KOCHI: South Indian Bank (SIB) reported a record net profit of Rs1,302.88 crore for FY25, a 21.75 per cent jump over Rs1,070.08 crore in the previous year, driven by improved asset quality and strong operating performance.
This marks the highest-ever annual profit in the bank’s history.
Once known for its weak asset quality, the Kerala-based lender reported a sharp improvement in its bad loans. Gross NPA fell by 130 basis points year-on-year to 3.20 per cent, while net NPA dropped to 0.92 per cent from 1.46 per cent.
The provision coverage ratio – PCR (including write-offs) improved by 593 bps to 85.03 per cent.
Operating profit rose 21.55 per cent to Rs2,270.08 crore. Net interest income (NII) touched a new high of Rs3,485.64 crore, while other income climbed to Rs1,813.43 crore.
Return on assets (RoA) of SIB stood at 1.05 per cent – the highest in two decades – while return on equity (RoE) improved to 12.90 per cent, an 11-year high.
40% dividend
The bank’s board has recommended a 40 per cent dividend, subject to shareholder approval.
The lender also recorded its highest-ever business volume at Rs1,95,104.12 crore. Advances rose nearly 9 per cent to Rs87,578.52 crore, led by strong growth in corporate, gold, housing, and vehicle loans.
Retail deposits grew 7.17 per cent year-on-year to Rs1,04,749.60 crore.
Commenting on the results, MD & CEO P R Seshadri said the bank is focused on “profitability through quality credit growth” and is leveraging digital and structural transformation to sustain performance.
On the stock exchanges, shares of South Indian Bank (SIB) rose nearly 4 per cent to close at Rs27.77 on the BSE after the earnings announcement.
