Monday, December 22, 2008


  • One of the earliest banks in South India, "South Indian Bank" came into being during the Swadeshi movement. The establishment of the bank was the fulfillment of the dreams of a group of enterprising men who joined together at Thrissur, a major town (now known as the Cultural Capital of Kerala), in the erstwhile State of Cochin to provide for the people a safe, efficient and service oriented repository of savings of the community on one hand and to free the business community from the clutches of greedy money lenders on the other by providing need based credit at reasonable rates of interest.
  • South Indian Bank has a technology enabled network of 500 branches and 210 ATMs, with presence in 23 states and 2 union territories. This is a professionally run bank with widely held ownership making it ripe for takeover once Banking regulation bill is passed. South Indian Bank(SIB) has now established the largest network , in the private sector, of Core Banking branches next only to ICICI Bank , HDFC Bank and AXIS Bank.
  • South Indian Bank(SIB) Is The Best Performer In Asset Quality - In the "Analyst 2008 Survey of Indian banks" conducted by the 'Institute for Chartered Financial Analysts of India' ,South Indian Bank has emerged as the 'Best Performer in Asset Quality' category among private sector banks which include the new generation and the traditional banks in India .
  • The bank has recently tied up with ICICI Prudential life insurance for the selling of insurance products at over 296 SIB branches in Kerala. The bank also has made available Mutual Fund products to their clients.
  • A Host of Many Firsts: SIB has many firsts to its credit . Chief among them are - the first private sector bank from India to provide managerial support to an Exchange House in the Middle East , the first Kerala-based bank to start extended banking hours (12 Hours Banking ), the first Kerala-based bank to go on-line through a centralized Core Banking solution, the first Kerala-based bank to introduce a credit card, the first in the private sector in India to open an NRI branch, the first private sector bank to start an Industrial Finance branch in India, the first Kerala-based bank in private sector to become a scheduled bank, the first private sector bank from Kerala to implement 100% CBS.

Buy Rs.56-58 Target Rs.70-74 Stop Loss Rs.52 on closing basis Term 4-6 months.

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1 comment:

Anonymous said...

Latest details about our Bank given below :


South Indian Bank (SIB) is one of the leading scheduled commercial banks in India with a strong focus on technology and service delivery.

A Host of Many Firsts

SIB has many firsts to its credit .
SIB is –
*The first in the private sector in India to open an NRI branch .
*The first private sector bank to start an Industrial Finance branch in India.
*The first Indian traditional Bank to achieve all branch/office inter-connectivity and register 100% CBS .
*The first private sector bank from India to provide managerial support to an Exchange House in the
Middle East .

Business Overview

South Indian Bank has registered an all time high net profit for the financial year 2007-08. The bank has declared a net profit of Rs. 151.62 crore for the previous financial year(2007-08) as against Rs. 86.49 crore for 2006-07 registering a growth of 75.30%. With the advantage of 100% branches covered by Core Banking Solution, South Indian Bank was the first in its peer group to announce audited results for the financial year 2007-08.

The total business of the Bank stood at Rs 25,910 crore as on 31-03-08 registering a growth of 26.10%. While the deposits went up by Rs. 2,917 crore from Rs.12,239 crore to Rs. 15,156 crore registering a growth of 23.83 %, the advances increased by Rs. 2,446 crore from Rs. 8,308 crore to Rs. 10,754 crore registering a growth of 29.45 % .

With this the Bank has exceeded all the three ambitious targets the Bank had set in 2005 for achieving the milestones of Rs15000 crores , Rs 20000 crores and Rs.25000 crores in total business respectively for 2005-06 , 2006-07 and 2007-08 .

Asset Quality of the Bank

In the “Analyst 2008 Survey of Indian Banks” announced in October 2008 , the Bank has emerged as the best performer in asset quality category among private sector banks which include both the new generation and the traditional banks in India.

Similarly in the current “ASSOCHAM- ECO PULSE” study , the Bank has been rated as a “Top NPA Manager” for having reduced Net NPA substantially within one year.

Due to effective recovery measures resorted to during the current financial year, Net non-performing assets (NPA) for the quarter ended 30/09/08 was lower at 0.40 per cent as against 0.71 per cent for September, 2007, while gross NPA was 1.86 per cent compared with 3.41 per cent for September, 2007.

Branch Network

The Bank has already opened 20 branches during the first half of this fiscal to take the total number of branches to 520 , Extension Counters 17 and ATM Centres 252.The Bank also proposes to open another 40 branches during the next 12 months so that the bank would have a CBS branch network of 560 branches This would expand the SIB footprint to 26 States and union territories in India.

Technology As The Key Driver of Business

The Bank’s ambitious technology up-gradation project named ‘SIBERTECH’ by introducing a Centralized Core Banking Solution ‘Finacle’ in technology partnership with the Infosys Technologies Limited is complete and all the branches/offices all over the country have been linked to the Centralized Data Centre at Kochi and hence 100 % of the Bank’s business is now absolutely on-line .The Disaster Recovery Facility is functioning at Bangalore.

With the up-gradation of technology , SIB now offers a host of hi-tech products which enables the customers bank from anywhere , saving them time , money and hassles . This means that they can avail of a range of solutions and make convenience banking a way of life . For this the Bank has launched various value-added products and services like Global Debit-cum-ATM card, Internet Banking, Mobile Banking etc.

SIB’s Global ATM – cum – Debit Card can be used at over 8 lac ATMs and 120 lac merchant establishments all over the world.The Global ATM – cum – Debit Card of SIB, which recently became the first Kerala based bank to have directly joined the National Financial Switch (NFS) of the Institute for the Development of Research in Banking Technology (the technical arm of the Reserve Bank of India) can also be used at over 20,000 ATMs all over India .

The Bank very recently could bag a special award for excellence in banking technology from IDRBT which is the technical arm of the Reserve Bank of India .This award was presented to the Bank as a national level recognition to the excellent contribution made in the area of information systems, security policies and practices .The bank has bagged this award by tightly competing with all categories of banks in India such as Foreign Banks, Private sector banks, public sector banks and co-operative banks .

Business Strategy

The Bank is committed to become a technology- driven , customer-oriented bank (the new corporate slogan being -“Experience Next Generation Banking”)where passion for excellence is a way of life , innovation is a tradition , commitment to values unshaken and customer loyalty is abiding .

The long-term corporate objective is to emerge as the most preferred Bank in India, with core competence in fostering relationship banking, garnering core deposit with accent on cost, creating high yielding quality assets through focused marketing, qualitative appraisal and effective monitoring. We are dedicated to provide quality service to our customers and maintain high standards in corporate responsibility.

SIB IS Now A Financial Supermarket

The bank has tied up with ICICI Prudential life insurance for selling of insurance products at over 284 branches in Kerala.This is a major step towards growing the fee-based income of the bank. This partnership, would help, for the first time in the country ,the policyholders of ICICI Prudential to pay their first as well as renewal premiums in cash at over 284 branches in Kerala.The Bank has also a tie up with Bajaj Alliance for distribution of general insurance products.

Recent Developments

As on 30/09/08 , the Bank has achieved a capital adequacy ratio which is as high as 14.44 % against the RBI -prescribed minimum requirement of 9 %. The major FIIs in the FII holding of 47% in the Bank’s equity include ,India Capital Fund, International Finance Corporation,Acacia Partners LP,India Fund Inc.,Goldman Sachs Investments(Mauritius),Morgan Stanley(Mauritius),India Institutional Fund,Deutsche Securities Mauritius,FID Funds(Mauritius) etc.

For the first time in the 79- year history of the Bank, Bonus Issue and Employee Stock Option Scheme are being effected ; the highest ever dividend @ 30% has already been paid.

During 2007-08 the Bank had crossed the milestone of Rs.1000 crore of net worth.

The Bank had declared 2007-08 as the “Year of Youth” and had launched a novel deposit scheme “YOUTH PLUS” with technology features focusing the younger generation.

Our focus during the current financial year will be on increasing the CASA funds as well as non interest income by sale of mutual funds and insurance products.

The Bank, as part of the global brand building exercise, has signed mega star Padmashree Bharat Mammootty as its Global Brand Ambassador. His tech savvy image goes hand-in-hand with our bank which has always been in the forefront of embracing technology. South Indian Bank has also unveiled a new corporate logo that demonstrates the major transformation the bank has undergone since its inception .

The Bank has launched a NetBanking initiative to provide real-time fund transaction for the online banking customers through ‘’ , the online banking channel of the bank. This will make possible for the retail and also corporate customers of the Bank for online debits/credits from/to authorized accounts. This enriched Net-banking product has the potential for utility payments and payment gateway (shopping mall) facilities. This customer- value proposition contains functionalities to support consumer (Retail) e-banking and also corporate e-banking .

Corporate Social Responsibility

Conscious of the corporate social responsibility , South Indian Bank has launched the ‘Money Lender-Free Village” pilot project at Meloor in Trichur District of Kerala .The main objective of the Project is replace the non-institutional, usurious, exploitative rural credit mechanism of private lending with lending through Self-Help Groups (SHGs)and direct lending by SIB. Under this initiative, SHGs act as extension of SIB to reach out to villages in even the remotest locations. This project though started very recently could garner acclaim from many quarters.

The bank has also commenced a rural empowerment initiative in association with the Kerala Agricultural University.While the bank would provide the necessary finance ,the University would impart the requisite skills and technology required for the sustainable development of agriculture to the bank’s borrowers in the rural areas .The project would be executed through the NGO called , “Organisation for Women Empowerment & Rural Development”.

The Bank has launched a new product, “SIB Junior” to inculcate the savings habit among the children. To achieve this corporate objective , the Bank is targeting schools and colleges in the country with this product .

Services for the NRIs

SIB, as the preferred bank of the Indian Diaspora (“Bank for the Pravasis”), had been celebrating one-month long ‘Pravasi Utsav’. The novel convenience product, “ NRE SB-Diamond” was launched exclusively for the NRE customers who maintain an average balance of Rs.50000/-.

South Indian Bank is the first private sector bank from India to provide management support to an exchange house in the Middle East. This enables SIB to provide top quality service, to NRIs looking at remittances to India , in a technology –driven environment .Three more licenses have been obtained for opening new branches of Hadi Express Exchange in Abu Dhabi, Dubai and Rasalkhaima which would enable SIB to provide quality service to the NRIs in the Gulf looking at remittances to India in a technology – driven environment.

SIB has become the first bank to go online booking-free of bank charges – through South Indian Bank Payment Gateway by devotees of Sri Krishna Temple, Guruvayur ,which is known as the Dwaraka of South India. Customers of the bank, besides the NRIs are now facilitated to effect offerings – on behalf of their aged parents also – with greater transparency and security at the click of a button.

New product for the salaried employees and their employers

South Indian Bank (SIB) has recently launched a convenience banking product “GROUP SALARY SAVINGS ACCOUNT” (GSSA) which is a premium savings bank product designed to meet the needs of salaried employees and their employers.

South Indian Bank would manage, hassle-free and free of any bank charges ,the salary disbursement of corporates , firms and such others who maintain accounts with any of the 520 CBS branches to disburse salary to any employees/any single employee who are/is working in their offices in the 23 states/Union Territories in India where SIB has presence.In that way the employer is also benefited.

With the following carefully thought-out value additions of this innovative convenience banking product , banking for employers and their employees, is made extremely easy and comfortable: -

>Free International ATM-cum-Debit Card for which annual maintenance charges are not collected
> Online booking of offerings for Lord Sri Guruvayurappan, free of bank charges
>Free utility payment and e-commerce services
>No stipulation on minimum balance
>The depositor enjoying many freebies can earn the usual SB interest .
>The depositor can operate his SB account –during his travel/temporary transfer /transfer- hassle-free.
>The account can be closed /transferred to another branch with out any charge.
>Free of cost cheque leaves (subject to limits in each category )
>Free fund transfer facility through RTGS/NEFT/Fast Money /DD

Customers of this feature-rich Savings Bank account are also provided with facilities to open Depository account and also enjoy mobile banking facility.

SIB-A Customer- Oriented Bank

Despite acquiring the latest technological capabilities available to the banking industry in the country, the Bank will continue the emphasis on personalized customer service, which has been the Bank’s core strength for all these 79 years. Incidentally , the Bank had also been selected , in the Outlook Money – C- Fore Survey, as the best private sector Bank in India in the ‘Service Quality ‘ segment .

What Mr.Narayana Murthy Commented About Our Performance :

Announcing the total implementation of CBS in SIB ,Mr.Narayana Murthy , Chairman & Chief Mentor of Infosys Technologies who also has been elected as the Chairman of the Asian Business Council, said:”Completing one’s job in time and also with efficiency is a sign of excellence .This is where I’ve got tremendous respect for South Indian Bank ”. In this context Mr.Murthy referred to the dismal performance of the Indian Cricket team (in March 2007) who had commenced their celebrations even before the play , and said ,”South Indian Bank , on the other hand , had waited for one month to confirm the efficacy of the new system and then only celebrated, even though they had completed implementation of CBS in the month of February2007 itself .In India we usually celebrate even before performing one’s duties .So my earnest wish is –‘Let there be thousands to emulate SIB’s example’.

“South Indian Bank’s implementation of Core Banking Solution was seamless for the customers. It was also implemented in a manner that every employee was enthusiastically involved in it”, Mr. Narayana Murthy said adding , “ SIB had shown its commitment to the core values of excellence which include openness to new ideas, focus on speed, focus on innovation, excellence in execution .I’ve no doubt that with this commitment to the core values of excellence, SIB will be more successful in future”, Mr. Narayana Murthy concluded.

He also said that the bank was well on course to add 7 lakh new customers this financial year. “We were aiming for an addition 5 lakh customers. We are going to do better than that and get about 7 lakh new customers. Last month alone, we added 1 lakh new customers,” Dr Joseph said. SIB now has 35 lakh customers.
“By 2013, we want to have 7,500 employees, Rs 75,000 crore business and 750 bank branches,”

For Press Queries :
Simon Joseph ,
Corporate Communications Manager,
South Indian Bank
Mob: 09847404555
Email :