South Indian Bank share price rose more than 3% in intraday trade on the BSE on Wednesday, 21 October, to hit a 52-week high of ₹56.21. The stock has been on a roll this month, rising as much as 15% so far in October. In fact, South Indian Bank shares have been hitting back-to-back 52-week highs for the last four consecutive sessions.
What is driving the rally in South Indian Bank shares?
The stock has been witnessing healthy buying interest after the company announced its September quarter (Q2FY27) results during market hours on 15 October.
South Indian Bank’s net profit was ₹426.13 crore for Q2FY27, up 21.28% year-on-year (YoY).
For the quarter, the bank reported its highest-ever net interest income (NII) of ₹1,116 crore, up 37.95% YoY. Net interest margin (NIM) improved to 3.33% from 2.80% YoY.
GNPA declined by 169 bps from 2.93% to 1.24% YoY, while NNPA eased by 47 bps from 0.56% to 0.09 % YoY.
The stock jumped 3.71% on 15 October. However, in the next session, it declined by 0.06% due to profit booking but resumed its upward March on 19 October, rising 5.5%.
Meanwhile, the bank also announced the change in designation of Anto George T from Executive Vice President and Chief Operating Officer to Executive Vice President and Chief Business Officer, effective 1 November 2026.
Additionally, on 17 October, the company announced the revision of marginal cost of funds based lending rates (MCLR) applicable for multiple tenors, effective 20 October. Overnight MCLR is now 8.20%, while one-year MCLR stands at 9.50%.
More rise ahead?
After the bank’s Q2 results, brokerage firm ICICI Securities upgraded the stock to a “buy” from a “hold”, revising the target price to ₹63 from ₹45.
ICICI noted that South Indian Bank’s Q2 was strong.
“Loan growth now ahead of the system and net NPA among the industry’s best, alongside a more than 50bps YoY NIM rise. Despite net NPA compressing nearly 17bps QoQ, RoA inched higher to 1.12%. South Indian Bank, under new MD and CEO, guides for strong loan growth (15-16% YoY; even higher in gold / MSME) and positive bias on NIM,” said ICICI Securities.
“Our downgrade earlier was based on the management transition, and we continue to monitor the new MD & CEO, Mahesh Pai’s, broad vision and execution. However, we also note that the bank has a strong foundation in terms of growth (gold/MSME), net NPA (now lowest), ECL preparedness and tailwinds from a hardening rate cycle,” the brokerage firm added.
On the technical front, South Indian Bank share price is in an uptrend with the formation of higher highs and higher lows.
Aditya Thukral, founder and analyst at AT Research and Risk Managers, underscored that the stock is consistently trading above all its major EMA’s with positive crossovers between them. It is in a bull cycle and is expected to move higher.
According to Thukral, fresh support in the stock is forming near ₹52, and buying bets can be taken near that.
“A breather in the stock could provide this buying opportunity. On the downside, ₹44 is the higher low of the current rally and would remain the key for any reversal in prices. Existing shareholders can continue to hold this stock for the target of ₹66 in the coming weeks. Fresh long entries can be taken near ₹52. All long entries should be held with a stop-loss of ₹44,” Thukral said.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
