South Indian Bank has announced changes to its Marginal Cost of Funds Based Lending Rates (MCLR) across multiple tenors, set to take effect from August 20, 2025. This revision in lending rates is likely to impact borrowers with MCLR-linked loans.

New MCLR Structure

The bank has revised its MCLR for various tenors as follows:

Key Highlights

• The overnight MCLR, which is the lowest in the structure, is set at 8.20%.
• The one-year MCLR, often used as a benchmark for many loan products, stands at 9.70%.
• The bank has introduced a gradual increase in rates from shorter to longer tenors.

Regulatory Compliance

South Indian Bank has made this announcement in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The bank has duly informed both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) about these changes.

Impact on Borrowers

The revision in MCLR rates is likely to affect the interest rates on various loan products offered by South Indian Bank. Existing borrowers with MCLR-linked loans may see changes in their interest rates as per their loan reset dates.

Additional Information

The bank has stated that this information will also be available on its official website for public reference. Borrowers and potential customers are advised to check the bank's website or contact their nearest South Indian Bank branch for more details on how these changes might affect their specific loan products.

As banks continue to adjust their lending rates in response to various economic factors, it's crucial for borrowers to stay informed about such changes and understand their impact on loan repayments.

South Indian Bank has reported a robust performance for the first quarter, marking significant growth across key financial metrics and reaching a major business milestone.

Profit and Operating Performance

The bank recorded a net profit of ₹322.00 crores, representing a 10% increase from ₹294.00 crores in the same quarter last year. The operating profit saw an even more substantial rise, jumping 32% from ₹508.00 crores to ₹672.00 crores year-on-year.

Business Growth and Milestone Achievement

South Indian Bank crossed a significant milestone this quarter, with its total business surpassing the ₹2 lakh crore mark. The bank's total business grew by 9% to reach ₹2,02,119.00 crores. This growth was driven by a 9% increase in total deposits, which rose to ₹1,12,922.00 crores, and an 8% growth in gross advances, reaching ₹89,198.00 crores.

Asset Quality Improvement

The bank's asset quality showed notable improvement:

• Gross Non-Performing Assets (NPA) reduced to 3.15% from 4.5% year-on-year
• Net NPA declined to 0.68% from 1.44% year-on-year
• Provision Coverage Ratio (PCR), excluding write-offs, improved by 988 basis points to 78.93%
• PCR, including write-offs, reached 88.82%

Key Financial Metrics

Deposit and Loan Portfolio Performance

• CASA (Current Account Savings Account) deposits grew by 9% year-on-year to ₹36,204.00 crores
• Gold loan portfolio stood at ₹17,446.00 crores, showing a 7% year-on-year growth
• Home loans experienced significant growth of 66% year-on-year
• Auto loans increased by 27% year-on-year

Treasury Operations and Provisioning

The bank generated ₹256.00 crores in treasury income during the quarter, which was strategically used to strengthen its provisioning. This move demonstrates the bank's prudent approach to risk management and balance sheet strengthening.

Management Outlook

The management of South Indian Bank has expressed optimism about the bank's future performance. They expect credit growth to exceed 12% for the fiscal year and aim to maintain the Return on Assets (ROA) around 100 basis points.

P R Seshadri, Managing Director & CEO of South Indian Bank, commented on the results during the earnings conference call, stating, "We have had a decent quarter during the first quarter. It was difficult, but the outcomes have been reasonably good for us. We are hoping that the actions that we have taken thus far will help the Bank grow from strength to strength as we go forward."

With its strong quarterly performance and strategic initiatives in place, South Indian Bank appears well-positioned for continued growth and improved profitability in the coming quarters.