South Indian Bank reported a 9% increase in net profit for Q3 FY26, reaching ₹374 crore. Total deposits grew by 12% to ₹118,211 crore, while gross advances increased by 11.3% to ₹96,764 crore. The Bank’s total business grew by 12% to ₹214,975 crore. Net interest margin stood at 2.86%, a sequential improvement of six basis points. The bank maintains a strong capital adequacy ratio of 17.84%.
Financial Performance Highlights
South Indian Bank announced a net profit of ₹374 crore for Q3 FY26, a 9% increase compared to ₹342 crore in Q3 FY25.
Key financial metrics include:
- Total deposits grew by 12% to ₹118,211 crore.
- Gross advances grew by 11.3% to ₹96,764 crore. Excluding technical write-offs, growth would be 12.4%.
- Total business grew by 12% to ₹214,975 crore.
- Pre-provisioning operating profit grew by 11% to ₹585 crore.
Key Ratios and Metrics
The Bank reported the following key ratios:
- Net interest margin (NIM) at 2.86%, a sequential increase of six basis points.
- Return on assets (ROA) of 1.07% and return on equity (ROE) of 13.49%.
- Capital adequacy ratio (CAR) at 17.84%, with Tier-1 ratio at 16.88% as of December 31, 2025.
- CASA balances grew by 15% year-on-year to ₹37,640 crore.
- Provision coverage ratio (PCR), excluding write-offs, improved to 83.5%.
- Slippage ratio reduced to 16 basis points.
- Gross NPA reduced to 2.67%, and Net NPA reduced to 0.45%.
Segmental Performance
Key growth areas include:
- Gold loan business: Stands at ₹21,303 crore, growing at an annualized rate of 26%.
- MSME business loans: Stands at ₹14,019 crore, a growth of 12%.
- Retail segment: Grew 23% year-on-year.
- Home loan book: ₹8,430 crore as of December 2025.
- Auto loan book: ₹2,393 crore as of December 2025.
Strategic Outlook
The Bank aims to maintain momentum in disbursements and collections, focusing on achieving desired outcomes in the coming quarters. Emphasis remains on growing the retail, MSME, and gold loan segments faster, while strategically managing the corporate portfolio.
Source: BSE
