'Managing gold loan risk now a bigger challenge than demand'

South Indian Bank posted its highest-ever quarterly net profit of₹351.36 crore in Q2.MD & CEO PR Seshadri tells Narayanan V that the performance was driven by growth in MSME and retail segments, the bank's preparedness for ECL framework, and its cautious approach to jewel loans. Excerpts:

- PR SESHADRI, MD & CEO, SOUTH INDIAN BANK

What led to the record profit in Q2?

It's attributable to the quality of our portfolio. Our retail and MSME business volumes grew considerably. Retail disbursements rose 50% yearon-yearto ₹6,513 crore, while MSME disbursements doubled to ₹1,945 crore. Credit costs were also very low. The performance was further aided by other income streams. Our non-interest income grew 26% to ₹516 crore.

But net interest income (NII) slipped 8% to ₹808 crore ...