South Indian Bank Q3 results for FY26 delivered a strong positive surprise for investors. The private lender reported a solid rise in profitability alongside a sharp improvement in asset quality.
This matters to Indian investors because improving NPAs, higher provisioning, and stable growth indicate a durable turnaround in a mid-sized private bank.
South Indian Bank Q3 FY26 Financial Performance
The bank posted a 9.3% year-on-year growth in net profit, supported by steady income growth and better cost control.
Operational efficiency and controlled credit costs played a key role in strengthening quarterly earnings.
Key Financial Metrics at a Glance
The table below highlights South Indian Bank’s core performance indicators for the quarter.
| Key Metric | Q3 FY26 | Q3 FY25 |
|---|---|---|
| Net Profit | ₹374 crore | ₹342 crore |
| Total Income | ₹3,003 crore | ₹2,780 crore |
| Operating Profit | ₹584 crore | ₹529 crore |
| Interest Income | ₹2,518 crore | ₹2,379 crore |
The consistent rise across income and operating profit reflects improving business momentum.
Asset Quality Improvement Drives Confidence
- Gross NPA declined sharply to 2.67% from 4.30%
- Net NPA improved to 0.45% from 1.25%
- Provision Coverage Ratio strengthened to 98.28%
This places South Indian Bank among a small group of lenders with sub-0.5% net NPAs, significantly improving investor confidence.
Business Growth and Funding Mix
- Gross advances rose 11.27% year-on-year to ₹96,765 crore
- Deposits increased 12.17% to ₹1.18 lakh crore
- CASA ratio improved to 31.84%
The stronger CASA base enhances access to low-cost funds and helps protect net interest margins.
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Frequently Asked Questions
Why did South Indian Bank’s profit rise in Q3 FY26?
Profit growth was driven by lower NPAs, higher provisioning coverage, and stable income growth.
Is the asset quality improvement sustainable?
High provisioning and conservative underwriting suggest the improvement is structurally sustainable.
How did the stock react to Q3 results?
The stock reflected positive sentiment after a strong year-long rally, supported by fundamentals.
Key Takeaways
- South Indian Bank delivered steady profit growth in Q3 FY26
- Asset quality improved to multi-year best levels
- Business growth remains healthy with strong capital support
Disclaimer
This article is for informational purposes only and does not constitute financial, tax, or legal advice. Please consult a qualified professional before making decisions.
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