South Indian Bank Q4 FY26 results: net profit rises 18.9% to INR 407.4 crore

South Indian Bank reported a sharp rise in March-quarter profit, helped by lower provisions and stronger interest income. Net profit rose 18.9 per cent to Rs 407.40 crore for the three months to March. The lender had posted Rs 342.41 crore profit in Q4 FY25. On a standalone basis, net profit grew 19.1 per cent year-on-year to Rs 407.50 crore.

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Managing Director and Chief Executive Officer PR Seshadri linked the gain to changes in the loan mix. Profit rose as the bank shifted towards retail and MSME loans. This move improved spreads and lifted net interest income by about 4 per cent sequentially. Seshadri also cited cost control, low slippages, and better recoveries.

South Indian Bank net interest income and NIM

The bank’s core net interest income rose 5 per cent to Rs 915 crore. It was Rs 868 crore in the same quarter last year. Net interest margin improved to 2.95 per cent in Q4 FY26 from 2.86 per cent in Q3 FY26. Yet, it was lower than 3.21 per cent a year earlier.

Seshadri said margins were moving back up after the earlier fall. "the reversal in the NIMs is underway, and the bank would like to go back to 3-3.25 per cent margins over a period of time.\" Total income was Rs 2,945.32 crore in the quarter. It was Rs 2,945.11 crore in the year-ago period.

South Indian Bank deposits and NRI deposit trends

Interest earned rose to Rs 2,559.48 crore in Q4 FY26 from Rs 2,373.44 crore a year ago. Retail deposits increased by Rs 15,366 crore to Rs 1.20 lakh crore. This was a 14.67 per cent yearly rise from Rs 1.05 lakh crore. Savings deposits climbed 17.24 per cent to Rs 32,475 crore.

NRI deposits grew by Rs 3,769 crore to Rs 35,371 crore from Rs 31,602 crore. Seshadri said remittance inflows remained strong and supported these balances. \"Our NRI book now accounts for about 12 per cent of total deposits.\" \"We estimate remittance growth to be in the range of 70-90 per cent year-on-year, driven by strong inward flows,\" Seshadri added.

South Indian Bank gross advances and asset quality

Gross advances rose by Rs 12,695 crore to Rs 1,00,274 crore in Q4 FY26. It was Rs 87,579 crore in the same period last year. Asset quality improved, with gross NPAs at 1.43 per cent by end-March 2026. This compared with 3.20 per cent by end-March 2025.

Net NPAs fell to 0.29 per cent from 0.92 per cent a year earlier. Provisions and contingencies dropped 85 per cent to Rs 34 crore. They were Rs 224 crore in the year-ago quarter. Seshadri warned about risks from West Asia if pressures persist.

\"if the situation in West Asia becomes prolonged and leads to large-scale return migration, it could pose a long-term challenge. For now, we remain optimistic in the near- term but cautious over the longer horizon,\" Seshadri said. The board recommended a dividend of Rs 0.45 per equity share for FY2025-26, subject to shareholder approval.

South Indian Bank shares closed 3.81 per cent higher at Rs 42.51 on the BSE. The benchmark Sensex ended 1.22 per cent up at 77,958.52. The results showed stronger earnings, improved asset quality, and higher deposits. The bank also signalled caution on external risks affecting remittances over time.

With inputs from PTI