South Indian Bank Reports Robust Net Profit of Rs. 377.63 Cr for Q1 FY 2026-27

South Indian Bank Reports Robust Net Profit of Rs. 377.63 Cr for Q1 FY 2026-27​

South Indian Bank has announced a net profit of Rs. 377.63 Cr for the first quarter of FY 2026-27. This represents a significant growth of 17.29% compared to the Rs. 321.95 Cr reported in Q1 FY 2025-26.

The bank's performance during the quarter was characterized by substantial improvements in asset quality and a record-breaking Net Interest Income. The Gross Non Performing Assets (GNPA) saw a significant reduction of 177 bps, falling from 3.15% to 1.38% on a year-on-year basis. Similarly, the Net Non Performing Assets (NNPA) dropped by 42 bps, moving from 0.68% to 0.26%.

The bank also reported its highest-ever Net Interest Income of Rs. 1,025 Cr, marking a 23.05% year-on-year increase. The Provision Coverage Ratio (PCR) excluding write-offs improved by 247 bps to 81.40%, while the PCR including write-offs saw a substantial jump of 569 bps to reach 94.51%.

Growth in Deposits and Advances​

The bank witnessed steady growth across its deposit portfolio, particularly in the retail segment. Retail deposits grew by Rs. 14,938 Cr, reaching Rs. 1,24,306 Cr, a 13.66% increase year-on-year. NRI deposits also saw an uptick of 12.82%, rising to Rs. 36,432 Cr. The CASA (Current Account Savings Account) segment grew by 14.61%, driven by a 16.51% rise in Savings Bank deposits and a 6.95% increase in Current Accounts.

In terms of advances, gross advances grew by Rs. 15,170 Cr to reach Rs. 1,04,368 Cr, representing a 17.01% year-on-year growth. Key segments contributed significantly to this expansion:

• Gold Loan portfolio grew by 42.90% to Rs. 24,930 Cr.
• Mortgage loans surged by 78.65% to reach Rs. 5,856 Cr.
• The Corporate Segment grew by 12.38% to Rs. 41,704 Cr.
• The Business Segment saw a 13.67% increase to Rs. 14,391 Cr.

The bank noted that 98.81% of the large corporate segments are rated A and above.

Financial Performance Overview​

The following table details the year-on-year growth for various financial metrics as of June 30, 2026:

Management Commentary​

Mr. P R Seshadri, MD and CEO of the Bank, stated that the bank's strategy remains focused on sustained profitability, superior asset quality, a resilient loan book, and a robust retail liability portfolio. He emphasized that the bank is sharpening its organizational structure and leveraging digital technology to meet business objectives.

The management highlighted that during the reporting period, the bank saw consistent growth in Corporate Lending, Auto Loans, and Gold Loans. The bank maintains a focus on "Profitability through Quality Credit Growth," successfully onboarding new advances with low-risk profiles to ensure a healthy credit portfolio.