South Indian Bank delivered robust financial performance in Q4 FY26, with net profit rising 19.1% year-on-year to ₹408 crore compared to ₹342 crore in the corresponding quarter last year. According to reports from ET Now, CNBC TV18, The Hindu BusinessLine, and The Economic Times, this strong profit growth demonstrates the bank's ability to maintain steady business momentum despite market challenges. The significant year-on-year increase indicates the bank's operational efficiency and strategic positioning in the current financial environment. For the full fiscal year FY26, net profit reached ₹1,455.14 crore, registering a growth of 12% compared to ₹1,302.88 crore in FY25, as reported by The Hindu BusinessLine.
The bank achieved its highest ever business of ₹2,23,620 crore and operating profit of ₹2,373 crore during the quarter, marking significant milestones in its operational performance. As per The Hindu BusinessLine, the bank demonstrated robust business expansion with advances growth picking up pace to 15.7% YoY, while deposits also saw sharp improvement with 14.7% YoY growth. The strong growth in both lending and deposit mobilization indicates the bank's effective market penetration and customer acquisition strategies. Gross advances grew 14.5% year-on-year to ₹1 lakh crore while deposits rose 14.7% to ₹1.23 lakh crore, as reported by The Economic Times. Retail deposits grew by ₹15,366 crore from ₹1,04,750 crore to ₹1,20,116 crore, representing a 15% increase, while NRI deposits grew by ₹3,769 crore from ₹31,602 crore to ₹35,371 crore, an increase of 12%. The gold loan portfolio grew by ₹7,747 crore from ₹16,982 crore to ₹24,729 crore, marking a 46% increase.
Asset quality metrics showed remarkable improvement on a year-on-year basis during Q4 FY26. Gross non-performing assets (GNPA) dropped by 177 basis points from 3.20% to 1.43%, while net non-performing assets (NNPA) reduced by 63 basis points from 0.92% to 0.29%. The continued decline in bad loans reflects improving recoveries, better underwriting standards and strengthening balance sheet quality for the lender. As per The Hindu BusinessLine, this improvement in asset quality metrics supports the bank's overall financial performance and operational efficiency. P.R. Seshadri, Managing Director & CEO, highlighted the bank's strategic focus on acquiring quality assets across targeted segments including corporate lending, MSME, auto loans, mortgage loans and gold loans, ensuring a well-balanced and healthy credit portfolio.
The Board of Directors recommended a dividend of ₹0.45 per equity share of face value Re 1 each for FY2025-26, equivalent to a 45% payout compared to a dividend of ₹0.40 per equity share, or 40%, declared in the previous financial year. The proposed dividend is subject to shareholder approval at the upcoming Annual General Meeting, with the record date yet to be announced. Following the results announcement, shares of the bank were trading 3.8% higher at ₹42.52 on BSE, as reported by The Economic Times, taking gains for the year so far to around 12%. This enhanced dividend recommendation reflects the bank's improved financial position and commitment to returning value to shareholders.
