South Indian Bank Q3 Review - Asset Quality Issues Getting Sorted Gradually: Prabhudas Lilladher
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Prabhudas Lilladher Report
South Indian Bank Ltd. reported a loss of Rs 951 million (our estimate profit of Rs 484 million) on higher provisioning on pro-forma non-performing assets and enhancing provision coverage ratio which has been lower than peers.
Operating performance was also on weaker side with interest reversals leading to flattish net interest income growth. Pro-forma slippages were on higher side at Rs 13-14 billion with slightly more likely to come in Q4 with overall stress guidance of 3.7-3.9% in FY21 which will continue to require higher provisions.
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