South Indian Bank shares slide over 9% from record high; analysts flag key support levels

Shares of South Indian Bank Ltd declined sharply on Thursday after touching an all-time high of Rs 41.65. The stock fell 9.34 per cent from its peak to close at Rs 37.76. The lender recently revised Marginal Cost of Funds-Based Lending Rates (MCLR), effective November 20, 2025. The updated rates now stand at 8.15 per cent for overnight loans, 8.60 per cent for one-month, 9.55 per cent for three-month, 9.60 per cent for six-month and 9.65 per cent for one-year tenors.

In addition, South Indian Bank recently launched a premium savings account exclusively for women, aimed at augmenting its retail banking franchise. The product combines core banking features with lifestyle and insurance benefits to attract a wider customer base.

For the quarter ended September 30, 2025 (Q2 FY26), the bank posted an 8 per cent year-on-year (YoY) increase in net profit to Rs 351.36 crore, compared with Rs 324.69 crore in the same quarter last year. Asset quality saw significant improvement, with the Gross Non-Performing Asset (GNPA) ratio declining to 2.93 per cent from 4.40 per cent a year earlier. The Net NPA ratio fell to 0.56 per cent from 1.31 per cent.

Net interest income (NII) during the quarter dropped 8 per cent to Rs 808 crore. However, this was offset by robust non-interest income, which rose 26 per cent YoY to Rs 515.73 crore, driven by stronger fee-based revenue streams.

Technically, analysts said South Indian Bank is cooling off after a strong rally, with support seen around Rs 36–34 and resistance at Rs 40–42. The stock is currently hovering near a key support zone at Rs 38.40–38.80. Holding above this level could revive the uptrend, but a drop below Rs 38.40 may lead to a deeper correction.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said South Indian Bank recently saw a correction after a breakout, followed by a strong rally. He noted that technical indicators now point to overbought conditions, increasing the chances of near-term profit-booking.

According to him, the Rs 36–34 band is likely to act as a support zone and any further decline could weaken the prevailing short-term trend. On the upside, he said resistance is expected in the Rs 40–42 range, and a breakout above this zone could pave the way for the next leg of the rally.

Drumil Vithlani, Technical Analyst at Bonanza, said the stock recently registered an inverted Head & Shoulder breakout, signalling a bullish reversal, but failed to sustain above the neckline and slipped during the retest, indicating a temporary loss of momentum.

He added that the current pullback has brought the stock to a key support region at Rs 38.40–38.80, which coincides with the 100-day EMA and a rising trendline from early November -- making it a crucial demand area. If the stock holds above this level and buying emerges, he said the bullish structure remains intact and the price could move toward Rs 40.50–41.50 again. However, a fall below Rs 38.40 may result in a deeper correction toward Rs 37.50.

Vithlani noted that the RSI cooling from overbought levels is constructive and a reversal near support could offer a low-risk entry. Overall, he maintained a positive bias as long as the 100-day EMA continues to hold.