Conference call for Investors/Analysts-Transcript of the Conference Call
SOUTHBANK · price
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South Indian Bank reported its highest ever annual net profit of INR 1,455 crores for FY26, up 12% from INR 1,303 crores in FY25. Total advances grew 14.5% to INR 100,274 crores and deposits rose 15% to INR 123,346 crores. Net Interest Margin stood at 2.95% for Q4 and 2.91% for the full year. Asset quality improved significantly with Gross NPA reducing to 1.43% from 3.2% and Net NPA at 0.29%. The bank conducted technical write-offs of INR 1,163 crores (fully provided). Gold loan book grew 46% to INR 24,729 crores. Management guided that NIMs will continue widening due to mix shift toward retail/MSME and deposit repricing, with 60-65% of deposits due for repricing in FY27. Credit cost at trough of 3 bps is expected to rise going forward.
Strong earnings with multi-year high returns (ROE 14.49% in Q4) and improving asset quality signals operational efficiency gains. Management's explicit guidance on NIM expansion through mix change is positive, though rising credit costs and a leadership transition by September 2026 warrant monitoring.