Shares of this private-sector Bank under Rs 50 jumped up to 3 percent on Thursday after the Bank’s Board of Directors approved the proposal for fundraising for an amount not exceeding Rs 1,750 crores.
With a market capitalization of Rs 5,593.90 crores, the stocks of South Indian Bank Limited opened their trading hour on Thursday at Rs 27.19 and closed at Rs 26.73.
The private Bank’s scrip witnessed an intra-day high price of Rs 27.45 exhibiting a gain of approximately 3 percent compared to the previous close of Rs 26.68 apiece.
In a recent regulatory filing with the exchange, the Bank intimated that its Board of Directors (BOD), in a meeting held on 27th December 2023, approved the proposal for fundraising for an amount not exceeding Rs 1,750 crores by way of issue of equity shares of the Bank on a right basis to its existing shareholders.
The issue will be done as on the Record Date that is to be fixed in due course of time and as per the applicable provisions of the Companies Act, 2013, SEBI Regulations, 2018, and other applicable laws.
During the recent financial quarters, the Bank’s basic business indicators such as the total income and net profits showed positive movements with the former increasing from Rs 2,386.06 crores during Q1FY23-24 to Rs 2,484.48 crores during Q2FY23-24 and the latter, during the same period, rose from Rs 202.58 crores to Rs 274.89 crores.
Coming onto the Bank-specific ratios, the return on equity (RoE) as well as the return on capital employed (RoCE) showed a drastic increase in numbers with the former moving up from 0.77 percent during FY21-22 to 12.38 percent during FY22-23, and, the latter, keeping the timeframe the same, shifted from 2.10 percent to 14.15 percent.
In addition, the net non-performing assets (net NPAs) of the Bank reduced from 2.97 percent during FY21-22 to 1.86 percent during FY22-23. The net interest margin (NIM) of the Bank, in congruence, showed favorable movements jumping from 2.42 percent to 2.97 percent.
Incorporated in 1929, South Indian Bank Limited provides various banking services and products in India. The Bank operates through a wide range of segments such as treasury, corporate/retail/wholesale banking, and other segments. The Bank also offers insurance products, such as life, health, as well as other general insurance products.
Written by Amit Madnani
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