South Indian Bank net profit up by 16.9% in June quarter
By Shishta Dutta | Published at: Jul 17, 2025 05:48 PM IST
Thursday, July 17, 2025 — South Indian Bank Ltd (BSE: 532218, NSE: SOUTHBANK) posted a 16.9% year-on-year increase in standalone net profit for Q1 FY26, reaching ₹342.2 crore.
The quarter saw steady performance in lending and fee-based income, supported by higher advances and stable margins. Asset quality remained largely unchanged on a sequential basis, while capital adequacy stayed strong.
Key Results:
Operating profit before provisions rose 70.3% YoY to ₹672.2 crore, while provisions surged 330.3% to ₹432.9 crore. Net Interest Income and fee income supported margin expansion, driving a 9.1% YoY growth in total income to ₹2,984.3 crore. Advances stood at ₹1.13 lakh crore, up 13.5% YoY, and deposits rose 3.8% to ₹1.07 lakh crore. EPS for the quarter improved to ₹1.23.
Standalone Performance (₹ in lakh)
| Particulars | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Growth |
|---|---|---|---|---|
| Total Income | 2,98,433 | 2,94,581 | 2,73,613 | 9.1% |
| Operating Profit | 67,220 | 68,331 | 39,473 | 70.3% |
| Provisions (excl. tax) | 43,294 | 22,419 | 10,060 | 330.3% |
| Profit Before Tax | 32,195 | 45,912 | 29,413 | 9.5% |
| Net Profit | 32,195 | 34,219 | 29,413 | 9.5% |
| EPS (Basic & Diluted, ₹) | 1.23 | 1.31 | 1.12 | 9.8% |
The bank’s total advances grew 13.5% YoY to ₹1,12,92,157 lakh as of June 30, 2025, while total deposits stood at ₹1,07,52,560 lakh, up 3.8% YoY. The bank’s Net Interest Income (NII) and other income together supported improved margins and operating efficiency.
Consolidated Results
On a consolidated basis (including SIB Operations & Services Ltd), the net profit stood at ₹34,241 lakh for Q1 FY26, up from ₹29,390 lakh in Q1 FY25, marking a 16.5% YoY increase. Total consolidated income rose to ₹2,98,413 lakh from ₹2,73,596 lakh a year ago.
Asset Quality and Capital Adequacy
| Metric | Q1 FY26 | Q4 FY25 | Q1 FY25 |
|---|---|---|---|
| Gross NPA (%) | 3.45% | 3.45% | 2.51% |
| Net NPA (%) | 1.06% | 1.12% | 0.79% |
| Capital Adequacy Ratio (CRAR) | 20.22% | 23.20% | 18.55% |
Return on Assets (RoA) for the quarter was steady at 0.68%, reflecting the bank’s continued focus on risk-adjusted returns.
Segment-Wise Revenue (Standalone)
| Segment | Q1 FY26 Revenue (₹ lakh) |
|---|---|
| Treasury | 53,410 |
| Corporate/Wholesale Banking | 1,04,328 |
| Retail Banking (incl. Digital) | 1,24,837 |
| Other Banking Operations | 19,816 |
Retail banking, including digital operations, remained the largest contributor to revenue, while treasury and wholesale segments maintained stable performance.
Management Commentary
P. R. Seshadri, Managing Director & CEO, stated in the investor release that the bank remains committed to its strategic roadmap of strengthening the core banking franchise and leveraging digital capabilities for retail expansion. The robust operating metrics, alongside prudent provisioning, provide a strong foundation for sustained performance in FY26.
Outlook
South Indian Bank’s Q1 performance was driven by strong operating profit and stable NII growth, despite elevated provisioning. The market is now likely to assess the sustainability of lending momentum, digital traction, and any further provisioning pressure in upcoming quarters.
About the Company
Founded in 1929 and headquartered in Thrissur, Kerala, South Indian Bank Ltd is a listed private-sector bank offering retail, corporate, SME, and digital banking services across India. The bank’s equity shares are listed on BSE and NSE. It maintains a strong foothold in southern India and is expanding its digital and retail banking footprint nationwide.
REF: https://nsearchives.nseindia.com/corporate/SOUTHBANK_17072025132003_SD_STT_FINANCIAL_RESULTS_JUNE2025.pdf
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