What was filed
South Indian Bank released its press release on unaudited financial results for Q1 FY2026-27 (the quarter ended 30 June 2026), filed with the NSE and BSE under Regulation 30. The results include those of its wholly owned subsidiary SIBOSL. According to the filing, profit growth was driven by a stronger interest margin and a marked reduction in bad loans rather than by other income, which the Bank reported declined over the period.
Asset quality and margins carried the quarter
The filing frames the quarter around improving credit quality. Both the gross and net non-performing asset ratios fell year-on-year, while provision coverage rose on both measures. Net interest income, which the Bank describes as its highest ever, grew steeply. But operating profit was lower year-on-year and other income fell — so, per the filing, the profit growth rested on a sharp drop in provisions excluding tax rather than on operating income expansion.
Where the book grew
The Bank reports broad growth across lending and deposit segments, citing a focus on Corporate Lending, Auto Loans and Gold Loans. Gold loans and mortgage loans grew fastest in percentage terms, while retail and NRI deposits and CASA all expanded. MD & CEO P R Seshadri framed the quarter around a strategy of 'Profitability through Quality Credit Growth' and onboarding low-risk advances, adding that 98.81% of large corporate segments are rated A and above.