The South Indian Bank Limited (SOUTHBANK)
₹51.45 -0.06% last close, 16 Oct
Q2 FY27 results
The South Indian Bank Limited reported Q2 FY27 results on 15 Oct 2026: net interest income ₹1,116 Cr (+37.9% year on year, +8.9% on the previous quarter), and net profit ₹426 Cr (+21.1% year on year).
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Net interest income | ₹1,116 | +37.9% | +8.9% |
| Operating profit | ₹733 | — | +23.8% |
| Net profit | ₹426 | +21.1% | +12.9% |
| EPS (₹) | 1.63 | +21.6% | +13.2% |
| Gross NPA | 1.24% | — | — |
- Gross NPA down 169 bps YoY
Against its own trend: net profit of ₹426 Cr was +6.9% against the ₹399 Cr its recent growth pointed to (in line). This is a statistical baseline, not an analyst estimate.
Share price since the results: +3.6% (close before the filing to the latest close).
SOUTHBANK delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 45.89% of the SOUTHBANK shares traded on NSE were taken to delivery, against the stock's own 20-session average of 43.11%. That is close to its usual level. It traded 2.4 times its average daily volume.
Delivery in the last 5 sessions: 42.1% · 32.6% · 36.2% · 30.0% · 45.9%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
The South Indian Bank Limited has approved changes in its Senior Management Personnel to reflect operating and reporting structural reorganizations. Mr. Anto George T, currently EVP & COO and a designated Material Risk Taker, has been appointed as EVP & Chief Business Officer effective November 1, 2026. Internal shifts effective October 16, 2026 include Mr. Nandakumar G taking charge of Banking Operations, Mr. Vijith S leading Internal Audit, and Ms. Rekha V R named Chief of Internal Vigilance. These changes represent routine internal realignments rather than departures.
- Mr. Anto George T reassigned as EVP & Chief Business Officer effective November 1, 2026, identified as Material Risk Taker per RBI rules
- Mr. Nandakumar G reassigned as Head - Banking Operations Group effective October 16, 2026
- Mr. Vijith S appointed as Head of Internal Audit and Ms. Rekha V R appointed Chief of Internal Vigilance effective October 16, 2026
- All appointees are internal long-tenured veterans, with three having over 20 to 30 years of experience at the bank
The Board of Directors of The South Indian Bank Limited approved designating 'SIB Tower' at Kakkanad, Ernakulam as the bank's Corporate Office at its meeting on October 15, 2026. The bank confirmed there is no change to its Registered Office/Head Office, which remains at SIB House in Thrissur, Kerala. This represents an administrative relocation of corporate office functions without operational disruption or capital structure changes.
- Board approved SIB Tower, Rajagiri Valley P.O, Kakkanad, Ernakulam - 682039 as Corporate Office
- Head Office and Registered Office remain unchanged at Thrissur - 680001
- Board meeting commenced at 11:00 AM and concluded at 07:30 PM on October 15, 2026
The South Indian Bank Limited reported its unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The Joint Statutory Auditors issued a Limited Review Report with an unmodified opinion. Additionally, the bank allotted 14,37,644 equity shares during the quarter and 19,35,803 shares during the half-year ended September 30, 2026, upon the exercise of employee stock options. While detailed P&L rows were partially truncated in the disclosure, the submission formalizes the bank's Q2 performance review.
- Auditors issued a Limited Review Report with an unmodified opinion for Q2 and H1 FY27 results
- Allotted 14,37,644 equity shares during the quarter ended September 30, 2026, under ESOPs
- Allotted 19,35,803 equity shares during the half-year ended September 30, 2026, under ESOPs
- Board meeting commenced at 11:00 AM and concluded review of results at 1:15 PM on October 15, 2026
South Indian Bank released its Q2 FY27 investor presentation, reporting a 21.4% YoY growth in Profit After Tax to ₹426 Cr compared to ₹351 Cr in Q2 FY26. Asset quality showed sharp improvement, with Gross NPA decreasing to 1.24% (from 2.93%) and Net NPA plunging to 0.09% (from 0.56%). Gross advances expanded 18.7% YoY to ₹109,517 Cr, driven by a 41% YoY jump in gold loans, while total deposits grew 18.7% YoY to ₹137,279 Cr. Net Interest Margin expanded significantly by 53 bps YoY to 3.33%, supporting an improved Return on Assets of 1.08%.
- Q2 FY27 PAT rose 21.4% YoY to ₹426 Cr versus ₹351 Cr in Q2 FY26
- Gross NPA improved to 1.24% from 2.93%, while Net NPA dropped to 0.09% from 0.56% YoY
- Net Interest Margin (NIM) expanded by 53 bps YoY to 3.33% from 2.80%
- Gross advances reached ₹109,517 Cr, growing 18.7% YoY from ₹92,286 Cr
- Capital Adequacy Ratio (CRAR) strengthened to 19.40% compared to 17.70% a year ago
South Indian Bank reported its highest-ever quarterly net profit of Rs 426.13 crore for Q2 FY27, up 21.28% YoY from Rs 351.37 crore. Net Interest Income (NII) surged 37.95% YoY to Rs 1,116 crore, driven by a 53 bps expansion in Net Interest Margin (NIM) to 3.33%. Asset quality improved substantially, with GNPA declining by 169 bps YoY to 1.24% and NNPA easing to 0.09%. Gross advances expanded 18.67% YoY to Rs 109,517 crore, supported by 41.17% growth in the gold loan segment.
- Highest-ever quarterly Net Profit of Rs 426.13 Cr, up 21.28% YoY
- Net Interest Income rose 37.95% YoY to Rs 1,116 Cr, with NIM improving to 3.33% from 2.80%
- Gross NPA declined 169 bps YoY to 1.24% and Net NPA dropped to 0.09% (from 0.56%)
- PCR (including write-offs) strengthened to 97.84% from 90.25%
- Gross advances grew 18.67% YoY to Rs 109,517 Cr, led by a 41.17% YoY increase in gold loans to Rs 26,603 Cr
The South Indian Bank Limited reported its unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026. The Joint Statutory Auditors issued a Limited Review Report with an unmodified opinion. Additionally, the bank allotted 14,37,644 equity shares during the quarter and 19,35,803 shares during the half-year ended September 30, 2026, upon the exercise of employee stock options. While detailed P&L rows were partially truncated in the disclosure, the submission formalizes the bank's Q2 performance review.
- Auditors issued a Limited Review Report with an unmodified opinion for Q2 and H1 FY27 results
- Allotted 14,37,644 equity shares during the quarter ended September 30, 2026, under ESOPs
- Allotted 19,35,803 equity shares during the half-year ended September 30, 2026, under ESOPs
- Board meeting commenced at 11:00 AM and concluded review of results at 1:15 PM on October 15, 2026
The South Indian Bank Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate was issued by the bank's Registrar and Share Transfer Agent, MUFG Intime India Private Limited. It confirms that securities received for dematerialisation during the period were processed, verified, and cancelled within prescribed regulatory timelines. This filing is standard statutory reporting and has zero impact on financial performance.
- Compliance certificate under Regulation 74(5) submitted for the quarter ended September 30, 2026
- Issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited (formerly Link Intime India)
- Filing executed and signed on October 07, 2026
The South Indian Bank reported provisional business updates for Q2 FY27 ended September 30, 2026. Gross advances rose 18.67% YoY to ₹1,09,519 crore (up 19.81% YoY excluding a technical write-off of ₹1,048 crore in Q4 FY26). Total deposits grew 18.70% YoY to ₹1,37,258 crore, driven by a 17.56% increase in CASA deposits to ₹43,310 crore. CASA ratio marginally softened to 31.55% compared to 31.86% a year ago.
- Gross advances grew 18.67% YoY to ₹1,09,519 crore as of September 30, 2026
- Adjusted gross advance growth stood at 19.81% YoY excluding ₹1,048 crore technical write-off in Q4 FY26
- Total deposits increased 18.70% YoY to ₹1,37,258 crore from ₹1,15,635 crore
- CASA deposits reached ₹43,310 crore, growing 17.56% YoY with a CASA ratio of 31.55%
The South Indian Bank has announced that Mahesh Muralidhar Pai will assume charge as Managing Director & CEO for a 3-year term starting October 1, 2026, following RBI and shareholder approvals. He succeeds P R Seshadri, who demitted office on September 30, 2026, upon the completion of his tenure. Pai brings nearly 3 decades of banking experience, most recently serving as Chief General Manager at Canara Bank leading digital banking and innovation. The planned leadership transition comes as the bank operates with a net worth of ₹11,404 Cr and TTM PAT of ₹1,511 Cr.
- Mahesh Muralidhar Pai appointed MD & CEO for a 3-year term effective October 1, 2026
- Predecessor P R Seshadri demitted office on September 30, 2026, upon expiry of RBI-approved tenure
- Appointee previously served as Chief General Manager at Canara Bank with close to 3 decades of experience
- Appointment was approved by shareholders at the 98th AGM held on August 20, 2026
The South Indian Bank Limited announced that Mr. Mahesh Muralidhar Pai will take charge as Managing Director & CEO for a period of 3 years, effective October 1, 2026. This follows the completion of the tenure and retirement of outgoing MD & CEO Mr. P R Seshadri on September 30, 2026. The appointment has received requisite approvals from the Reserve Bank of India and bank shareholders at the AGM held on August 20, 2026. Mr. Pai brings nearly 3 decades of banking experience, previously serving as Chief General Manager at Canara Bank.
- Mahesh Muralidhar Pai appointed MD & CEO for a 3-year term starting October 1, 2026
- Outgoing MD & CEO P R Seshadri retired on September 30, 2026, upon expiry of RBI-approved tenure
- Shareholder approval was secured at the 98th AGM held on August 20, 2026
- Mahesh Pai brings close to 30 years of banking experience, formerly Chief General Manager at Canara Bank
The South Indian Bank has announced that Mahesh Muralidhar Pai will assume charge as Managing Director & CEO for a 3-year term starting October 1, 2026, following RBI and shareholder approvals. He succeeds P R Seshadri, who demitted office on September 30, 2026, upon the completion of his tenure. Pai brings nearly 3 decades of banking experience, most recently serving as Chief General Manager at Canara Bank leading digital banking and innovation. The planned leadership transition comes as the bank operates with a net worth of ₹11,404 Cr and TTM PAT of ₹1,511 Cr.
- Mahesh Muralidhar Pai appointed MD & CEO for a 3-year term effective October 1, 2026
- Predecessor P R Seshadri demitted office on September 30, 2026, upon expiry of RBI-approved tenure
- Appointee previously served as Chief General Manager at Canara Bank with close to 3 decades of experience
- Appointment was approved by shareholders at the 98th AGM held on August 20, 2026
The South Indian Bank has announced that Mahesh Muralidhar Pai will assume charge as Managing Director & CEO for a 3-year term starting October 1, 2026, following RBI and shareholder approvals. He succeeds P R Seshadri, who demitted office on September 30, 2026, upon the completion of his tenure. Pai brings nearly 3 decades of banking experience, most recently serving as Chief General Manager at Canara Bank leading digital banking and innovation. The planned leadership transition comes as the bank operates with a net worth of ₹11,404 Cr and TTM PAT of ₹1,511 Cr.
- Mahesh Muralidhar Pai appointed MD & CEO for a 3-year term effective October 1, 2026
- Predecessor P R Seshadri demitted office on September 30, 2026, upon expiry of RBI-approved tenure
- Appointee previously served as Chief General Manager at Canara Bank with close to 3 decades of experience
- Appointment was approved by shareholders at the 98th AGM held on August 20, 2026
The United Forum of Bank Unions (UFBU), affiliated with South Indian Bank's Officers Association and Workmen Union, has called for a 3-day strike from September 28, 2026 to September 30, 2026. If the strike proceeds, normal branch, office, and departmental operations may be disrupted. The bank noted that ATMs and digital channels will remain operational, and the expected quantum of loss or financial impact is currently not quantifiable.
- UFBU called for a 3-day strike from September 28, 2026 to September 30, 2026
- Officers Association and Workmen Union of the bank are affiliated with UFBU
- Normal functioning of branches, offices, and departments may be affected
- ATMs and digital channels will continue functioning to serve customer needs
- Expected quantum of operational loss and damage is not quantifiable
The South Indian Bank Limited has announced the opening of a new branch in Hebbal (Branch Code: 1063), Bangalore, effective September 24, 2026. The new location is situated at Sahakara Nagar, D Block, Bangalore. Given the bank's large scale with TTM revenue of ₹11,879 crore and net worth of ₹11,404 crore, the opening of a single branch represents routine operational expansion. This incrementally adds to the bank's physical distribution network.
- New branch opened at Hebbal, Bangalore (Branch code: 1063)
- Opening effective date is September 24, 2026
- Branch address located at Plot No 2122/5, RMS Layout, Sahakara Nagar, D Block, Bangalore-560092
The South Indian Bank Limited has announced the opening of a new branch in Vridhachalam, Cuddalore District, Tamil Nadu. The branch commenced operations on September 23, 2026. This is part of the bank's routine network expansion and represents an incremental addition to its physical distribution footprint. Given the bank's large existing network and TTM revenue of ₹11,879 Cr, this single branch addition has negligible direct financial impact.
- New branch opened in Vridhachalam (Branch code: 1065), Tamil Nadu
- Branch opening date effective September 23, 2026
- Located at Door No 12/105, South Street, Cuddalore District, PIN 606001
Financial Performance
Revenue Growth by Segment
Treasury revenue grew 9.6% to Rs. 2,204.18 Cr; Corporate/Wholesale Banking grew 22.4% to Rs. 3,646.52 Cr; Retail Banking grew 3.8% to Rs. 4,883.01 Cr; Other Banking Operations grew 13.3% to Rs. 493.03 Cr (all FY25 figures).
Geographic Revenue Split
Over 66.6% (two-thirds) of the bank's advances portfolio is concentrated in Southern India, primarily Kerala.
Profitability Margins
Net Interest Margin (NIM) stood at 2.8% for Q2 FY26. Return on Assets (ROA) was 1.02% and Return on Equity (ROE) was 13.11% for the September 2025 quarter. FY25 ROA improved to 1.06% from 0.93% YoY.
EBITDA Margin
Operating profit for Q2 FY26 was Rs. 535 Cr. Operating profit as a percentage of Working Funds increased to 1.85% in FY25 from 1.62% in FY24, reflecting improved core profitability.
Capital Expenditure
The bank raised Rs. 1,151 Cr in equity capital via a rights issue in FY24 to support growth. While specific future capex is not disclosed, the bank is investing in new LOS systems for Retail/MSME and technology infrastructure upgrades.
Credit Rating & Borrowing
Upgraded to IVR AA/Stable (Infomerics) from IVR AA-/Stable. The bank maintains a comfortable capital adequacy ratio (CAR) of 17.70% (Tier-1 at 16.79%) as of September 30, 2025.
Operational Drivers
Raw Materials
Primary inputs are Deposits (CASA and Term Deposits). Total deposits grew 10% YoY to Rs. 115,635 Cr. CASA balances increased 10% YoY to Rs. 36,841 Cr.
Import Sources
Not applicable for banking; sourced from retail and corporate depositors across India, primarily in the Southern region.
Key Suppliers
Retail and Corporate depositors (Total Deposits: Rs. 115,635 Cr).
Capacity Expansion
Advances grew 9% to Rs. 92,286 Cr. Expansion is focused on branch productivity and digital channel efficiency rather than physical branch count growth.
Raw Material Costs
Interest expense on deposits is the primary cost. The bank raised term deposit rates to narrow the funding gap as credit growth outpaced deposit mobilization.
Manufacturing Efficiency
Profit per employee increased by 27.6% to Rs. 14.15 lakhs in FY25 from Rs. 11.09 lakhs in FY24. Branch productivity has seen a material increase through process improvements.
Strategic Growth
Expected Growth Rate
15-18%
Growth Strategy
The bank aims to achieve growth by shifting its portfolio mix from Corporate (41%) toward higher-margin MSME (targeting 15-18% growth) and Retail segments. It has already churned 80% of its portfolio since 2020 to improve quality. Strategy includes enhancing branch productivity, granularizing the portfolio through 'frictionless' digital processes (LOS systems), and growing gold loans (Rs. 16,982 Cr, up 9% YoY).
Products & Services
Gold loans, MSME advances, Corporate loans, Personal loans, Credit cards, Savings and Current accounts.
Brand Portfolio
South Indian Bank
New Products/Services
Controlled growth of Credit Cards and Retail Personal Loans to diversify revenue streams.
Market Expansion
Focus on growing non-branch distribution and leveraging partnerships to expand reach beyond traditional Southern strongholds.
Strategic Alliances
Leveraging partnerships for non-branch distribution and digital channel expansion.
External Factors
Industry Trends
The Indian banking sector is seeing credit growth outpace deposit mobilization, leading to higher term deposit rates. The MSME sector specifically grew 20% YoY to Rs. 40 trillion. Regulatory shifts include the RBI's focus on digital payments, fintech regulation, and the adoption of the 2023 Investment Portfolio framework.
Competitive Landscape
Competition from Scheduled Commercial Banks (SCBs) and NBFCs, particularly in the gold loan and MSME segments.
Competitive Moat
The bank possesses a durable moat through its long operational history (since 1929) and an established retail depositor base (Rs. 115,635 Cr). Its competitive advantage is reinforced by a strong capital position (17.70% CAR) and improved asset quality, with networth coverage for net NPAs increasing to 17.6 times in June 2025 from 12.8 times in March 2025.
Macro Economic Sensitivity
Sensitive to RBI interest rate cycles and MSME sector health. MSME credit demand in India grew 20% YoY, directly benefiting the bank's target growth segment.
Consumer Behavior
Shift toward digital banking and granular credit products like gold loans (Rs. 16,982 Cr) and personal loans.
Geopolitical Risks
Global interest rate volatility and geopolitical disruptions are noted as risks requiring strengthened risk management frameworks.
Regulatory & Governance
Industry Regulations
Operations are governed by the RBI Master Direction on Classification, Valuation and Operation of Investment Portfolio (2023) and Basel III capital requirements (mandated at 11.50%). The bank also follows RBI guidelines on MSME priority sector lending and digital payment security.
Environmental Compliance
The bank has developed ESG criteria for investments and lending as defined in its Environmental and Social Management System (ESMS) policy.
Risk Analysis
Key Uncertainties
Key risks include the high regional concentration in South India (>66% of book) and the seasoning of the newly originated portfolio (80% churned since 2020), which may impact asset quality if economic conditions worsen. NIM compression remains a risk as deposit costs catch up to loan yields.
Geographic Concentration Risk
Over 66.6% (two-thirds) of the bank's advances portfolio is concentrated in Southern India, primarily Kerala.
Technology Obsolescence Risk
The bank is mitigating technology risks by investing in high-quality LOS (Loan Origination Systems) for Retail and MSME, adopting Data Science for risk measurement, and focusing on digital channels to drive operating efficiency.
Credit & Counterparty Risk
Asset quality has improved with Net Non-Performing Assets (NNPA) to Net Worth ratio at 8.10% as of March 2025, down from 13.38% the previous year. Net stressed assets to net worth also reduced to 12.11% from 22.59%.
