The South Indian Bank Limited (SOUTHBANK)
Micro CapFinancial Services stocks · Micro cap · NSE
The South Indian Bank Ltd. is a private sector bank in India, focusing on retail, MSME, and high-quality corporate segments. It emphasizes asset quality, collection efficiency, digital channels, and cost management, with a pan-India presence and a diversified deposit base.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Average · 45/100Rev +11% YoY · PAT +17% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,628 Cr | +11.3% | +2.7% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹378 Cr | +17.4% | -7.1% |
| PAT margin | 14.4% | +75 bps | -152 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q1FY27 saw robust PAT growth (+17% YoY) driven by strong NII (+23% YoY) and improved asset quality with GNPA at 1.38% and NNPA at 0.26%. Advances grew 17% YoY, while deposits increased 11% YoY. Operating profit declined 12% YoY due to non-interest income drop.
The bank continues to execute its strategy of improving asset quality, growing RAM segments, and enhancing digital efficiency. While non-interest income was weak, core NII and asset quality trends are positive, supporting the ongoing turnaround narrative.
Loan Book by Segment (Q1’FY27)
Latest issuer-disclosed distribution across 2 reported categories.
Shift to MSME and Retail
Management states 'Shift from Corporate to MSME and Retail gathers momentum' and 'Consistent growth momentum in business and retail advances continues'.
Digital Channel Focus
Management states 'Focus on digital channel to drive operating efficiency' and highlights 'Multitude of Digital Initiatives' and 'AI at South Indian Bank'.
Diversified Loan Book
The bank has a 'Diversified loan book – focused on Retail, MSME and high-quality Corporate' with ~60% other than corporate.
Pan India Presence
The bank has a network of 953 branches across India, with a 'Diversifying Loan Book Outside Kerala'.
Branch Network Expansion
The number of branches increased to 953 in Q1FY27 from 948 in Q1FY26.
Improving Asset Quality
Management states 'Portfolio quality continues to improve' with GNPA and NNPA at lowest levels.
Cost Management
Management states 'Cost continues to be managed tightly' and 'Expenses being tracked closely'.
Branch Productivity
Management claims 'Material increase in branch productivity' and 'Improving productivity metrics'.
Non-Interest Income Decline
Non-Interest Income decreased by 39% YoY to Rs. 379 Cr in Q1FY27 from Rs. 622 Cr in Q1FY26.
Treasury & Forex Income Volatility
Treasury & Forex income decreased by 83% YoY to Rs. 44 Cr in Q1FY27 from Rs. 256 Cr in Q1FY26.
Disbursement Growth Slowdown
Total disbursements saw a significant 31% YoY decline in Q1FY27, indicating potential challenges in loan book expansion momentum.
Operating Profit Contraction
Operating Profit declined 12% YoY to Rs. 592 Cr in Q1FY27, despite strong NII growth, primarily due to lower non-interest income.
Corporate Loan Concentration
Corporate loans still constitute 40% of the loan book, despite the stated shift, posing concentration risk if quality deteriorates.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is crucial for assessing overall growth, asset quality trends, and the impact of strategic shifts over a full cycle. QoQ comparison is important for tracking sequential momentum in disbursements, NIM, and slippages.
Gross Advances Growth
Gross Advances grew to Rs. 104,368 Cr in Q1FY27 from Rs. 89,198 Cr in Q1FY26, a 17% YoY increase.
Total Disbursements
Total Disbursements were Rs. 36,048 Cr in Q1FY27, down from Rs. 52,305 Cr in Q1FY26, a 31% YoY decline.
Net Interest Margin (NIM)
NIM was 3.23% in Q1FY27, up from 3.03% in Q1FY26 (+20 bps YoY) and 2.95% in Q4FY26 (+28 bps QoQ).
Cost of Deposits
Cost of Deposits was 5.06% in Q1FY27, down from 5.49% in Q1FY26.
Building Frictionless Processes
Management is focused on 'Building Frictionless Processes' through STP models for various loan products like GST Power, LAP Power, and SME Power.
Growing Non-Branch Distribution
The bank aims to grow 'non-branch Distribution & Leveraging Partnerships' including co-lending and fintech tie-ups for deposits and loans.
Enhancing Operating Efficiency
Management is focused on 'Improving Operating efficiency' through branch process reengineering, digitization, and staff training/re-skilling.
Enhancing Control / Compliance Architecture
This is identified as a 'Key Area of Focus' for the way forward.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Interest Margin (NIM) | 3.23% | Sustained improvement in NIM, indicating effective asset-liability management and pricing power. |
| Net Non-Performing Assets (NNPA) | 0.26% | Continued maintenance of low NNPA levels, confirming robust asset quality and collection efficiency. |
| Total Disbursements Growth | Rs. 36,048 Cr (Q1FY27) | Recovery and consistent growth in disbursements, especially in RAM segments, to support future advances growth. |
| Non-Interest Income | Rs. 379 Cr (Q1FY27) | Stabilization and growth in non-interest income to support overall profitability and reduce reliance on NII. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
61BullishSMA20 -1.9% / mo · MACD + · near 52W high
Technical chart
SOUTHBANKdaily · 1Y · AUTO+17.3%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 59. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~1.9% over last month) — short-term momentum negative.
- RSI(14) at 59 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 5% off 52W high · 66% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 53 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 53 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 70.5%.
- Valuation contributes 26/30 to the score.
- Growth contributes 14/25 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Quality is weaker at 2/20; verify the latest quarterly trend.
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: -3 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 63rd percentile of the scored universe and 76th percentile within Financial Services. Main check: cash conversion is weak at 55/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: ROCE is low at 6.4%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 76th pctile, median 62 · Micro: 43rd pctile, median 73
128 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸Debt/equity is 0.03.
- ▸4/4 latest quarters had positive YoY revenue growth.
- ▸4/4 latest quarters had positive YoY PAT growth.
Trust risks
- ▸ROCE is low at 6.4%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 8.20
- P/B
- 1.05
- EV/EBITDA
- —
- Market Cap
- 12387.00Cr
Profitability
- ROE
- 13.50%
- ROCE
- 6.42%
- ROA
- 1.07%
- Dividend Y
- 0.95%
Growth (CAGR)
- Revenue 5Y
- 6.00%
- EPS 5Y
- 88.00%
- Revenue 3Y
- 11.00%
- EPS 3Y
- 23.00%
Balance Sheet
- Debt/Equity
- 0.03
- Interest Coverage
- —
- Altman Z
- 1.94
- Book Value
- 45.10
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 3/5
- OCF
- 3907.00 Cr
- EPS TTM
- 5.77
Shareholding
- Promoter Hold
- —
- Promoter Pledge
- 0.00%
- Momentum 52W
- 88%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.