About the Company
A bank has steady growth. The bank’s asset quality recorded further improvement both in terms of gross and net ratios.
About The Results
South Indian Bank has posted a good performance for the quarter ended
Net interest income (NII) stood at Rs 146 crore as against Rs 92.6 crore.Net interest margin registered an improvement from 2.61% during the Q3 to 3% of the corresponding period of this fiscal. Return on Average Assets (annualized) for the Q3 increased to 1.11% compared to 0.98% in Q3FY08. Capital adequacy ratio was at, after the recent bonus issue of shares, at 14.62% vis-à-vis the regulatory minimum of 9%.
Gross NPA of the bank declined to 1.85% as compared to 2.53% a year ago. As on December 2008, net NPA ratio came down to 0.39% against 0.49% in December 2007.
For Q4, the Bank expects to maintain NPAs and profit margins at same levels, if not better. The net interest incomes have gone up due to the fall in the PLRs. 20% of the Bank’s deposits come from NRI’s. Yield on advances have gone up at 11.48%. the Bank will reduce its PLR once the others set the trend but surely, there is one more round of cuts expected.
FIIs are holding 43% while 12% are held by banks, insurance companies, FIs, and MFS and 45% is held by the general public. Prominent shareholders of the bank are Federal Bank (4.94%) IFC, Washington (4.80%) Goldman Sachs (3.93%) LIC (1.77%) Union Bank (1.06%) and SBI 1.02%.
About The Stock
The stock seems to be good for long term prospective but no certain gain is to be expected in short to medium term.
Disclaimer : I do not have any personal holding in this stock.