South Indian Bank Shares Jump to All-Time High on Strong Quarterly Performance
Investors cheered as shares of South Indian Bank climbed sharply by 6.4% during Friday's trading session. The stock reached a fresh all-time high of ₹45.20 per share on January 16. This rally came right after the bank released its third-quarter financial results for the fiscal year 2026 on Thursday.
Record Quarterly Profit and Improved Income
The bank reported its highest ever quarterly net profit of ₹374.32 crore for the December-ending quarter. This figure represents a solid growth of 9.5% compared to the ₹341.87 crore profit recorded in the same period last year.
Net interest income, which is the difference between interest earned from loans and interest paid to depositors, stood at ₹881 crore in Q3. This showed an increase from ₹869 crore in the corresponding quarter of the previous year.
Pre-provision operating profit rose to ₹584 crore from ₹529 crore year-on-year. This marked a healthy growth of 10.5% YoY. Provisions for Q3FY26 were recorded at ₹80 crore, which was higher than the ₹66 crore provisioned in Q3FY25.
Asset Quality Shows Significant Improvement
On the asset quality front, the bank's gross non-performing assets declined by 163 basis points year-on-year to 2.67%. Net NPAs fell by 80 basis points year-on-year to 0.45%, indicating stronger financial health.
The bank stated in its earnings filing that it continues to maintain positive operating leverage for the nine months ended December 2025. Net total income increased by 7.44% while operating expenses rose by only 3.61% compared to the nine-month period ended December 2024.
Deposit and Advance Growth Across Segments
Retail deposits grew by ₹13,142 crore to ₹1,02,421 crore, reflecting a 13% increase year over year. Non-resident Indian deposits also rose by ₹2,833 crore to ₹33,965 crore, up 9% year-over-year.
CASA deposits saw a year-on-year growth of 15%. Savings account deposits increased by 14% while current account deposits rose by 20%.
In terms of advances, the corporate segment recorded a notable increase of ₹3,397 crore. This rose from ₹34,956 crore to ₹38,353 crore, marking a 10% year-on-year growth according to the bank's earnings report.
Management Comments and Strategic Focus
While announcing the financial results, Mr. 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. Management emphasized their steadfast focus on maintaining asset quality throughout this expansion.
Share Price Momentum and Investor Sentiment
Shareholders of South Indian Bank appear to be rejoicing as the stock has staged a strong comeback in recent months. After a prolonged sell-off, the bank has established itself as one of the top performers of 2025.
After hitting a one-year low in April 2025, the shares rebounded sharply. They ended the year with a surge of 53%. This marked the bank's fourth consecutive annual gain, taking the cumulative rise to 371%.
Maintaining the same momentum, the stock has advanced a further 15% in the first 11 trading sessions of 2026. This largely benefits retail shareholders, who collectively owned a 70.2% stake in the company at the end of the December quarter according to BSE shareholding data.
We advise investors to check with certified experts before making any investment decisions.
