South Indian Bank Q2 Results: Stock ends 4% higher on strong core income growth, better asset quality

Shares of South Indian Bank Ltd. jumped more than 4% on Thursday, October 15, after it reported a 21.3% year-on-year rise in standalone net profit to ₹426 crore for the September quarter of financial year 2026-27 (Q2 FY27), compared with ₹351 crore in the year-ago period.

Net interest income (NII) rose 38% year-on-year to ₹1,116 crore from ₹809 crore in Q2 FY26.

Operating profit rose to ₹712 crore in the September quarter from ₹536 crore a year earlier, while profit before tax increased to ₹573 crore from ₹472 crore in Q2 FY26.

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Asset quality improves; provisions rise

The bank’s asset quality improved sequentially during the quarter. Gross non-performing assets (NPAs) declined to 1.24% as of September 30, 2026, from 1.38% in the preceding quarter and 2.93% a year earlier.

The net NPA ratio fell to 0.09% from 0.26% in the June quarter and 0.56% in the year-ago period.

However, provisions and contingencies, excluding tax, rose to ₹159.1 crore in Q2 FY27, up from ₹84.3 crore in the preceding quarter and ₹63.3 crore a year ago.

The bank’s return on assets, on an annualised basis, stood at 1.12%, compared with 1.07% in the previous quarter and 1.04% a year earlier. Its Basel III capital adequacy ratio stood at 19.40% as of September 30, 2026, compared with 19.62% at the end of the June quarter and 17.70% a year earlier.

In its business update disclosed earlier this month, South Indian Bank had reported a 18.7% growth year-on-year in both advances as well as deposits. Gross advances stood at ₹1.09 lakh crore, while deposits stood at ₹1.37 lakh crore.

On a sequential basis, loan growth stood at 4.9%, while deposit growth stood at 9.1%. CASA ratio dropped to 31.6% from 33% in the June quarter.

Shares of South Indian Bank ended 3.7% higher on Thursday after the results announcement at ₹51.5. The stock is up 36% so far this year.