South Indian Bank Posts ₹305 Crore Q3 Profit As Margins Hold Firm, 9M Net Up 19% YoY

Kochi: South Indian Bank reported a net profit of Rs 305 crore for the quarter ended December 2025 (Q3 FY2026), showing stable performance despite minor pressure on margins. The bank’s nine-month net profit rose 19 percent year-on-year to Rs 1,180 crore.

Net profit holds steady

In Q3, the bank recorded a net profit of Rs 305 crore, compared to Rs 303 crore in the same quarter last year, indicating stable earnings despite higher costs. Sequentially, profit was lower than Q2’s Rs 307 crore, primarily due to slightly increased provisioning and operating expenses .

Interest income grows, margins dip slightly

Total income for Q3 grew to Rs 2,612 crore from Rs 2,478 crore in Q3 FY2025. Interest income increased to Rs 2,519 crore from Rs 2,380 crore a year ago, reflecting consistent lending activity. However, net interest margin came under marginal pressure due to rising cost of funds.

Net Interest Income (NII) for the quarter came in at Rs 892 crore versus Rs 896 crore in Q3 FY2025, while operating profit before provisions was Rs 601 crore.

Costs and provisions edge up

The bank reported operating expenses of Rs 710 crore, up from Rs 648 crore a year ago. Provisions for the quarter stood at Rs 296 crore, higher than Rs 289 crore in Q3 FY2025. Despite these increases, the cost-to-income ratio remained under control at 54.2 percent.

Gross non-performing assets (NPAs) stood at 4.84 percent, marginally better than 5.07 percent last year. Net NPAs came down to 1.64 percent from 1.75 percent, showing improved asset quality and better recoveries .

Nine-month snapshot and capital

For the nine months ended December 2025, South Indian Bank posted a net profit of Rs 1,180 crore, up from Rs 991 crore in the same period last year. Earnings per share for Q3 stood at Rs 1.55.

The bank’s capital adequacy ratio remained healthy at 16.29 percent, and no significant deviation was reported in utilization of capital raised.

South Indian Bank continues to maintain profitability with improving asset quality and steady income growth, despite a cautious lending environment.

Disclaimer: This report is based on unaudited financial results disclosed by the company. It is intended for informational purposes only and should not be considered investment advice. Please verify figures independently.