South Indian Bank (SIB) is planning to raise up to Rs 750 crore to strengthen balance sheet and exploit growth opportunities. The Thrissur-based lender in a regulatory filing to the exchanges said that it will focus on 6Cs , which includes, raising capital , CASA, cost-to-income, competency building, customer focus, and compliance in the medium term to achieve profitability through quality credit growth.
Under the new plan ‘Vision 2024’, the bank aims to reach a loan book of Rs 1 lakh crore, CASA mix of 35%, PCR of over 65% and NIM of 3.5% by 2024. The plan includes vertical structure for assets business and data analytics team to play a critical role in business and collections.
SIB reported a 23% year-on-year decline in its net profits for the second quarter at Rs 65.09 crore mostly on additional provisioning. Gross NPA of the bank stands at 4.87% as against 4.92% last year and Net NPA improved to 2.59% as against 3.48% in the year ago period. Net Interest Margin improved from 2.61% to 2.78% during Q2 of the current fiscal.
Bank has taken approval from the shareholders for raising the equity capital during the fiscal for an amount not exceeding Rs 750 crore, bank sources said.
Approval of shareholders was also obtained in the last AGM for raising of funds in Indian or foreign currency by way of issuance of debt securities up to Rs 5OO crore.
The lender has also obtained approval of shareholders for increasing the authorised capital of the Bank to Rs 350 crore.
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