South Indian Bank Q3 Results: Net Profit Rises 12% YoY to ₹342 Crore, Total Income Grows 6.9%
South Indian Bank has reported a robust 12% year-over-year growth in net profit for the third quarter of FY25, despite market concerns reflected in share price declines post-results.
Financial Performance Overview
South Indian Bank’s net profit for the quarter ending December 2024 (Q3FY25) stood at ₹341.87 crore, up 12% compared to ₹305.36 crore in the same quarter last year. Sequentially, net profit rose by 5.3% from ₹324.69 crore reported in the July-September quarter (Q2FY25).
Total income for Q3FY25 was ₹2,818 crore, a year-over-year growth of 6.88% compared to ₹2,636.5 crore in the year-ago period. However, on a sequential basis, total income remained nearly flat, comparable to ₹2,804.19 crore reported in Q2FY25.
Stock Market Reaction
Despite the positive financial performance, South Indian Bank’s share price experienced a sharp decline post-results. Opening at ₹27.15 on the BSE, marginally higher than the previous close of ₹27.01, the stock plunged to an intraday low of ₹25.51, marking a 5% decline. This indicates investor concerns over certain aspects of the quarterly performance and broader market sentiment.
Business Updates for Q3 FY25
- Gross Advances:
The bank reported gross advances of ₹86,965 crore for Q3FY25, an 11.9% increase compared to ₹77,686 crore in the same quarter last year. - Total Deposits:
Total deposits grew by 6.28% year-over-year, reaching ₹1,05,378 crore, compared to ₹99,155 crore at the end of December 2023. However, deposits remained nearly flat sequentially, as the bank reported ₹1,05,451 crore in deposits during Q2FY25. - CASA Ratio:
The Current Account Savings Account (CASA) ratio stood at 31.16%, slightly lower than the 31.8% reported at the end of December 2023 and September 2024 quarters, reflecting a marginal decline in the bank’s low-cost deposit base.
Market Outlook
While the bank demonstrated steady growth in profits and advances, the market’s reaction reflects concerns about the flat sequential growth in total income and CASA ratio. Investors are likely awaiting further clarity on the bank’s strategy to improve its financial and operational metrics in the coming quarters.
South Indian Bank’s continued focus on strengthening its asset quality and operational efficiencies will be key to sustaining its growth trajectory and regaining investor confidence.
Disclaimer:
This article is for informational purposes only and does not constitute investment advice. Always consult with a financial advisor before making investment decisions.
