South Indian Bank reported a healthy rise in profitability for the quarter ended March 31, 2026, supported by steady growth in net interest income and continued improvement in asset quality.
The bank posted a net profit of ₹407.5 crore for Q4 FY26, compared to ₹342.2 crore in the corresponding quarter last year, registering a year-on-year growth of around 19.1%.
Net interest income (NII) stood at ₹915.3 crore during the quarter, up 5.4% from ₹868.3 crore reported in the year-ago period.
Asset quality metrics improved further on a sequential basis. Gross non-performing assets (GNPA) declined to 1.43% from 2.67% in the previous quarter, while net non-performing assets (NNPA) improved to 0.29% compared to 0.45% quarter-on-quarter.
The continued decline in bad loans reflects improving recoveries, better underwriting standards and strengthening balance sheet quality for the lender.
The bank also announced a dividend recommendation for shareholders. 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.
This compares with 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.
South Indian Bank has been focusing on strengthening its retail franchise, improving operational efficiency and reducing stressed assets over the past few years. The lender has also seen improvement in profitability metrics amid healthier credit quality and stable business growth.
The banking sector overall has continued to witness strong balance sheet improvement over recent quarters, aided by lower slippages, healthy recoveries and better provisioning coverage.