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.

South Indian Bank (SIB) has reported strong growth across key business metrics for the quarter ended September 30, 2025, while also receiving a credit rating upgrade. The bank's performance demonstrates resilience and steady expansion in its core banking operations.

Business Growth Highlights

SIB's provisional data for Q2 FY26 shows impressive year-on-year growth:

CASA Ratio stood at 31.86%

The bank noted that it had undertaken a technical write-off of Rs. 900.00 crores during the quarter ended March 31, 2025. Excluding this adjustment, the year-on-year growth in gross advances would have been 10%.

Credit Rating Upgrade

In a separate announcement, SIB informed that M/s INFOMERICS Valuation and Rating Private Limited has upgraded the bank's issuer rating. The new rating stands at:

• Current Rating: IVR AA /Stable (IVR Double A with Stable outlook)
• Previous Rating: IVR AA- /Stable (IVR Double A minus with Stable outlook)

This upgrade reflects positively on the bank's financial strength and stability.

Management Commentary

Jimmy Mathew, Company Secretary of South Indian Bank, stated that the data is provisional and subject to limited review by the statutory auditors of the Bank. The bank has made this disclosure in accordance with SEBI regulations and its commitment to fair disclosure of unpublished price-sensitive information.

Conclusion

South Indian Bank's Q2 FY26 business updates showcase a robust performance with growth across key metrics. The credit rating upgrade further underscores the bank's improving financial profile. Investors and stakeholders will likely keep a close watch on the bank's audited results for a comprehensive understanding of its financial position.