The South Indian Bank (SOUTHBANK) investor relations material

Executive summary

• Achieved record net profit of INR 1,455 crores (₹145,514 lakhs) for FY26, up 12% year-over-year, with total income rising to ₹1,185,599 lakhs, reflecting strong operational performance and transformation initiatives.

• Return on Assets improved to 1.03%–1.08% and Return on Equity to 12.76% for FY26, indicating enhanced profitability.

• Asset quality strengthened with GNPA at 1.43% and NNPA at 0.29%, supported by a high provision coverage ratio of 94.10%.

• Continued shift in loan portfolio towards MSME and retail segments, with significant growth in disbursements and branch productivity.

• Financial statements prepared in accordance with Indian Accounting Standards, RBI guidelines, and SEBI regulations, and received unmodified opinions from auditors.

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 net profit was INR 408 crores, up 19% year-over-year; total deposits grew 15% to INR 1,23,346 crores; advances rose 16% to ₹99,260 crores.

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

• Net interest margin for the year was 2.91%; Q4 NIM was 2.95%.

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

Outlook and guidance

• Targeting loan growth of 15-16% for FY27, with focus on enhancing portfolio resilience, improving branch productivity, and cost optimization.

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

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

• Credit costs anticipated to rise from current lows due to external uncertainties.

• Capital adequacy ratio remains strong at 19.66% as of March 31, 2026.