South Indian Bank reported a net profit of ₹352 crore for Q2 FY26, up 8% YoY, supported by healthy loan growth and improved asset quality. Net interest income rose 12% to ₹940 crore, while net NPA fell to 0.34% from 0.38% last quarter. The bank’s capital adequacy ratio improved to 17.6%, signaling comfortable buffers. Management credited the steady performance to diversification across retail and SME portfolios. Analysts expect modest loan growth guidance and stable margins in upcoming quarters amid a competitive banking landscape.