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Shares of private sector lender South Indian Bank tumbled 19 per cent to Rs 36 on Friday following the announcement that Managing Director & CEO, Mr P R Seshadri, will not seek reappointment after his current term ends on September 30, 2026.

The Board of Directors said Seshadri decided to pursue personal interests after completing his term. The bank also stated that it will initiate the process to identify a successor, including obtaining approvals from the Reserve Bank of India and shareholders. Investors reacted sharply to the leadership uncertainty, triggering the nearly 15 per cent drop in the stock.

Despite the stock fall, South Indian Bank reported a 9.3 per cent rise in net profit to Rs 374 crore for the third quarter ended December 2025. The Kerala-based lender had posted a net profit of Rs 342 crore in the same quarter a year ago.

The bank’s total income increased to Rs 3,003 crore during the quarter under review from Rs 2,780 crore in the year-ago period. Interest income rose to Rs 2,518 crore from Rs 2,379 crore in the December 2024 quarter. Operating profit improved to Rs 584 crore from Rs 529 crore in the same period last year.

South Indian Bank’s asset quality strengthened during the quarter. Its gross non-performing assets (NPAs) declined to 2.67 per cent of gross loans by December 2025 from 4.30 per cent a year ago. Similarly, net NPAs fell to 0.45 per cent compared to 1.25 per cent in FY25. The bank’s capital adequacy ratio moderated slightly to 17.84 per cent from 18 per cent in the same quarter last year.

For the first nine months of the current financial year, the bank reported a net profit of Rs 1,048 crore against Rs 961 crore in the corresponding period of the previous year. Total income during the nine months increased to Rs 8,910 crore from Rs 8,281 crore.

Commenting on the results, Mr P. R. Seshadri, MD & CEO of South Indian Bank, said, “The Bank’s well-defined strategy continues to underpin its strong business performance during the period. The Bank recorded healthy growth across all major segments, including Corporate, MSME, Housing, Auto, and Gold loans, with a steadfast focus on maintaining asset quality.”

He added that, in line with the Bank’s strategic intent of achieving profitability through quality credit growth, South Indian Bank successfully onboarded fresh advances with a low-risk profile. “This approach reflects the Bank’s continued commitment to sustainable growth, prudent risk management, and value creation for all stakeholders,” he said.

The bank’s capital adequacy ratio of 17.84 per cent in December 2025 underscores its strong capital position and ability to support future business growth. The financial results also include the performance of its wholly owned subsidiary, SIBOSL.

South Indian Bank is a leading Kerala-based private sector lender with a nationwide presence. The bank has 948 branches, two Ultra Small Branches, three Satellite branches, 1,143 ATMs, and 126 CRMs across India. It also operates a Representative Office in Dubai, UAE.