Multibagger Banking Stock markets are often full of surprises, and investors are always on the lookout for opportunities that can deliver outsized returns. Among such opportunities, South Indian Bank has emerged as a fascinating story. A multibagger in the banking sector, this stock has caught the market’s attention for more than one reason. Now, with two fresh triggers lined up, it is all set to remain in focus for Friday’s trade.
Why South Indian Bank is Back in the Limelight
The buzz around South Indian Bank intensified after the lender released its business updates for the September 2025 quarter. The timing was crucial, as the announcement was made after market hours on Wednesday, setting the tone for Friday’s session. The update carried two important pieces of news. First, the bank reported robust growth in both advances and deposits, highlighting its improving business fundamentals. Second, and perhaps more significant for investor sentiment, the bank received a credit rating upgrade from INFOMERICS Valuation and Rating Private Limited.
Performance on the Stock Market
On the trading front, South Indian Bank has shown remarkable strength. In the previous session, the stock closed over 1.38% higher, ending at ₹28.97 on the Bombay Stock Exchange (BSE). This move came with considerable investor participation, as nearly 4.56 lakh shares changed hands, generating a turnover of ₹1.33 crore.
At present, the lender enjoys a market capitalization of ₹7,685 crore. More importantly, the stock has demonstrated long-term resilience, delivering 236% returns in the last two years and an impressive 373% rise over a three-year period. These numbers are what truly define its “multibagger” status.
Technical Picture Stability Amid Volatility
Investors who track technical indicators will notice that South Indian Bank’s stock maintains a mixed but promising trend. Its Relative Strength Index (RSI) currently stands at 51, suggesting that it is neither in the overbought nor the oversold zone.
The stock is trading above its 5-day, 20-day, 30-day, 50-day, 150-day, and 200-day moving averages. However, it remains slightly lower than its 10-day and 100-day averages, reflecting minor corrections that could pave the way for consolidation before the next move.
With a beta of 1, the stock is known for its volatility, which means investors must be prepared for swift price swings. But at the same time, such volatility often attracts short-term traders looking to benefit from quick gains.
Business Growth Solid Numbers in Q2
The real strength of South Indian Bank lies in its improving operational performance. For the September 2025 quarter, the bank reported that gross advances rose by 9% year-on-year, reaching ₹92,287 crore compared to ₹84,714 crore in the same period last year.
On the deposits front, the numbers are equally encouraging. The bank’s total deposits stood at ₹1,15,635 crore, reflecting a healthy 10% growth from the previous year.
Another critical parameter for banks is the CASA (Current Account Savings Account) ratio, and here too, South Indian Bank has shown progress. CASA deposits reached Rs36,841 crore, a 10% rise YoY, with the CASA ratio improving slightly to 31.86% in Q2 FY25, compared to 31.80% in Q2 FY24.
Credit Rating Upgrade A Confidence Booster
The other big news that has excited investors is the credit rating upgrade. INFOMERICS Valuation and Rating Private Limited raised the bank’s issuer rating to IVR AA / Stable (Double A with Stable Outlook) from its earlier IVR AA- / Stable rating.
Such upgrades are more than just symbolic. They reflect confidence in the bank’s ability to manage its finances, honor obligations, and continue on a growth trajectory. For stakeholders, this serves as an external validation of the bank’s improving fundamentals.
What This Means for Investors
For those who have been tracking South Indian Bank, the latest developments are both reassuring and encouraging. Long-term investors who held on through volatility have already been rewarded handsomely. With growth in advances, steady deposit inflows, and a better credit rating, the stock is positioned well for the future.
At the same time, it is important to remember that the stock’s zero promoter stake structure and its high volatility profile make it different from many of its peers. While that adds excitement and trading opportunities, it also means investors should exercise caution and avoid chasing the stock purely based on short-term triggers.
South Indian Bank’s journey from being a regular private lender to becoming a multibagger stock has been nothing short of impressive. With consistent growth in core business metrics and recognition in the form of a credit rating upgrade, the bank seems to be strengthening its position further.
Whether the stock continues to create wealth for investors will depend on how it sustains this momentum in the coming quarters. But for now, it certainly remains one of the most talked-about banking stocks in India’s market landscape.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to risks, and readers are advised to consult with a certified financial advisor before making any investment decisions.
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