South Indian Bank Reports Mixed Financial Results Amidst Declining Profitability in June 2025

South Indian Bank has recently reported its financial results for the quarter ending June 2025, revealing a complex picture of its performance. The bank's evaluation has undergone adjustments, reflecting a shift in its overall assessment. Notably, the Gross Non-Performing Assets (NPA) ratio has reached a low of 3.15%, continuing a downward trend over the past five quarters. Similarly, the Net NPA stands at 0.68%, also marking the lowest level in this timeframe, indicating a reduction in the proportion of stressed loans.
On the positive side, the Capital Adequacy Ratio (CAR) has improved, now at 19.48%, suggesting a strengthening of the bank's capital base relative to its risk assets. However, challenges persist, as the Profit Before Tax less Other Income (PBT) has shown a significant decline, reaching Rs -188.95 crore, which is notably lower than the average of the previous four quarters. Additionally, the Net Interest Income and Operating Profit have also hit their lowest points in the last five quarters, raising concerns about the bank's core business income and operational efficiency.

In summary, while South Indian Bank has made strides in managing its NPAs and capital adequacy, it faces significant hurdles in profitability and operational performance.

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