Thrissur, India, October 16, 2025. South Indian Bank (BSE: 532218, NSE: SOUTHBANK), a well-known private-sector lender based in Kerala, experienced significant success in the second quarter, which ended September 30, 2025. The bank’s net profit rose by 8% from the same time previous year, from ₹324.69 crore to ₹351.36 crore. The bank’s results show consistent growth in a variety of loan categories while keeping a close eye on risk management and asset quality.
Even though South Indian Bank made a lot of money, its shares declined somewhat on the news, indicating that investors were wary.
In the second quarter of FY26, South Indian Bank reported net interest income (NII) of ₹808-809 crore. South Indian Bank (BSE: 532218, NSE: SOUTHBANK), a well-known private-sector lender based in Kerala, experienced significant success in the second quarter, which ended September 30, 2025. The bank’s net profit rose by 8% from the same time previous year, from ₹324.69 crore to ₹351.36 crore.
Lowered provisions also helped the overall profit rise, showing that the bank is good at running its business and managing risks. Analysts say that the bank’s profits are still good since it makes a lot of money from non-interest sources and keeps its costs low.
In the second quarter of FY26, the asset quality of South Indian Bank got a lot better.
The Gross NPA (GNPA) ratio went down from 4.40% to 2.93%, which is a 147 basis point improvement over the past year.
The Net NPA (NNPA) ratio went down from 1.31% to 0.56%, which is a drop of 75 basis points from last year.
Compared to the previous June quarter, NNPA went down from 0.68% to 0.56% and GNPA went down from 3.15% to 2.93%. This shows that things have been getting better every quarter.
Provisions went from ₹110 crore to ₹63 crore year over year and from ₹110 crore to ₹239 crore in the June quarter. This had a direct effect on the net profit rise.
The capital adequacy ratio (CAR) was 17.70%, which meant that the company had enough capital to loan money and grow in the future.
In the second quarter of FY26, South Indian Bank said that credit growth was strong in several areas.
Gross advances were up 9% from ₹84,714 crore in Q2 FY25 to ₹92,286–92,887 crore.
Deposits from NRIs went up 9% from the previous year to ₹33,195 crore, and deposits from regular customers went up 11% from the previous year to ₹1,12,625 crore.
The CASA (Current Account Savings Account) balance went up 10% YoY to ₹36,841 crore, while the CASA ratio went up from 31.8% in Q2 FY25 to 31.86%.
The 9% rise in corporate loans to ₹37,008 crore over the past year suggests that big clients are in great demand.
Loans to businesses went up 4% from the previous year to ₹13,424 crore. This is because MSME lending has been steadily growing.
The entire amount of gold loans is currently ₹18,845 crore, which is 13% more than last year. This shows that individuals are still interested in loans that are safeguarded.
In the past year, the number of housing loans has gone up by 25% to ₹8,849 crore since more people want cheap and retail homes.
The car lending market has altered, as shown by the fact that vehicle loans have gone up by 25% to ₹2,288 crore from last year.
The bank’s varied growth shows that it is following a strategy of focusing on different industries. This keeps its loan portfolio balanced and lowers its credit risk.
CEO’s Comments: Putting Quality Growth at the Top of the List in Strategy
P. R. Seshadri, the Managing Director and CEO of South Indian Bank, says that having a clear plan is necessary for getting good results.
Seshadri said, “The Bank saw healthy growth in all of its main areas, such as Corporate, MSME, Housing, Auto, and Gold loans, while always keeping an eye on asset quality.”
Additionally, he claimed that South Indian Bank had effectively introduced new developments with a low risk profile.. The bank’s strategy goal is to make money through quality credit growth, and this proved that the bank was committed to long-term expansion, rigorous risk management, and producing money for stakeholders.
The statistics also show how well SIB Operations and Services Ltd. (SIBOSL), because it affected the overall financial performance of the bank’s wholly-owned subsidiary.
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Investors were careful, even though the company made more money. This is shown by the 3.1% dip in South Indian Bank shares after the earnings report. Analysts argue that the drop in core interest income and macroeconomic pressures are still worrying, even though the profit gain is good. This is because they could hurt the company’s performance in the near future.
Net Interest Income (NII) fell 8% from the previous year to ₹808–809 crore.
Income from sources other than interest rose 26% from one year to the next, reaching ₹515–516 crore.
Provisions: 63 crore, a big drop
₹92,286–92,887 crore in gross advances, which is a 9% increase from last year
Deposits went grown 10–11% from one year to the next, reaching ₹1.12–1.15 lakh crore.
CASA Ratio: up 31.86% from last year
These data suggest that the company has a lot of money, its earnings are growing steadily, and it has a well-managed balance sheet.
South Indian Bank became a bank in 1929 and commenced for business in Round South, Thrissur, on January 29, 1929. It became a scheduled bank in 1946, and in June 1957, it got Kerala’s first private sector scheduled bank license under Section 22 of the Banking Regulation Act, 1949.
As of December 31, 2024, the bank had:
955 banks in 26 states and four union territories
1,290 ATMs and CRMs
9,962 people working
Assets worth ₹1,17,412.79 crore
Total equity: ₹6,960 crore
The capital ratio is 19.91%.
A1+ rating from CRISIL
South Indian Bank has also won awards for automation and digital innovation, such as the UiPath Automation Excellence Award 2021 for keeping business running during a crisis.
South Indian Bank’s net profit went up 8% from the previous year because it had more non-interest income and didn’t need to set aside as much money. This shows that the bank is good at managing its money.
The bank’s stringent credit and risk management policies have resulted in decreased GNPA and NNPA ratios, indicating that the quality of its assets has improved.
Credit Growth: Lending increased in all categories, including corporate, MSME, housing, automotive, and gold loans. This demonstrates that credit is increasingly available and in demand.
CASA Growth: The bank’s low-cost funding base grew by 10%, which made the bank more efficient overall.
The bank has a Capital Adequacy Ratio (CAR) of 17.7%, indicating sufficient capital to fund future lending and expansion.
South Indian Bank delivered an exceptional and balanced performance in the second quarter of FY26, achieving growth while being risk conscious. This outcome can be attributed to an intentional emphasis on low-risk loans, improved assets, higher fees, and non-interest income.
It is important for analysts and investors to keep an eye on key factors like loan growth, the CASA ratio, and credit quality because they will continue to have a big effect on how well the bank does in the next few quarters.
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