South Indian Bank Shares Surge On Record Profit In Q4

Shares of South Indian Bank Ltd. surged the most in over four months on Friday, after the lender reported record profit in fiscal 2023.

The bank also reported its highest net interest income in the quarter ended March, as well as FY23, according to its investor presentation.

NII rose 43.4% year-on-year to Rs 857.18 crore in the fourth quarter ended March. That compares with Rs 598 crore a year earlier, according to its exchange filing. The lender's net profit in FY23 stood at Rs 775 crore.

The board of directors recommended 30% dividend, subject to approval of the shareholders. The previous dividend was declared in FY19 at 25%.

South Indian Bank Q4 FY23 Highlights

• Net interest Income up 43.4% at Rs 857.18 crore (YoY).

• Net profit up 22.74% at Rs 333.89 crore (YoY).

• Gross non-performing assets ratio at 5.14% vs 5.48% (QoQ).

• Net non-performing assets ratio at 1.86% vs 2.26% (QoQ).

Shares of South Indian Bank trading rose as much as 10.74% at 10:55 a.m. compared with a 0.10% fall in the benchmark Nifty 50. Total traded volume so far in the day stood at 8.1 times its 30-day average. The relative strength index was at 69.3.

Of the five analysts tracking the company, three maintain a 'buy' rating and two recommend a 'hold' on the stock, according to Bloomberg data. The average 12-month target prices implies a potential upside of 8%.