SIB announces 90 per cent hike in profits in Q2

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Kochi, Oct 10 (UNI) Kerala-based South Indian Bank (SIB) today announced a 90 per cent increase in profits in the second quarter of 2007-08 compared to the same quarter in the previous year.

Addressing a press conference here, SIB Chairman V A Joseph said the bank's net profit for Q2 stood at Rs 35.69 crore compared to Rs 18.81 crore in the corresponding period of 2006-07.

The profit for the half-year ended September 30, 2007, was Rs 66.06 crore as against Rs 33.88 crore for that of last year.

With 100 per cent coverage of core banking solution for its branches, South Indian Bank was the first in the country to announce the results of Q2 in the current fiscal, he said.

Mr Joseph said the total business of the bank had increased by Rs 5,263 crore from Rs 17,816 crore to Rs 23,079 crore on year to year basis, registering a growth of 29.54 per cent. The bank earned a total income of Rs 668 crore during the current half year, regisering a growth of 33.60 per cent over Rs 500 crore income in the first half of the previous year.

Gross NPA had come down from five per cent to 3.41 per cent and net NPA had been drastically reduced from 1.69 per cent to 0.71 per cent. The bank was targeting a net NPA of .50 (point five zero) in the current fiscal.

He said the SIB had recently issued 20 million equity shares with a face value of Rs ten per share at a premium of Rs 153 per share, aggregating to Rs 326 crore, to Qualified Institutional Buyers.

The major investors in these shares were International Finance Corporation (4.80 per cent), Fidelity (2.77 per cent), Blue Ridge (2.99 per cent), India Capital Opportunities Fund (1.66 per cent), UTI Ventures (2.71 per cent), Moon Capital (1.83 per cent) De Shaw (1.66 per cent), Birla Sunlife (1.33 per cent), Acasia Partners (1.10 per cent) and First Gulf Bank (1.10 per cent).

The present FII holding in the bank was 47.46 per cent as against the permissible limit of 49 per cent, he said.

The bank had launched a new deposit scheme 'Youth Plus' and had so far netted Rs 150 crore in deposits under it.

Mr Joseph said while NRI remittances had not come down, there had been a slackening in the number of NRI deposits, probably on account of the rising rupee.

He said the bank was planning to open 15 new branches during the current fiscal including three each at Hyderabad, Chennai and Bangalore, two in Thiruvananthapuram and one at Delhi, to take the total number of SIB branches to 500.

The bank was targeting Rs 25,000 crore in business by the end of this fiscal, he added.

UNI

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