New Delhi, May 4 (KNN) South Indian Bank's MD and CEO, P.R. Seshadri, has unveiled the bank's strategic outlook for the fiscal year 2024-25, projecting a modest double-digit growth trajectory. 

With a keen focus on bolstering its presence in the Retail and Micro, Small, and Medium Enterprises (MSME) sectors, Seshadri aims to fortify the bank's position in these key segments.

During an interview with CNBC-TV18, Seshadri underlined the bank's ambition to elevate its net interest margins (NIMs) to 3.5 per cent, an increase from the current 3.38 per cent.

Additionally, the bank intends to elevate the combined contribution of retail and MSME sectors to 45 per cent of its overall portfolio. Expressing optimism, Seshadri articulated the bank's target of achieving a robust deposit growth ranging between 10-12 per cent in FY25.

These strategic objectives follow the release of South Indian Bank's financial results for the fourth quarter of FY24, which recorded a 13.88 per cent decline in net profit, amounting to Rs 287.56 crore. 

The dip in profitability was primarily attributed to a surge in total expenditure, which escalated to Rs 2,187 crore from Rs 1,757 crore in the corresponding quarter of the previous fiscal year. However, for FY24 as a whole, the bank demonstrated substantial growth, with net profit climbing by 38 per cent to Rs 1,070 crore from Rs 775 crore in FY23.

Furthermore, the bank's board has proposed a dividend of Rs 0.30 per equity share with a face value of Rs 1 each (30 per cent) for the financial year ending March 31, 2024.

(KNN Bureau)