Latest News on South Indian Bank
South Indian Bank CEO Seshadri remains cautious about gold loans, even as demand surges amidst skyrocketing gold prices.
The South Indian Bank has seen a significant increase in demand for gold loans due to the rising prices of gold, with its gold loan portfolio growing by Rs 2,236 crore in Q2, a 13% rise from the same period last year. However, the bank is exercising caution and reassessing margins and loan-to-value ratios to manage risks from the rapid price increase.
According to the bank’s CEO and MD, PR Seshadri, the net interest margins (NIMs) declined by 23 basis points to 2.8% in Q2, but the bank believes this marks the bottom and margins should start improving from here. The bank’s loan mix is changing rapidly, with MSME and retail disbursements growing sharply, which should lead to higher NIMs.
The bank is also seeing strong growth in its CASA (current account and savings account) ratio, which has been steady in the 30-32% range. The bank aims to move its CASA ratio into the high-30s over the next two to three years.
In terms of demand for loans, the bank expects momentum to pick up in Q3, especially in auto loans. The bank is also open to financing mergers and acquisitions, but its capital base limits its single-borrower exposure.
The bank has estimated additional provisions under the proposed Expected Credit Loss (ECL) norms, but does not expect a significant increase in provisions. The bank’s provision coverage ratio is over 90%, which is quite robust.
Finally, the bank’s NRI deposits have grown strongly over the two quarters, and the bank expects this growth to accelerate due to the rupee’s depreciation against the dollar and attractive domestic rates. The bank is optimistic of achieving double-digit growth in this segment during the year.
Overall, the South Indian Bank is seeing strong growth in its gold loan portfolio and other segments, but is exercising caution to manage risks. The bank is also focusing on improving its NIMs and CASA ratio, and is open to new opportunities such as financing mergers and acquisitions.
The bank’s CEO, PR Seshadri, expressed optimism about the bank’s future prospects, citing the strong growth in MSME and retail disbursements, and the bank’s robust provision coverage ratio. However, he also noted that the bank needs to manage the risks associated with the rapid increase in gold prices, and is reassessing its margins and loan-to-value ratios accordingly.
The bank’s strong growth in NRI deposits is also a positive sign, and the bank is well-positioned to take advantage of the opportunities in this segment. Overall, the South Indian Bank is well-placed to achieve strong growth and improve its profitability in the coming quarters.
The bank’s ability to manage risks and seize new opportunities will be crucial in achieving its goals. The bank’s focus on improving its NIMs and CASA ratio, and its openness to new opportunities such as financing mergers and acquisitions, are all positive signs.
The bank’s strong provision coverage ratio and robust balance sheet also provide a solid foundation for growth. Overall, the South Indian Bank is a strong and well-managed bank that is well-positioned to achieve strong growth and improve its profitability in the coming quarters.
South Indian Bank Introduces UPI-Based GST Payment Facility
The Indian government has introduced two significant changes related to Goods and Services Tax (GST) that are expected to benefit taxpayers and policyholders. South Indian Bank has launched a UPI-based GST payment service, allowing taxpayers to pay their GST using the Unified Payments Interface (UPI). This service enables taxpayers to make secure and effortless payments from anywhere, either by scanning a QR code or inputting a Virtual Payment Address (VPA).
The bank, which is approved by the Reserve Bank of India (RBI) as an Agency Bank, was previously accepting GST payments through internet banking and at bank branches. The introduction of UPI-based payments is expected to make it easier for taxpayers to pay their GST, and the bank’s Head of Branch Banking, Biji SS, stated that UPI is the most preferred mode of payment today.
In addition to the new payment service, insurers are also working on methods to pass on the benefit of the recent GST cut on life and health insurance policies. The GST on premiums for individual life and health insurance policies has been reduced to zero, which means that insurers can no longer avail input tax credit. Insurers will need to adjust their pricing to align with the absence of input tax credit, and it is expected that the benefit of the GST cut will be passed on to consumers, although the extent of the benefit is still to be determined.
Edme Insurance Brokers Ltd. commented that the reduction of GST on premiums will likely lead to more people buying health and life insurance cover. The company’s Chief Human Resources Officer, Jonika Jain, stated that the GST cut will depend on how insurers adjust their pricing, and the entire benefit may not be passed on to consumers. However, the company is planning to expand its operations, including doubling its workforce to 1,000 in five years, and is also planning expansion in the UAE, UK, and Singapore.
Overall, these developments highlight the impact of the GST changes on businesses and consumers. The UPI facility from South Indian Bank provides easier tax payment options, while the GST reductions are expected to lead to increased demand for health and life insurance cover. As the insurance industry adjusts to the new GST rates, consumers can expect to see changes in pricing and potentially more affordable insurance options.
South Indian Bank partners with MoEngage to enhance customer digital experience
South Indian Bank (SIB) has partnered with MoEngage, a Customer Data and Engagement Platform (CDEP), to enhance its digital engagement strategy. This collaboration aims to revolutionize how the bank interacts with its customers by incorporating advanced automation, deep personalization, and regulatory-grade data security into every interaction. The partnership represents a significant step forward in SIB’s digital transformation journey, allowing the bank to automate workflows end-to-end and reduce manual efforts.
Prior to this partnership, SIB relied on a combination of a third-party Martech tool and an in-house CDP, which required significant manual involvement from its data science teams. With MoEngage’s unified platform, SIB can now automate campaign execution, enabling faster and more efficient delivery of personalized customer experiences. The bank’s primary concern was to find a platform that offered advanced customer engagement capabilities while minimizing manual efforts.
The partnership will initially focus on driving re-engagement among inactive customers, targeting dormant user segments with precision-led campaigns. Additionally, SIB will strengthen its mobile banking ecosystem through tailored app-based engagement, including retargeting drop-off cases and implementing in-app messaging journeys to encourage greater adoption of digital banking services.
According to Ramesh KP, Head of Marketing at South Indian Bank, MoEngage’s ability to automate campaigns end-to-end with high levels of personalization was a key factor in the partnership. Yash Reddy, Chief Revenue Officer at MoEngage, expressed pride in partnering with SIB, providing a secure and AI-enabled platform that meets the bank’s stringent data privacy and compliance requirements.
This partnership sets a new benchmark for how regulated financial institutions can leverage advanced Martech tools while maintaining high levels of data security and compliance. By leveraging MoEngage’s solution, SIB aims to significantly enhance customer engagement, delivering highly contextual and compliant customer experiences. The collaboration is expected to drive growth and adoption of digital banking services, ultimately benefiting both the bank and its customers.
Stock Market Updates of South Indian Bank
Recent Updates
South Indian Bank is shifting its focus to performance marketing, reveals Ramesh KP, Head of Marketing, in an interview with Exchange4media
In an interview with Exchange4media, Ramesh KP, Head of Marketing at South Indian Bank, discussed the bank’s marketing strategy, emphasizing the importance of performance marketing. According to Ramesh, the bank is prioritizing performance marketing as it allows for measurable and tangible results. This approach enables the bank to track the effectiveness of its marketing efforts and make data-driven decisions.
Ramesh highlighted that the banking industry has undergone significant changes in recent years, with the rise of digital platforms and evolving consumer behaviors. As a result, the bank has shifted its focus towards digital marketing, leveraging channels such as social media, search engines, and online advertising. Performance marketing is a key component of this strategy, as it enables the bank to reach its target audience effectively and drive conversions.
The bank’s performance marketing strategy involves a range of tactics, including search engine optimization (SEO), pay-per-click (PPC) advertising, and social media marketing. Ramesh noted that these channels provide a high return on investment (ROI) and allow the bank to target specific customer segments. By using data and analytics, the bank can optimize its marketing campaigns in real-time, ensuring maximum impact and efficiency.
Ramesh also emphasized the importance of personalization in the bank’s marketing approach. With the help of data and analytics, the bank can create targeted campaigns that resonate with its customers, increasing the likelihood of conversions. Additionally, the bank is leveraging emerging technologies such as artificial intelligence (AI) and machine learning (ML) to enhance its marketing efforts.
When asked about the challenges of implementing a performance marketing strategy, Ramesh cited the need for ongoing measurement and evaluation. The bank must constantly monitor its marketing campaigns, making adjustments as needed to ensure optimal performance. Moreover, the bank must balance its short-term goals with long-term objectives, ensuring that its marketing efforts align with its overall business strategy.
Overall, South Indian Bank’s focus on performance marketing reflects its commitment to driving business growth through data-driven decision-making. By prioritizing measurable and effective marketing tactics, the bank aims to stay ahead of the competition and meet the evolving needs of its customers. As Ramesh noted, the bank’s marketing strategy is designed to be agile and adaptable, allowing it to respond quickly to changes in the market and optimize its efforts for maximum impact.
SBI Axes Rs 1 Crore Air Accident Insurance for Select Customers from July Onwards
SBI Card has announced significant changes to its credit card policies, effective July 15, 2025, which will impact both premium and co-branded credit card users. One of the major changes is the discontinuation of complimentary air accident insurance on several cards. This means that cardholders will no longer receive automatic air accident insurance, a previously valuable feature for frequent flyers. The affected cards include SBI Card Elite, SBI Card Miles Elite, and Miles Prime, which will lose their Rs 1 crore coverage, as well as SBI Card Prime and Pulse, which will lose their Rs 50 lakh coverage.
In addition to the removal of air accident insurance, SBI Card will also update its minimum payment calculation formula. Starting July 15, the Minimum Amount Due (MAD) will be calculated as 100% of GST, EMI amounts, fees and charges, finance charges, and any over-limit amounts, plus 2% of the remaining outstanding balance. This change is likely to increase the minimum payable amount, especially for those with high EMIs or charges.
Another significant change is the revised order of payment settlement. From July 15, SBI will adjust payments in the following order: GST, EMIs, fees/charges, finance charges, balance transfers, retail purchases, and cash advances. This change will impact how interest is charged and how quickly cardholders can reduce their costliest debts.
Co-branded cards will also be affected by these changes. From August 11, 2025, cards with Rs 1 crore coverage, such as the UCO Bank SBI Card ELITE and Central Bank of India SBI Card ELITE, will lose their air accident insurance benefit. Cards with Rs 50 lakh coverage, including PRIME variants from South Indian Bank, Karnataka Bank, and Allahabad Bank, will also be affected.
Cardholders are advised to review their statements carefully and adjust their financial plans accordingly. The loss of insurance coverage and changes in payment processing could have significant implications for how much users pay and what protections they receive. It is essential for cardholders to understand these changes and plan their finances accordingly to avoid any unexpected charges or losses. Overall, these changes will require cardholders to be more mindful of their credit card usage and payment habits to minimize their costs and maximize their benefits.
South Indian Bank posts 10% increase in advances and 5.5% rise in deposits, signaling a robust growth performance.
South Indian Bank reported a 10% growth in gross advances, standing at Rs 88,447 crore at the end of FY25. In contrast, the bank’s deposits grew at a slower pace of 5.5%, reaching Rs 1.08 lakh crore. The bank’s current and savings account (CASA) deposits to total deposits ratio declined marginally to 31.37% from 32.8% a year ago, although it improved from 31.15% in December 2024.
The bank made a conscious decision to allow some of its bulk deposits to mature, a move that tends to be more costly. According to Managing Director PR Seshadri, “We consciously allowed some of our wealth deposits to get paid off because they tend to be (raised at) higher cost.”
This strategy is likely aimed at reducing the bank’s dependency on expensive deposits and increasing its profitability. By shifting its focus to retail banking and CASA deposits, South Indian Bank can potentially lower its funding costs and improve its bottom line.
The bank’s decision to taper its bulk deposits is a trend expected to continue in the Indian banking sector. With the Reserve Bank of India expected to tighten monetary policy and reduce liquidity, banks may need to reassess their deposit strategies to maintain profitability.
South Indian Bank’s performance highlights the challenges faced by the Indian banking sector, particularly in managing deposit growth and maintaining profitability. As the sector navigates these challenges, banks like South Indian Bank will need to adopt innovative strategies to stay competitive and profitable amidst a rapidly evolving market.
South Indian Bank Celebrates Women’s Empowerment with the Launch of ‘Women Like You’ Book – A BW Businessworld Initiative
South Indian Bank, a leading private sector bank in India, marked International Women’s Day by launching a book titled “Women Like You” aimed at encouraging and empowering women in the corporate world. The book is a collection of inspiring stories of women who have made a mark in their respective fields, including business, sports, and social service.
The book was launched at a ceremony held at The Leela, Mumbai, which was attended by various dignitaries, including senior officials of the bank, authors, and guests. The event featured a panel discussion on “Elevating Women in the Workplace” which was moderated by renowned author and journalist, Barkha Dutt.
The “Women Like You” book is a result of a year-long initiative by South Indian Bank to recognize and celebrate the achievements of women who have made a significant impact in their professions. The book features stories of 20 women who have overcome challenges and achieved success in their respective fields, including business, sports, and social service.
Speaking on the occasion, D. R. Seth, MD & CEO of South Indian Bank, said, “We are proud to launch ‘Women Like You’ book, which is a testament to the incredible achievements of women in various fields. At South Indian Bank, we believe in promoting a gender-neutral work culture and empowering women to reach their full potential. This initiative is a step towards that vision.”
The book is a testament to the bank’s commitment to promoting diversity and inclusion in the workplace. It is available on all popular e-book platforms and will be distributed widely across the country.
The book launch event was also supported by partners like KAYA, a leading international content platform, and IIM Ahmedabad, one of the top-ranked business schools in India.
South Indian Bank has taken several initiatives to empower women, including offering specific services and products designed for women customers, women-friendly branches and ATMs, and training programs for women employees. The bank also provides special offers and discounts to women customers, including a special loan program for women entrepreneurs.
Overall, the “Women Like You” book launch is a significant step towards promoting women empowerment and celebrating their achievements in various spheres of life.
On International Women’s Day, South Indian Bank Honors Inspiring Women Leaders with the launch of ‘Women Like You’, a Heartwarming Coffee Table Book
On International Women’s Day, South Indian Bank launched a special coffee table book, “Women Like You”, which chronicles the inspirational stories of 52 remarkable women from various fields. The book was unveiled by Ms. Lakshmi Ramakrishna Srinivas, Director of South Indian Bank, at a grand event in Bengaluru, attended by distinguished guests, industry leaders, and women customers.
The book features stories of ordinary women who have overcome challenges with strength and resilience, achieving lasting success. The evening’s celebration honored women achievers who have broken barriers and paved their own paths to success, serving as a testament to the fact that every successful woman has a story worth reading and emulating.
The event was headlined by international para-athlete and Padma Shri and Arjuna awardee Dr. Malathi Holla, who shared her inspiring journey in the session “Wings to Fly – An Inspiring Journey”. The evening also featured a panel discussion on “The Art of Balance” moderated by sports and celebrity anchor Madhu Mailankody, which brought together a panel of women achievers to discuss strategies for achieving personal and professional fulfillment.
The panellists included Sreedevi Ragavan, Founder of Tattvamassi and Board of Governors of IIM Kozhikode, Rasika Iyer, Co-founder and CMO of Tata Soulfull, Priya Sunder, Co-founder and Director of Peak Alpha Investments, and Simi Sabhaney, Chief Growth Officer of Dentsu India.
The celebration concluded with a mesmerizing performance by Saxophone Subbalaxmi, the first female saxophonist to hold a world record for playing the instrument for the longest duration. The event reaffirmed the bank’s commitment to empowering women by recognizing their achievements and strengthening its engagement with customers and the community.