Kochi: South Indian Bank reported a strong financial performance for the first quarter of FY2026-27, with net profit increasing 17.39% year-on-year to ₹377.63 crore, supported by healthy growth in advances, deposits and continued improvement in asset quality.
The bank’s profit before tax (PBT) rose 17.09% to ₹507 crore, while Net Interest Income (NII) increased 23.05% year-on-year to ₹1,025 crore, reflecting steady business expansion during the quarter.
Advances Register Double-Digit Growth
Gross advances grew 17.01% year-on-year to ₹1,04,368 crore, compared with ₹89,198 crore in the corresponding quarter of the previous year.
Among key business segments:
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Gold loan portfolio surged 42.90% to ₹24,930 crore.
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Mortgage loans recorded the highest growth, rising 78.65% to ₹5,856 crore.
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Corporate advances increased 12.38% to ₹41,704 crore, largely comprising well-rated borrowers.
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Business banking advances grew 13.67% to ₹14,391 crore.
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Vehicle loans expanded 12.63% to ₹2,497 crore.
The bank said 98.81% of its large corporate loan portfolio is rated ‘A’ and above, reflecting its emphasis on maintaining high-quality credit exposure.
Deposits Continue Healthy Growth
Total retail deposits increased 13.66% year-on-year to ₹1,24,306 crore, while NRI deposits rose 12.82% to ₹36,432 crore.
The bank also reported strong improvement in its low-cost deposit franchise, with CASA deposits growing 14.61% to ₹41,495 crore. Savings account deposits increased 16.51%, while current account deposits rose 6.95%. The CASA ratio improved to 32.98%, compared with 32.06% a year earlier.
Asset Quality Strengthens Further
South Indian Bank continued to improve its asset quality during the quarter.
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Gross Non-Performing Assets (GNPA) declined to 1.38%, from 3.15% a year ago.
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Net NPA reduced to 0.26%, compared with 0.68% in the corresponding quarter last year.
Lower credit costs also supported profitability, with provisions (excluding tax) declining nearly 65% year-on-year to ₹84 crore.
Strategic Focus on Quality Credit
The bank said it witnessed consistent growth across all targeted business segments during the quarter while maintaining a strong focus on acquiring quality assets.
“Aligned with our strategic intent of ‘Profitability through Quality Credit Growth,’ we have successfully onboarded new advances with low-risk profiles, ensuring a well-balanced and healthy credit portfolio,” the bank said.
South Indian Bank added that it continues to strengthen lending across key verticals such as corporate lending, gold loans, vehicle finance and mortgage loans, while maintaining prudent risk management practices.
The reported financial results also include the performance of the bank’s wholly owned subsidiary, SIB Operations and Services Limited (SIBOSL).
Statement by Mr. P R Seshadri, MD & CEO of the Bank:
“While announcing the financial results, I am pleased to share that our strategy continues to center around sustained profitability, superior asset quality, a resilient loan book, and a robust retail liability portfolio. We are sharpening our organizational structure and leveraging digital technology to effectively achieve our business objectives.
During the reporting period, the Bank witnessed consistent growth across all targeted segments, with a sharp focus on acquiring quality assets in verticals such as Corporate Lending, Auto Loans and Gold Loans.
Aligned with our strategic intent of ‘Profitability through Quality Credit Growth’, we have successfully onboarded new advances with low-risk profiles, ensuring a well-balanced and healthy credit portfolio.”