South Indian Bank Ltd posts record Q3 FY26 Net Profit of ₹374 Cr, Up 9% YoY

South Indian Bank Limited delivered its highest-ever quarterly net profit of ₹374.32 crore for Q3 FY26, registering a robust 9% YoY growth from ₹341.87 crore in Q3 FY25. The bank sustained momentum across deposits, advances, and profitability while achieving dramatic improvements in asset quality metrics.

Record Profitability with Operating Leverage

Pre-Provisioning Operating Profit rose 10% YoY to ₹584.33 crore from ₹528.84 crore, driven by 19% YoY growth in Non-Interest Income (₹485.93 Cr vs ₹409.22 Cr). For 9M FY26, cumulative Net Profit reached ₹1,047.64 crore, up 9% YoY.

The bank maintained positive operating leverage with Net Total Income growing 7.44% against 3.61% rise in Operating Expenses for 9M FY26, demonstrating cost efficiency amid expansion.

Asset Quality Transformation: Best in Years

South Indian Bank achieved breakthrough improvements in stress metrics:

- Gross NPA: 2.67% (down 163 bps YoY from 4.30%)

- Net NPA: 0.45% (down 80 bps from 1.25%)

- Slippage Ratio: 0.16% (improved 17 bps YoY)

- PCR (excl write-off): 83.5% (up 1,177 bps)

- PCR (incl write-off): 91.57% (up 1,050 bps)

Return on Assets sustained above 1%, reflecting healthy profitability per asset rupee deployed.

Balanced Loan Book Expansion

- Gross Advances grew 11% YoY to ₹96,764 crore (+₹9,798 Cr):

- Corporate: +10% to ₹38,353 Cr (A+ rated up ₹3,560 Cr)

- Business Banking (incl ML): +12% to ₹18,553 Cr

- Gold Loans: +26% to ₹21,303 Cr (portfolio star)

- Vehicle Loans: +24% to ₹2,393 Cr

Deposit Franchise Strength

- Retail Deposits surged 13% YoY to ₹1,15,563 crore (+₹13,142 Cr). NRI Deposits grew 9% to ₹33,965 crore. CASA ratio improved to 31.84% (+69 bps), led by:

- Current Deposits: +20% YoY
- Savings Deposits: +14% YoY

Capital Fortress

Capital Adequacy Ratio stands at a comfortable 17.84%, providing substantial buffer for growth while maintaining regulatory comfort.

While announcing the financial results, Mr. P. R. Seshadri, MD & CEO of the Bank, stated that the Bank's well-defined strategy continues to underpin its strong business performance during the period. The Bank recorded healthy growth across all major segments - including Corporate, MSME, Housing, Auto and Gold loans - with a steadfast focus on maintaining asset quality.

He further highlighted that, in line with the Bank's strategic intent of achieving Profitability through Quality Credit Growth, the Bank successfully onboarded fresh advances with a low risk profile. This approach, he noted, reflects the Bank's continued commitment to sustainable growth, prudent risk management and value creation for all stakeholders.

The Bank's financial results include the financial results of its wholly owned subsidiary SIBOSL.

Shares of The South Indian Bank Limited was last trading in BSE at Rs. 42.44 as compared to the previous close of Rs. 40.47. The total number of shares traded during the day was 3294695 in over 8702 trades.

The stock hit an intraday high of Rs. 42.56 and intraday low of 40.47. The net turnover during the day was Rs. 138298870.00.

Source : Equity Bulls

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