homeearnings NewsSouth Indian Bank aims for steady loan growth and enhanced net interest margin in FY24
South Indian Bank aims for steady loan growth and enhanced net interest margin in FY24
CEO of South Indian Bank, Murali Ramakrishnan, recently shared the bank's growth projections and strategic targets for FY24 during an interview on CNBC-TV18. He said, “We are looking at 13 percent growth for the full year and we have done well compared to the guidance we have been giving.”
South Indian Bank, a private sector lender, reported a significant 75.5 percent year-on-year (YoY) increase in net profit, reaching Rs 202.3 crore for the first quarter ended June 30, 2023. According to a regulatory filing, in the same quarter of the previous year, the bank's net profit stood at Rs 115 crore.
Furthermore, the bank experienced a noteworthy surge of 53.9 percent in its Net Interest Income (NII), which represents the difference between the interest income earned from lending activities and the interest paid to depositors. The NII for the quarter amounted to Rs 807.7 crore, compared to Rs 603.4 crore in the corresponding quarter of FY23.
Murali Ramakrishnan, the Managing Director & CEO of South Indian Bank, recently shared the bank's growth projections and strategic targets for the fiscal year 2024 during an interview on CNBC-TV18. With an optimistic outlook, the bank foresees loan growth of 13 percent for FY24, along with plans to achieve a net interest margin of 3.5 percent by the year's end.
He said, “We are looking at 13 percent growth for the full year and we have done well compared to the guidance we have been giving.”
The target reflects the bank's commitment to supporting various sectors of the economy by providing much-needed credit facilities. As India's economy continues to recover and expand, South Indian Bank aims to play a pivotal role in fuelling growth through its lending activities.
Another key area of focus for South Indian Bank in FY24 is to enhance its Net Interest Margin (NIM) to 3.5 percent by the end of the fiscal year. NIM is a crucial metric that measures the difference between the interest income generated from loans and investments and the interest expenses paid on deposits and borrowings.
A higher NIM indicates improved profitability for the bank, allowing it to generate more earnings from its core lending and investment activities. Achieving a NIM of 3.5 percent would position South Indian Bank on a path of sustained financial strength, enabling it to reinvest in its operations, technology, and customer-centric initiatives.
For more details, watch the accompanying video
(Edited by : Sangam Singh)
First Published: Jul 21, 2023 5:29 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Supreme Court refuses plea seeking 6-year poll ban on PM
May 14, 2024 7:14 PM
Punjab Lok Sabha elections 2024: A look at BJP candidates
May 14, 2024 7:06 PM
Lok Sabha polls: EC disposes of 90% complaints related to MCC violations
May 14, 2024 4:45 PM
Jharkhand Lok Sabha elections 2024: All about INDIA bloc candidates
May 14, 2024 2:52 PM