results. The private sector lender reported a 22.74% rise in net profit at Rs 333.89 crore for the March 2023 quarter on May 11. The bank posted a net profit of Rs 272.04 crore in the same period last year.
Shares of the bank were up more than 10% at Rs 18 per share on the NSE at 10:11 am.
Operating profit in the fourth quarter of FY23 rose by more than 95% to Rs 561.55 crore from Rs 287.94 crore a year earlier, South Indian Bank said in a regulatory filing. Net interest income increased by 3.88% quarter-on-quarter to Rs 857.18 crore from Rs 825.15 crore.
The bank also announced a record-high net profit of Rs 775.09 crore for the fiscal year. Net profit increased by 1623.11% year-on-year. Gross non-performing assets (NPA) fell 76 basis points year-on-year, from 5.9% to 5.14%. Likewise, net NPA fell 111 basis points, from 2.97% to 1.86%.
The bank’s shares have significantly underperformed the Bank Nifty index over the past five years, losing 30.66% market value. Meanwhile, the Nifty Bank index has returned 67.72% over the same period.