South Indian Bank (SIB) has reported its highest-ever quarterly net profit of ₹351.36 crore for Q2 FY2025-26, marking an 8% increase from ₹324.69 crore in the same quarter last year. This performance underscores the bank's strategic focus on profitability through quality credit growth and robust risk management.

Key Financial Highlights

Strategic Growth in Key Segments

SIB has reported significant growth across various business segments:

• Retail Deposits: Grew by 11% to ₹112,625 crore
• NRI Deposits: Increased by 9% to ₹33,195 crore
• Gross Advances: Rose by 9% to ₹92,286 crore
• Gold Loan Portfolio: Expanded by 13% to ₹18,845 crore
• Housing Loans: Surged by 25% to ₹8,849 crore

Focus on Retail and MSME Sectors

The bank aims to sustain credit growth of over 20% by focusing on retail and MSME segments. This strategy aligns with SIB's goal of diversifying its loan book and reducing dependence on corporate lending. The MSME segment, in particular, saw a remarkable 127% year-on-year growth in disbursements.

Digital Transformation and Operational Efficiency

SIB is leveraging its robust CASA (Current Account Savings Account) deposits and digital transformation initiatives to drive long-term profitability. The bank reported that 98.44% of its transactions are now conducted through digital channels, indicating a strong push towards operational efficiency.

Asset Quality Improvement

The bank's asset quality has shown significant improvement:

• Gross NPA ratio decreased by 147 basis points to 2.93%
• Net NPA ratio dropped by 75 basis points to 0.56%
• Provision Coverage Ratio (including write-offs) increased to 90.25%

Capital Adequacy and Future Outlook

SIB's Capital Adequacy Ratio stood at 17.70% as of September 2025, well above the regulatory requirement. This strong capital position provides a solid foundation for future growth and expansion.

P R Seshadri, MD & CEO of South Indian Bank, stated, "The Bank's well-defined strategy continues to underpin its strong business performance during the period. We recorded healthy growth across all major segments – including Corporate, MSME, Housing, Auto and Gold loans – with a steadfast focus on maintaining asset quality."

As South Indian Bank continues to execute its strategic plan, it appears well-positioned to capitalize on growth opportunities in the retail and MSME sectors while maintaining a prudent approach to risk management and asset quality.

South Indian Bank , a prominent player in the Indian banking sector, has released its unaudited financial results for the second quarter of fiscal year 2026, showcasing strong performance and improved financial metrics.

Key Financial Highlights

The bank reported impressive financial results for Q2 FY26:

Profitability and Income

South Indian Bank demonstrated robust profitability in the second quarter, with a net profit of ₹618.82 crore. For the half-year ended September 30, 2025, the bank's cumulative net profit stood at ₹673.32 crore, indicating consistent performance across the first two quarters of FY26.

The bank's total income for Q2 FY26 reached ₹5,500.97 crore, reflecting its ability to generate substantial revenue.

Asset Quality Improvement

South Indian Bank has shown significant improvement in its asset quality:

• The gross Non-Performing Asset (NPA) ratio stood at 2.93%, indicating effective management of bad loans.
• The net NPA ratio was reported at 0.56%, suggesting strong provisioning and recovery efforts.

These figures demonstrate the bank's commitment to maintaining a healthy loan book and its success in managing credit risk.

Strong Capital Position

The bank reported a robust capital adequacy ratio of 18.04%, well above the regulatory requirements. This strong capital position provides the bank with a solid foundation for future growth and the ability to withstand potential economic challenges.

Strategic Financial Move

In a notable financial decision, South Indian Bank exercised the call option on its 9.50% Tier-II bonds worth ₹1,490 crore during the quarter. These bonds, originally issued in November 2017 with a maturity in May 2028, were redeemed early on September 12, 2025. This move may be part of the bank's strategy to optimize its capital structure and reduce interest expenses.

Audit and Compliance

The financial results were approved by the Board of Directors and reviewed by Joint Statutory Auditors, who provided an unmodified opinion. This underscores the bank's commitment to transparency and adherence to accounting standards.

South Indian Bank's Q2 FY26 results reflect its strong financial health, improved asset quality, and strategic financial management. These results position the bank well as it continues to navigate the evolving economic landscape.