The first bank to always declare its results, the bank, with 500 branches, 26 extension counters and 226 ATMs seems to be doing well. YoY, deposits have gone up from Rs 12,834 crore to Rs 15,378 crore registering a growth of 19.82%. Advances increased from Rs 8,509 crore to Rs 10,643 crore registering a growth of 25.08%. The bank earned a total income of Rs 405.89 crore during the quarter as against Rs 321.97 crore for the previous year registering a growth of 26.06%. It posted a net profit of Rs.38.62 crore in as against Rs 30.37 crore for the previous year quarter, registering a growth of 27.16%.
The Capital adequacy ratio of the bank is high at 13.93% against the regulatory requirement of 9%. During the quarter, the Book value per share has increased from Rs 107.01 to Rs 132.70.
From April 09, once the banking sector would be made open for investments by the foreign banks and industrial groups, lot of interest would get noticed in these banks which would vastly improve their valuations. At the current rate of Rs.104, South Indian Bank makes a good buy as the downside risk is minimal.