The South Indian Bank (SOUTHBANK) investor relations material

Executive summary

• Achieved record annual net profit of INR 1,455 crores (₹145,514 lakhs) for FY26, up 12% year-over-year, with total income rising to ₹5,447 crore and strong operational performance.

• Asset quality improved with gross NPA at 1.43% and net NPA at 0.29%, supported by a high provision coverage ratio of 94.10%.

• Return on Assets for FY26 was 1.03% (annualized 1.08%); Return on Equity was 12.76%.

• Continued shift in loan portfolio toward retail and MSME, with significant growth in gold, mortgage, and auto loans, and improved branch productivity.

• Audited standalone and consolidated financial results for FY26 received unmodified opinions from auditors and were approved by the Board.

Financial highlights

• Net interest income for FY26 was INR 3,437 crores; non-interest income grew 11% year-over-year to ₹2,010 crore.

• Q4 FY26 net profit was INR 408 crores, up 19% year-over-year; operating profit for FY26 was ₹2,373 crore.

• Deposits grew 15% to INR 1,23,346 crores; gross advances rose 16% to ₹1,00,274 crores.

• CASA balances increased 17.5% year-over-year to INR 39,621 crores; CASA ratio improved to 32.12%.

• Technical write-off of INR 1,163 crores in FY26, with no P&L impact as provisions were already made.

Outlook and guidance

• Targeting loan growth of 15-16% for FY27, aiming to match or exceed industry growth.

• Continued investment in digital transformation, automation, and staff upskilling to drive operational efficiency.

• Credit costs expected to rise from current lows due to potential geopolitical risks and macro uncertainties.

• NIMs expected to widen further, driven by asset mix shift and deposit repricing.

• Board proposed a dividend of ₹0.45 per share (45%), totaling ₹11,779 lakhs, subject to shareholder approval.