Shares of South Indian Bank (SIB) jumped nearly 19% on Monday to hit a 52-week high, driven by strong investor sentiment following the bank’s second-quarter results. The stock has now recovered about 70% from its March lows, supported by robust trading volumes and improved fundamentals.
The Kerala-based private lender reported an 8% rise in net profit to ₹351 crore for the quarter ended September 2025, compared with ₹325 crore a year earlier. While net interest income remained steady, the bank’s non-interest income and lower provisioning helped boost profitability.
Notably, the bank’s asset quality strengthened, with gross non-performing assets (GNPA) improving to 2.93%, down from 4.40% a year ago. However, net interest margins (NIM) slipped to 2.8%, reflecting some pressure on spreads.
Analysts said expectations of sustained profit growth, prudent lending, and renewed traction in retail and MSME segments underpinned the rally. Despite margin compression, the bank’s improving balance sheet and consistent earnings have bolstered investor confidence.
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