South Indian Bank Ltd. shares surged to a 52-week high on Thursday, closing 3.67% higher at Rs 51.44, following the announcement of robust second-quarter financial results. The bank's net profit for the September quarter of FY27 climbed by 21% year-over-year, reaching Rs 426 crore, up from Rs 351 crore in the same period last fiscal year.
Strong Income Growth and Improved Asset Quality
The Kerala-based private sector bank demonstrated a strong performance across key financial metrics. Total income for Q2 increased to Rs 3,264 crore, compared to Rs 2,923 crore in the corresponding quarter of the previous fiscal year. Interest income also saw a notable rise, reaching Rs 2,796 crore in the September quarter, up from Rs 2,407 crore a year ago.
Significant improvements were observed in the bank's asset quality. Gross non-performing assets (NPAs) dramatically decreased to 1.24% of gross advances by the end of September 2026, a substantial reduction from 2.93% a year earlier. Similarly, net NPAs, or bad loans, improved to 0.09% from 0.56% in the same period last year.
Provisions and Market Performance
Despite the positive financial results, provisions and contingencies increased to Rs 159 crore in Q2 FY27, up from Rs 63 crore in the second quarter of the last financial year.
During Thursday's trading, South Indian Bank's stock touched an intraday 52-week high of Rs 52.08. The bank's market capitalization stood at Rs 13,474 crore. Technically, the stock's Relative Strength Index (RSI) was recorded at 60.7, indicating it is neither in the overbought nor oversold zone. Shares are currently trading above their 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, signaling a positive momentum.