South Indian Bank shares will be in focus on Friday, January 16, following the Kerala-based lender's strong quarterly performance for the October-December period. The bank announced its unaudited standalone and consolidated financial results, showcasing robust operational performance and improved asset quality metrics.

Financial Performance Highlights

The bank delivered solid financial results for Q3, with key performance indicators showing positive momentum across multiple parameters.

Asset Quality Improvement

The bank demonstrated significant improvement in asset quality metrics, reflecting enhanced risk management and collection efforts. Asset quality saw marginal improvement compared to the September quarter.

Business Growth Metrics

In its third quarter business update, the bank reported strong growth in core business parameters, reflecting sustained traction across key segments.

The bank noted that adjusted for a technical write-off of ₹900 crore carried out in the March quarter, year-on-year loan growth would have been 12.43%, indicating strong underlying business momentum.

Capital Position and Market Performance

The bank maintained a strong capital adequacy ratio of 17.84% under Basel III norms, compared to 18.00% in the corresponding quarter of the previous year. The paid-up equity share capital stood at ₹262 crore with a face value of ₹1 per share.

Stock Market Response

Shares of South Indian Bank closed 5.11% higher on Wednesday ahead of the results announcement at ₹42.54. The stock has risen over 12% so far in 2026, reflecting positive investor sentiment towards the bank's improving fundamentals and growth prospects.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors, with joint statutory auditors providing unmodified review reports on the quarterly performance.

South Indian Bank announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025. The private sector bank demonstrated steady growth across key financial metrics while maintaining improved asset quality parameters.

Financial Performance Highlights

The bank's financial performance for Q3FY26 showed consistent growth momentum. Net profit increased to ₹37,432 lakhs compared to ₹34,187 lakhs in the corresponding quarter of the previous year, marking a 9.5% year-on-year growth. Total income for the quarter reached ₹3,00,346 lakhs, up from ₹2,77,996 lakhs in Q3FY25.

Nine-Month Performance

For the nine months ended December 31, 2025, the bank maintained its growth trajectory. Net profit reached ₹1,04,764 lakhs compared to ₹96,069 lakhs in the corresponding nine-month period of FY25, representing a 9.0% increase. Total income for the nine-month period stood at ₹8,91,057 lakhs versus ₹8,28,093 lakhs in the previous year.

Asset Quality Improvement

The bank demonstrated significant improvement in asset quality metrics. Gross NPA declined substantially to ₹2,58,150 lakhs as of December 31, 2025, compared to ₹3,73,556 lakhs a year earlier. The gross NPA ratio improved to 2.67% from 4.30% year-on-year, while net NPA ratio showed marked improvement to 0.45% from 1.25%.

Segment-wise Performance

The bank's segment-wise revenue showed varied performance across different business verticals. Retail Banking continued to be the largest revenue contributor with ₹1,35,085 lakhs in Q3FY26, up from ₹1,21,696 lakhs in Q3FY25. Corporate/Wholesale Banking generated ₹86,556 lakhs compared to ₹88,556 lakhs in the previous year quarter, while Treasury operations contributed ₹65,147 lakhs versus ₹56,036 lakhs.

Capital Adequacy and Key Ratios

The bank maintained a strong capital adequacy ratio of 17.84% as of December 31, 2025, compared to 18.00% in the corresponding period last year. Basic and diluted earnings per share for the quarter stood at ₹1.43 compared to ₹1.31 in Q3FY25. Return on assets remained stable at 1.09% for the quarter.

The results were approved by the Board of Directors at their meeting held on January 15, 2026, and have been subjected to limited review by the bank's joint statutory auditors M/s. M.P. Chitale & Co and M/s. Borkar & Muzumdar.