By BullScreen Editorial Team 
The South Indian Bank Limited reported a strong set of Q4 results 2026, driven by record profitability, sharp improvement in asset quality, and steady growth in retail and MSME lending. The bank posted its highest-ever annual net profit of ₹1,455 crore for FY26, compared to ₹1,303 crore in the previous financial year.
Total income for the year rose to a record ₹5,447 crore, while pre-provision operating profit stood at ₹2,373 crore. Despite a marginal 1% decline in annual net interest income to ₹3,437 crore, quarterly NII for Q4 FY26 increased 5% year-on-year to ₹915 crore, indicating improving momentum in core banking operations.
The bank’s gross advances crossed ₹1 lakh crore for the first time, reaching ₹100,274 crore, up 14.5% YoY. Growth was supported by retail, agriculture, and MSME loans, with MSME disbursements rising 24% during the year. Deposits also expanded 14.7% to ₹123,346 crore, supported by a stable retail deposit base and strong NRI inflows.
A key highlight of the Q4 results 2026 was the sharp improvement in asset quality. Gross NPA fell to 1.43% from 3.20% a year ago, while net NPA declined to 0.29%. Provision coverage ratio improved to 94.10%, reflecting aggressive cleanup of legacy stressed assets.
The bank also accelerated digital transformation, with 98.5% of customer transactions now happening through digital channels. Its in-house AI platform “Zeni” is being used for audit automation, compliance monitoring, and signature verification. Analysts view the improving loan mix, lower stress assets, and strong capital adequacy ratio of 19.31% as positive indicators for future growth.
| Metric | FY26 / Q4 FY26 | FY25 / Q4 FY25 | Growth / Change |
|---|---|---|---|
| Total Income | ₹5,447 crore | — | Record High |
| Net Profit (PAT) | ₹1,455 crore | ₹1,303 crore | ▲ 12% YoY |
| Net Interest Income (Q4) | ₹915 crore | ₹870 crore approx. | ▲ 5% YoY |
| Gross Advances | ₹100,274 crore | ₹87,579 crore | ▲ 14.5% YoY |
| Total Deposits | ₹123,346 crore | ₹107,526 crore | ▲ 14.7% YoY |
| CRAR | 19.31% | 19.66% | Strong Capital Buffer |
| Indicator | Q4 FY26 | Q4 FY25 | Trend |
|---|---|---|---|
| Gross NPA (GNPA) | 1.43% | 3.20% | Strong Improvement |
| Net NPA (NNPA) | 0.29% | 0.92% | Sharp Decline |
| Provision Coverage Ratio | 94.10% | — | All-Time High |
| Slippage Ratio | 0.72% | — | Controlled |
| CASA Ratio | 32.12% | — | Stable |
| Cost of Deposits | 5.37% | 5.58% | Lower Funding Cost |
| Digital Transactions Share | 98.5% | — | High Digital Adoption |
| Segment | Outstanding / Share | Key Highlights |
|---|---|---|
| Corporate Loans | ₹38,670 crore (38%) | 99.1% loans rated A & above |
| Retail Loans | ₹28,901 crore (29%) | Driven by gold, housing & LAP loans |
| Agriculture Portfolio | 19% share | Growth via Agri-Gold & digital KCC |
| MSME / Business Loans | ₹13,778 crore (14%) | Disbursements up 24% YoY |
| NRI Deposits | ₹35,371 crore | Nearly 29% of total deposits |
| Business per Employee | ₹22.7 crore | Up from ₹20.4 crore YoY |
Source: https://www.bseindia.com/xml-data/corpfiling/AttachHis/23a60809-05f5-4d17-912f-43b9c97f0ae2.pdf