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 from INR 305 crores, with net interest margin stable at 3.19%.

• Gross advances increased 12% year-over-year to INR 86,966 crores, and 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 reached 81.07%.

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

• Unaudited consolidated and standalone results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board.

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 ₹529 crores.

• Total income for Q3 FY25 was ₹1,316 crores; consolidated total income was ₹2,81,784 lakhs.

• Return on assets reached 1.12%, and return on equity was 13.93% for the quarter.

• Cost-to-income ratio improved to 58.7% in Q3FY25 from 62.0% in Q3FY24.

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

Outlook and guidance

• Asset growth expected to remain in the 10–12% range, with deposit growth targeted at 8–10%.

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

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

• NIM compression attributed to higher funding costs and slow transition from low-yield to high-yield assets.

• The Bank adopted the revised RBI investment framework effective April 1, 2024.