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Informist, Tuesday, Jul. 15, 2025

By Gowri Lakshmi

MUMBAI – The bottom line of South Indian Bank for the June quarter is expected to fall because of seasonal weakness and a slowdown across segments in the banking credit system. The Kerala-headquartered bank is likely to report a net profit in the range of INR 3.06 billion-INR 3.20 billion, according to estimates from three broking firms.

The bank had reported a net profit of INR 3.42 billion for the March quarter and INR 2.94 billion for the June quarter a year ago. The highest estimate for net profit has been given by Anand Rathi Share and Stock Brokers Ltd. and the lowest by ICICI Securities Ltd.

According to the three estimates, the bank is expected to report a net interest income of INR 8.36 billion-INR 8.59 billion for the June quarter. A year ago, it had reported a net interest income of INR 8.66 billion.

Antique Stock Broking Ltd. expects net interest margins across banks to contract primarily due to seasonally lower growth in business and the likely impact of the repo rate cuts by the Reserve Bank of India. According to ICICI Securities, the net interest margin of South Indian Bank is expected to drop 23 basis points on year and 18 bps on quarter to 3.0% in Apr-Jun.

ICICI Securities estimates the bank's gross non-performing assets to remain unchanged from a quarter ago at 3.20%. In the March quarter, the bank's gross non-performing asset ratio had fallen to 3.20% from 4.30% in the December quarter. In a telephonic interview with Informist in May, Managing Director and Chief Executive Officer P.R. Seshadhri had said the bank aims to increase the share of its retail deposits and current account savings account deposits. The bank's current account savings account deposits were 31.37% of the total deposits as of Mar. 31.

Anand Rathi has a "buy" rating on the bank with a target price of INR 30 per share. Tuesday, shares of the bank ended 1.5% higher at INR 30.63 on the National Stock Exchange. The bank will release its June quarter earnings Thursday.

Following are the Apr-Jun earnings estimates for South Indian Bank in INR million, based on reports from three brokerages, in descending order of net profit:

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US$1 = INR 85.81

Edited by Rajeev Pai

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