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KOCHI, July 18

THE net profit of the Thrissur-based South Indian Bank has grown by 22 per cent to Rs 18.81 crore during the first quarter of 2002-03, as against Rs 15.38 crore posted for the corresponding period of last year.

``The profit figure was arrived at after making provisions for NPAs, standard assets, staff entitlements and taxation,'' Mr A. Sethumadhavan, Chairman and CEO of the bank, said.

The operating profit grew by 17.6 per cent to touch Rs 44.65 crore (Rs 37.96 crore). The total income grew by 14.7 per cent to touch Rs 199.62 crore (Rs 173.98 crore). The total expenditure grew a shade lower at 13.9 per cent to Rs 154.97 crore (Rs 136.02 crore).

Despite the difficult conditions in the market and the resultant fall in spreads, the overall profitability of operations were maintained at a reasonable level, a fax from the bank said.

The 26.4 per cent growth in non-interest income to Rs 29.48 crore (Rs 23.33 crore) was one of the key factors for the good performance.

The ratio of operating profit to average working funds declined from 3.10 per cent to 2.59 per cent. The net interest margin also decreased from 3.28 per cent to 2.87 per cent. Although the bank could bring down the cost of deposits from 8.89 per cent to 8.29 per cent, the yield on advances declined more sharply from 13.15 to 12.14 per cent.

In line with the falling interest rate scenario, the average yield on investments also fell from 11.34 per cent to 10.82 per cent. Nevertheless, the overall return on securities transactions increased from 13.56 per cent to 13.92 per cent.

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