Q2 2025 South Indian Bank Ltd Earnings Call Transcript
Key Points
- The South Indian Bank Ltd (BOM:532218) reported a net profit of INR325 crores for Q2 FY25, marking an 18% increase from INR275 crores in Q2 FY24.
- Total deposits grew by 9% to INR105,451 crores, while gross advances increased by 13% to INR84,714 crores.
- The bank's net interest margin for the quarter was 3.24%, with a year-on-year growth in average advances of 14%.
- The capital adequacy ratio stands at 18.04%, with a Tier 1 ratio of 16.63%, indicating strong capital health.
- The bank has launched new systems for faster processing of auto and mortgage loan applications, aiming to boost retail and MSME books.
- The bank's SME book has been declining over the last two quarters, with slippages closer to 4%, indicating challenges in this segment.
- Despite efforts, the bank has not been as successful as desired in obtaining allied business from corporate clients.
- The cost-to-income ratio remains high at 58.7%, although efforts are being made to reduce it by 1,000 basis points over three years.
- The old loan book, which includes a significant portion of overdrafts, continues to contribute to higher GNPA levels, currently at 16-17%.
- The bank's strategy to link corporate loans to treasury bills has resulted in adverse impacts on yields due to recent treasury bill movements.
Ladies and gentlemen, good day, and welcome to the South Indian Bank Q2 FY25 Earnings Conference Call hosted by ICICI Securities. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Hardik Shah from ICICI Securities. Thank you, and over to you, Mr. Shah.
Yes. Hello, everyone. Good afternoon. On behalf of ICICI Securities, we welcome you all to the Q2 FY25 post earnings conference call of South Indian Bank.
From the management side, we have with us MD and CEO, Mr. P.R. Seshadri; Executive Director, Mr. Dolphy Jose; Mr. Anto George T., CGM, HR and Operations; Mr. Sanchay Sinha, CGM, Head Retail Assets; Mr. Vinod Francis, GM and CFO; Mr. Jimmy Matthew, GM and Company Secretary; and other officials.
I now hand the conference over to the management for the opening remarks, post which, which will -- we will have a Q&A session. Over to you, sir.
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