South Indian Bank Q3 Results Review - One-Off Provision Marred Earnings: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .ICICI Securities Report.South Indian Bank Ltd., post the onboarding of new Managing Director in Sep-20, continues to deliver in line with its Vision 2025 programme. It focused on growing the balance sheet in a calibrated manner with emphasis on net interest margins and asset quality. It has since churned ~54% of the overall loan book and operating metrics in the new book (originated post Sep-20) is at par with, or better than, peers. Gross non-performing loan in the new book stood at 0.06% with special mention account-II of 0.22%. Notably, South Indian Bank delivered an average return on asset of 0.80% during the past four quarters with provision coverage ratio (excluding write-offs) improving to 60% versus 48% in Q3 FY22. While Q3 FY23 reported earnings (down more than 50% QoQ) were marred by a one-off provision towards security receipts (Rs 3.1 billion), improving trend in core operating performance continued. .Click on the attachment to read the full report:.Indian Bank Q3 Results Review - Strong Quarter, Earnings To Gradually Improve: Anand Rathi.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

South Indian Bank Q3 Results Review - One-Off Provision Marred Earnings: ICICI Securities

But Underlying Business Trends Continue To Impress

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