South Indian Bank on Thursday reported a 9% year-on-year rise in net profit for the third quarter at ₹374 crore, aided by strong growth in non-interest income.
Interest income rose 6% year-on-year to ₹2,518 crore in the December 2025 quarter, while non-interest income grew 19% to ₹485.93 crore. Interest expenses increased at a faster pace of 9% to ₹1,636 crore, which restricted the growth in net interest income to ₹882 crore, only marginally higher than ₹869 crore reported in the same quarter last year.
Retail Momentum
The bank’s gross advances grew 11% year-on-year to ₹96,764 crore in Q3FY26, led by corporate loans and growth in retail segments such as gold and vehicle loans. “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,” MD & CEO PR Seshadri said in the Q3FY26 earnings release.
Corporate advances rose 10% year-on-year to ₹38,353 crore during the quarter. Business loans increased 12% to ₹16,546 crore, while the gold loan portfolio jumped 26% to ₹20,952 crore. The vehicle loan portfolio grew 24% year-on-year to ₹2,393 crore.
Deposits expanded at a faster pace than advances. The bank’s retail deposit book grew 13% year-on-year to ₹1.02-lakh crore. Current account and savings account (CASA) deposits rose 15% to ₹32,830 crore, while NRI deposits increased 9% to ₹31,132 crore during the quarter.
Strengthening Balance Sheet
Asset quality improved sharply during the period. Gross non-performing assets declined to 2.67% from 4.30% in the year-ago quarter, while net NPA fell below 1% to 0.45%, compared with 1.25% a year earlier.