Care Ratings Ltd has upgraded the creditworthiness of the South Indian Bank’s Basel III tier II debts of care A+ stable to ensure. According to the rating agency, the upward revision was based on the improvement of the risk profile and the asset quality of the bank.
The revision in the long-term ratings assigned to the debt instruments of South Indian bank factors in improving the financial risk profile of the bank and the business performance, helped by better activa quality and improving profitability in the past three years.
The efficiency of the bank on the total assets (Rota) for FY25 rose to 1.08 percent compared to 0.95 percent for FY24, while the net NPA improved to the net value to 8.10 percent of 13.38 percent in the previous year and its net assiva in Netto ratio.
The bank continues to maintain comfortable capitalization that is supported by internal structure after capital infusion in FY24, the agency said in its rating report.
The rating factors also in a long track record of operations, established deposit -based and diversified progress portfolio. The bank is expected to grow with the industry while retaining adequate capitalization and witnessing diversification in the progress, with an increase in the share of retail trade and MSME. The parameters of asset quality are expected to remain stable in the short term.
Earlier, India-Ratings also upgraded Basel III Tier II debts of the South Indian Bank, a creditworthiness from a notch to IND a+ stable to Indi-stable.
Published on August 1, 2025
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