South Indian Bank shares jump 11% to hit 52-week high; ICICIDirect sees further upside

Shares of gained sharply on Friday, surging 10.67 per cent to touch a 52-week high of Rs 34.43. The stock eventually settled 10.25 per cent higher at Rs 34.30. At this closing price, it has rallied 45.40 per cent over the last six months. Advertisement

According to ICICIDirect, the bank has undergone a significant turnaround since FY22, when pre-2020 corporate defaults and Covid-related delays had pushed gross non-performing assets (GNPA) to 5.9 per cent, impacting profitability.

The brokerage noted that South Indian Bank has since de-risked its balance sheet sharply, reducing its legacy stressed book from Rs 65,349 crore (63 per cent of advances in FY22) to Rs 16,973 crore (19 per cent in FY25) through recoveries and exits. This has driven GNPA down to 3.2 per cent, net NPA to 0.9 per