South Indian Bank on Thursday posted a 23 per cent rise in net profit to Rs 275 crore for the September quarter as provisions for bad loans came down significantly.

In the year-ago period, the lender had posted a net profit of Rs 223 crore.

During the July-September period, total income climbed to Rs 2,485 crore as against Rs 1,995 crore in the same quarter a year ago, South Indian Bank said in a regulatory filing.

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Interest income increased to Rs 2,129 crore from Rs 1,740 crore in the same quarter last year.

The lender’s asset quality improved as gross non-performing assets (NPAs) declined to 4.96 per cent of gross advances as of September 2023 over 5.67 per cent by the end of September 2022.

Net NPAs (bad loans) dropped to 1.70 per cent as against 2.51 per cent in the same quarter last year.

As a result, provisions for bad loans and contingencies dropped to Rs 51 crore during the quarter as compared to Rs 179.29 crore reserved for the year-ago period.

On Thursday the company shares closed 1.35 per cent up at Rs. 26.35 on the NSE.