South Indian Bank Q1 FY27: Cleaner book, steadier margins, and a sharper retail and MSME mix

For Q1 FY27, the bank reported PAT of 378 crore, NII of 1,025 crore, and NIM of 3.23%. Total income was 1,404 crore and operating expenses were 812 crore on a standalone basis.

GNPA improved to 1.38% in Q1 FY27 from 3.15% in Q1 FY26, and NNPA improved to 0.26% from 0.68%.

Provision coverage ratio including write-offs was 94.51% in Q1 FY27, and excluding write-offs it was 81.40%.

Management attributed the decline in cost of funds mainly to repricing of high-rate deposits rolling off between January and June 2026, higher CASA balances, and a reduction in bulk deposits.

CRAR was 19.62% and Tier 1 ratio was 18.93% as of June 30, 2026, as per the presentation and management commentary.

The bank highlighted extensive digitization including Mirror+ authenticated service requests, multiple STP lending platforms, and production AI use cases powered by its in-house framework Zeni.