South Indian Bank’s fiscal second-quarter net profit rose 8% year-on-year to Rs 351.36 crore from Rs 324.69 crore a year ago amid improvement in asset quality and rise in non-interest income.

The Kerala-based private lender’s net interest income (NII) fell 8% YoY to Rs 808 crore. 

Non-interest income, however, jumped 26% to Rs 515.73 crore from Rs 410.12 crore a year ago.

Interest income remained flat at Rs 1,875 crore during the quarter ended September 2025 compared to Rs 1,878 crore in the same quarter last year.

Net interest margin (NIM) declined to 2.80% as on 30 September from 3.24% a year ago.

Asset quality

The bank’s asset quality improved, with gross non-performing asset (NPA) ratio declining to 2.93% from 4.40% in September 2024. 

Net NPA dropped to 0.56% from 1.31%.

Slippage ratio fell to 0.21% in Q2 of FY26, from 0.36% in Q2 of FY25.

Provisions against bad loans fell to Rs 63 crore during the September quarter, from Rs 110 crore in the July-September period of last fiscal.

Provision coverage ratio (PCR), excluding write off, rose to 81.29% from 71.24% in the earlier year.

PCR, including write off, increased to 90.25% from 80.72%.

Loans

The lender’s loan book grew 9% year-on-year to Rs 92,286 crore from Rs 84,714 crore. 

Corporate loans rose 9% YoY to Rs 37,008 crore, while the business segment saw a 4% rise to Rs 13,424 crore. 

The gold loan portfolio expanded 13% to Rs 18,845 crore and housing loans rose 25% to Rs 8,849 crore. Vehicle loans saw a similar leap, rising 25% to Rs 2,288 crore.

Deposits

Total deposits rose 10% to Rs 1.16 lakh crore.

Retail deposits grew 11% to Rs 1.13 lakh crore as on 30 September 2025, while NRI deposits rose by 9% to Rs 33,195 crore. 

The low-cost CASA (current account savings account) deposits rose 10% YoY to Rs 36,841 crore. CASA ratio stood at 31.86% from 31.80% a year ago.

Capital adequacy

Capital adequacy ratio stood at 17.70% as of September 2025, providing buffer to support future growth.