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South Indian Bank Ltd has reported a 21 per cent year-on-year increase in net profit to ₹426.13 crore for the second quarter of FY27, compared with ₹351.37 crore in the corresponding period of the previous fiscal, driven by consistent growth across its targeted business segments.

Thrissur-based lender recorded its highest-ever net interest income (NII) of ₹1,116 crore, up 38 per cent year-on-year. Operating profit rose 37 per cent to ₹732 crore, while net interest margin (NIM) improved to 3.33 per cent from 2.80 per cent.

The bank also reported an improvement in asset quality, with gross non-performing assets (GNPA) declining to 1.24 per cent from 2.93 per cent a year earlier. Net non-performing assets (NNPA) fell to 0.09 per cent from 0.56 per cent.

Mahesh Muralidhar Pai, the bank’s new managing director and CEO, said its strategy continued to focus on sustained profitability, superior asset quality, a resilient loan book and a strong retail liability portfolio. The bank is also strengthening its organisational structure and leveraging digital technology to achieve its business objectives.

The bank, he said, had maintained consistent growth across its targeted segments, focusing on acquiring quality assets in corporate lending, MSME loans, housing loans, auto loans and gold loans. The liability franchise remained a priority, with an emphasis on active customer engagement and quality customer acquisition.

“Aligned with our strategic intent of ‘Profitability through Quality Credit Growth’, we have successfully on-boarded new advances with low-risk profiles, ensuring a well-balanced and healthy credit portfolio,” Pai said.

Retail deposits increased 15 per cent year-on-year to ₹1,29,353 crore from ₹1,12,625 crore, while non-resident Indian (NRI) deposits rose to ₹38,203 crore from ₹33,195 crore, an increase of ₹5,008 crore.

The current account and savings account (CASA) portfolio grew 17.56 per cent, with savings bank deposits increasing 14.34 per cent and current account deposits rising 31.19 per cent.

The gold loan portfolio increased by ₹7,758 crore to ₹26,603 crore from ₹18,845 crore a year earlier.

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