The South Indian Bank shares fell as much as 7 per cent to intraday low of Rs 23.60 after the private lender reported rising bad loans in the June quarter. South Indian Bank's net profit slumped by half because of the jump in stressed assets.
Gross non-performing assets increased 11 per cent sequentially to Rs 714 crore. As a percentage of total advances, GNPA stood at 1.85 per cent against 1.71 per cent in the March quarter. Similarly net nonperforming assets, as a percentage of total advances, increased to 1.21 per cent from 0.96 per cent sequentially.
South Indian Bank reported a net profit of Rs 65.3 crore, an annual decline of 49 per cent between April and June. Its net interest income of Rs 340 crore was flat as compared to the corresponding quarter last year.
South Indian Bank's other income (comprising of fee income and treasury gains) declined to Rs 104 crore from Rs 121 crore year-on-year.
Shares in The South Indian Bank ended 5.13 per cent lower at Rs 24.05 apiece, underperforming the benchmark Bank Nifty, which closed 1 per cent higher.
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