Net profit after tax rose 9.5% YoY to Rs 374 crore in Q3 FY25, compared with Rs 342 crore in the year-ago period. Profit before tax stood at Rs 504 crore, up 8.8% YoY.
Operating profit increased 10.5% YoY to Rs 584 crore, supported by stable core income and higher other income. Net interest income inched up 1.3% YoY to Rs 881 crore, while other income jumped 18.8% YoY to Rs 486 crore, providing an added boost to profitability.
On the balance sheet front, gross advances grew 11.3% YoY to Rs 96,764 crore, while retail deposits rose 12.8% YoY to Rs 1,15,563 crore. CASA deposits increased 14.7% YoY to Rs 37,640 crore, lifting the CASA ratio to 31.84% from 31.15% a year ago.
Asset quality continued to improve sharply. Gross NPA declined to 2.67% from 4.30% a year earlier, while net NPA improved to 0.45% from 1.25%, reflecting tighter credit monitoring and better recoveries. Provisions excluding tax rose 21.8% YoY to Rs 80 crore, indicating a prudent stance despite improving stress metrics. Slippage ratio reduced by 17 bps from 0.33% in Q3 FY25 to 0.16% in Q3 FY26.
The bank’s capital adequacy ratio stood at a healthy 17.84% in December 2025, underscoring a strong capital position. The gold loan portfolio rose 26% YoY to Rs 21,303 crore, from Rs 16,966 crore, while vehicle loans grew 24% YoY to Rs 2,393 crore from Rs 1,938 crore.
Pre-provisioning operating profit increased 10% YoY to Rs 584.33 crore in Q3 FY26, compared with Rs 528.84 crore in the year-ago quarter. Asset quality buffers also strengthened, with the provision coverage ratio (PCR) excluding write-offs improving by 1,177 bps YoY to 83.5%, while PCR including write-offs rose by 1,050 bps YoY to 91.57%.
P. R. Seshadri, MD & CEO of the bank, stated that the 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 that, in line with the bank’s strategy of achieving profitability through quality credit growth, fresh advances were onboarded with a low-risk profile.
South Indian Bank is a leading Kerala-based private sector bank with a nationwide presence. It has 948 branches, 2 Ultra Small Branches, 3 Satellite branches, 1143 ATMs and 126 CRMs across India, and a representative office in Dubai, UAE.