South Indian Bank announced robust financial results for the second quarter of FY27, with net profit surging 21% year-on-year to ₹426 crore. The bank also witnessed strong growth in deposits, up 19% to ₹1,37,279 crore, and gross advances, which rose 19% to ₹1,09,517 crore. Net interest margin improved to 3.33%, reflecting the bank’s healthy operational performance.
Strong Q2 FY27 Performance Highlights
South Indian Bank has reported a significant increase in its financial performance for the second quarter ending September 2026 (Q2 FY27). The bank achieved its highest quarterly net profit of ₹426 crore, marking a substantial 21% growth compared to ₹351 crore in the corresponding quarter of FY26. This performance underscores the bank’s expanding profitability.
Deposit and Advance Growth
The bank’s total deposits saw a healthy increase of 19% on a year-on-year basis, reaching ₹1,37,279 crore from ₹1,15,635 crore. Gross advances also grew by 19% year-on-year, amounting to ₹1,09,517 crore from ₹92,286 crore. Excluding a technical write-off of ₹1,163 crore in the previous financial year, the year-on-year growth in gross advances translates to 20%. Total business of the bank expanded by 19% to ₹2,46,796 crore.
Net Interest Margin and Profitability Metrics
The Net Interest Margin (NIM) for the quarter stood at 3.33%, showing a sequential improvement of 10 basis points and a year-on-year increase of 53 basis points. The bank demonstrated a healthy growth in average advances with a 20% increase. Return on Assets (ROA) was recorded at 1.08%, and Return on Equity (ROE) was 14% for Q2 FY27.
Net Interest Income and Capital Adequacy
Net interest income for the quarter reached ₹1,116 crore, a remarkable growth of 38% compared to ₹808 crore in Q2 FY26. The bank’s capital adequacy ratio was strong at 19.40%, with a Tier 1 ratio of 18.71% as of September 30, 2026. CASA (Current Account Savings Account) deposits increased by 18% year-on-year to ₹43,310 crore.
Asset Quality Improvement
The Provision Coverage Ratio (PCR), including write-offs, improved to 97.84% on a year-on-year basis, up from 90.25%. Excluding write-offs, the PCR improved to 92.42% from 81.29%. Gross Non-Performing Assets (NPA) reduced by 169 basis points to 1.24% from 2.93% year-on-year. Net NPA also saw a reduction of 47 basis points, down to 0.09% from 0.56% year-on-year. The slippage ratio for the quarter was 0.09%, with a credit cost of 0.14%.
Source: BSE
