The South Indian Bank (SOUTHBANK) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly profit of INR 342 crores (₹34,200 lakhs) in Q3 FY25, up 12% year-over-year, with net interest margin stable at 3.19%.

• Gross advances increased 12% year-over-year to INR 86,966 crores; total deposits grew 6% to INR 105,387 crores.

• Asset quality improved: gross NPA reduced to 4.3%, net NPA to 1.25%, and provision coverage ratio at 81.07%.

• Digital transactions accounted for 98% of total, reflecting strong digital adoption.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board, with unmodified limited review reports.

Financial highlights

• Net interest income for the quarter was INR 869 crores, up from INR 819 crores in Q3 FY24; operating profit up 10% to INR 529 crores.

• Total income for Q3 FY25 was ₹1,316 crores (₹2,81,784 lakhs), up year-over-year.

• Cost-to-income ratio improved to 58.7% in Q3 FY25 from 62.0% in Q3 FY24.

• Return on assets at 1.12% and return on equity at 13.93% for the quarter.

• Basic and diluted EPS for Q3 FY25 stood at ₹1.31.

Outlook and guidance

• Asset growth targeted at 10-12%, aligned with deposit growth expectations of 8-10%.

• NIMs expected to improve as portfolio shifts toward higher-yielding retail and MSME segments.

• Focus on enhancing portfolio resilience, improving branch productivity, and cost optimization.

• Ongoing digital initiatives and automation to drive operational efficiency and customer experience.

• The Bank continues to apply significant accounting policies and has adopted the revised RBI investment framework effective April 1, 2024.