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South Indian Bank’s gross advances increased to ₹1,09,519 crore

ICICIdirect Research 05 Oct 2026 DISCLAIMER

News: As per exchange filings, South Indian Bank’s gross advances increased to ₹1,09,519 crore, up 18.7% YoY (4.9% QoQ) in Q2FY27; excluding the impact of the ₹1,048 crore technical write-off undertaken in Q4FY26, YoY growth would have been 19.8%. Total deposits rose to ₹1,37,258 crore, up 18.7% YoY (9.1% QoQ), while CASA deposits increased to ₹43,310 crore, up 17.6% YoY (4.4% QoQ). Consequently, the CASA ratio stood at 31.6% (vs 33.0% in Q1FY27).

View: Strong deposit accretion during the quarter brought greater balance to the bank’s growth trajectory, with deposits significantly outpacing advances sequentially and driving the CD ratio lower to ~79.8% (vs ~83.0% in Q1FY27). Credit growth remained ahead of system levels, while the improved funding position provides comfortable headroom for incremental lending. However, despite healthy CASA growth in absolute terms, the decline in CASA ratio indicates faster term-deposit mobilisation, which could partly temper the benefit to funding costs.

Impact: Positive

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