Thrissur (Press Release): South Indian Bank has achieved an impressive growth in net profit for the third quarter of 2007-08. The net profit for the third quarter of the current financial year is Rs.40.72 crore as against Rs. 24.84 crore for the corresponding period in previous year registering a growth of 63.93%. The cumulative profit for the period ended 31st December 2007 is Rs. 106.78 crore as against Rs. 58.72 crore (excluding extra ordinary profit on sale of BhOB shares) for that of previous year.

With the advantage of total implementation of CORE Banking Solution in all of the branches/ offices, the Bank was the first in the industry in India to announce results for Q2 of the current fiscal.

The total business of the bank has increased by Rs. 5878 crore from Rs. 18,626 crore to Rs. 24,504 crore on year to year basis registering a growth of 31.56%. While the deposits has gone up by Rs. 3,960 crore from Rs.10,925 crore to Rs. 14,484 crore registering a growth of 32.58%, the advances has increased by Rs. 2,318 crore from Rs. 7,702 crore to Rs. 10,020 crore registering a growth of 30.10%. The bank earned a total income of Rs. 1043.29 crore during the 9 months period registering a growth of 39.36% as against Rs. 748.63 crore for the same period of the previous year.

The Bank which has been rated as a “Top NPA Manager” in a recent “ASSOCHAM ECO PULSE” study for having reduced Net NPA substantially within one year could also reduce Gross NPA from 4.29% to 2.53% as on 31-12-07 .The Net NPA has been drastically brought down from 1.49% to 0.49%.

With the recent issue of two crore equity shares with a face value Rs. 10 per share at a premium of Rs. 153 per share aggregating to Rs. 326 crore to Qualified Institutional Buyers the bank has now crossed the milestone of Rs.1000 crore in total net worth . The major investors under the above issue include M/s International Finance Corporation (4.80%), Fidelity (2.77%), Blue ridge (2.99%), India capital Opportunities Fund (1.66%), UTI Ventures (2.71%), Moon Capital (1.83%), De Shaw (1.66%), Birla Sunlife (1.33%), Acasia Partners (1.10%), First Gulf Bank (1.10%). The present holding of equity by FII in the bank is at 47.46% as against the permissible limit of 49%.

The Capital adequacy ratio of the bank is as high as 14.92% against the regulatory requirement of 9%. In spite of additional issue of capital, the Book value per share has increased from Rs. 102.45 to Rs.127.85.

South Indian Bank(SIB) has now established the largest network , in the private sector ,of Core Banking branches next only to ICICI Bank , HDFC Bank and AXIS Bank. As on date the Bank has established a network of 487 CBS branches and 27 CBS extension counters and also 200 online ATM Centres. The bank is planning to open 13 more branches during the current financial year to take the total number of branches to 500.The Bank had declared 2007-08 as the year of youth and has launched a novel deposit scheme “YOUTH PLUS” with technology features focusing the younger generation.

The bank has recently tied up with ICICI Prudential life insurance for the selling of insurance products at over 296 SIB branches in Kerala. “This is a major step towards growing the fee-based income of the bank. This partnership would help the policyholders of ICICI Prudential to pay their first as well as renewal premiums in cash at over 296 branches of the SIB in Kerala. Our focus during the next three months will be on increasing the CASA funds as well as non interest income by sale of mutual funds and insurance products. ” said VA Joseph, Chairman and CEO.