South Indian Bank shares hit new highs after strong quarterly earnings

South Indian Bank shares rose over 3% in intraday trade on the BSE to hit a 52-week high of ₹56.21. The stock climbed 15% in October, marking back-to-back 52-week highs for four straight sessions.

Financial Results

The rally follows the bank's September quarter results released on 15 October. Net profit reached ₹426.13 crore, marking a 21.28% rise from the previous year. Net interest income hit a record ₹1,116 crore, growing 37.95% year-on-year, while net interest margin improved to 3.33% from 2.80%. Asset quality also strengthened as gross non-performing assets dropped by 169 basis points to 1.24% and net non-performing assets eased to 0.09%.

Leadership and Rates

Anto George T is changing roles from Executive Vice President and Chief Operating Officer to Executive Vice President and Chief Business Officer, starting 1 November 2026. Separately, the bank revised its marginal cost of funds based lending rates across tenors, with the overnight rate set at 8.20% and the one-year rate at 9.50%.

Market Outlook

Brokerage firm ICICI Securities upgraded the stock to a buy and raised its target price to ₹63, noting strong performance and low net NPAs under the guidance of MD and CEO Mahesh Pai. Analyst Aditya Thukral stated the stock remains in a bull cycle, advising fresh entries near ₹52 with a stop-loss at ₹44 and a target of ₹66.

Context

Banks regularly update lending rates and report quarterly financial metrics to give investors a clear picture of their financial health. Strong profit growth and improving asset quality typically attract increased investor buying interest in the stock market.