South Indian Bank Q1 net profit up 17%, NII hits record ₹1,025 cr
Asset quality improves sharply: GNPA falls to 1.38% from 3.15%, net NPA at 0.26%. Gold loans and mortgages drive 17% advances growth.
— 4 earlier stories on The South Indian Bank Ltd. →What's new
- Net profit rises 17% YoY to ₹377.63 crore on record NII of ₹1,025 crore.
- Gross NPA drops to 1.38% from 3.15% a year ago; net NPA at 0.26%.
- Gold loans and mortgages drive 17% growth in gross advances to ₹1,04,368 crore.
Why this matters
South Indian Bank delivered a strong quarter with record net interest income and a sharp improvement in asset quality, bringing GNPA to 1.38%, from above 3% a year ago. The capital adequacy ratio of 19.62% provides ample headroom for growth, though the market had already seen the headline numbers from the earlier board meeting.
What we're watching
- How the new CEO from Canara Bank will steer strategy from Oct 1, 2026.
- Whether margin trends hold given competitive pressure in gold loans.
- Loan growth trajectory in the rest of FY27, especially in corporate lending.
The full read
South Indian Bank delivered a clean quarter. Net profit climbed 17% to ₹377.63 crore on a record net interest income of ₹1,025 crore. Asset quality improved sharply: gross NPA fell to 1.38% from 3.15% a year ago, and net NPA is now just 0.26%. The provision coverage ratio (ex-write-offs) is 81.40%, and the capital adequacy ratio at 19.62% leaves plenty of room for growth. Loans grew 17% to ₹1,04,368 crore, driven by gold loans and mortgages. None of this is a surprise. The board meeting outcome had already flagged the headline numbers. What's new is the depth: the balance sheet looks cleaner than it has in years. The open question is how the incoming CEO from Canara Bank, who takes over on Oct 1, will build on this momentum.
Questions answered
- What was the net profit for Q1 FY27 and how did it compare year-on-year?
- Net profit was ₹377.63 crore, up 17% from the year-ago period.
- What drove the record net interest income of ₹1,025 crore?
- The bank achieved a record NII, supported by strong loan growth of 17%, though the exact net interest margin was not disclosed.
- How did asset quality evolve in Q1?
- Gross NPA fell to 1.38% from 3.15% a year earlier, and net NPA to 0.26% from 0.58%. The provision coverage ratio (excluding write-offs) stood at 81.40%.
- What is the bank's capital adequacy ratio?
- The capital adequacy ratio was 19.62%.
- Was this information already known to the market?
- Yes, the board meeting outcome earlier had shared the headline numbers; this press release provides detailed segmental breakdowns and asset quality metrics.
The South Indian Bank Ltd.
Latest quarter · Jun 2026
Returns & growth
Story so far
All notes on SOUTHBANK →- 16 Jul 2026 · 3:16 PM IST South Indian Bank Q1 net profit up 17%, NII hits record ₹1,025 cr
- 1d ago South Indian Bank pivots: corporate book now 40% vs earlier 30-33% target
- 2d ago South Indian Bank's bad loans drop to 1.38%, profit up 17%
- 10d ago South Indian Bank gets RBI nod for new CEO from Canara Bank
- 57d ago South Indian Bank settles on its preferred shortlist for the next CEO