The Kerala-based private lender posted a net loss of Rs 187 crore in the September quarter as against Rs 65 crore profit in the year-ago period on higher provisions and lower interest income.
Following the earnings update, shares of the bank tanked over 12 per cent to Rs 9.22, before recovering to Rs 9.78 at 10.05 am.
The old generation private sector bank’s operating profit fell 71 per cent at Rs 112 crore from Rs 391 crore in the same period. Interest income fell to Rs 1,647 crore from Rs 1,899 crore.
Shares of South Indian Bank have underperformed the BSE Sensex in the year 2021 so far as it has added only nine per cent against a 28 per cent rise in the BSE barometer. The scrip is down as much as 3 per cent in the last one month.
Provisions increased to Rs 362 crore from Rs 303 crore while asset quality worsened. The bank’s gross NPA ratio rose to 6.65 per cent at the end of September from 4.87 per cent a year back. Net NPA rose to 3.85 per cent.
