"Revised regulatory guidelines impacted the asset quality of the bank," said VG Mathew, Managing Director and Chief Executive Officer, South Indian Bank.

Mathew said the bank had recoveries of Rs 409 crore including sale to asset reconstruction companies (ARCs) and therefore, we had a closing balance of Rs 1,980 crore.

Talking about loan growth, he said, “The loan growth has been 17%. We had projected 18% but we have been able to achieve 17% because of some recent selloff and also some significant pre-payment that we have been able to collect in one of the accounts in the corporate book, which has come down. Otherwise, we are well on target of 18%.”

Thrissur-based South Indian Bank has reported 51.1% growth year-on-year in net profit at Rs 114.1 crore for the quarter ended March 2018.