The Bank reported a significant rise in net profit by 75% in Q1, enabling them to explore good corporate deals based on liquidity and profitability. The bank plans to focus on credit growth of 12-13% for the fiscal year 2023-2024, targeting a CD ratio of 75-77%. Their strategy emphasizes profitability through quality credit growth.
The bank’s CASA growth has moderated in Q1 due to the rising interest rate scenario, with customers shifting funds to term deposits seeking higher interest rates. However, they expect this trend to reverse in the second half of the financial year when rate hikes are paused, and liquidity eases in the market.
Regarding unsecured advances, the RBI has tightened norms due to the increasing risks of default. The South Indian Bank has implemented stringent measures to mitigate risk, including credit checks, data analytics, and pre-approved personal and credit card loans. Their total unsecured loan book is within ₹3,000 crore, and they continuously monitor their portfolios to keep delinquency levels in check.
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