AI Summary
✦ ClarthaThe South Indian Bank is an Indian private-sector bank serving retail, corporate, and treasury customers. Retail banking drives deposits and loans, while corporate banking supplies working-capital, term, and supply-chain finance. Treasury and other operations add portfolio and institutional banking income. RBI approval of the CEO appointment removes a governance overhang, though the 7% share decline signals limited investor confidence. Revenue grew 4.5%, while profit rose 11.7%, with stable margins indicating measured operating improvement. ROE stands at 13.6%, reasonable for a smaller private bank but below leading peers. At 8.2x earnings, valuation appears discounted rather than rich, despite profit growth exceeding revenue growth. The key open question is whether leadership transition and RBI interest-calculation changes affect lending yields, spreads, or future growth.
Valuation Metrics
Trading 67.8% above historical median. Valuation is stable — currently in the strongly overvalued zone (z-score: +2.15). Confidence: 76%.
Live forward EPS implies next-12-month EPS of ₹7.02. Applying the stock's normalized valuation corridor produces a fair range of ₹31.17 to ₹46.61, with base value near ₹34.26 (-25.5% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹7.02
Forward P/E
6.5x
Base Fair Value
₹34.26
Fair Range
₹31.17 - ₹46.61
Upside To Base
-25.5%
Estimate Source
Live forward EPS
Growth Estimate
+17.1%
5Y Average
0.88
Current
1.02
Overvalued
1.01
Undervalued
0.75
5Y Average
4.18
Current
8.19
Overvalued
6.64
Undervalued
4.44
5Y Average
1.20
Current
2.35
Overvalued
1.38
Undervalued
1.02
Peers & Comparison
Sector: Financials · Theme: Private Banks
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
J & K BANK LTD. J&KBANKPrivate Banks | — | 34.2% | 7.4x Undervalued | -38% vs avg | +52.4% |
TAMILNAD MERCA BANK LTD TMBPrivate Banks | +18.3% | 41.2% | 9.8x Undervalued | -18% vs avg | +104.3% |
KARNATAKA BANK LIMITED KTKBANKPrivate Banks | +26.1% | 41.5% | 8.0x Undervalued | -33% vs avg | +80.0% |
KARUR VYSYA BANK LTD KARURVYSYAPrivate Banks | +26.0% | 41.3% | 11.7x Fair | -3% vs avg | +53.8% |
CSB BANK LIMITED CSBBANKPrivate Banks | +16.9% | 24.1% | 8.5x Undervalued | -29% vs avg | -26.8% |
CITY UNION BANK LTD CUBPrivate Banks | +23.3% | 37.8% | 15.3x Premium | +28% vs avg | +35.2% |
JANA SMALL FIN BANK LTD JSFBPrivate Banks | +25.1% | 12.9% | 15.0x Premium | +25% vs avg | +19.2% |
BANDHAN BANK LIMITED BANDHANBNKPrivate Banks | +21.6% | 13.6% | 20.6x Premium | +72% vs avg | +6.0% |
THE SOUTH INDIAN BANK LTD trades at a discount (8.0x vs peer avg 12.0x), suggesting potential undervaluation relative to the Private Banks cohort. Peers include J & K BANK LTD., TAMILNAD MERCA BANK LTD, KARNATAKA BANK LIMITED — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹2.94K CrMar 2026Latest net profit
₹408 CrMar 2026Net Profit
₹408 CrProfit conversionPerformance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Mar 2026
Results
| Metric | Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 2,318 | 2,386 | 2,485 | 2,636 | 2,621 | 2,736 | 2,804 | 2,818 | 2,946 | 2,984 | 2,923 | 3,003 | 2,945 |
| Interest Earned | 1,973 | 2,025 | 2,129 | 2,184 | 2,275 | 2,314 | 2,355 | 2,371 | 2,373 | 2,362 | 2,407 | 2,518 | 2,559 |
| Other Income | 345 | 361 | 356 | 452 | 346 | 422 | 449 | 447 | 572 | 622 | 516 | 486 | 386 |
| Interest | 1,116 | 1,217 | 1,298 | 1,365 | 1,400 | 1,449 | 1,472 | 1,501 | 1,505 | 1,530 | 1,598 | 1,637 | 1,644 |
| Operating Expenses | 641 | 679 | 726 | 788 | 787 | 780 | 782 | 788 | 757 | 782 | 789 | 782 | 720 |
| EBITDA | 562 | 490 | 460 | 483 | 434 | 508 | 550 | 529 | 683 | 672 | 536 | 584 | 581 |
| Provisions | 38.99 | 198 | 51.25 | 48.55 | 40.62 | 113 | 110 | 66.04 | 224 | 239 | 63.27 | 80.41 | 34.39 |
| Profit before tax | 523 | 292 | 409 | 435 | 393 | 395 | 440 | 463 | 459 | 433 | 472 | 504 | 547 |
| Tax % | 36.1% | 30.64% | 32.84% | 29.79% | 26.81% | 25.49% | 26.25% | 26.13% | 25.47% | 25.64% | 25.6% | 25.72% | 25.49% |
| Net Profit | 334 | 202 | 275 | 305 | 288 | 294 | 325 | 342 | 342 | 322 | 351 | 374 | 408 |
| Gross NPA % | 5.14% | 5.13% | 4.96% | 4.74% | 4.5% | 4.5% | 4.4% | 4.3% | 3.2% | 3.15% | 2.93% | 2.67% | 1.43% |
| Net NPA % | 1.86% | 1.85% | 1.7% | 1.61% | 1.46% | 1.44% | 1.31% | 1.25% | 0.92% | 0.68% | 0.56% | 0.45% | 0.29% |
| Loans and Advances | 69,804 | 71,742 | 72,588 | 75,340 | 78,061 | 80,129 | 82,174 | 84,396 | 85,682 | 87,095 | 90,196 | 94,713 | 99,260 |
| Deposits | 91,651 | 95,499 | 97,085 | 99,155 | 101,920 | 103,532 | 105,452 | 105,387 | 107,526 | 112,922 | 115,635 | 118,211 | 123,346 |
| Borrowings | 6,994 | 5,645 | 5,898 | 4,213 | 3,912 | 2,957 | 2,609 | 2,956 | 4,300 | 1,728 | 6,647 | 6,212 | 3,927 |
| EPS in Rs | 1.50 | 0.91 | 1.24 | 1.37 | 1.36 | 1.12 | 1.24 | 1.31 | 1.31 | 1.23 | 1.34 | 1.43 | 1.56 |
All values in Rs. Crore unless otherwise stated. Source: CMIE Prowess, Quarterly Interim Standalone.