South Indian Bank (SIB) reported a record net profit of ₹1,455 crore for the financial year 2023-24, a substantial increase from ₹837.69 crore in the previous year. The bank’s board has recommended a dividend of 45%, equating to ₹4.50 per equity share of ₹10 face value, subject to shareholder approval.
Net interest income (NII) grew by 13.74% to ₹2,238.94 crore, driven by improved net interest margin (NIM) which stood at 3.05%. Total business increased by 18.84% reaching ₹3.23 lakh crore, with deposits growing by 19.88% to ₹2.04 lakh crore and advances increasing by 17.28% to ₹1.19 lakh crore.
Gross Non-Performing Assets (GNPA) decreased from 3.69% to 2.54% and Net Non-Performing Assets (NNPA) reduced from 1.28% to 0.83%. The bank reported improved asset quality with a significant reduction in slippage ratio to 0.83% from 1.21%. Provision Coverage Ratio (PCR) improved to 72.43%.
SIB focused on digital transformation, with 93.2% of transactions now happening through digital channels. The bank’s capital adequacy ratio (CRAR) stood comfortably at 15.14%. Operating expenses increased by 12.24% to ₹2,649.68 crore.
The bank aims to continue its growth trajectory by focusing on retail advances, particularly in housing and vehicle loans, and expanding its branch network strategically. SIB also intends to strengthen its digital capabilities and improve customer service. The board has approved raising up to ₹2,000 crore through various modes including Qualified Institutional Placement (QIP) or public issue to augment capital for future growth.
