SOUTHBANK - South Indian Bank Ltd. Share Price

Here are the major questions and detailed answers from the Q&A section of the earnings conference call transcript for South Indian Bank held on January 16, 2026:

Question 1: Loan Growth Guidance

Digant Haria: "Last quarter you indicated guidance for 12% asset growth. Can you provide any updated guidance on loan growth?"

P R Seshadri: "We've completed our target with a 12% growth. If we account for a Rs.900 crore write-off from March 2025, growth would be 12.43%. We anticipate further growth in Q4 as it's a busy season, and expect to exceed 12% overall."

Question 2: Retail vs Corporate Loan Mix

Digant Haria: "When do you expect to see a significant shift in the retail and corporate loan mix, which remains around 40% corporate?"

P R Seshadri: "Currently, about 5% of growth came from corporate transactions. Over time, we aim for a mix of one-third corporate and two-thirds retail, MSME, and Agri. This will take some time but is our focus."

Question 3: NII Growth Projections

Digant Haria: "Can we expect net interest income (NII) to return to previous highs, keeping pace with loan growth?"

P R Seshadri: "Yes, it's fair to expect that. We have absorbed a 125 basis-point NIM reduction. With favorable deposit repricing ahead, maintaining NII growth aligned with loan growth is likely if no further rate cuts occur."

Question 4: Future NIM Expectations

Vivesha: "What are the expected NIM margins moving forward?"

P R Seshadri: "We expect NIM stability this quarter, despite a slight downward bias from recent rate cuts. Our cost of deposits is decreasing, which should help maintain margins near current levels."

Question 5: GNPA and Future Recoveries

Vivesha: "What led to gross NPA dropping from 4.4% last year to about 2.9%, and can we expect this to continue?"

P R Seshadri: "The drop partly resulted from a Rs.900 crore write-off, along with recoveries exceeding new NPA accruals. We expect continued improvement in NPA figures as our slippage rate remains low."

Question 6: ROA Projections

Jay Mundra: "With NIM pressure easing, when do you expect ROA to improve further?"

P R Seshadri: "We anticipate ROA operating in the 100-115 basis points range for now. In the next 12 months, an increase to around 1.15% to 1.2% is feasible, depending on portfolio growth."

Question 7: Credit Cost and Slippages Guidance

Darshil Jhaveri: "What is your guidance for credit cost this year and next?"

P R Seshadri: "Credit cost should remain stable, around 7-8 basis points in the near term, as our slippage rates are low. We don't foresee significant changes unless adverse market conditions arise."

Question 8: Competition in Gold Loans

Darshil Jhaveri: "With increased competition in the gold loan sector, how do you assess the market?"

P R Seshadri: "We have broadened our product offerings and maintained trust with our customer base. Although there is price competition, our market presence, especially in rural areas, helps us compete effectively."

Question 9: Branch Expansion Plans

Bhavya Sanghvi: "What are your plans regarding branch expansion in the near future?"

P R Seshadri: "We haven't expanded branches in the last two years but plan to add 10-12 branches in key areas like Tamil Nadu and Andhra Pradesh soon."

These summaries encapsulate the key questions and responses during the Q&A session of the earnings call, along with relevant figures and guidance provided.