South Indian Bank has reported steady business momentum for the December quarter, showcasing strong performance across key operational metrics with double-digit growth in both advances and deposits. The Kerala-based lender announced its provisional business updates for the quarter ended December 31, 2025, reflecting robust business momentum during the third quarter of FY26.

Key Financial Performance

The bank's provisional financial data reveals impressive year-on-year growth across all major parameters, demonstrating the bank's ability to expand its lending portfolio while maintaining strong deposit mobilization capabilities.

Advances Portfolio Growth

Gross advances reached ₹96,765.00 crores as of December 31, 2025, representing an 11.27% increase from ₹86,966.00 crores recorded in the same quarter of the previous fiscal year. The bank noted that, adjusted for a technical write-off of ₹900.00 crores carried out in the March 2025 quarter, year-on-year loan growth would have been 12.43%. This growth indicates the bank's successful lending operations and its ability to meet customer credit requirements across various segments.

Deposit Mobilization and CASA Performance

Total deposits grew substantially to ₹1,18,211.00 crores, marking a 12.17% year-on-year increase from ₹1,05,387.00 crores in Q3FY25, reflecting sustained traction in core liabilities. The deposit growth outpaced advances growth, indicating strong customer confidence and the bank's effective deposit mobilization strategies.

CASA deposits showed particularly strong performance, growing at a faster pace with a 14.65% increase to ₹37,640.00 crores compared to ₹32,830.00 crores in the corresponding quarter of the previous year. More significantly, the CASA ratio improved to 31.84%, representing a 69 basis points increase from 31.15% recorded in Q3FY25, indicating a gradual improvement in the bank's funding mix and providing stability to funding costs.

Market Performance and Regulatory Compliance

Shares of the bank ended 0.86% down at ₹37.99 ahead of the announcement. The bank has disclosed these business updates in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the Code of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information. The lender clarified that the provisional data is subject to limited review by the bank's statutory auditors, ensuring accuracy and reliability of the reported figures.

State-owned Indian Bank reported strong provisional business performance for the third quarter of FY26, demonstrating sustained growth across key balance-sheet parameters. The bank informed stock exchanges about its double-digit growth in total business and advances, reflecting robust operational momentum during the December quarter.

Q3 FY26 Business Performance

The bank's comprehensive business metrics showed consistent expansion across all major categories:

Deposit growth exceeded management's guided range of 8% to 10%, indicating strong customer confidence and market positioning. Gross advances demonstrated strong momentum with 14.50% year-on-year growth, reflecting sustained credit expansion and the bank's ability to maintain lending momentum in a competitive market environment.

RAM Portfolio and Strategic Focus

The bank's Retail, Agriculture and MSME (RAM) portfolio, representing a strategic focus area for public sector banks, delivered impressive results:

This 17.00% growth in the RAM segment underscores the bank's commitment to priority sector lending and its success in expanding its retail and MSME customer base.

Q2 FY26 Financial Results

In the second quarter, the state-owned lender reported financial performance with mixed results:

The bank's advance portfolio grew 12.70% year-on-year to ₹6.20 lakh crore while total deposits expanded by 12.00% to ₹7.77 lakh crore during the second quarter.

Market Performance and Ratios

The domestic CASA (Current Account Savings Account) ratio moderated to 39.02% in Q3 FY26 from 40.00% in the same quarter of the previous year. In Q2, the CASA ratio fell to 38.90% from 40.50% a year back, reflecting the challenge banks are facing in low-cost deposit mobilisation.

Shares of Indian Bank gained nearly 60% in the calendar year, demonstrating strong investor confidence in the bank's performance and growth trajectory. The bank emphasized that all reported figures are provisional and subject to audit verification.