South Indian Bank ends FY26 with best-ever profit and sharper asset quality

Standalone profit after tax was 1,455 crore for FY26 and 408 crore for Q4FY26, as per the investor presentation and P&L table.

Gross NPA declined to 1.43% and net NPA to 0.29% in Q4FY26, versus 3.20% and 0.92% in Q4FY25.

Management stated the decline was mainly due to treasury income being almost nil in Q4FY26 versus about 77 crore in Q3FY26, given market conditions.

Management indicated it is aiming for 15% to 16% loan growth in FY27 and at least to match industry growth rates.

Management stated it uses a Value at Risk framework to monitor portfolio risk, uses a 30-day moving average for gold pricing, and has margin call processes to manage volatility.

The CFO stated the bank is not holding floating provisions for ECL transition and does not estimate a material impact based on current estimates and low/declining SMA levels.

The MD and CEO said the board is actively engaged in the search process and is mindful of RBI approval timelines, with the current term ending on 30 September 2026.