Decline in South Indian Bank Shares After Q4 Earnings, FY24 Dividend

South Indian Bank, located in Thrissur, experienced a drop in its stock price following the release of its fourth-quarter earnings report for the financial year 2023-24. The bank reported decreases in net profit and operating profit, leading to a reduction in its share value. Despite facing challenges, the bank has maintained a relatively steady performance over the years.

South Indian Bank Stock Performance:

According to the most recent data, South Indian Bank shares decreased by 1.78% to Rs 28.68 on Friday from the previous close of Rs 29.20 on the Bombay Stock Exchange (BSE). While the stock reached a high of Rs 36.91 in February 2024, it also saw a 52-week low of Rs 14.64 in May 2023. The bank's market capitalization was recorded at Rs 7560 crore on BSE.

Q4 FY23-24 Earnings Report:

South Indian Bank reported a 14% decline in net profit for the fourth quarter of the financial year 2023-24, with profits totaling Rs 287.56 crore compared to Rs 333.89 crore in the same period of the previous year. Operating profit also saw a 23% decrease to Rs 433.54 crore in Q4 against Rs 561.55 crore in the same period last year. Nonetheless, the net interest income for Q4 rose by 2% to Rs 874.67 crore compared to Rs 856.18 crore in Q4 of FY23.

FY24 Financial Highlights:

Despite the challenges faced in Q4, South Indian Bank witnessed a 38% increase in net profit for the fiscal year 2023-24, reaching Rs 1,070.08 crore compared to Rs 775.09 crore in the previous year. Operating profit also saw a 24% climb to Rs 1,867.67 crore in FY24 against Rs 1,507.33 crore in FY23. The bank's gross non-performing assets (NPAs) reduced to 4.50% in Q4 from 5.14% in the previous year, with net NPAs also falling to 1.46% from 1.86% year-on-year.

FY24 Dividend Announcement:

The board of directors of South Indian Bank has proposed a dividend of Rs 0.30 per share for the financial year 2023-24, pending approval from the shareholders. This decision underscores the bank's dedication to offering returns to its investors despite the challenging business environment.

Technical Analysis:

Technically, South Indian Bank shares have a beta of 0.9, indicating low volatility over the past year. The stock has witnessed a significant increase of 91.45% in the last year and 296.57% in two years. The relative strength index (RSI) for the stock is at 49.8, indicating a neutral trading zone.

Although share prices declined following the Q4 earnings report, South Indian Bank has demonstrated resilience and stability in its financial performance. With a focus on managing non-performing assets and enhancing profitability, the bank aims to sustain its growth trajectory and create value for shareholders.