New South Indian Bank chief bets on gold loans and retail growth
New CEO Mahesh Pai plans to grow gold loans, MSME lending and launch a standalone credit card. The bank's Q2 net profit rose 21% on year.
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what happened
South Indian Bank's new chief executive, Mahesh Muralidhar Pai, intends to build on two of the bank's core strengths: a close-knit corporate culture and a strong position in gold loans. He also plans to expand retail and small-business lending while improving profitability. Pai took over on 1 October after a long career at Canara Bank.
According to Mint, cited by Moody's, the bank posted a Q2 FY27 net profit of Rs.426 crore, up 21% on year. Low-cost CASA deposits rose 18%, while gold loans grew 41%. The bank expects its net interest margin to reach 3.37-3.40% in the near future and about 3.45-3.50% in roughly a year. A first standalone credit card is planned for launch.
ICICI Securities raised its target price to Rs.63 from Rs.45 and kept a 'buy' rating, while Nirmal Bang set a target of Rs.68.
why it matters
For markets this is single-bank news. The margin and loan growth guidance matters to investors in India's banking sector, and the shares traded about 4.3% higher that day.
market impact
Indian banks: strong South Indian Bank results support interest in the sector
tags
instruments
sources
- South Indian Bank MD Pai looks at strong culture, gold loan prowess to drive growth — Moody's, 20 October 2026 at 03:33 UTC
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