The South Indian Bank Ltd. has announced its highest ever quarterly net profit of Rs. 426.13 crore for the second quarter of the fiscal year 2026-27, marking a significant 21.28% increase from Rs. 351.37 crore recorded in the same quarter of the previous year. The bank’s robust performance is attributed to a strategic focus on profitability, superior asset quality, and a strong retail liability portfolio.
The bank’s net interest income reached an unprecedented Rs. 1,116 crore, reflecting a 37.95% year-on-year growth. Operating profit also saw a substantial increase, rising by 37% to Rs. 732 crore. The bank’s net interest margin improved from 2.80% to 3.33% on a year-on-year basis, indicating enhanced efficiency in its lending operations. Furthermore, the gross non-performing assets (GNPA) ratio significantly reduced by 169 basis points to 1.24%, while the net non-performing assets (NNPA) ratio dropped by 47 basis points to 0.09%.
The bank experienced notable growth in both deposits and advances. Retail deposits increased by 14.85% to Rs. 1,29,353 crore, while non-resident Indian (NRI) deposits grew by 15.09% to Rs. 38,203 crore. The bank’s current account and savings account (CASA) deposits also saw a rise of 17.56%, driven by a 31.19% growth in current accounts and a 14.34% increase in savings accounts. On the advances front, gross advances grew by 18.67% to Rs. 1,09,517 crore, with significant contributions from the corporate segment and the gold loan portfolio, which increased by 16.63% and 41.17% respectively.
Mr. Mahesh Muralidhar Pai, Managing Director and CEO of South Indian Bank, expressed satisfaction with the bank’s performance, highlighting the strategic focus on acquiring quality assets and leveraging digital technology. He emphasised the bank’s commitment to maintaining a balanced and healthy credit portfolio through quality credit growth.
Analysts view South Indian Bank’s results as a positive indicator of its strategic direction and operational efficiency. The bank’s focus on digital transformation and quality asset acquisition is expected to sustain its growth trajectory in the competitive banking sector.
