South Indian Bank Posts Record Q3 Profit as Asset Quality Improves
South Indian Bank reported its highest-ever quarterly profit in the December quarter, driven by steady growth in income and improved asset quality. The lender’s net profit rose 9% year-on-year to ₹374.32 crore in Q3 FY26, compared with ₹341.87 crore in the same period last year. Pre-provisioning operating profit increased 10% to ₹584.33 crore, reflecting stronger core performance.
The bank’s income profile also strengthened during the quarter, with non-interest income rising 19% to ₹485.93 crore. Net interest income edged up to ₹881 crore from ₹869 crore a year ago, while net interest margin stood at 1.31%. Following the results, South Indian Bank shares closed 4.87% higher at ₹42.22 on the BSE, taking the lender’s market capitalisation to ₹11,107 crore.
Asset quality showed marked improvement, with gross NPAs declining to 2.67% of gross loans from 4.30% a year earlier, while net NPAs fell to 0.45% from 1.25%. The bank also reported healthy balance sheet growth, as gross advances rose 11% year-on-year to ₹96,764 crore and retail deposits increased 13% to ₹1,15,563 crore, underscoring sustained momentum in its lending and deposit franchise.
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