South Indian Bank Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 3,263.85 Cr (+11.67% YoY) and PAT growth of +21.28% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 15, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 3,263.85 Cr (+11.67% YoY) |
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| PAT (Q2) | Rs. 426.13 Cr (+21.28% YoY) |
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| EPS (Q2) | Rs. 1.63 (+21.60% YoY) |
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| Market cap | Rs. 12,707.19 Cr |
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| CMP | Rs. 48.51 |
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Quarter Snapshot
Net interest income rose 37.97% YoY to Rs.1,115.86 Cr, lifting PPOP 36.77% and the operating margin to 22.44% from 18.32% a year ago, while GNPA fell to 1.24% and NNPA to 0.09%. Advances growth of 20.17% YoY is tracking ahead of management's 15–16% FY27 loan growth guidance, with CAR at 19.40% and cost-to-income down to 26.09%. Provisions rose 151% YoY to Rs.159.11 Cr and the Digital Banking sub-segment swung to a Rs.45.99 Cr loss.
Key Investment Insights
Key Positives
- NII grew 37.97% YoY to Rs.1,115.86 Cr as interest earned (+16.15% YoY) grew three times faster than interest expended (+5.10% YoY)
- PPOP grew 36.77% YoY to Rs.732.48 Cr; operating margin expanded to 22.44% from 18.32% YoY and 19.68% QoQ
- PAT grew 21.28% YoY to Rs.426.13 Cr with EPS of Rs.1.63 vs Rs.1.34 and no exceptional items
- GNPA fell to 1.24% (from 2.93% YoY and 1.38% QoQ) and NNPA to 0.09% (from 0.56% YoY)
- Advances grew 20.17% YoY to Rs.1,08,388.15 Cr, above system credit growth of 18.8% and management's 15–16% FY27 guidance
- Deposits grew 18.72% YoY to Rs.1,37,278.52 Cr while borrowings were reduced from Rs.6,647.26 Cr to Rs.3,681.20 Cr
- Cost-to-income improved to 26.09% from 26.99%; CAR at 19.40% vs 17.70% YoY; annualized ROA at 1.12% vs 1.04%
- Other Retail Banking revenue grew 25.37% YoY with segment margin expanding from 20.79% to 27.28%
Risk Factors
- Digital Banking sub-segment posted a loss of Rs.45.99 Cr (margin −22.51%), worsening from a profit of Rs.9.49 Cr a year ago and Rs.3.09 Cr in Q1FY27
- Provisions rose 151.48% YoY to Rs.159.11 Cr; a sustained ~Rs.160 Cr quarterly run-rate would take FY27 provisions to ~Rs.640 Cr vs FY26's Rs.417 Cr
- Other income declined 9.23% YoY to Rs.468.15 Cr and remains below the year-ago Rs.515.73 Cr despite a 23.36% QoQ recovery
- Other Banking Operations margin compressed from 40.33% to 30.15% as segment costs rose faster than flat revenue
- Advances growth (+20.17% YoY) outpacing deposit growth (+18.72% YoY), flagged in the source as creating slight structural liquidity tightness