South Indian Bank Q1 earnings: NII rises to record high, net profit at Rs 374 crore 

South Indian Bank reported its Q1 earnings on Thursday. Net profit rose 17.29% to Rs 377.63 crore in the last quarter against Rs 322 crore in the corresponding quarter of the previous fiscal. The lender reported a highest ever net interest income (NII) of Rs 1,025 crore in Q1 with a growth of 23.05% on a Y-o-Y basis. NII is core profit a bank makes from its lending and deposit-taking operations. Asset quality of the lender improved as gross non-performing assets fell by 177 bps from 3.15% in Q1 to 1.38% on a Y-o-Y basis. Net NPAs too slipped by 42 bps from 0.68% in Q1 of FY25 to 0.26% in the last quarter on a Y-o-Y basis. 

Retail deposits rose by 14% or Rs 14,938 crore in Q1 to Rs 1,24,306 crore against Rs 1,09,368 crore deposits on a Y-o-Y basis. 

On the other hand, gross advances, classified under assets, climbed 17% or Rs 15,170 crore to Rs 1,04,368 crore from Rs 89,198 crore on a Y-o-Y basis. 

South Indian Bank stock closed 0.22% lower at Rs 45.42 on Thursday against the previous close of Rs 45.52. Total 19.82 lakh shares of the firm changed hands amounting to a turnover of Rs 9.01 crore . Market cap of the bank stood at Rs 891 crore.

In terms of technicals, the relative strength index (RSI) of the South Indian Bank stock stands at 51.6, signaling it's trading neither in the overbought nor in the oversold zone. South Indian Bank shares are trading lower than the 5 day, 10 day, 20 day, 30 day but higher than the 50 day 100 day, 150 day and 200 day moving averages.      

P R Seshadri, MD & CEO said, "While announcing the financial results, I am pleased to share that our strategy continues to center around sustained profitability, superior asset quality, a resilient loan book, and a robust retail liability portfolio. We are sharpening our organizational structure and leveraging digital technology to effectively achieve our business objectives."