South Indian Bank has announced its strongest financial performance to date, achieving a net profit of INR 1,455 crore for the 2025-2026 financial year, representing a 12% growth over the previous year. The bank highlighted significant improvements in asset quality, with gross NPA reducing to 1.43%. Total business reached INR 2,23,620 crore, driven by robust growth in retail deposits and a strategic shift toward high-yield MSME and retail segments.
Financial Performance Highlights
During the financial year 2025-2026, South Indian Bank demonstrated strong operational momentum. The bank declared a net profit of INR 1,455 crore, supported by total deposits growing 15% to INR 1,23,346 crore. Net interest income for the year stood at INR 3,437 crore. For the fourth quarter ending March 31, 2026, the bank reported a net profit of INR 408 crore with a net interest margin of 2.95%.
Strategic Growth and Portfolio Quality
The bank has successfully executed a shift from corporate lending to a more balanced mix of retail and MSME loans, which currently drive higher yields. Gross advances grew by 14.5% during the year, reaching INR 1,00,274 crore. Asset quality metrics showed substantial improvement, with gross NPA declining by 177 basis points to 1.43% and net NPA falling to 0.29%. The Provision Coverage Ratio (PCR) improved to 79.87%, excluding technical write-offs.
Future Outlook and Operations
Looking ahead to FY27, the bank aims to sustain loan growth in the 15% to 16% range. Management indicated that future growth will be balanced between traditional branch presence and aggressive expansion of digital assets, including the newly launched SIB RED digital banking platform. Despite geopolitical uncertainties, the bank maintains a strong capital position with a Tier-1 ratio of 18.76%, ensuring it remains well-positioned to meet upcoming operational and strategic goals.
Succession Planning
The Board of Directors is actively engaged in the succession planning process for the Managing Director and CEO position. The bank is working to ensure a smooth transition by the end of the current term on September 30, 2026, ensuring that a new incumbent is in place in accordance with regulatory requirements.
Source: BSE
