The South Indian Bank (SOUTHBANK) Q4 05/06 earnings summary

Executive summary

• FY 2005-06 net profit rose 485% to ₹50.90 crore from ₹8.70 crore, supported by NPA recovery and lower deposit costs.

• Deposits grew to ₹9,578.66 crore and advances to ₹6,745.33 crore; business expansion reached 19 states and union territories.

Financial highlights

• Total income was ₹833.59 crore versus ₹811.38 crore; net profit was ₹50.90 crore versus ₹8.70 crore.

• Interest earned increased to ₹761.32 crore from ₹709.00 crore; other income declined to ₹72.27 crore from ₹102.38 crore.

• Interest expense was ₹451.14 crore versus ₹452.07 crore; operating expenses rose to ₹226.06 crore from ₹187.08 crore.

• Advances rose 18.09% to ₹6,745.33 crore; deposits increased to ₹9,578.66 crore from ₹8,492.31 crore.

Outlook and guidance

• RBI approval covered 18 additional branches and 20 ATMs; a Regional Office at Pathanamthitta was also approved for opening in the current year.

• Current-year initiatives included RTGS, SIB Fast Money transfers, and Saral savings accounts with a ₹10 minimum balance.

• Credit demand and interest rates were expected to rise with economic activity; deposit growth lagging credit growth was expected to require stronger deposit mobilization across the sector.