The shares of South Indian Bank have performed brilliantly and given strong returns to the investors.
highlights
- The shares of South Indian Bank have performed brilliantly and given strong returns to the investors.
- Market expert Gaurang Shah says that at the current level the risk in shares is limited and investment can be maintained for the long term.
- Improvement in the bank’s quarterly results, better asset quality and operational performance have supported the stock.
South Indian Bank has emerged as a great example for investors who have long-term patience in the stock market. Recently an investor questioned that he had bought shares of South Indian Bank at the level of Rs 11, which have now increased to around Rs 45. In such a situation, investors want to know what strategy they should adopt in this stock going forward.
Market expert Gaurang Shah says that this journey of South Indian Bank shows that if investment is made at the right time in small but strong fundamental banks, then good returns can be obtained in the long term. According to him, at the current level, the share of South Indian Bank is in such a zone where the risk of decline seems to be limited to a great extent.
advice to investors
Gaurang Shah advised investors that those who want to remain invested in this bank for a long time, they can stay. However, he also clarified that excessive greed in the stock market is not the right strategy. Profit booking is also an important part of investing, so investors should take decisions according to their goals and risk appetite.
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How did the stock perform?
South Indian Bank shares have shown tremendous recovery in the last few years. At one time this stock was trading in single digits, but due to improvement in the financial condition of the bank, focus on asset quality and better decisions of the management, the stock continued to gain strength. The journey from Rs 11 to Rs 46 shows the confidence of investors. On Friday, the bank’s shares closed at Rs 45 with a decline of 2.09 per cent. In the last one year, the stock has seen a rise of 83.30 percent. The 52 week high of the share is Rs 46.84.
Confidence increased due to Q3 results
The bank reported a profit of Rs 374 crore for the quarter ended December, an increase of 9 per cent from Rs 342 crore in the year-ago quarter. Its net interest income (NII) for Q3 FY26 increased by 19 per cent to Rs 486 crore as against Rs 409.2 crore in the same quarter last year. Pre-provisioning operating profit for the quarter increased by 10 per cent to Rs 584.33 crore from Rs 528.84 crore in the corresponding quarter of the previous financial year.
There have also been signs of improvement in the bank’s quarterly results (Q3 Results). The third quarter saw an increase in the bank’s income and profits on a year-on-year basis, while the situation on the non-performing loans (NPA) front was also better than before. The overall financial health of the bank has improved due to better operating performance and cost control.
(Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.)
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