South Indian Bank reported an 8% year-on-year increase in net profit for the quarter ended September 30, 2025, reaching ₹351.36 crore, up from ₹324.69 crore in the same period last year. The bank’s performance was marked by improvements in asset quality and a rise in non-interest income.

Net interest income (NII) for the quarter, however, declined 8% to ₹808 crore. The bank reported a significant increase in non-interest income, which rose by 26% year-on-year to ₹515.73 crore from ₹410.12 crore.

Asset quality improves

The gross non-performing asset (GNPA) ratio improved, decreasing by 147 basis points year-on-year to 2.93% from 4.40%. The net non-performing asset (NNPA) ratio also saw a reduction, dropping by 75 basis points to 0.56% from 1.31%.

Provisions excluding tax decreased by 43% year-on-year to ₹63 crore from ₹110 crore, contributing to the overall profit growth. The bank’s capital adequacy ratio stood at 17.70% as of September 2025, indicating a strong capital position to support future growth.

Advances & deposits update

Loan growth was evident across various segments. Gross advances increased by 9% year-on-year to ₹92,286 crore from ₹84,714 crore. Meanwhile, retail deposits grew by 11% to ₹1,12,625 crore, while NRI deposits rose by 9% to ₹33,195 crore. The current account savings account (CASA) ratio showed an improvement, with CASA growing by 10% year-on-year to ₹36,841 crore.

The bank’s corporate segment advances increased by 9% year-on-year to ₹37,008 crore, while the business segment saw a 4% rise to ₹13,424 crore. The gold loan portfolio expanded by 13% to ₹18,845 crore, and housing loans grew by 25% to ₹8,849 crore. Vehicle loans also saw a 25% year-on-year increase, reaching ₹2,288 crore.

South Indian Bank’s Managing Director and CEO, P R Seshadri, stated that Bank’s well-defined strategy continues to underpin its strong business performance during the period. “The Bank recorded healthy growth across all major segments – including Corporate, MSME, Housing, Auto and Gold loans – with a steadfast focus on maintaining asset quality,” he added.

He further highlighted that, in line with the Bank’s strategic intent of achieving Profitability through quality credit growth, the Bank successfully onboarded fresh advances with a low risk profile. This approach, he noted, reflects the Bank’s continued commitment to sustainable growth, prudent risk management and value creation for all stakeholders.

The bank’s financial results include the performance of its wholly-owned subsidiary, SIBOSL.

Disclaimer: This article was generated using AI tools and has undergone editorial review for clarity and coherence.