South Indian Bank reported its highest-ever quarterly net profit of ₹351.36 crore in Q2FY26. MD & CEO PR Seshadri tells Narayanan V that the performance was driven by growth in MSME and retail segments, the bank’s preparedness for ECL framework, and its cautious approach to jewel loans. Excerpts:

What led to the record profit in Q2FY26?

It’s attributable to the quality of our portfolio. Our retail and MSME business volumes grew considerably. Retail disbursements rose 50% year-on-year to ₹6,513 crore, while MSME disbursements doubled to ₹1,945 crore. Credit costs were also very low. The performance was further aided by other income streams — higher retail disbursements led to increased processing fees, and there were some recoveries from written-off accounts. Our non-interest income gre

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