South Indian Bank net profit surges 21% to ₹426 crore in Q2

South Indian Bank reported a 21 per cent year-on-year increase in net profit to ₹426 crore for the quarter ended September 30, compared with ₹351 crore in the corresponding period of the previous fiscal year, according to regulatory filings released Thursday.

The bank's total income expanded to ₹3,264 crore from ₹2,923 crore in the year-ago quarter, driven primarily by a 16 per cent jump in interest income to ₹2,796 crore. The growth in core lending revenue reflects the bank's expanding loan portfolio and improving operational momentum.

Asset quality showed marked improvement, with gross non-performing assets declining to 1.24 per cent of gross advances as of September 30 from 2.93 per cent a year earlier. Net NPAs also improved substantially to 0.09 per cent from 0.56 per cent in the same period last year, indicating strengthening credit discipline and loan recovery efforts.

Provisioning and contingencies increased to ₹159 crore in the September quarter from ₹63 crore in the year-ago period, reflecting the bank's conservative approach to risk management. The combination of strong profit growth, reduced bad loans, and prudent provisioning underscores the bank's improving financial health.