Bank stock jumps 6% after announcing its Q3 results

SYNOPSIS: South Indian Bank posted a steady Q3 FY26 performance with higher NII and profits, improving CASA mix and asset quality, lower slippages, stable RoA, and moderated NIM compared with last year.

During Friday’s trading session, shares of a leading Kerala-based Private Sector Bank with a nationwide presence surged around 6 percent to hit a new 52-week high on the stock exchanges, after the company reported a rise in net profit to Rs. 374 crores with improved asset quality.

At 02:42 p.m., shares of South Indian Bank Limited were trading in green at Rs. 44.49 on BSE, up by around 5 percent, compared to its previous closing price of Rs. 42.44, with a market cap of Rs. 11,643.7 crores. The stock has delivered positive returns of around 67 percent in one year, and has gained by over 13 percent in the last one month.

What’s the News

South Indian Bank Limited announced the financial results for the third quarter of FY26 on Thursday, as per the latest regulatory filings with the stock exchanges. For Q3 FY26, the bank reported a net interest income (NII) of Rs. 880.68 crores, reflecting a sequential growth of around 9 percent QoQ compared to Rs. 808.78 crores in Q2 FY26, and a year-on-year marginal increase of about 1.3 percent from Rs. 869.3 crores recorded in Q3 FY25.

During the same period, net profit stood at Rs. 374.5 crores, indicating a growth of around 7 percent QoQ from Rs. 351.6 crores in Q2 FY26, and a marginal rise on a year-on-year basis by more than 9 percent from Rs. 342 crores reported in Q3 FY25.

Operational Metrics

As of December 2025, CASA deposits rose to Rs. 37,640 crore, reflecting a robust increase of around 2 percent QoQ and 15 percent YoY, while the CASA ratio improved to 31.84 percent, up 69 basis points YoY but fell by 2 bps QoQ. CASA grew by 15 percent YoY, with growth in Savings Bank by 14 percent and Current Account by 20 percent. The Net Interest Margin (NIM) for Q3 FY26 stood at 2.86 percent, up from 2.8 in Q2 FY26 but down from 3.19 percent in Q3 FY25.

As of 31st December 2025, the bank reported a notable improvement in asset quality, with gross NPAs declining by 163 bps YoY to 2.67 percent, from 4.3 percent a year earlier. Net NPAs also moderated by 80 bps to 0.45 percent, compared with 1.25 percent in the previous year.

Profitability metrics remained stable, with return on assets (RoA) sustaining above 1 percent, indicating healthy operating performance. Credit costs continued to ease, as the slippage ratio improved to 0.16 percent in Q3 FY26 from 0.33 percent in Q3 FY25, underscoring improved underwriting and recovery trends.

Established in 1929 in Thrissur, Kerala, South Indian Bank Limited is engaged in the business of offering a wide range of customers across corporate, personal, business, and agricultural loan segments, with a strategic focus on retail, MSME, and high-quality corporate lending. SIB has 948 branches, 2 Ultra Small Branches, 3 Satellite branches, 1143 ATMs and 126 CRMs across India, and a Representative Office in Dubai, UAE.

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