South Indian Bank Q3 Review - Asset Quality Issues Getting Sorted Gradually: Prabhudas Lilladher

BQ Blue’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 BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint 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 BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.