South Indian Bank Reports Rs. 377.63 Crore Net Profit for Q1 FY 2026-27
South Indian Bank has announced a robust 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 this period was characterized by substantial improvements in asset quality and strong growth in key lending segments. Notably, the Gross Non Performing Assets (GNPA) ratio saw a sharp decline 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 achieved its highest ever Net Interest Income of Rs. 1,025 Cr., marking a growth of 23.05% year-on-year. Provisioning for the quarter was managed effectively, with provisions excluding tax decreasing by 64.85% compared to the previous year.
Growth in Deposits and Advances
The bank saw significant expansion in its deposit base and lending portfolio:- Retail Deposits: Increased by Rs. 14,938 Cr. to reach Rs. 1,24,306 Cr., a growth of 13.66%.
- NRI Deposits: Rose by Rs. 4,139 Cr. to Rs. 36,432 Cr., representing a 12.82% increase.
- CASA Growth: Current Account Savings Instruments (CASA) grew by 14.61%, driven by a 16.51% rise in Savings Bank deposits and 6.95% growth in Current Accounts.
On the lending side, Gross advances grew by Rs. 15,170 Cr. to Rs. 1,04,368 Cr., a 17.01% year-on-year increase. High-growth areas included:
- Gold Loan Portfolio: Increased by 42.90%, rising from Rs. 17,446 Cr. to Rs. 24,930 Cr.
- Mortgage Loans: Saw a substantial rise of 78.65%, growing from Rs. 3,278 Cr. to Rs. 5,856 Cr.
- Corporate Segment: Grew by 12.38% to Rs. 41,704 Cr., with 98.81% of large corporate segments rated A and above.
Comparative Financial Performance
The following table details the year-on-year growth across key financial metrics for the quarter ended June 30, 2026:| Metric | Quarter Ended 30-06-2026 | Quarter Ended 30-06-2025 | Growth (Rs. in Crore) | Growth % |
|---|---|---|---|---|
| Gross Advance | 1,04,368 | 89,198 | 15,170 | 17.01% |
| Retail Deposits | 1,24,306 | 1,09,368 | 14,938 | 13.66% |
| NRI Deposit | 36,432 | 32,293 | 4,139 | 12.82% |
| Current Deposits | 7,676 | 7,177 | 499 | 6.95% |
| Savings Deposits | 33,819 | 29,027 | 4,792 | 16.51% |
| CASA | 41,495 | 36,204 | 5,291 | 14.61% |
| CASA % | 32.98% | 32.06% | 0.92% | |
| Gross NPA % | 1.38% | 3.15% | -1.77% | |
| Net NPA % | 0.26% | 0.68% | -0.42% | |
| Net Interest Income | 1,025 | 833 | 192 | 23.05% |
| Other income | 379 | 622 | -243 | -39.07% |
| Operating Profit | 592 | 672 | -80 | -11.90% |
| Provisions excl. tax | 84 | 239 | -155 | -64.85% |
| Profit before tax | 507 | 433 | 74 | 17.09% |
| Net Profit after tax | 378 | 322 | 56 | 17.39% |
Management Outlook
Mr. P R Seshadri, MD and CEO of the Bank, stated that the bank's strategy remains focused on sustained profitability, superior asset quality, and a resilient loan book. He highlighted that the bank is sharpening its organizational structure and leveraging digital technology to meet business objectives.The management noted that during the reporting period, the bank saw consistent growth in targeted segments, specifically focusing on quality assets in Corporate Lending, Auto Loans, and Gold Loans. The strategy of "Profitability through Quality Credit Growth" has allowed the bank to onboard new advances with low-risk profiles.
SOUTHBANK Stock Price Movement
Shares of The South Indian Bank Limited today slipped by 0.48% to settle at ₹45.30. The stock traded with a volume of 35.49 million shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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