South Indian Bank Gains 3% as Board Clears Rs 1,750 Crore Fund Raise via Rights Issue

28 Dec 2023 , 03:46 PM

South Indian Bank Ltd’s shares rise by 3% in early trade after the board approves fund raising of Rs 1,750 crore via equity shares on a rights basis to existing eligible shareholders.

The stock hits an intraday high of Rs 27.45, a 2.88% increase from the previous close of Rs 26.68 on BSE. The bank’s market cap on BSE stands at Rs 5,679.70 crore. South Indian Bank shares have a beta of 1, indicating average volatility in a year.

The board approved the fund-raising proposal on December 27, 2023, for an amount not exceeding Rs 1,750 crore through a rights issue.

The bank reports a 23.2% YoY rise in net profit to Rs 275 crore for Q2 FY 2024, with NII climbing 14.46% to Rs 831 crore. Net Interest Margins (Quarterly) rise to 3.31% in September 2023 from 3.21% in September 2022.

GNPA falls to 4.96% in Q2 from 5.67% in Q2FY23, and net NPAs are at 1.70% in Q2 compared to 2.51% a year ago. The stock has gained 50% in a year and risen 203% in two years, touching a 52-week high of Rs 28.50 on December 18, 2023.

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