The South Indian Bank (SOUTHBANK) Q1 24/25 earnings summary

Executive summary

• Net profit for Q1 FY25 reached ₹294 crore, up 46% year-over-year, with strong growth in deposits and advances, and robust business momentum.

• Transformation since 2020 led to 73% churn in the loan book, higher share of A+ rated corporate loans, and improved asset quality.

• Digital transactions accounted for 97.79% of total, with continued focus on technology, operational efficiency, and branch productivity.

• Unaudited consolidated and standalone financial results for Q1 FY25 were reviewed and approved by the Board, including the performance of the bank and its subsidiary.

Financial highlights

• Total deposits increased 8% year-over-year to ₹1,03,532 crore; gross advances rose 12% to ₹82,580 crore.

• Net interest income for the quarter was ₹866 crore, up 7% YoY; non-interest income rose 17% to ₹422 crore.

• Operating profit increased 4% YoY to ₹508 crore; PAT up 46% YoY to ₹294 crore.

• Consolidated total income for Q1 FY25 was ₹2,73,596 lakh, up from ₹2,38,606 lakh in Q1 FY24.

• Home loans grew 96%, auto loans 161%, and agri loans 108% year-over-year.

Outlook and guidance

• Targeting a medium-term NIM of 3.5%, with a glide path to higher levels as asset mix shifts.

• Automation, digital channel expansion, and new product launches to continue through FY25.

• Expense growth for the year aimed to be contained at or below 10%, with revenue growth outpacing expenses.

• Pillar III Basel III disclosures, including leverage and liquidity ratios, are available on the bank’s website.