This past Friday saw a rather uneventful close to the trading session, with BSE Sensex Index experiencing a mild rise of 0.20 percent and the NSE Nifty-50 similarly increasing by 0.10 percent.
However, within this flat market trend, an outlier emerged. South Indian Bank, one of the top performers on the BSE, saw its shares surge by 11.58 percent to an intraday high of Rs 18.20 per share, from its prior closing of Rs 16.31. By the end of the day at 03:30 pm, the bank’s shares remained positive, concluding at Rs 17.66 per share, up by 8.28 percent.
South Indian Bank shattered all expectations in the financial year 2022-2023, delivering outstanding numbers. The quarterly consolidated results revealed a 21 percent growth in net sales and a 23 percent increase in net profit for Q4FY23 as compared to Q4FY22.
For FY23, the bank posted a 10 percent rise in net sales, but the real highlight was the extraordinary 1,623 percent jump in net profit compared to FY22. Moreover, the bank declared a commendable 30 percent final dividend, and the earning per share (EPS) stood at Rs 3.41.
South Indian Bank offers a range of services including retail and corporate banking, para-banking activities such as debit cards, third-party financial product distribution, treasury, and foreign exchange business.
With a PE ratio of 4.79x, significantly lower than the sector’s average of 15x, the bank’s stock presented an impressive 140 percent return within a year, outperforming the BSE Small-cap Index, which only rose by 18 percent. The trading session also saw a considerable surge in the bank’s share volume, escalating over 6.26 times on BSE.
