South Indian Bank Targets 12% Loan Growth by FY26, Driven by Gold and MSMEs

• South Indian Bank aims for over 12% year-on-year loan growth by FY26, with gold loans and MSMEs as primary drivers.
• MD & CEO PR Seshadri highlighted gold loans, MSME, and retail portfolios as key contributors to recent growth, while the corporate book remained stable.
• The bank expects to defend its net interest margins (NIMs) through deposit repricing and disciplined growth, despite a flat NIM environment.
• Slippages are at historical lows (16 basis points for the quarter), with stress from legacy accounts largely resolved, focusing on retail and MSME expansion.
• In Q3FY26, South Indian Bank reported a net interest income of ₹880.7 crore and a profit after tax of ₹374.3 crore.

Why It Matters: South Indian Bank is confident in achieving its 12% loan growth target by FY26, focusing on gold and MSME segments.