South Indian Bank Limited (SOUTHBANK) AI Stock Analysis

• Market Cap: ₹86.20B
• Dividend Yield: 1.22%
• Average Volume (3M): 1.78M
• Price to Earnings (P/E): 6.3
• Beta (1Y): 1.10
• Revenue Growth: 8.09%
• EPS Growth: 2.68%
• Country: IN
• Employees: 13,116
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.34
• Shares Outstanding: 2,616,750,000
• 10 Day Avg. Volume: 3,827,906
• 30 Day Avg. Volume: 1,781,290
• 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: ₹38.50
• Price Target Upside: 17.88% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ₹37.00 ▲(13.29% Upside)

The stock's overall score is driven by strong financial performance and attractive valuation, suggesting a solid investment opportunity. However, technical indicators warn of potential overbought conditions, which could lead to short-term volatility. Investors should monitor cash flow management and leverage closely.

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 Limited generates revenue through multiple channels, primarily from interest income on loans and advances, which constitutes the majority of its earnings. The bank lends to individuals, small and medium enterprises, and large corporations, earning interest over the loan tenure. Additionally, it earns non-interest income from fees and commissions related to its banking services, such as transaction fees, service charges, and charges for processing loans and credit cards. The bank also generates income through investments in government securities and other financial instruments, benefiting from interest and dividends. Partnerships with financial service providers for insurance and mutual funds distribution further contribute to its income. Moreover, South Indian Bank leverages its extensive branch network and digital banking platforms to reach a broad customer base, enhancing its revenue-generating capabilities.

South Indian Bank Limited Financial Statement Overview

Summary

South Indian Bank Limited shows strong profitability and a solid equity position, indicating financial stability. However, challenges in cash flow management and increased leverage need attention.

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	98.23B	112.30B	101.27B	81.82B	76.28B	34.01B
Gross Profit	54.70B	53.03B	45.08B	34.24B	32.81B	20.61B
EBITDA	17.96B	18.59B	16.19B	13.34B	-82.03M	863.52M
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: Positive
• Last Price: 32.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 32.66 is above the 20-day moving average (MA) of 30.79, above the 50-day MA of 29.85, and above the 200-day MA of 27.29, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 62.83 is Neutral, neither overbought nor oversold. The STOCH value of 64.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	78 Outperform	₹67.75B	5.64	―	2.57%	9.84%	9.30%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SOUTHBANK	67 Neutral	₹86.20B	6.35	―	1.22%	8.09%	2.68%
EQUITASBNK	50 Neutral	₹63.29B	44.89	―	1.80%	13.47%	-115.98%

South Indian Bank Limited Corporate Events

South Indian Bank to Exercise Call Option on Tier 2 Bonds

South Indian Bank Limited has announced that its Board of Directors has approved the exercise of a call option on its non-convertible, fully paid-up, unsecured, Basel III Compliant, Tier 2 Bonds. These bonds, which have a face value of Rs. 1,00,000 each, were issued on November 28, 2017, and are listed on the BSE. The call option will be exercised on September 12, 2025, and the bank has informed eligible bondholders through electronic and postal communication. This strategic move is part of the bank’s ongoing efforts to manage its capital structure effectively, which may have implications for its financial stability and stakeholder confidence.

South Indian Bank Elevates Nehru Singh B to Senior General Manager Role

South Indian Bank Limited has announced a significant change in its management structure, promoting Mr. Nehru Singh B to the position of Senior General Manager – Credit Quality Assurance & Chief Risk Officer, effective September 1, 2025. This internal elevation reflects the bank’s commitment to strengthening its credit policy and monitoring processes, leveraging Mr. Singh’s extensive experience in branch operations, corporate credit, and process automation, which is expected to positively impact the bank’s operational efficiency and risk management.

South Indian Bank to Exercise Call Option on Tier 2 Bonds

South Indian Bank Limited has announced its decision to exercise the call option on its Non-convertible, Redeemable, Fully Paid-Up, Unsecured, Basel III compliant Tier 2 Bonds, listed on BSE, with a face value of Rs. 1,00,000 each. This move, approved by the Board of Directors, is scheduled for September 12, 2025, and aligns with regulatory requirements, potentially impacting the bank’s financial strategy and stakeholder interests.