South Indian Bank shares tumble nearly 19%; here is why
South Indian Bank reported a 9 per cent year-on-year (YoY) increase in net profit to Rs 374.32 crore for the December quarter, compared with Rs 341.87 crore in the same period last year.
- Jan 30, 2026,
- Updated Jan 30, 2026 9:39 AM IST
Shares of South Indian Bank Ltd fell sharply in Friday's trade, declining 18.66 per cent to hit a low of Rs 36.01. The sell-off followed the bank's announcement that its Managing Director & CEO, P R Seshadri, will not seek reappointment after the completion of his current term.
In a regulatory filing, the Thrissur-based lender said: "This is to inform that the Board of Directors of the Bank, in their meeting held today, i.e., January 29, 2026, considered the request of Mr. P R Seshadri, Managing Director & CEO, not to offer himself for reappointment, as he has decided to pursue activities of his personal interest, post completion of his current term. He will continue in the office of the Managing Director & CEO till the completion of his current term i.e., up to September 30, 2026."
The bank added that the board has initiated the process to identify his successor. "The Board further decided to take necessary steps to identify successor for the position of Managing Director & CEO and further resolved to do the needful to complete the appointment process, including obtaining approval from Reserve Bank of India and shareholders of the Bank in due course after identification/shortlisting of suitable candidate(s)," it stated.
South Indian Bank reported a 9 per cent year-on-year (YoY) increase in net profit to Rs 374.32 crore for the December quarter, compared with Rs 341.87 crore in the same period last year. Pre-provisioning operating profit rose 10 per cent YoY to Rs 584.33 crore in Q3 FY26 from Rs 528.84 crore in Q3 FY25.
Non-interest income increased 19 per cent to Rs 485.93 crore during the quarter, up from Rs 409.22 crore a year earlier.
Gross non-performing assets (NPAs) declined to 2.67 per cent of gross loans at the end of December 2025 from 4.30 per cent a year ago, while net NPAs fell by 80 basis points to 0.45 per cent from 1.25 per cent on a YoY basis.
Gross advances grew 11 per cent YoY, rising by Rs 9,798 crore to Rs 96,764 crore in the December quarter. Retail deposits increased 13 per cent, or Rs 13,142 crore, to Rs 1,15,563 crore, compared with Rs 1,02,421 crore in the corresponding period last year.
Shares of South Indian Bank Ltd fell sharply in Friday's trade, declining 18.66 per cent to hit a low of Rs 36.01. The sell-off followed the bank's announcement that its Managing Director & CEO, P R Seshadri, will not seek reappointment after the completion of his current term.
In a regulatory filing, the Thrissur-based lender said: "This is to inform that the Board of Directors of the Bank, in their meeting held today, i.e., January 29, 2026, considered the request of Mr. P R Seshadri, Managing Director & CEO, not to offer himself for reappointment, as he has decided to pursue activities of his personal interest, post completion of his current term. He will continue in the office of the Managing Director & CEO till the completion of his current term i.e., up to September 30, 2026."
The bank added that the board has initiated the process to identify his successor. "The Board further decided to take necessary steps to identify successor for the position of Managing Director & CEO and further resolved to do the needful to complete the appointment process, including obtaining approval from Reserve Bank of India and shareholders of the Bank in due course after identification/shortlisting of suitable candidate(s)," it stated.
South Indian Bank reported a 9 per cent year-on-year (YoY) increase in net profit to Rs 374.32 crore for the December quarter, compared with Rs 341.87 crore in the same period last year. Pre-provisioning operating profit rose 10 per cent YoY to Rs 584.33 crore in Q3 FY26 from Rs 528.84 crore in Q3 FY25.
Non-interest income increased 19 per cent to Rs 485.93 crore during the quarter, up from Rs 409.22 crore a year earlier.
Gross non-performing assets (NPAs) declined to 2.67 per cent of gross loans at the end of December 2025 from 4.30 per cent a year ago, while net NPAs fell by 80 basis points to 0.45 per cent from 1.25 per cent on a YoY basis.
Gross advances grew 11 per cent YoY, rising by Rs 9,798 crore to Rs 96,764 crore in the December quarter. Retail deposits increased 13 per cent, or Rs 13,142 crore, to Rs 1,15,563 crore, compared with Rs 1,02,421 crore in the corresponding period last year.