South Indian Bank's Q1 FY25 financials show mixed results, with positive sales trend and decrease in NPAs

South Indian Bank, a midcap private bank, has recently declared its financial results for the quarter ended June 2024. The bank’s performance has remained flat in this quarter, with a score of 4 out of 15, as compared to the previous quarter.

However, there are some positive aspects to the bank’s financials. The interest earned in this quarter was the highest at Rs 2,314.41 crore and has been growing consistently in the last five quarters. This indicates a positive sales trend in the near term. The bank has also shown a decrease in its gross and net non-performing assets (NPA) in the last five quarters, which is a good sign. Additionally, the profit after tax (PAT) for the nine-month period has grown by 38.82% year on year, showing a positive trend in the near term. The bank also has a high amount of cash and cash equivalents, indicating an improvement in short-term liquidity.

On the other hand, the bank’s profit before tax (PBT) has fallen by -916.0% over the average PBT of the previous four quarters, which is a cause for concern. The non-operating income of the bank is also high, at 106.84% of the PBT, indicating a reliance on non-business activities for income.

Overall, South Indian Bank’s financial performance for the quarter ended June 2024 has been mixed, with some positive and negative aspects. MarketsMOJO has given a ‘Hold’ call for the bank’s stock, suggesting a neutral stance for investors.