South Indian Bank reported its highest-ever quarterly net profit, posting INR 374.32 crore in Q3 FY26, reflecting a 9% year-on-year growth compared to INR 341.87 crore in Q3 FY25. For the nine months ended December 2025, the Bank’s net profit rose 9% to INR 1,047.64 crore, up from INR 960.69 crore in the corresponding period last year.
The Bank’s pre-provisioning operating profit for the quarter increased by 10% to INR 584.33 crore, while non-interest income grew strongly by 19% year-on-year to INR 485.93 crore. South Indian Bank continued to demonstrate positive operating leverage, with net total income rising 7.44%, outpacing a 3.61% increase in operating expenses during the nine-month period.
Asset quality improved significantly, with gross NPA declining to 2.67% from 4.30% and net NPA reducing to 0.45% from 1.25% year-on-year. The provision coverage ratio (PCR) excluding write-offs increased to 83.50%, while PCR including write-offs rose to 91.57%. The Bank maintained a return on assets above 1%, and the slippage ratio improved to 0.16%, down from 0.33% in Q3 FY25.
On the balance sheet front, gross advances grew 11% year-on-year to INR 96,764 crore. The corporate segment expanded by 10%, while A-and-above rated corporate advances increased to INR 24,628 crore. The business banking segment grew 12%, gold loans surged 26%, and vehicle loans recorded a 24% year-on-year increase.
Retail deposits rose 13% to INR 1,15,563 crore, while NRI deposits increased 9% to INR 33,965 crore. CASA deposits grew 15%, supported by a 14% rise in savings deposits and 20% growth in current accounts, with CASA ratio improving to 31.84%.
Commenting on the results, Mr. P. R. Seshadri, MD & CEO, said the Bank’s well-defined strategy continues to drive strong performance, with healthy growth across corporate, MSME, housing, auto, and gold loan segments, while maintaining asset quality. He added that the Bank remains focused on quality credit growth, prudent risk management, and sustainable value creation.
The Bank’s capital adequacy ratio stood at a robust 17.84% as of December 2025, underscoring its strong capital position and readiness to support future growth. The financial results include the performance of its wholly owned subsidiary, SIB Operations and Services Limited (SIBOSL).