The lender posted a 17.3% year-on-year rise in net profit to ₹378 crore, compared with ₹322 crore a year earlier. However, net interest income (NII) declined 16% year-on-year to ₹724.8 crore from ₹862.4 crore.
Asset quality continued to improve, with gross non-performing assets (GNPA) easing to 1.38% from 1.43% in the previous quarter. Net NPA improved sharply to 0.26%, compared with 1.29% in the March quarter.
Following the earnings announcement, shares of South Indian Bank fell to an intraday low of ₹43.94. As of 2:09 pm, the stock was trading 1.08% lower at ₹45.03 on the NSE.
The results come after the bank reported healthy business growth in its provisional June-quarter update earlier this month. Gross advances rose 17% year-on-year to ₹1.04 lakh crore, while total deposits increased 11.4% to ₹1.26 lakh crore, reflecting sustained loan and deposit growth.
The bank also reported a stronger low-cost deposit franchise. CASA deposits grew 14.6% year-on-year to ₹41,493 crore, with the CASA ratio improving to 32.99%, up from 32.12% in the previous quarter and 32.06% a year earlier.
South Indian Bank also noted that it had technically written off ₹1,048 crore during the quarter ended March 2026. Excluding the write-off, gross advances would have grown 18% year-on-year as of June 30, underscoring continued momentum in its lending business.
South Indian Bank is a Kerala-headquartered private sector lender offering retail, corporate and SME banking services through a nationwide branch network, with a growing focus on digital banking and secured lending.
