{"id":252099,"date":"2026-09-17T11:45:00","date_gmt":"2026-09-17T06:15:00","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=252099"},"modified":"2026-09-17T11:45:00","modified_gmt":"2026-09-17T06:15:00","slug":"kerala-bank-stock-rises-56-percent-in-1-year","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/","title":{"rendered":"This Kerala Bank Stock Rises 56% in 1 Year: Bad Loans Down, CEO on the Way Out"},"content":{"rendered":"<p style=\"border-left:4px solid #1F4E79;background:#EBF3FB;padding:10px 16px;font-style:italic;\"><em>South Indian Bank closed at Rs 45.82 on 17 September 2026, up around 56% from Rs 29.28 a year earlier, with FY26 net profit at a record Rs 1,455 crore.<\/em><\/p>\n<div style=\"background:#F0F9FF;border-left:4px solid #2E7D32;border-radius:6px;padding:14px 18px;margin:18px 0;\">\n<p style=\"margin:0;color:#1F4E79;font-size:14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin:8px 0 0;\">This Kerala bank stock, The South Indian Bank Ltd, rose about 56% in the year to 17 September 2026, from Rs 29.28 to Rs 45.82. The gain came from gross NPA falling from 4.40% to 1.38%, record FY26 profit of Rs 1,455 crore and net interest margin improving to 3.23%. Foreign institutional holding rose from 17.58% to 25.39% over the same four quarters. The open item is the chief executive&#8217;s exit on 30 September 2026 with no named successor.<\/p>\n<\/div>\n<p>A Kerala bank stock has climbed about 56% in one year, from Rs 29.28 on 17 September 2025 to Rs 45.82 on 17 September 2026, on four straight quarters of falling bad loans rather than one headline. The ride was not smooth: this Kerala bank stock traded at Rs 28.50 in late September 2025 and Rs 49.90 in early July 2026. It ranks among the stronger names on a screen of NSE small-cap stocks ranked by 1-year return, dated 17 September 2026.<\/p>\n<p>The company is <a href='https:\/\/univest.in\/stocks\/southbank\/the-south-indian-bank-ltd-share-price-today'>The South Indian Bank Ltd<\/a>, the Thrissur-based old private lender that trades as SOUTHBANK. Over these twelve months it cut gross non-performing assets from 4.40% to 1.38%, posted record annual profit of Rs 1,455 crore and raised provision coverage to 94.10%. The South Indian Bank share price moved on each print. What the market has not settled is who runs the bank from October.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href='https:\/\/univest.in\/user\/log-in'>Click Here &#8211; Get Free Investment Predictions<\/a><\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Kerala_Bank_Stock_Returns_Across_Periods\" title=\"Kerala Bank Stock Returns Across Periods\">Kerala Bank Stock Returns Across Periods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Why_Did_This_Kerala_Bank_Stock_Rise_56_in_One_Year\" title=\"Why Did This Kerala Bank Stock Rise 56% in One Year?\">Why Did This Kerala Bank Stock Rise 56% in One Year?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#20_October_2025_the_asset_quality_turn\" title=\"20 October 2025: the asset quality turn\">20 October 2025: the asset quality turn<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#15_January_2026_record_quarterly_profit\" title=\"15 January 2026: record quarterly profit\">15 January 2026: record quarterly profit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#6_May_2026_FY26_closes_at_Rs_1455_crore\" title=\"6 May 2026: FY26 closes at Rs 1,455 crore\">6 May 2026: FY26 closes at Rs 1,455 crore<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#16_July_2026_the_margin_finally_moves\" title=\"16 July 2026: the margin finally moves\">16 July 2026: the margin finally moves<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#22_June_2026_a_growth_number_for_FY27\" title=\"22 June 2026: a growth number for FY27\">22 June 2026: a growth number for FY27<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#South_Indian_Bank_Share_Price_and_the_Quarterly_Record\" title=\"South Indian Bank Share Price and the Quarterly Record\">South Indian Bank Share Price and the Quarterly Record<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Kerala_Bank_Stock_Valuation_Discount_or_Deserved\" title=\"Kerala Bank Stock Valuation: Discount or Deserved?\">Kerala Bank Stock Valuation: Discount or Deserved?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Who_Has_Been_Buying_This_Kerala_Bank_Stock\" title=\"Who Has Been Buying This Kerala Bank Stock?\">Who Has Been Buying This Kerala Bank Stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Risks_in_This_Kerala_Bank_Stock\" title=\"Risks in This Kerala Bank Stock\">Risks in This Kerala Bank Stock<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#The_chief_executive_transition_is_unresolved\" title=\"The chief executive transition is unresolved\">The chief executive transition is unresolved<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Non-resident_deposit_concentration\" title=\"Non-resident deposit concentration\">Non-resident deposit concentration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Thin_margin_and_a_clean-up_that_is_nearly_finished\" title=\"Thin margin and a clean-up that is nearly finished\">Thin margin and a clean-up that is nearly finished<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Small-cap_liquidity_and_volatility\" title=\"Small-cap liquidity and volatility\">Small-cap liquidity and volatility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Regional_and_collateral_concentration\" title=\"Regional and collateral concentration\">Regional and collateral concentration<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#South_Indian_Bank_Share_Analyst_View\" title=\"South Indian Bank Share: Analyst View\">South Indian Bank Share: Analyst View<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#South_Indian_Bank_Share_Price_Target\" title=\"South Indian Bank Share Price Target\">South Indian Bank Share Price Target<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Other_Stocks_to_Track_From_the_Same_Return_Screen\" title=\"Other Stocks to Track From the Same Return Screen\">Other Stocks to Track From the Same Return Screen<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Frequently_Asked_Questions\" title=\"Frequently Asked Questions\">Frequently Asked Questions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#How_much_has_this_Kerala_bank_stock_risen_in_one_year\" title=\"How much has this Kerala bank stock risen in one year?\">How much has this Kerala bank stock risen in one year?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Which_company_is_this_Kerala_bank_stock\" title=\"Which company is this Kerala bank stock?\">Which company is this Kerala bank stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Why_did_the_South_Indian_Bank_share_price_rise_so_sharply\" title=\"Why did the South Indian Bank share price rise so sharply?\">Why did the South Indian Bank share price rise so sharply?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#What_is_the_South_Indian_Bank_share_price_target_for_2026\" title=\"What is the South Indian Bank share price target for 2026?\">What is the South Indian Bank share price target for 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#What_are_the_key_risks_in_this_Kerala_bank_stock\" title=\"What are the key risks in this Kerala bank stock?\">What are the key risks in this Kerala bank stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Is_South_Indian_Bank_profitable_and_how_much_does_it_earn\" title=\"Is South Indian Bank profitable and how much does it earn?\">Is South Indian Bank profitable and how much does it earn?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Does_this_Kerala_bank_stock_have_a_promoter_group\" title=\"Does this Kerala bank stock have a promoter group?\">Does this Kerala bank stock have a promoter group?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/univest.in\/blogs-2\/kerala-bank-stock-rises-56-percent-in-1-year\/#Does_South_Indian_Bank_pay_a_dividend\" title=\"Does South Indian Bank pay a dividend?\">Does South Indian Bank pay a dividend?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Kerala_Bank_Stock_Returns_Across_Periods\"><\/span><strong>Kerala Bank Stock Returns Across Periods<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The verified close-to-close return for this Kerala bank stock between 17 September 2025 and 17 September 2026 is 56.5%, both trading days. There was no split or bonus in the window. The last capital action was a rights issue whose entitlements traded in March 2024, outside the period, so this is clean price appreciation.<\/p>\n<table>\n<thead>\n<tr>\n<th>Period<\/th>\n<th>Price return<\/th>\n<th>Basis<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>1 month<\/td>\n<td>Around 1%<\/td>\n<td>From Rs 45.22 on 17 Aug 2026<\/td>\n<\/tr>\n<tr>\n<td>6 months<\/td>\n<td>Around 24%<\/td>\n<td>From Rs 36.96 on 17 Mar 2026<\/td>\n<\/tr>\n<tr>\n<td>1 year<\/td>\n<td>Around 56%<\/td>\n<td>From Rs 29.28 on 17 Sep 2025<\/td>\n<\/tr>\n<tr>\n<td>3 years<\/td>\n<td>Around 86%<\/td>\n<td>Adjusted close, Sep 2023<\/td>\n<\/tr>\n<tr>\n<td>5 years<\/td>\n<td>Around 396%<\/td>\n<td>Adjusted close, Sep 2021<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The three-year and five-year figures use rights-adjusted weekly closes, approximate to the nearest trading week. Shape matters more than the headline: most of the gain in this Kerala bank stock arrived in two bursts, October 2025 and June to July 2026, with a 15% single-day fall between them. Anyone who bought this Kerala bank stock at the January 2026 peak of Rs 46.85 is still flat.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Did_This_Kerala_Bank_Stock_Rise_56_in_One_Year\"><\/span><strong>Why Did This Kerala Bank Stock Rise 56% in One Year?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>This Kerala bank stock rose on a measurable clean-up of the loan book that showed up in four consecutive results. Gross NPA fell from 4.40% to 1.38%, provisions dropped roughly two-thirds in the June 2026 quarter, and net interest income grew 23%. These are the dated events behind it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"20_October_2025_the_asset_quality_turn\"><\/span><strong>20 October 2025: the asset quality turn<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>September 2025 quarter results landed on 20 October 2025. Net profit was Rs 351 crore, up about 8%, but the number that mattered was gross NPA at 2.93% against 4.40% a year earlier, with net NPA at 0.56% and capital adequacy at 17.70%. The Kerala bank stock closed roughly 16% higher at Rs 37.73, its largest single-day move of the period.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"15_January_2026_record_quarterly_profit\"><\/span><strong>15 January 2026: record quarterly profit<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Q3 FY26 numbers came on 15 January 2026. Net profit of Rs 374 crore was the bank&#8217;s highest ever in a quarter, up 9.3% from Rs 342 crore. Gross NPA improved to 2.67% from 4.30%, net NPA to 0.45%, and operating profit rose to Rs 584 crore. Nine-month profit reached Rs 1,048 crore, and the Kerala bank stock hit Rs 46.84 on 22 January 2026.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"6_May_2026_FY26_closes_at_Rs_1455_crore\"><\/span><strong>6 May 2026: FY26 closes at Rs 1,455 crore<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Full-year results on 6 May 2026 showed FY26 net profit of Rs 1,455 crore, up 11.7%, with the March quarter at Rs 408 crore, a 19.3% rise. Q4 net interest income was Rs 915 crore and margin 2.95%. Gross NPA ended the year at 1.43%, net NPA at 0.29% and provision coverage at 94.10%. Gross advances crossed Rs 1 trillion, up 14.5%, deposits reached Rs 1.23 trillion, up 15%, and CASA was 32.12%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"16_July_2026_the_margin_finally_moves\"><\/span><strong>16 July 2026: the margin finally moves<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The June 2026 quarter, reported on 16 July 2026, is where the earnings quality case for this Kerala bank stock became hard to argue with. Net interest income hit a record Rs 1,025 crore, up 23.1%, and margin expanded to 3.23% from 3.03%. Net profit rose 17.2% to Rs 377.66 crore while provisions fell 64.7% to Rs 84 crore. Gross NPA was 1.38%, capital adequacy 19.62%, and advances grew about 18% to Rs 1.03 trillion.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"22_June_2026_a_growth_number_for_FY27\"><\/span><strong>22 June 2026: a growth number for FY27<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>On 22 June 2026 the bank&#8217;s executive director guided for 13% to 14% advances growth in FY27, 15% deposit growth, roughly 20% in FCNR deposits and about 25% in gold loans. That gave this Kerala bank stock a forward number after a year of clean-up headlines.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"South_Indian_Bank_Share_Price_and_the_Quarterly_Record\"><\/span><strong>South Indian Bank Share Price and the Quarterly Record<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Five quarters of reported numbers show a lender whose revenue line is nearly flat while profit keeps climbing. That is what a provisioning-led recovery looks like, and it is the engine under this Kerala bank stock.<\/p>\n<table>\n<thead>\n<tr>\n<th>Quarter<\/th>\n<th>Total income (Rs cr)<\/th>\n<th>Net profit (Rs cr)<\/th>\n<th>Net margin<\/th>\n<th>EPS (Rs)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Jun 2025<\/td>\n<td>2,984.13<\/td>\n<td>322.17<\/td>\n<td>13.64%<\/td>\n<td>1.23<\/td>\n<\/tr>\n<tr>\n<td>Sep 2025<\/td>\n<td>2,922.57<\/td>\n<td>351.59<\/td>\n<td>14.61%<\/td>\n<td>1.34<\/td>\n<\/tr>\n<tr>\n<td>Dec 2025<\/td>\n<td>3,003.26<\/td>\n<td>374.48<\/td>\n<td>14.87%<\/td>\n<td>1.43<\/td>\n<\/tr>\n<tr>\n<td>Mar 2026<\/td>\n<td>2,945.32<\/td>\n<td>407.40<\/td>\n<td>15.92%<\/td>\n<td>1.55<\/td>\n<\/tr>\n<tr>\n<td>Jun 2026<\/td>\n<td>3,007.40<\/td>\n<td>377.66<\/td>\n<td>14.37%<\/td>\n<td>1.44<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The annual rebuild is more striking. Net profit went from Rs 44.81 crore in FY22 to Rs 775 crore in FY23, Rs 1,070 crore in FY24, Rs 1,303 crore in FY25 and Rs 1,455 crore in FY26, with net margin moving from 0.68% to 14.77%.<\/p>\n<p style=\"margin-top:24px;\"><strong><a href='https:\/\/univest.in\/screeners'>Check the Univest Screener for Live Fundamentals of High-Return Stocks<\/a><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Kerala_Bank_Stock_Valuation_Discount_or_Deserved\"><\/span><strong>Kerala Bank Stock Valuation: Discount or Deserved?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On reported numbers this Kerala bank stock trades below its industry multiple. Trailing price to earnings is 7.84 against an industry figure of 12.04, and price to book is 1.00 on a book value of Rs 45.06 per share. Trailing earnings per share is Rs 5.77, return on equity 12.80% and dividend yield 0.99%, on a market value near Rs 11,900 crore and a 52-week range of Rs 28.50 to Rs 49.90.<\/p>\n<p>One times book with a 12.8% return on equity is not an obvious mispricing, and not demanding either. The discount on this Kerala bank stock covers three things: a thinner margin than large private peers, a heavy non-resident deposit franchise and an open leadership question. Clear all three and the Kerala bank stock earns a higher multiple.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Who_Has_Been_Buying_This_Kerala_Bank_Stock\"><\/span><strong>Who Has Been Buying This Kerala Bank Stock?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Institutions have been the marginal buyer of this Kerala bank stock throughout. Foreign institutional holding rose from 17.58% in June 2025 to 25.39% in June 2026, nearly eight points in four quarters, while domestic institutions moved from 11.10% to 14.25%.<\/p>\n<table>\n<thead>\n<tr>\n<th>Quarter<\/th>\n<th>Promoter<\/th>\n<th>FII<\/th>\n<th>DII<\/th>\n<th>Public<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Jun 2025<\/td>\n<td>0.00%<\/td>\n<td>17.58%<\/td>\n<td>11.10%<\/td>\n<td>71.32%<\/td>\n<\/tr>\n<tr>\n<td>Sep 2025<\/td>\n<td>0.00%<\/td>\n<td>17.91%<\/td>\n<td>11.92%<\/td>\n<td>70.17%<\/td>\n<\/tr>\n<tr>\n<td>Dec 2025<\/td>\n<td>0.00%<\/td>\n<td>20.94%<\/td>\n<td>13.80%<\/td>\n<td>65.26%<\/td>\n<\/tr>\n<tr>\n<td>Mar 2026<\/td>\n<td>0.00%<\/td>\n<td>24.21%<\/td>\n<td>12.76%<\/td>\n<td>63.03%<\/td>\n<\/tr>\n<tr>\n<td>Jun 2026<\/td>\n<td>0.00%<\/td>\n<td>25.39%<\/td>\n<td>14.25%<\/td>\n<td>60.36%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Promoter holding reads zero because the bank has no identified promoter group, normal for old private lenders. So this Kerala bank stock carries no pledge risk, but has no anchor shareholder to backstop a capital raise. The largest individual public holder owns about 4.3%, a small-cap fund holds around 4.7% of the Kerala bank stock, and a banking sector fund lifted its stake to 2.51% by June 2026.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Risks_in_This_Kerala_Bank_Stock\"><\/span><strong>Risks in This Kerala Bank Stock<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"The_chief_executive_transition_is_unresolved\"><\/span><strong>The chief executive transition is unresolved<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>On 30 January 2026 the bank disclosed that managing director and chief executive P R Seshadri would not seek reappointment when his term ends on 30 September 2026. The stock fell 19% intraday and closed about 15% lower at Rs 37.58. On 22 May 2026 the board approved a panel of candidates and applied to the RBI for a 1 October 2026 start. No successor has been named publicly, the largest unpriced variable in this Kerala bank stock.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Non-resident_deposit_concentration\"><\/span><strong>Non-resident deposit concentration<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Non-resident deposits are about 30% of the liability base, with NRI balances at Rs 36,432 crore in June 2026. That is a genuine strength in Kerala, but it ties funding costs to conditions in West Asia, to rupee moves and to the RBI rate window. A domestic brokerage flagged this exposure in 2026. Deposit growth of 11.4% in the June quarter trailed advances growth of about 18%, a gap this Kerala bank stock cannot widen indefinitely.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Thin_margin_and_a_clean-up_that_is_nearly_finished\"><\/span><strong>Thin margin and a clean-up that is nearly finished<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Net interest margin of 3.23% is decent here but modest against large private lenders. Most of the profit growth over two years came from provisions falling, not operating income expanding. With gross NPA at 1.38% and coverage at 94.10%, almost no room is left for credit costs to drop further. From here the Kerala bank stock needs loan and spread growth, the harder path.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Small-cap_liquidity_and_volatility\"><\/span><strong>Small-cap liquidity and volatility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Market value is near Rs 11,900 crore with no listed derivatives, so this Kerala bank stock cannot be hedged. The 52-week high sits 75% above the low, and single sessions moved 16% up on 20 October 2025 and 15% down on 30 January 2026. Volumes swing from under 40 lakh shares to over 25 crore on event days, so exit prices on bad news are unreliable in a Kerala bank stock this thinly covered.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Regional_and_collateral_concentration\"><\/span><strong>Regional and collateral concentration<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The loan book and branches remain weighted towards Kerala and the southern states, exposing this Kerala bank stock to regional cycles a pan-India lender can spread away. Management does not want to be seen as a gold loan bank while guiding for roughly 25% growth there, so gold price swings carry more weight in collateral values. No auditor qualification, insolvency proceeding, restructuring, rename or surveillance action was found in the period reviewed.<\/p>\n<p style=\"margin-top:24px;\"><strong>Download the <a href=\"https:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&amp;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to track the South Indian Bank share price live<\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"South_Indian_Bank_Share_Analyst_View\"><\/span><strong>South Indian Bank Share: Analyst View<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Published coverage on this Kerala bank stock is thin, normal for a small-cap lender outside the derivatives segment. What is verifiable points to a constructive but restrained stance, with the debate centred on management continuity rather than the numbers.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"South_Indian_Bank_Share_Price_Target\"><\/span><strong>South Indian Bank Share Price Target<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One domestic brokerage initiated coverage in early 2026 with a South Indian Bank share price target of Rs 46, built on 1.1% return on assets and 13.2% return on equity by FY28. That has effectively been met at Rs 45.82. No updated consensus South Indian Bank share price target could be verified on 17 September 2026, so treat any single number with caution.<\/p>\n<p>Working from levels instead, the all-time high of Rs 49.90 on 7 July 2026 is the overhead marker and the Rs 46.85 zone has capped the South Indian Bank share price twice. Book value of Rs 45.06 puts this Kerala bank stock at one times book, so earnings and the leadership announcement will decide whether the next South Indian Bank share price target sits above or below that anchor.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Other_Stocks_to_Track_From_the_Same_Return_Screen\"><\/span><strong>Other Stocks to Track From the Same Return Screen<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Beyond this Kerala bank stock, a screen of NSE small-cap stocks ranked by 1-year return also includes related names such as <a href=\"https:\/\/univest.in\/stocks\/cempro\/itd-cementation-india-ltd-share-price-today\">Cemindia Projects<\/a> with a 1-year return of 52.31%, <a href=\"https:\/\/univest.in\/stocks\/welent\/welspun-enterprises-ltd-share-price-today\">Welspun Enterprises<\/a> at 42.49% and <a href=\"https:\/\/univest.in\/stocks\/rain\/rain-industries-ltd-share-price-today\">Rain Industries<\/a> at 44.73%.<\/p>\n<p>Among the names covered from that screen, <a href=\"https:\/\/univest.in\/stocks\/mtartech\/mtar-technologies-ltd-share-price-today\">MTAR Technologies<\/a> returned 396.53% over one year. Readers can compare this Kerala bank stock with the <a href=\"https:\/\/univest.in\/indices\/nifty-50\/nifty-50-share-price-today\">Nifty 50<\/a> benchmark and track each of these names on Univest before making any decision.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The 56% one-year move in this Kerala bank stock is backed by numbers anyone can check: gross NPA down from 4.40% to 1.38%, record profit of Rs 1,455 crore, margin up to 3.23%, capital adequacy at 19.62% and foreign holding up nearly eight points. Little of that is speculation.<\/p>\n<p>For anyone assessing the South Indian Bank share price today, the balance is between a bank that has finished cleaning its book and one that must prove it can grow spreads without falling provisions. A single-digit earnings multiple already reflects some doubt. Patience through the leadership handover and tolerance for 15% swings are what this Kerala bank stock asks for. Investors in any Kerala bank stock should do their own research or consult a registered adviser first.<\/p>\n<div style=\"background:#CC0000;border-radius:8px;padding:16px 20px;margin:24px 0;\">\n<p style=\"color:#FFFFFF;font-size:13px;line-height:1.7;margin:0;\"><strong style=\"color:#FFFFFF;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information and may or may not be accurate. Please verify all data independently before making any investment decision. Past returns do not guarantee future returns. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"How_much_has_this_Kerala_bank_stock_risen_in_one_year\"><\/span><strong>How much has this Kerala bank stock risen in one year?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> This Kerala bank stock rose about 56% in the year to 17 September 2026, from Rs 29.28 to Rs 45.82. There was no split or bonus, so it is a clean price return. The 52-week range was Rs 28.50 to Rs 49.90.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Which_company_is_this_Kerala_bank_stock\"><\/span><strong>Which company is this Kerala bank stock?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> It is The South Indian Bank Ltd, listed on the NSE as SOUTHBANK and based in Thrissur. This Kerala bank stock is an old private sector lender with gross advances above Rs 1 trillion and deposits of about Rs 1.26 trillion.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_did_the_South_Indian_Bank_share_price_rise_so_sharply\"><\/span><strong>Why did the South Indian Bank share price rise so sharply?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The main driver was a collapse in bad loans, with gross NPA falling from 4.40% to 1.38% and provisions dropping 64.7% in the June 2026 quarter. Record FY26 profit of Rs 1,455 crore and a margin rise to 3.23% reinforced it.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_South_Indian_Bank_share_price_target_for_2026\"><\/span><strong>What is the South Indian Bank share price target for 2026?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> One domestic brokerage set a target of Rs 46 on initiating coverage in early 2026, based on 1.1% return on assets and 13.2% return on equity by FY28. No broader consensus target was verifiable on 17 September 2026, and the stock already trades there at Rs 45.82.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_key_risks_in_this_Kerala_bank_stock\"><\/span><strong>What are the key risks in this Kerala bank stock?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The largest near-term risk in this Kerala bank stock is leadership, as the managing director&#8217;s term ends on 30 September 2026 with no named successor. Others are a 30% non-resident deposit base, a thin 3.23% margin, little room for credit costs to fall further, and small-cap liquidity that produced 15% swings twice in a year.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_South_Indian_Bank_profitable_and_how_much_does_it_earn\"><\/span><strong>Is South Indian Bank profitable and how much does it earn?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Yes. FY26 net profit was Rs 1,455 crore, up 11.7% from Rs 1,303 crore, and the June 2026 quarter delivered Rs 377.66 crore. Return on assets was 1.03% and return on equity 12.76%, with trailing earnings per share of Rs 5.77.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Does_this_Kerala_bank_stock_have_a_promoter_group\"><\/span><strong>Does this Kerala bank stock have a promoter group?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> No. This Kerala bank stock has no identified promoter group, so promoter holding is zero and there is no promoter pledge. Foreign institutions held 25.39% and domestic institutions 14.25% as of June 2026, with the public at 60.36%.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Does_South_Indian_Bank_pay_a_dividend\"><\/span><strong>Does South Indian Bank pay a dividend?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Yes. The board declared a 45% dividend for FY26, or Rs 0.45 per share on a face value of Re 1. At the current price that is a yield of about 0.99%, and dividend per share has risen from Rs 0.30 in FY23 to Rs 0.40 in FY25.<\/p>\n<div class=\"faq-schema\"><script type=\"application\/ld+json\">{\"@context\":\"https:\/\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"How much has this Kerala bank stock risen in one year?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"This Kerala bank stock rose about 56% in the year to 17 September 2026, from Rs 29.28 to Rs 45.82. There was no split or bonus, so it is a clean price return. The 52-week range was Rs 28.50 to Rs 49.90.\"}},{\"@type\":\"Question\",\"name\":\"Which company is this Kerala bank stock?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"It is The South Indian Bank Ltd, listed on the NSE as SOUTHBANK and based in Thrissur. This Kerala bank stock is an old private sector lender with gross advances above Rs 1 trillion and deposits of about Rs 1.26 trillion.\"}},{\"@type\":\"Question\",\"name\":\"Why did the South Indian Bank share price rise so sharply?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The main driver was a collapse in bad loans, with gross NPA falling from 4.40% to 1.38% and provisions dropping 64.7% in the June 2026 quarter. Record FY26 profit of Rs 1,455 crore and a margin rise to 3.23% reinforced it.\"}},{\"@type\":\"Question\",\"name\":\"What is the South Indian Bank share price target for 2026?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"One domestic brokerage set a target of Rs 46 on initiating coverage in early 2026, based on 1.1% return on assets and 13.2% return on equity by FY28. 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At the current price that is a yield of about 0.99%, and dividend per share has risen from Rs 0.30 in FY23 to Rs 0.40 in FY25.\"}}]}<\/script><\/div>\n","protected":false},"excerpt":{"rendered":"<p>A small-cap lender has gained about 56% in twelve months on a sharp fall in bad loans and a record annual profit. The leadership question is what the market has yet to price.<\/p>\n","protected":false},"author":29,"featured_media":252097,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[845],"tags":[5533,5445,5532,5534,5535,5529,5530,5531],"class_list":["post-252099","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-best-stocks","tag-gross-npa-ratio","tag-high-return-stocks","tag-kerala-bank-stock","tag-net-interest-margin","tag-provision-coverage-ratio","tag-south-indian-bank","tag-south-indian-bank-share-price","tag-south-indian-bank-share-price-target"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["252097"],"rank_math_title":["Kerala Bank Stock Rises 56% in 1 Year: What Drove It"],"rank_math_description":["This Kerala bank stock rose about 56% in one year as gross NPA fell to 1.38% and FY26 profit hit Rs 1,455 crore. See the drivers, financials, valuation and risks."],"rank_math_focus_keyword":["Kerala bank stock"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/09\/kerala-bank-stock-rises-56-percent-in-1-year.png","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/252099","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=252099"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/252099\/revisions"}],"predecessor-version":[{"id":252100,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/252099\/revisions\/252100"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/252097"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=252099"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=252099"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=252099"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}