South Indian Bank Reported Best Ever Quarterly PAT During Q3FY25

On January 21, 2025, South Indian Bank reported a remarkable performance for Q3 FY25, posting its highest-ever quarterly net profit of ₹341.87 Crore, a growth of 11.96% compared to ₹305.36 Crore in the same quarter of the previous fiscal year. The operating profit for the quarter saw a healthy increase of 9.39%, rising from ₹483.45 Crore to ₹528.84 Crore. In terms of asset quality, the Bank made significant improvements with a reduction in Gross NPA by 44 bps from 4.74% to 4.30% and a decline in Net NPA by 36 bps from 1.61% to 1.25%.

The bank also reported a 6.13% increase in net interest income, which grew from ₹819.03 Crore to ₹869.26 Crore. The Return on Assets saw a positive change, increasing by 5 bps from 1.07% to 1.12%, and the Provision Coverage Ratio (PCR), both excluding and including write-offs, showed marked improvements, signalling enhanced asset recovery efforts.

Deposits Growth Backed by Strong Retail Portfolio

The Bank experienced solid growth in its deposit base, with retail deposits increasing by ₹7,332 Crore, from ₹95,088 Crore to ₹1,02,420 Crore, representing a 7.71% growth on a year-on-year basis. NRI deposits also saw a healthy rise, growing by ₹1,896 Crore from ₹29,236 Crore to ₹31,132 Crore, reflecting a 6.49% increase compared to the previous year. Furthermore, the Bank’s CASA (Current Account Savings Account) deposits grew by 4.13% on a year-on-year basis, with Savings Bank deposits increasing by 3.37% and Current Accounts seeing a higher growth of 7.73%. This increase in CASA deposits is indicative of the Bank’s strong retail banking performance and its continued focus on low-cost funding sources.

Advances Soared 12% in Q3FY25

In terms of advances, South Indian Bank saw a significant growth of ₹9,280 Crore in its gross advances, from ₹77,686 Crore to ₹86,966 Crore, marking an 11.95% increase on a year-on-year basis. The corporate segment showed impressive growth, increasing by ₹5,064 Crore from ₹29,892 Crore to ₹34,956 Crore, reflecting a 16.94% rise compared to the previous year. Additionally, the share of A and above-rated accounts in the large corporate segment improved substantially, growing from 96% to 99.6%.

In the retail segment, the Bank saw a steady increase in its personal loan book, which grew by ₹63 Crore from ₹2,186 Crore to ₹2,249 Crore, a 2.88% growth. The gold loan portfolio grew by ₹1,597 Crore, from ₹15,369 Crore to ₹16,966 Crore, a 10.39% increase. Housing loans exhibited remarkable growth, rising by ₹3,195 Crore from ₹5,000 Crore to ₹8,195 Crore, representing an impressive 63.9% increase. Similarly, vehicle loans grew by 24.71%, from ₹1,554 Crore to ₹1,938 Crore, showcasing strong demand in this segment.

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