Below is a structured extraction of all relevant and actionable financial information from the South Indian Bank’s results filing dated October 16, 2025, covering auditor’s notes, financial performance, segment details, management commentary, corporate activity, and standalone vs consolidated results.

1. Auditor’s Note

• Opinion:
  The Joint Statutory Central Auditors (M/s M.P. Chitale & Co. and M/s Borkar & Muzumdar) have issued Limited Review Reports with unmodified opinion on both standalone and consolidated unaudited financial results for the quarter and half year ended September 30, 2025.
• Qualifications/Concerns:
  None reported.
• Caveat:
  Disclosures related to Pillar 3 under Basel III Capital Regulations (Leverage Ratio, Liquidity Coverage Ratio, Net Stable Funding Ratio) have been disclosed on the Bank’s website but have not been reviewed by auditors.
• Previous audits:
  Prior quarters and FY ended March 31, 2025, were audited/reviewed by the then Joint Statutory Auditors with unmodified/unqualified opinions.

2. Financial Performance

Standalone Financials (₹ in Lakhs)

Consolidated Financials (₹ in Lakhs)

3. Management Commentary and Notes

• Accounting Policies:
  No changes in significant accounting policies compared to FY25. Consistent application confirmed.

• Provisions:
  Provisions made for standard assets (including unhedged foreign currency exposures), NPAs, non-performing investments, income tax, and other usual provisions.

• Other Income:
  Includes profit on sale of investments (net), provision for appreciation/depreciation on investments, forex and derivative earnings, commission from non-fund based activities, income from sale of PSL certificates, card business, bancassurance, recoveries from written-off advances, etc.

• Other Expenses:
  Include insurance, rent, repairs, depreciation, communication, outsourced manpower, premium on PSLC purchase, CSR, card expenses, etc.

• Capital Adequacy:
  Computed as per RBI Basel III guidelines. The ratio for previous periods is not restated for subsequent guideline changes.

• Basel III Pillar 3 Disclosures:
  Made available on Bank’s website; not audited/reviewed by auditors.

• COVID-19 Resolution Framework:
  Details of accounts restructured under RBI’s Resolution Framework 1.0 and 2.0 provided, with exposures and slippages disclosed. Total exposure to accounts classified as standard under resolution plan as of Sep 30, 2025 is ₹15,391 lakhs (down from ₹16,909 lakhs previous half year).

• Loan Transfers and Acquisitions:
  No Special Mention Accounts (SMA) or stressed loans transferred/acquired during the quarter. Loans acquired through assignment amount to ₹52,690 lakhs with 10% retention by originator and 193.27% tangible security coverage.

• Tier II Bonds:
  The Bank exercised call option on ₹49,000 lakhs of 9.50% Tier II bonds issued in Nov 2017, redeemed early on Sep 12, 2025, with RBI and Board approval.

• Share Capital:
  During Q2 FY26, 409,941 shares allotted on exercise of stock options; 448,590 shares allotted in H1 FY26.

• Reclassification:
  Previous period figures have been regrouped/reclassified to conform to current period presentation.

4. Segment Information

Standalone and Consolidated Segment Revenue and Profit (₹ in Lakhs)

5. Capital Expenditure, Projects, and Corporate Activity

• Capital Expenditure:

  • Q2 FY26: ₹6,187 lakhs spent on fixed assets/capital work-in-progress.
  • H1 FY26: ₹13,215 lakhs (sum of Q1 and Q2) approx.

• Tier II Bonds:

  • Early redemption of ₹49,000 lakhs 9.50% Tier II bonds during Q2 FY26.

• Share Capital:

  • 409,941 shares allotted in Q2 FY26 on exercise of stock options.
  • 448,590 shares allotted in H1 FY26.

• Loan Acquisitions:

  • Loans acquired through assignment: ₹52,690 lakhs with 10% retention by originator and 193.27% tangible security coverage.

• No NPAs transferred to financial institutions/ARCs during the quarter.

• No extraordinary items or restructuring costs reported.

6. Standalone vs Consolidated

• Both Standalone and Consolidated unaudited financial results are provided and reviewed.
• Consolidated results include the Bank and its subsidiary SIB Operations and Services Limited.
• Consolidated financials closely mirror standalone results with minor differences in operating expenses and segment assets/liabilities.
• Consolidated net profit for Q2 FY26: ₹35,159 lakhs vs Standalone ₹35,137 lakhs (negligible difference).

Summary for Investment Analysis Team