South Indian Bank Q1 Results: Profit rises on better asset quality; NII grows 23%

South Indian Bank reported a strong set of earnings for the June quarter, with higher profit and improved asset quality offset by a decline in net interest income, while the stock traded lower following the announcement.

The lender posted a 17.3% year-on-year rise in net profit to ₹378 crore, compared with ₹322 crore a year earlier. The banl's net interest income (NII) also witnessed a healthy 23% year-on-year growth to ₹1025 crores from ₹862.4 crore.

Asset quality continued to improve, with gross non-performing assets (GNPA) easing to 1.38% from 1.43% in the previous quarter. Net NPA improved sharply to 0.26%, compared with 1.29% in the March quarter.

Following the earnings announcement, South Indian Bank shares fell to an intraday low of ₹43.94 before recovering to close flat on the NSE.

The results come after the bank reported healthy business growth in its provisional June-quarter update earlier this month. Gross advances rose 17% year-on-year to ₹1.04 lakh crore, while total deposits increased 11.4% to ₹1.26 lakh crore, reflecting sustained loan and deposit growth.

The bank also reported a stronger low-cost deposit franchise. CASA deposits grew 14.6% year-on-year to ₹41,493 crore, with the CASA ratio improving to 32.99%, up from 32.12% in the previous quarter and 32.06% a year earlier.

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South Indian Bank also noted that it had technically written off ₹1,048 crore during the quarter ended March 2026. Excluding the write-off, gross advances would have grown 18% year-on-year as of June 30, underscoring continued momentum in its lending business.

South Indian Bank is a Kerala-headquartered private sector lender offering retail, corporate and SME banking services through a nationwide branch network, with a growing focus on digital banking and secured lending.