South Indian Bank Ltd. posted a 21.3% year‑on‑year rise in net profit to ₹426 crore for the September quarter, pushing the stock up 4% to ₹51.5 on Thursday, according to the filing on the NSE.
Net interest income climbed 38% YoY to ₹1,116 crore from ₹809 crore, while operating profit rose to ₹712 crore from ₹536 crore, and profit before tax jumped to ₹573 crore from ₹472 crore, beating market expectations of ₹610 crore for net profit and ₹550 crore for operating profit.
Asset quality tightened: gross NPA fell to 1.24% from 1.38% YoY, and the net NPA ratio dropped to 0.09% from 0.26%, although provisions increased to ₹159.1 crore versus ₹84.3 crore the previous quarter, reflecting a conservative provisioning stance.
Return on assets on an annualised basis edged up to 1.12% from 1.07% YoY, and the Basel III capital adequacy ratio stood at 19.40% versus 19.62% at the end of June, keeping the bank comfortably above the 15% regulatory threshold.
Advances grew 18.7% YoY to ₹1.09 lakh crore and deposits to ₹1.37 lakh crore, with loan growth at 4.9% and deposit growth at 9.1% sequentially, though the CASA ratio slipped to 31.6% from 33%, signalling tightening funding mix.
The bank's business update indicates continued growth momentum ahead of the FY27 year‑end, and traders will watch next quarter’s credit expansion and interest rate sensitivity for further guidance.