Q4 2025 South Indian Bank Ltd Earnings Call Transcript
Key Points
- The South Indian Bank Ltd (BOM:532218) reported a net profit of INR1,303 crore for FY25, marking a 22% increase from the previous fiscal year.
- Total deposits grew by 6% year-over-year, reaching INR107,526 crore, with retail deposits excluding bulk deposits increasing by 7%.
- Gross advances rose by 9% to INR87,579 crore, with a technical write-off impact considered, the growth would be closer to 10%.
- The bank's capital adequacy ratio stands at a robust 19.31%, with a tier one ratio of 17.98%.
- The provision coverage ratio excluding write-offs improved by 311 basis points to 71.77%, and the overall gross NPA reduced by 130 basis points to 3.2%.
- The MSME loan book showed limited growth due to technical write-offs and reclassification, despite stabilization efforts.
- The net interest margin (NIM) for the quarter was slightly lower at 3.21%, indicating pressure on interest income.
- The bank's CASA growth was modest at 3%, partly due to the high interest rate environment affecting customer behavior.
- There is uncertainty regarding the impact of the RBI's draft circular on the gold loan business, which may require significant changes.
- The bank's strategy to shift from low-yield corporate loans to higher-yielding retail and MSME loans is still in progress, with a need for increased throughput.
Ladies and gentlemen, good day and welcome to the South Indian Bank Q4 and FY25 Post Earnings Conference Call hosted by ICIC Securities Limited.
(Operator Instructions)
Please note that this conference is being recorded. I now hand the conference over to Mr. Harvik Shah from ICIC Securities Limited.
Thank you and over to you Sir.
Yeah, thanks [Naya]. Hello everyone. Good afternoon. On behalf of ICICI Securities, we welcome you all to Q4 FY25 Post Earnest 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, Chief Operating Officer; Mr. Vinod Francis, CFO; and, Mr. Jimmy Matthew, GM and Company Secretary, and other officials of the time. I now hand the conference over to the management for the opening run out post which we will have a Q&N session.
Thank you, Hardik.
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