South Indian Bank delivered another strong performance in the third quarter of FY 2025-26, reporting its highest ever quarterly net profit of Rs 374.32 crore, up 9 percent year-on-year from Rs. 341.87 crore in Q3 FY25. The improvement underlines a sustained recovery in earnings backed by healthier asset quality and robust business momentum.
The Kerala-based private lender’s total net profit for the nine months ended December 31, 2025 rose to Rs. 1,047.64 crore, a 9 percent increase compared with Rs. 960.69 crore in the same period last year.
Pre-provisioning operating profit for the quarter grew 10 percent to Rs. 584.33 crore, supported by a 19 percent rise in non-interest income to Rs. 485.93 crore. The bank continued to maintain positive operating leverage for the nine-month period, with net total income increasing 7.44 percent against a 3.61 percent rise in operating expenses.
Net interest income was stable, showing a modest uptick, while total income for the quarter rose to about Rs. 3,003 crore from Rs. 2,780 crore a year ago.
Asset quality metrics showed notable improvement. Gross non-performing assets (NPAs) declined to 2.67 percent from 4.30 percent a year ago, while net NPAs eased to 0.45 percent from 1.25 percent, reflecting better credit management and lower stressed assets. The slippage ratio also reduced significantly. Return on assets remained above 1 percent for the quarter.
The bank’s capital adequacy ratio stood at a strong 17.84 percent as of December 2025, underscoring a solid capital buffer to support future growth.
South Indian Bank’s liability franchise strengthened with healthy growth in deposits. Retail deposits increased to Rs. 1,15,563 crore, up 13 percent on a year-on-year basis, while NRI deposits rose 9 percent to Rs. 33,965 crore. CASA deposits grew by 15 percent, driven by a 14 percent rise in savings and a 20 percent rise in current accounts.
On the asset side, gross advances expanded 11 percent to Rs. 96,764 crore. Corporate advances rose with quality exposures increasing, and key retail segments such as gold loans and vehicle loans recorded strong double-digit growth.
Announcing the results, managing director and CEO PR Seshadri said the bank’s well-defined strategy continued to underpin strong business performance, with healthy growth across major segments — including corporate, MSME, housing, auto and gold loans — while maintaining a sharp focus on asset quality. He highlighted the bank’s commitment to profitability through quality credit growth and sustainable risk-adjusted expansion.
The results come at a time when several Indian banks have reported improved profitability and asset quality for Q3, reflecting a broader industry trend of strengthening balance sheets and resurgence in credit demand.
South Indian Bank has nationwide presence. Its shares are listed on the BSE and NSE, and it operates an extensive network of branches and ATMs across India, alongside a representative office in Dubai.
