South Indian Bank reported a 12% YoY growth in net profit for Q3FY25, reaching ₹341.87 crore. The bank’s total income rose 6.88% to ₹2,818 crore, but the market showed mixed reactions due to a slight decline in share prices and concerns over sequential flat income growth.
South Indian Bank, a prominent private-sector bank in India headquartered in Kerala, reported a 12% year-over-year (YoY) increase in net profit for the third quarter of FY25, reaching ₹341.87 crore. This marks a rise from ₹305.36 crore in the same period last year. The bank’s total income for the quarter stood at ₹2,818 crore, growing 6.88% compared to ₹2,636.5 crore in Q3FY24.
Despite the positive growth in net profit and total income, the bank’s share price witnessed a decline of more than 5% during intraday trading on January 22, 2025. The South Indian Bank stock opened at ₹27.15 but later dropped to ₹25.51, reflecting investor nervousness and market sentiment following the results. The dip came even as the bank reported an operating profit increase of 9.39% YoY, from ₹483.45 crore to ₹528.84 crore.
The bank’s performance was marked by improvements in its asset quality. Gross Non-Performing Assets (NPA) declined by 44 basis points from 4.74% in Q3FY24 to 4.30% in Q3FY25. Net NPA also dropped by 36 basis points from 1.61% to 1.25% on a YoY basis. The bank’s Net Interest Income (NII) rose 6.13% from ₹819.03 crore to ₹869.26 crore.
However, the overall market response to the results was lukewarm. South Indian Bank’s share price was impacted by concerns over the sequentially flat total income and a slight dip in the CASA ratio, which fell from 31.8% in December 2023 to 31.16% by the end of Q3FY25.
In terms of growth, the bank’s advances grew by 11.9% YoY, reaching ₹86,965 crore, up from ₹77,686 crore in the December 2023 quarter. Total deposits grew by 6.28% to ₹1,05,378 crore from ₹99,155 crore in the previous year. Despite the robust growth in these areas, the mixed reaction from the stock market suggests caution among investors as the bank navigates the challenges of the current economic landscape.
Company Overview:
South Indian Bank is one of India’s leading private sector banks, providing a wide range of financial services, including retail, corporate, and SME banking. Founded in 1929 and headquartered in Thrissur, Kerala, the bank has a strong presence across the country.
