Kochi: South Indian Bank reported a healthy performance for the first quarter of FY27, with its net profit rising 17.3 per cent year-on-year to Rs 378 crore, driven by strong growth in net interest income and an improvement in asset quality.
The private sector lender also reported a sharp increase in net interest income (NII), while both gross and net non-performing asset (NPA) ratios improved during the April-June quarter.
Net profit grows 17.3 per cent
South Indian Bank posted a net profit of Rs 378 crore for the quarter ended June 2026, compared with the corresponding period of the previous financial year, registering a 17.3 per cent year-on-year growth.
The improved profitability reflects healthy core banking performance and lower provisioning during the quarter.
Net interest income crosses Rs 1,000 crore
The bank’s net interest income (NII), which represents the difference between interest earned and interest paid, increased 23 per cent year-on-year to Rs 1,025 crore.
In the corresponding quarter of the previous financial year, the lender had reported NII of Rs 833 crore.
The strong growth in NII indicates improved lending performance and better income generation from the bank’s core operations.
Asset quality improves further
South Indian Bank also reported a marginal improvement in its asset quality during the first quarter.
The gross non-performing assets (GNPA) ratio declined to 1.38 per cent as of June-end, compared with 1.43 per cent at the end of the previous quarter.
Similarly, the net NPA ratio improved to 0.26 per cent, down from 0.29 per cent recorded at the end of the fourth quarter of FY26.
The lower NPA ratios indicate continued improvement in the bank’s loan book and recovery efforts.
Provisions decline sharply
The lender’s provisions fell significantly during the quarter, supporting overall profitability.
South Indian Bank reported provisions of Rs 84.3 crore during the April-June period, compared with Rs 239.3 crore in the corresponding quarter of the previous financial year.
The decline in provisioning reflects improved asset quality and reduced stress in the bank’s loan portfolio.
Positive start to FY27
The first-quarter results indicate a strong start to FY27 for South Indian Bank, supported by healthy growth in net interest income, improved profitability and better asset quality.
The combination of higher core income, lower NPAs and reduced provisions suggests that the bank continues to strengthen its financial position while maintaining stable operational performance.
Investors and analysts will closely watch the bank’s performance in the coming quarters to assess whether it can sustain this growth momentum amid evolving interest rate and credit market conditions.