South Indian Bank Share Price: All You Need to Know

A bank that investors wrote off because of its failing business structure is now slowly making a comeback. This is South Indian Bank, based in Kerala. It is among the first private sector banks of the state to become a scheduled bank. 

South Indian Bank share price has more than tripled in the last three years, rising from ₹7.17 on 6th May 2022 to ₹25.6 on 2nd May 2025. What has helped South Indian Bank in its transformation journey, what are the challenges ahead, and its future growth potential, we will cover all these in this article. Read till the end. 

Brief Overview of South Indian Bank

South Indian Bank is a prominent private sector bank with its headquarters in Thrissur, Kerala, having a pan-India presence. The bank was established in 1929, during the Swadeshi movement, by a group of enterprising individuals. 

The bank has been a pioneer in adopting technology and an innovative approach to grow its business. It was the first private sector bank in India to open an NRI branch in 1992, the first private sector bank to start an industrial finance branch in 1993, the first private sector bank to open a currency chest on behalf of the RBI in 1992, and there are many firsts. 

Currently, the bank has a pan-India presence with over 950 branches and 1,280 ATMs. 

The bank’s loan book stands at nearly ₹87,000 crores and deposits at ₹1.05 lakh crores. 

Management Team

Sri P R Seshadri is the Managing Director & CEO of South Indian Bank and has been appointed to the role on 1st October 2023. An accomplished banker, Shri Seshadri has spent years in multiple businesses, functional lines, and geographies. He holds a B.Tech degree in Electrical Engineering from the Delhi College of Engineering and an MBA degree from the IIM, Bangalore. Earlier, he was with Karur Vysya Bank as Managing Director & CEO. 

Sri Thomas Joseph K is Executive Vice President & Chief Business Officer. He has been with the bank since 1984, spending over 40 years in various roles and functions. Shri Joseph is a Mechanical Engineer from the Regional Engineering College (NIT), Kozhikode, Kerala, and also did post graduate diploma in Management.

Shri Anto George T is the Chief Operating Officer of the bank. He joined the bank in 1996 and rose through various ranks. His expertise spans across branch operations, HR management, customer relations, Fraud management, and Organizational development. Shri Anto George has a Bachelor’s degree in Economics from Calicut University and an MBA from Annamalai University. 

Smt. Chithra H is the Senior General Manager & Chief Financial Officer of the bank. She is a Chartered Accountant and is associated with South Indian Bank for over 29 years. 

South Indian Bank Shareholding Pattern

South Indian Bank is 100% owned by public shareholders. In the domestic institution segment, 8.28% stake is held by mutual funds, and LIC holds 1.03% stake. 

And, 51% stake is held by individuals holding nominal share capital up to ₹2 lakh. 

South Indian Bank Financials

Net Interest Income (NII)

The bank’s net interest income increased from ₹3,012 crore in the FY23 to ₹3,332 crore in the FY24, a growth of 10.6%.

For the first nine-month period of FY25 (April 2024 to Dec 2024), the bank’s NII rose by 6.5% to ₹2,617 crore from ₹2,457 crore recorded in the same period last year. 

Net Profit

The bank’s net profit reached ₹1,070 crore during FY24, up from ₹775 crore in FY23, a growth of 38% year-on-year. 

Furthermore, the bank reported a highest-ever quarterly profit to date of ₹342 crores, an increase of 12% from ₹305 crores in Q3FY24.

And, for the 9MFY25, the bank’s net profit increased to ₹961 crores from ₹ 782 crores reported during 9MFY24, marking an increase of nearly 23%. 

Key Financial Metrics

Net Interest Margin (NIM)

South Indian Bank has steadily improved its net interest margin, which is regarded as the operating margin for banks. In the last five financial years, the bank recorded a 65 bps improvement in NIM. 

Period	FY20	FY21	FY22	FY23	FY24	Q3FY25
NIM (%)	2.66	2.71	2.62	3.30	3.31	3.19

Gross Non-performing Assets (GNPA)

The bank has narrowed down its loan losses over the last five years, with nearly 7% of the loan book going bad in FY21 to 4.3% during Q3FY25. 

Period	FY20	FY21	FY22	FY23	FY24	Q3FY25
GNPA (%)	4.98	6.97	5.90	5.14	4.50	4.30

However, a major part of bad loans is coming from the old loan book, or pre 2020 period. Since September 2020, 91% of the loan losses have been from the old loan book. 

Provision Coverage Ratio (PCR)

This ratio indicates how well a bank can absorb potential losses from likely bad loan accounts. The higher the ratio, the better the loss-absorbing capacity. During the Q3FY25 (Oct to Dec 2024) period, the PCR for the bank was 81.07%. 

Over the years, the bank has steadily improved its loan loss-absorbing capacity, aiding in the turnaround of the bank. 

Period	FY20	FY21	FY22	FY23	FY24	Q3FY25
PCR (%)	54.22	58.73	69.55	76.78	79.10	81.07

Capital Adequacy Ratio (CAR)

It measures how much capital a bank has to cover potential losses arising from risky assets, such as unsecured loans. 

The bank’s capital adequacy ratio is above the regulatory limit and has improved over the years. 

Period	FY20	FY21	FY22	FY23	FY24	Q3FY25
CAR (%)	13.41	15.42	15.86	17.25	19.91	18.00

CASA Ratio

CASA refers to the current account savings account ratio. This ratio indicates how much of the total deposit is kept in these two low-yielding accounts. 

CASA ratio for FY24 was 32.08%, and during the Q3FY25 period, it was 31.15%. 

Period	FY20	FY21	FY22	FY23	FY24	Q3FY25
CASA (%)	25.00	29.73	33.21	32.98	32.08	31.15

South Indian Bank Share Price Analysis

South Indian Bank share price traded below ₹10 and was regarded as a penny stock. But, its performance improvement has helped to shed the tag and is on the path of continued growth. 

In the last three years, the South Indian Bank share price has returned a 52% annualized return, as of 2nd April 2025. It made an all-time high of ₹36.90 in January 2024. 

The bank has started paying dividends to shareholders. In FY24, the bank paid ₹0.30 per share as a dividend. At the current South Indian Bank market price of ₹25.60, the dividend yield of the bank is 1.17%. 

The dividend payout ratio is below 10%, indicating it is a low dividend-paying company. 

South Indian Bank Valuation Metrics

Earning Per Share (EPS)

The bank’s EPS has grown by more than ten times, from ₹0.46 in FY20 to ₹4.09 in FY24, in the last five financial years, aiding in South Indian Bank share price growth. 

Period	FY20	FY21	FY22	FY23	FY24	9MFY25
EPS (₹)	0.46	0.24	0.17	2.96	4.09	3.67

Return on Assets (ROA)

Given that banks are asset-heavy companies, it is essential to analyse return on assets. This helps to understand the amount of money the bank makes for every ₹100 worth of assets used in the company.

The bank has improved its return on assets over the year, from 0.11% in FY20 to 0.91% in FY24, and has further improved to 1.12%

Period	FY20	FY21	FY22	FY23	FY24	Q3FY25
ROA (%)	0.11	0.07	0.04	0.72	0.91	1.12

Price to Book Value

The price-to-book value of the South Indian Bank share price is 0.7 times, which means it is trading below its book value. 

The 5-year median price-to-book value is 0.6 times. The stock is trading closer to its historical price-to-book value.

South Indian Bank Share Price Future Growth Potential 

From September 2020, South Indian Bank was on a transformational journey (Vision 2024), which focused on sustainability, customer-centricity, and innovation. 

The bank focused on the 6 C’s strategy for overall improvement:

• Capital
• CASA Ratio
• Cost-to-income Ratio
• Competency Building
• Customer Focus
• Compliance

The transformation journey helped the bank achieve record profits and improvements in key financial metrics. 

Some of the key considerations of the transformation journey were:

• Reducing large ticket size loans and increasing granularity to achieve a diversified loan book. 
• Reduce geographical concentration
• Focus only on A+ rated corporates for loan disbursals.
• And, using technology to reduce costs. 

The bet paid off, and the bank was able to improve across all operational metrics. 

Currently, 70% of the loan book accounts are from outside Kerala. It was 55% at the end of FY21. 

Gold loan book increased by 10% y-o-y, now at approximately ₹16,966 crores. Volatility in gold prices can result in revaluation of gold loan book. 

Significant growth in housing loans of 64% increase and auto loans 25% increase y-o-y. 

Personal loan book stood at ₹2,249 crores with marginal growth; credit card book at ₹1,486 crores.

The cost-to-income ratio is steady at around 60%, and the overall employee headcount continues to shrink. 

Also, the stress of the older loan book is decreasing, which may add to profitability in the near to medium term. The bank has churned almost 78% of the loan book, which is a positive sign. 

However, changing dynamics of the Indian economy and inability to raise deposits from the public can impact the profitability of the bank and increase the cost of funds. 

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