South Indian Bank Limited (SOUTHBANK) AI Stock Analysis

• Market Cap: ₹98.35B
• Dividend Yield: 1.05%
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.99
• Revenue Growth: 8.09%
• EPS Growth: 2.68%
• Country: IN
• Employees: 13,116
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.43
• Shares Outstanding: 2,617,154,300
• 10 Day Avg. Volume: 3,908,439
• 30 Day Avg. Volume: 1,784,160
• PEG Ratio: -2.02
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.55
• P/FCF Ratio: -0.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹52.00
• Price Target Upside: 38.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: ₹50.00 ▲(33.05% Upside)

South Indian Bank Limited's stock is rated favorably due to its strong technical indicators and attractive valuation. The financial performance is solid, though cash flow management and leverage require careful monitoring. The absence of earnings call and corporate events data does not impact the overall positive outlook.

Positive Factors

Strong profitability

Consistently strong profitability and equity positions enhance the bank's ability to retain earnings, build regulatory capital and fund organic growth. This durability supports sustained lending capacity, cushions credit shocks and funds strategic investments over the medium term.

Favorable equity ratio

A favorable equity ratio provides a durable capital buffer that supports regulatory compliance and absorbs loan losses, enabling continued credit extension. Strong capitalisation also reduces refinancing risk and underpins expansion of retail and corporate lending sustainably.

Positive revenue & EPS trends

Moderate revenue and EPS growth reflect the bank's ability to expand interest income and improve profitability. Sustained top-line and earnings expansion indicate underlying franchise health and capacity to cross-sell products, supporting medium-term cash generation and reinvestment.

Negative Factors

Inconsistent operating cash flow

Intermittent negative operating cash flow and volatile free cash flow reduce internal funding capacity, forcing greater reliance on wholesale or short-term funding. Over months, this can constrain lending, capital investments and dividend policy, and raise liquidity risk.

Rising leverage

An increasing debt-to-equity ratio elevates financial leverage and sensitivity to interest and funding shocks. Higher leverage limits balance sheet flexibility, tightens regulatory headroom and raises the probability of capital raising under stress, affecting long-term resilience.

Regional concentration risk

Concentration in southern India leaves the bank exposed to regional economic cycles and sectoral downturns. Though expansion exists, regional reliance can limit deposit and loan diversification, increasing correlated credit risk and slowing risk-adjusted growth across economic cycles.

South Indian Bank Limited Business Overview & Revenue Model

Company Description

The South Indian Bank Limited provides various banking products and services in India. The company operates through Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Operations segments. Its personal banking products and services include savings and current accounts, term deposits, and unclaimed deposits/inoperative accounts; personal, car, home, gold, educational, property, and other loans, as well as one time settlement scheme for micro and small enterprises sector; and mutual funds. The company also offers insurance products, such as life insurance, health insurance, and various credit risk insurance, as well as general insurance products, such as fire, liability, marine, motor, personal accident, and travel insurance products. In addition, it provides money transfer services; various cards; and value added services, including SIB rewardz, KYC certification of mutual fund investors, SIB e-academia, 3-in-one trading KIT, green pin, SIB feebook, branch banking, FX-retail, NETC FASTag, sovereign gold bonds, credit and debit cards, ATM cum shopping card, mobile and Internet banking, demat, pension system, online trading, SIB collect, PAN service agency, cash management, travel card, direct debit, tax payment and savings investments, and safe deposit locker services, as well as distributes capital gain bonds and tax free bonds. The company's NRI banking services comprise NRE and NRO rupee accounts, and foreign currency deposits, as well as portfolio investment schemes. Its business banking services include normal and premium accounts, SIB merchant plus, and trader smart current accounts; working capital, long term, non-fund based, supply chain, and SIB commercial vehicle loans; international finance; mortgage and business loans; and merchant acquiring services. As of March 31, 2022, the company had a network of 935 branches and 1270 ATMs/CRMs. The South Indian Bank Limited was incorporated in 1929 and is headquartered in Thrissur, India.

How the Company Makes Money

South Indian Bank generates revenue primarily through interest income from loans and advances, which constitutes a significant portion of its earnings. The bank provides various loan products, including personal loans, home loans, vehicle loans, and business loans, with interest rates that contribute to its profitability. Additionally, SOUTHBANK earns income from fees and commissions on services such as account maintenance, transaction processing, and financial advisory services. Other revenue streams include income from investments in securities and government bonds, as well as treasury operations. The bank also engages in cross-selling financial products, including insurance and mutual funds, which further enhances its revenue. Strategic partnerships with financial institutions and fintech companies may also contribute to its earnings through collaborative product offerings and enhanced customer acquisition.

South Indian Bank Limited Financial Statement Overview

Summary

South Indian Bank Limited has shown strong profitability and equity positions, indicating a solid financial foundation. However, challenges in cash flow management and increased leverage require attention. The overall trajectory is positive, but careful management is needed to sustain growth and stability.

Income Statement

The income statement demonstrates strong profitability metrics with a significant increase in net income over the years. Gross and net profit margins have been healthy, though revenue growth has been inconsistent. The bank managed to grow its EBIT and EBITDA margins, indicating improved operational efficiency.

Balance Sheet

The balance sheet shows a good equity position with a favorable equity ratio, suggesting financial stability. However, the debt-to-equity ratio has increased, pointing to higher leverage, which could pose a risk if not managed carefully. The return on equity has improved, indicating efficient use of equity.

Cash Flow

Cash flow analysis reveals challenges in maintaining positive operating cash flow consistently, with occasional negative figures. Free cash flow has fluctuated significantly, indicating potential volatility in cash management. However, the free cash flow to net income ratio suggests adequate cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	114.79B	112.30B	101.30B	81.82B	76.28B	82.99B
Gross Profit	54.70B	53.03B	48.49B	39.61B	32.81B	34.01B
EBITDA	17.96B	18.59B	16.19B	11.96B	-82.03M	1.69B
Net Income	13.31B	13.03B	10.70B	7.75B	448.08M	619.11M
Balance Sheet
Total Assets	1.28T	1.25T	1.17T	1.08T	1.00T	941.49B
Cash, Cash Equivalents and Short-Term Investments	118.86B	122.60B	86.49B	70.80B	113.94B	100.08B
Total Debt	17.28B	43.00B	42.96B	73.35B	55.36B	56.72B
Total Liabilities	1.17T	1.15T	1.09T	1.01T	941.98B	883.40B
Stockholders Equity	104.14B	101.08B	88.26B	66.75B	58.54B	58.09B
Cash Flow
Free Cash Flow	0.00	-81.14B	28.59B	-73.74B	42.50B	57.27B
Operating Cash Flow	0.00	-79.56B	30.41B	-72.61B	43.52B	58.08B
Investing Cash Flow	0.00	44.34B	-19.86B	-3.86B	-17.41B	-10.92B
Financing Cash Flow	0.00	57.60B	81.21B	35.24B	-1.75B	-1.38B

South Indian Bank Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 37.58
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SOUTHBANK, the sentiment is Negative. The current price of 37.58 is below the 20-day moving average (MA) of 42.95, below the 50-day MA of 40.64, and above the 200-day MA of 32.86, indicating a neutral trend. The MACD of 0.79 indicates Positive momentum. The RSI at 34.97 is Neutral, neither overbought nor oversold. The STOCH value of 28.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SOUTHBANK.

South Indian Bank Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TMB	79 Outperform	₹96.41B	7.91	―	2.15%	7.08%	7.69%
SOUTHBANK	77 Outperform	₹98.35B	8.33	―	1.05%	8.09%	2.68%
KTKBANK	70 Outperform	₹68.82B	6.13	―	2.42%	―	―
DCBBANK	68 Neutral	₹64.22B	9.03	―	0.76%	21.44%	17.14%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CSBBANK	58 Neutral	₹76.36B	12.28	―	―	32.90%	12.28%
EQUITASBNK	56 Neutral	₹79.88B	-118.24	―	1.63%	10.02%	-120.18%

South Indian Bank Limited Corporate Events

South Indian Bank Grants 121,206 ESOPs to Executive Director Dolphy Jose

South Indian Bank’s board has approved the grant of 121,206 stock options to Executive Director Dolphy Jose under Tranche 20 of its 2008 Employee Stock Option Scheme, aligning with non-cash variable pay cleared by the Reserve Bank of India for the period ended 31 March 2025. The options, priced using the Black-Scholes model with an exercise price set at a 50% discount to the recent market price, will vest in three staggered tranches over 36 months and can be exercised within five years of vesting, underscoring the bank’s use of equity-linked incentives to retain and reward senior management while not extending similar grants to its part-time chairman or other non-executive directors.

South Indian Bank Delivers Record Quarterly Profit and Strong Asset Quality Gains

South Indian Bank reported its highest-ever quarterly net profit of Rs. 374.32 crore for the third quarter of FY 2025-26, a 9% year-on-year increase, with net profit for the nine months ended December 2025 also rising 9% to Rs. 1,047.64 crore. The bank’s operating performance improved, with pre-provisioning operating profit up 10% and non-interest income growing 19% year-on-year, while maintaining positive operating leverage as income growth outpaced operating expense growth. Asset quality strengthened significantly, as gross NPA fell from 4.30% to 2.67%, net NPA dropped from 1.25% to 0.45%, and provision coverage ratios improved, alongside a lower slippage ratio and return on assets remaining above 1%. On the liabilities side, the bank delivered healthy deposit growth, with retail deposits up 13%, NRI deposits up 9%, and CASA balances growing 15% year-on-year, indicating a stronger funding base and supporting its profitable growth trajectory.

South Indian Bank Confirms Continuity of Compliance Officer Under SEBI Listing Norms

South Indian Bank has notified the stock exchanges that its Company Secretary, Jimmy Mathew, continues to serve as the designated Compliance Officer in accordance with Regulations 6(1) and 7(1) of SEBI’s Listing Obligations and Disclosure Requirements. The filing details his status as a qualified company secretary, now a Fellow Company Secretary (FCS) with membership number 13517, and confirms his ongoing appointment without any resignation across multiple quarters through December 2025, underscoring the bank’s continuity and adherence to regulatory compliance norms, including the maintained engagement of its registrar and transfer agent.

South Indian Bank Allots 188,082 Shares Under ESOS Scheme

South Indian Bank Limited has announced the allotment of 188,082 equity shares under its SIB ESOS Scheme – 2008. This allotment, approved by the Nomination and Remuneration Committee, involves the exercise of stock options by eligible grantees, resulting in an increase in the bank’s issued and subscribed capital to Rs. 261.70 crore. This move is part of the bank’s ongoing efforts to incentivize employees and align their interests with the company’s growth, potentially enhancing employee motivation and retention.