1. Opening Hook
If you’d told us five years ago thatSouth Indian Bank—once dismissed as a sleepy Thrissur relic—would start talking aboutco-lending with Amazon and yield compression models, we’d have laughed while sipping filter coffee.But here we are in FY26 — the bank’s spitting out ₹351 crores of profit, managing NPAs better than half the private sector, and apparently running YouTube channels for investor engagement.
This call wasn’t just about banking; it was about redemption with proper south-Indian discipline.Let’s decode how SIB went from “quaint and quiet” to “quietly killing it.”
2. At a Glance
| Metric | Q2 FY26 | YoY Change | Commentary |
|---|---|---|---|
| Net Profit | ₹351 Cr | +8 % | Another quarter of calm compounding. |
| Advances | ₹92,286 Cr | +9 % (10 % adj.) | Retail + MSME = Power combo. |
| Deposits | ₹1,15,635 Cr | +10 % | CASA ₹36,841 Cr (+10 %). |
| NIM | 2.8 % | (–20 bps) | “Bottom of the cycle,” claims CEO. |
| ROA / ROE | 1.02 % / 13.1 % | +20 bps / +80 bps | PSU metrics? Nah, private vibes. |
| GNPA / NNPA | 2.93 % / 0.56 % | –147 bps / –75 bps | From ICU to yoga mat. |
| PCR (inc write-off) | 90.25 % | +1005 bps | Clean-up complete. |
| Capital Adequacy (CRAR) | 17.7 % | — | Tier-1 = 16.8 %. Enough fuel. |
Verdict:Profit steady, NIM sleepy, balance sheet shredded of ghosts. The only thing missing? Better jokes in the concall.
3. Management’s Key Commentary
“NIM of 2.8 % is the lowest ebb; expect recovery.”(Translation:Rates have fallen faster than Kerala’s monsoon.)
“Corporate share down to 40 %; retail & MSME rising.”(Translation:Finally realizing small borrowers actually pay back.*)
“Provision coverage > 90 %.”(Translation:Even RBI might borrow from us for comfort.*)
“98 % of transactions are digital.”(Translation:Branch staff mostly supervising air-conditioning.*)
“Gold loan book ₹18,845 Cr (+13 %).”(Translation:When life gives you inflation, lend against it.*)
“Co-lending live with Amazon, MoneyView, Godrej HF.”(Translation:South Indian meets Silicon Valley.*💻)
4. Numbers Decoded
| Business Segment | Book Size (₹ Cr) | YoY Growth % | Yield (%) | Comment |
|---|---|---|---|---|
| Gold Loans | 18,845 | +13 % | ≈ 11 | 20 % of book = metal addiction. |
| Home Loans | 8,849 | +25 % | ~9 | Brick by brick revival. |
| Auto Loans | 2,288 | +25 % | ~9 | GST cuts = fuel for sales. |
| Personal Loans | 2,209 | +50 % | > 11 | Fastest growing pocket. |
| MSME Loans | ~49,000 | +127 % disbursal | 9–10 | Branch-led, not broker-led. |
| Corporate Book | ~37,000 | Flat QoQ | 6–7 | Being dieted out. |
Operating Profit:₹535 CrCredit Cost:< 0.25 %Slippages:₹380 Cr (2 quarters) — basically negligible.
5. Analyst Highlights
GreenEdge Wealth:“NII flat for 10 quarters — what gives?”→Mgmt:“Repo cuts, short-term corporate loans.”(Translation:Blame RBI, not Thrissur.*)
Kotak Securities:“ECL impact?”→Mgmt:“Minor — < ₹200 Cr hit.”(Translation:We read the RBI circular, then took a nap.*)
Equirus:“Borrowings jumped — rate call?”→Mgmt:“Yes sir, HTM expansion, playing the curve.”(Translation:We now trade bonds like we mean it.*)
ICICI Sec:“MSME growth outlook?”→Mgmt:“20 % per year target.”(Translation:Retail plus chai points = strategy.*)
Unifi Capital:“Retail growth organic or buyouts?”→Mgmt:“Mostly organic – ₹670 Cr portfolio purchases only.”
6. Guidance & Outlook
- Loan Book Growth:10–12
