South Indian Bank Revised its Marginal Cost of Funds Based Lending Rates

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South Indian Bank Revised its Marginal Cost of Funds Based Lending Rates

It has one of the youngest workforces in the banking sector in the country.

Bank-ltd-132218">South Indian Bank announced a revision of its Marginal Cost of Funds Based Lending Rates (MCLR) effective January 20, 2026, with the one-year rate set at 9.55 per cent. This follows a period of robust credit demand, where gross advances grew by 11 per cent to Rs 96,764 crore, led by high-yield segments like gold loans (up 26 per cent) and vehicle loans (up 24 per cent). Simultaneously, the deposit base remains strong, with a 15 per cent growth in CASA balances driven by a sharp 20 per cent increase in current account deposits.

In the recent results, it has achieved a historic financial milestone, reporting its highest-ever quarterly net profit of Rs 374.32 crore for Q3FY 2025-26. This performance marks a 9 per cent year-on-year increase, with total net profit for the first nine months of the fiscal year crossing the Rs 1,047.64 crore mark. The bank's growth is underpinned by a 10 per cent rise in operating profit and a 19 per cent surge in non-interest income, reflecting strong operational efficiency and diversified revenue streams.

The bank’s asset quality has seen a significant turnaround, with the Gross NPA ratio plummeting by 163 basis points to 2.67 per cent and Net NPA dropping to a lean 0.45 per cent. This improvement is supported by a disciplined credit strategy, evidenced by the slippage ratio being nearly halved to 0.16 per cent. To bolster long-term resilience, the bank has further strengthened its Provision Coverage Ratio to a substantial 91.57 per cent, ensuring a high-quality and well-protected loan book.

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About South Indian Bank

South Indian Bank is a leading Kerala-based Private Sector Bank with a nationwide presence. The Bank’s shares are listed on The Stock Exchange Mumbai (BSE) and The National Stock Exchange of India Ltd., Mumbai (NSE). South Indian Bank has 948 branches, 2 Ultra Small Branches, 3 Satellite branches, 1143 ATMs and 126 CRMs across India and a Representative Office in Dubai, UAE. South Indian Bank is a pioneer in technology-based banking, offering an array of digital products and services. It has one of the youngest workforces in the banking sector in the country.

Disclaimer: The article is for informational purposes only and not investment advice.