South Indian Bank shares gained traction after brokerage Anand Rathi reaffirmed a Buy rating with a target price of ₹61, citing the lender's accelerating credit growth and strengthening profitability metrics.
The stock has been supported by a broader rally in Indian regional banks as investors rotate into financials with improving balance sheets.
6% year-on-year in the first quarter of fiscal 2027, up from 15.
The broker's note highlights that credit growth accelerated to 18.6% year-on-year in the first quarter of fiscal 2027, up from 15.8% in the prior period.
This expansion in the loan book, combined with continued improvement in asset quality, underpins the positive outlook for the private sector lender.
Anand Rathi's recommendation reflects a broader trend of brokerages turning constructive on Indian mid-cap banks.
The firm points to sustained growth in net interest margins and a decline in non-performing assets as key drivers for the upgraded valuation.