South Indian Bank on Thursday reported a 9.46% year-on-year increase in net profit to ₹321.95 crore for Q1FY26, aided by a jump in other income, even as interest income remained subdued. On a sequential basis, however, net profit was lower than the ₹342.19 crore posted in Q4FY25.
Interest income grew a modest 2% year-on-year to ₹2,362 crore, while other income jumped 47% to ₹621.89 crore. At the same time, interest expenses rose at a faster pace of 5% to ₹1,529 crore, resulting in a 3.83% decline in net interest income, which stood at ₹833 crore for the quarter.
The bank’s total business reached ₹2.02 lakh crore as of June 30. Gross advances rose 8% year-on-year to ₹89,198 crore, with housing loans leading the growth—up 66% to ₹8,518 crore. Personal loans increased 26% to ₹24,222 crore, while gold loans grew 7% to ₹17,446 crore.
“During the reporting period, the Bank witnessed consistent growth across all targeted segments, with a sharp focus on acquiring quality assets in verticals such as Corporate lending, auto loans, housing loans, and gold loans,” said PR Seshadri, MD & CEO, in a statement.
Retail deposits outpaced credit growth, rising 9.65% to ₹1.09 lakh crore. CASA deposits grew 9.06% to ₹36,204 crore, while NRI deposits rose 7.28% to ₹32,293 crore. The CASA ratio remained stable at 32.06%, indicating continued challenges in mobilizing low-cost deposits.
Asset quality witnessed improvement, with gross non-performing assets (GNPA) declining 135 basis points year-on-year to 3.15%, and net NPA falling 76 basis points to 0.68%. Shares of South Indian Bank closed flat at ₹30.71 on the NSE.