South Indian Bank has announced its unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, showcasing robust operational performance across key financial metrics. The Kerala-based private sector bank demonstrated consistent growth momentum with improved profitability and operational efficiency during the third quarter of FY26.

Quarterly Financial Performance

The bank's quarterly results reflect strong business fundamentals with notable improvements across revenue and profitability parameters. Total income from operations witnessed substantial growth, while the bank maintained healthy profit margins despite the challenging operating environment.

Nine-Month Performance Analysis

The nine-month performance demonstrates the bank's sustained growth trajectory with consistent improvement in key financial indicators. The bank's ability to maintain growth momentum throughout the period reflects strong business fundamentals and effective management strategies.

Capital Structure and Financial Position

The bank's balance sheet reflects a strong capital position with improved financial metrics. The paid-up equity share capital stood at ₹261.72 crores as of December 31, 2025, compared to ₹261.63 crores in the previous year. Reserves excluding revaluation reserves increased significantly to ₹10,418.54 crores from ₹9,126.53 crores, indicating robust internal capital generation.

Regulatory Compliance and Disclosure

The financial results were published in compliance with Regulation 30 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank published advertisements in "Business Standard" (All India editions) and "Deepika" (Thrissur & Kochi editions) on January 16, 2026. The results have been made available on the bank's corporate website and stock exchange platforms for stakeholder access.

The consolidated results show minimal variance from standalone figures, indicating limited impact from subsidiary operations. Both standalone and consolidated earnings per share remained consistent at ₹1.43 for the quarter, demonstrating transparent financial reporting and operational clarity.

South Indian Bank shares surged 3.75% to ₹44.05 on Friday following the release of strong Q3FY26 results. The Thrissur-headquartered private sector bank delivered its strongest quarterly performance with a record net profit of ₹374.32 crores, representing a 9.40% growth compared to ₹341.87 crores in Q3FY25. The nine-month net profit also increased by 9% to ₹1,047.64 crores for the period ended December 2025.

Strong Operational Performance

The bank's operational metrics demonstrated robust growth across key parameters. Pre-provisioning operating profit increased by 10.40% from ₹528.84 crores in Q3FY25 to ₹584.33 crores in Q3FY26. Non-interest income showed particularly strong momentum, rising 19% year-on-year from ₹409.22 crores to ₹485.93 crores, while net interest income grew marginally by 1.30% to ₹881.00 crores.

The bank maintained positive operating leverage for the nine-month period ended December 2025, with net total income increasing 7.44% compared to a 3.61% rise in operating expenses versus the corresponding period in the previous year.

Significant Asset Quality Improvement

South Indian Bank achieved substantial improvements in asset quality metrics during the quarter. Gross NPA ratio declined significantly by 163 basis points from 4.30% to 2.67% on a year-on-year basis, while net NPA ratio dropped by 80 basis points from 1.25% to 0.45%. This improvement highlights the bank's stronger credit management and reduced risk exposure.

The provision coverage ratio excluding write-offs increased by 1,177 basis points from 71.73% to 83.50% year-on-year, while PCR including write-offs rose by 1,050 basis points from 81.07% to 91.57%.

Robust Business Growth

The bank demonstrated strong growth across its deposit and advance portfolios. Gross advances grew by ₹9,798 crores from ₹86,966 crores to ₹96,764 crores, showing an 11% increase year-on-year. Retail deposits expanded by ₹13,142 crores from ₹1,02,421 crores to ₹1,15,563 crores, registering 13% growth.

Advances Portfolio Growth

The bank achieved broad-based growth across multiple lending segments:

The gold loan business, which accounts for 22% of gross advances, expanded 26% to ₹20,952 crores. The corporate loan segment with 40% weightage rose 10% to ₹38,353 crores. A and above rated Corporate Advances rose by ₹3,560 crores from ₹21,068 crores to ₹24,628 crores.

Deposit Performance

CASA deposits grew by 15% year-on-year, with savings bank deposits increasing 14% and current account deposits rising 20%. The CASA ratio improved to 31.84% from 31.15% in the previous year.

Technical Analysis and Market Performance

From a technical perspective, the stock shows strong bullish indicators with a 14-day RSI of 62.60, indicating healthy momentum without being overbought. The stock is currently trading above all eight simple moving averages, signaling a strong bullish trend and positive market sentiment.

Management Commentary and Capital Position

MD & CEO P. R. Seshadri highlighted that the bank's well-defined strategy continues to drive strong business performance, with healthy growth across corporate, MSME, housing, auto and gold loan segments while maintaining focus on asset quality. He emphasized the bank's strategic approach of achieving profitability through quality credit growth by onboarding fresh advances with low risk profiles.

The bank maintained a strong capital position with a Capital Adequacy Ratio of 17.84% as of December 2025, demonstrating sound capital management practices and capacity to support future business growth. The financial results include performance of the bank's wholly owned subsidiary SIBOSL.