GLOBAL ECONOMY
Global economic growth moderated to 3.30% in 2024, lower than the 3.50% recorded a year earlier and well below the historical average of 3.70% for the past 20 years (2000-2019). This deceleration was primarily driven by structural challenges, including subdued investment, sluggish productivity growth, and lofted debt levels. The pace of economic activity was further decreased by a combination of slowing momentum in several Asian and European economies, a fragile recovery in Chinas consumption and property sectors, and continued geopolitical tensions.
Inflationary pressures showed signs of easing with global inflation declining from 6.60% to 5.70% in 2024. This moderation was attributed to the cumulative effects of monetary policy tightening across major economies and the gradual resolution of supply chain disruptions. However, global inflation remained above pre-pandemic levels due to persistent price rigidity in the services sector. Trade flows improved, with merchandise trade volume expanding by 2.90% following a contraction in the prior year, despite global trade continuing to face impediments from geoeconomic fragmentation and restrictive policy measures. Service trade remained resilient, bolstered by sustained demand for travel and digitally delivered services.
Global financial conditions gradually turned accommodative, particularly in advanced economies, as inflation approached target levels and central banks began recalibrating their policy stances. While bond yields softened in the first half of 2024, renewed concerns over inflation caused yields to rise again in the latter half. Equity markets rose, amidst intermittent volatility arising from uncertain monetary policy trajectories, valuation concerns, and geopolitical risks. Currency markets reflected the solid outlook of the US dollar, exerting a declining trend on the currencies of several emerging and advanced economies.
Looking ahead, the global economic outlook remains clouded by significant downside risks. The momentum in disinflation is showing signs of fatigue, and elevated public debt in several economies is increasingly raising questions over fiscal sustainability. Growth is projected to moderate further to 2.8% in 2025, improving marginally to 3.0% in 2026. Advanced economies are likely to experience slower growth, while emerging markets and developing economies are expected to continue expanding at relatively higher rates. Inflation is expected to decline gradually but remain sensitive to the stickiness of the service sector, trade frictions, and the desynchronization of monetary policy actions across countries. The uncertain external environment is further compounded by risks from climate shocks, cybersecurity threats, technological disruptions, including AI, and the need for global regulatory convergence on crypto-assets and digital finance.
INDIAN ECONOMY
Amidst a volatile global backdrop, the Indian economy continued to demonstrate resilience during 2024-25, supported by robust macroeconomic fundamentals, proactive policy interventions, and sustained momentum in government capital expenditure. The Indian economy retained position as the fastest-growing major economy globally. Real GDP growth, is expected to 6.5% for 2025-26. This economic expansion was underpinned by a combination of improved consumption demand, a recovery in net exports, a buoyant services sector, and a revival in agricultural production.
The agriculture and allied sector recorded a strong performance with Gross Value Added (GVA) growth accelerating to 4.60%, driven by favourable monsoon conditions and proactive Government measures through digital initiatives and seed quality programmes. Industrial sector growth moderated to 4.30%, mainly due to the slowing momentum in manufacturing activity following an initial uplift in the first quarter. Mining activity remained subdued due to extended monsoon conditions, while electricity generation posted only modest growth. The public sector continued to be the primary driver of investment, with the Production- Linked Incentive (PLI) scheme providing a helping aid to manufacturing.
The services sector remained the pillar stone of the economy, accounting to 64.10% of GVA and expanding by 7.50% during the year. Within the service sector, construction sector was notably resilient, and public administration, defence, and other services posted their highest growth in the last eight years. Employment indicators reflected sustained momentum, with urban labour markets demonstrating robust performance and a shift away from pandemic-induced reliance on agriculture.
Inflationary conditions eased notably during the year. Headline inflation averaged 4.60% in 2024-25, down from 5.40% in the previous year. This moderation was driven by a sharp fall in core inflation to 3.50% and deflation in fuel to 2.50%, though food inflation remained elevated due to weather-related supply disruptions. In response, the Monetary Policy Committee shifted its stance to neutral in October 2024 and subsequently to accommodative in April 2025, supported by an easing in monetary conditions and confidence in achieving the inflation target. The policy repo rate was reduced to 6.00%, marking a gradual shift toward a growth- supportive monetary framework.
Liquidity conditions improved over the year, supported by the Reserve Banks calibrated operations, including open market purchases, forex swaps, and reductions in the cash reserve ratio. While liquidity fluctuated intra-year due to forex operations and currency demand, average net absorption remained in surplus. Government bond yields softened, corporate bond issuances increased, and the primary equity market remained active despite some moderation toward year- end. The Indian rupee faced depreciation pressures amid a strong US dollar but remained relatively stable due to Indias solid macroeconomic buffers and ample foreign exchange reserves.
THE INDIAN BANKING AND FINANCIAL SECTOR
Indian banking sector stood out for its resilience in 2024-25. Robust domestic fundamentals, proactive regulatory oversight, and broad-based credit demand underpinned this performance, reflecting sustained improvements in credit quality, capital adequacy, and profitability. Scheduled Commercial Banks (SCBs) witnessed a marginal increase in the credit-to-deposit ratio as credit growth outpaced deposit mobilisation. Banks responded by raising term deposit rates, thereby narrowing the funding gap. Asset quality indicators continues to strengthen, with decline in both Gross and Net Non-Performing Assets (NPAs), as well as a decrease in the slippage ratio. Provision coverage ratios remained robust, as did profitability metrics, though Net Interest Margins (NIMs) showed some softening amid a dynamic interest rate environment. Banks maintained strong Returns on Assets (RoA) and Equity (RoE). Capital adequacy and liquidity coverage ratios remained comfortably above regulatory norms, reinforcing systemic resilience.
Capital and liquidity buffers across banks remained well above regulatory requirements, with macro stress tests indicating that the banking system would remain resilient even under adverse economic scenarios. The transmission of monetary policy also improved, with a rising share of floating-rate loans linked to external benchmarks and a corresponding decline in marginal cost-based lending.
Non-Banking Financial Companies (NBFCs) continues to expand credit at a healthy pace, with strong capital adequacy and improving asset quality. However, the sector remains dependent on bank funding, highlighting their need for further diversification of funding sources. Risk weights on bank exposures to NBFCs were reduced from April 2025 to facilitate greater credit flow.
The Reserve Bank issued several regulatory guidelines during the year aimed at enhancing governance, risk management, and operational resilience, in line with global best practices. These measures addressed model risk management, transition pathways for small finance banks, and eligibility criteria for universal banking licenses. Urban Cooperative Banks (UCBs) also recorded improved performance, marked by stronger capital buffers and a lower incidence of NPAs.
In FY 2024-25, Indias MSME sector saw a robust 20% year-on-year growth in credit reaching Rs40 trillion, driven by stronger priority sector lending norms, government initiatives, and increased digitalisation. However, there was a decline in credit disbursements by 11% in the last quarter (Q4) of FY25, indicating a cautious lending approach by banks due to concerns about credit risk. Despite this, demand for MSME loans remained strong, as evidenced by a corresponding increase in loan inquiries.
OUTLOOK AND IMPLICATIONS FOR THE BANKING SECTOR
The outlook for the Indian economy in 2025-26 remains broadly positive, supported by a revival in domestic consumption, sustained government capital expenditure, robust financial sector balance sheets, and a strong performance in services and construction. Real GDP growth is projected at 6.50%, with inflation expected to moderate further to 4.00%. The benign inflation outlook and easing financial conditions provide space for policy to remain accommodative and growth supportive, while remaining vigilant to evolving global risks.
For the Indian banking sector, the coming year presents both opportunities and challenges. The moderation in net interest margins necessitates enhanced focus on asset-liability management and prudent pricing strategies. With heightened global uncertainties, including interest rate volatility and geopolitical disruptions, banks must continue to strengthen their risk management frameworks. The Reserve Bank has signalled its intent to deepen reforms in areas such as financial inclusion, digital payments, fintech regulation, and customer protection. These reforms, combined with the adoption of technology and operational resilience, will be crucial to maintaining the stability and efficiency of the financial system.
Indias financial system has demonstrated adaptability without compromising on stability with RBI maintaining a calibrated policy approach and strong systemic buffers. The banking sectors outlook remains fundamentally positive—anchored by credibility, but dependent on disciplined execution and responsive strategies.
FINANCIAL PERFORMANCE Vs OPERATIONAL PERFORMANCE
During the FY 2024-25, the total gross business of the Bank increased from Rs1,82,346.52 crore to Rs1,95,104.12 crore; deposits increased from Rs1,01,920.26 crore to Rs1,07,525.60 crore and gross advances increased from Rs80,426.26 crore to Rs87,578.52 crore. Operating profit of the Bank had increased to Rs2,270.08 crore in FY 202425 from Rs1,867.67 crore in FY 2023-24. The Net Profit increased to Rs1,302.88 crore in FY 2024-25 as against Rs1,070.08 crore in FY 2023-24. The Provision Coverage Ratio (PCR including write-off) has improved to 85.03 per cent in FY 2024- 25 from previous level of 79.10 per cent in FY 2023- 24. The Board has recommended a dividend of 40 per cent i.e. Rs0.40 per equity share of face value of Rs1/-each, which is subject to the approval of shareholders in the ensuing Annual General Meeting.
The Gross NPA to Gross Advances stood at 3.20 per cent and the Net NPA to Net Advances stood at 0.92 per cent as on March 31, 2025. The CASA has increased by 3.17 per cent during current financial year to Rs 33,729.72 crore from Rs 32,692.67 crore in the FY 2023-24. Net Interest Income of the Bank has increased from Rs 3,332.06 crore in the FY 2023-24 to Rs 3,485.64 crore in the FY 2024-25. Further, the Net profit margin increased by 104 bps from 10.57% in FY23-24 to 11.61% in FY24-25. Net worth increased by Rs 1,243.75 Crore from Rs 8,402. 40 Crore in FY23-24 to Rs 9,646.15 Crore in FY24-25. Return on Equity improved to 12.90% in FY24- 25 from 12.13% in FY23-24.
The Capital Adequacy Ratio of the Bank was 19.31 under Basel III norms as on March 31, 2025, as against the RBI mandated level of 11.50. The Book value per share has increased from Rs33.73 as on March 31, 2024 to Rs38.60 as on March 31, 2025. The gross revenue from Treasury Operations segment increased from Rs2,010.99 crore in the FY 2023- 24 to Rs2,204.18 crore in the FY 202425. During the FY 2024-25, the Corporate/Wholesale Banking segment has increased from Rs2,979.59 crore to Rs3646.52 crore, Retail Banking segment has increased from Rs4,702.70 crore to Rs4,883.01 crore and Other Banking Operations segment increased from Rs435.04 crore to Rs493.03 crore.
The segment results, net of allocated/apportioned cost and provisions from Treasury segment has increased from Rs126.14 crore to Rs309.95 crore, Retail Banking segment has decreased from Rs934.89 crore to Rs815.72 crore, whereas Corporate/wholesale Banking segments have increased from Rs 305.87 crore to Rs 448.99 crore, and other banking operations increased from Rs 161.85 crore to Rs182.23 crore.
*Previous periods figures/ratios have been regrouped/ reclassified, wherever necessary to conform to current periods classification.
KEY BUSINESS RATIOS
Interest income as a percentage to the Working Funds for the FY 2024-25 has increased from 7.49 per cent to 7.69 per cent, which is mainly on account of increase in assets.
Non-interest income as a percentage to the Working Funds for the FY 2024-25 has increased from 1.32 per cent to 1.48 per cent, mainly on account of higher recovery income from written off accounts, Insurance income and Net profit on sale of investments.
On account of the above mentioned reasons, the operating profit as a percentage to Working Funds for the FY 2024-25 has increased from 1.62 per cent to 1.85 per cent, the return on Assets (based on working fund) for the FY 2024-25 was increased from 0.93 per cent to 1.06 per cent and Return on Equity for the FY 202425 was increased from 12.13 per cent to 12.90 per cent. Profit per employee has increased from Rs11.09 lakh in the FY 2023-24 to Rs14.15 lakhs in the FY 2024-25.
UPDATE ON IND-AS IMPLEMENTATION
The Ministry of Corporate Affairs (MCA), Government of India has notified the Companies (Indian Accounting Standards) Rules, 2015 on February 16, 2015. Further, a Press Release was issued by the MCA on January 18, 2016 outlining the roadmap for implementation of Indian Accounting Standards (IND AS) converged with International Financial Reporting Standards (IFRS) for banks. As per earlier instructions, the banks in India were required to comply with the IND AS for the financial statements for accounting periods beginning from April 1, 2018 onwards, with comparatives for the periods ended March 31, 2018 or thereafter. Progressing towards IND AS, the Bank had prepared pro-forma financials from June 30, 2017 as per extant regulatory guidelines and submitted the same to the RBI. On April 05, 2018, the RBI had announced deferment of implementation date by one year with IND AS being applicable to banks for accounting periods beginning April 1, 2019 onwards. In preparation for the same, the Bank has been submitting quarterly pro-forma financials to the RBI from quarter ended June 30, 2018. On March 22, 2019, the RBI has announced deferment of the implementation of IND AS by banks till further notice. However, the Bank continues to submit to the RBI pro-forma for financials on half year basis.
Accounting Policy
The significant accounting policy of the Bank is mentioned in Schedule 17 of the financial statements. The Bank has consistently applied its significant accounting policies except for investment (refer note below) in the preparation of its financial results for the year ended March 31, 2025 as compared to those followed for the year ended March 31, 2024.
Effective April 01, 2024 the Bank has adopted the revised framework as detailed in RBI Master Direction on Classification, Valuation and Operation of Investment Portfolio issued on September 12, 2023 (RBI Investment Direction 2023). Accordingly, as prescribed under the transition provisions of the aforesaid framework the Bank has (1) transferred the balance in Investment Reserve Account as at March 31, 2024 of Rs34.20 Crore to the general reserve (2) transferred the provision held for depreciation on investments as at March 31, 2024 of Rs1,259.04 Crore to the general reserve and accounted provision held for depreciation on investments as per the revised framework of Rs1,225.26 Crore including adjustment due to amortization of discount on securities classified under the Held to Maturity category resulting in Rs33.78 Crore to the general reserve as on April 01, 2024.
Further, in compliance with the RBI Investment Direction 2023, the valuation gains and losses at the period ended March 31, 2025, as across all performing investments, irrespective of classification (i.e., Government securities, Other approved securities, Bonds and Debentures, etc.), held under AFS is aggregated and the net gain has been directly credited to a reserve named "AFS-Reserve" (net of taxes). The securities held in Fair Value through Profit and Loss (FVTPL) is fair valued at the period ended March 31, 2025 and the revaluation loss arising on such valuation has been debited to the Profit and Loss Account.
STRATEGIES OF THE BANK
Strategic planning is an organizational management activity used to set priorities, focus energy and resources, strengthen operations and ensures that employees/other stakeholders are working towards common goals as approved by Board. The Banks are institutions whose ups and downs are so much linked to the movements of both national and global economy. Thus, as a banking institution, we must have a strong strategic plan for our way forward in order to ensure that the Bank is able to bring in sustainable growth as well as value for all stake holders.
The strategies are framed taking into account the past performance of the Bank, action plan for the ensuing years, policies of the Bank, risk appetite of the Bank, reforms in the banking sector, statutory & regulatory changes, advancement in technology, previous experiences in products/activities/ geographic locations, the present socioeconomic conditions in the national and global markets, the present and estimated market share, regulatory frameworks, etc.
The Bank continues its focus on profitability, asset quality, resilient loan book, robust retail liability portfolio, sharpening organizational structure and digital technology to achieve the business goals. The brief action plans & strategies initiated are as follows:
> Improve the profitability through quality credit and continuing the focus on 6Cs
(Capital, CASA, Cost to Income, Competency Building, Customer Focus & Compliance)
| Capital | Churning of advances portfolio by increasing the share of A rated and above accounts and increase in gold loan portfolio has helped to conserve capital. |
| CASA | Improving CASA through focused drive on building a sustainable CASA book through our Pan India Presence. |
| Cost to Income | Optimizing the cost across the organization. Continued efforts are taken to calibrate the CI ratio over a period of time. |
| Competency Building | Augmenting the talent of young resources & revamping the organizational structure to build a pool of talent to deliver continued excellence. |
| Customer Focus | Adoption of a "phygital" approach at branches with personalized services for legacy loyal customers and end to end digital experience for next-gen customers with a "Fair to customer, Fair to Bank" approach. |
| Customer experience is critical for the success of any organization as the same is a competitive advantage. | |
| Compliance | Compliance continues to be the core focus for the Bank and will be the axis across all domains of banking activities by adopting the motto "compliance with conscience". |
Continues to build a Strong and Resilient Loan Book by focusing on:
| a) Strengthening Business Structure | - Implementing initiatives to expand and establish new tie-ups within co-lending arrangements to facilitate the growth and scaling up of the loan portfolio |
| - Adoption of Digital Lead Management System (CRM) to enhance Business tracking in a more effective manner. | |
| - Focus on cohesive lending with emphasis of nurturing relationship through multiple banking products offerings | |
| - Scale up sourcing capability through DMA/ DSA | |
| - Assets and Liabilities team to work closely for creating value from the customers of the Bank | |
| b) Strengthening the Team | - Asset teams to work with Learning & Development team to develop relevant modules in SIB iLearn software to equip resources to enhance skill and competency. |
| - Competency building through newly launched LMS & instilling sense of ownership and sensitivity | |
| - Continuous training programs for senior management team. | |
| c) Building Robust Infrastructure | - Implementing comprehensive measures to fully digitize the end-to- end customer journey. |
| - Leveraging advanced data science techniques to gain insight into customer behaviour, identify patterns and generate alerts effectively. | |
| - Expanding partnerships by entering into MOU with more corporates for Dealer and Vendor financing. | |
| - The systems and controls are put in place and the utmost priority is given for quality over growth. | |
| - Setting up lending platform (LOS/LMS) for retail and SME asset products | |
| - The new underwriting model SMILE for loans upto Rs 2 crore which is already on pilot run is expected to improve the asset quality of Micro and Small segment with better TAT | |
| - Various systems like Nucleus, SMILE etc are put in place for ensuring quality. | |
| - Data analytics team to play a critical role in business and collections | |
| - Strengthening the collection system | |
| d) Launching New Products | - Revamping products in alignment with competitive benchmarking to ensure market relevance and competiveness |
| - Adding High yielding assets like Personal loans Affordable housing etc. | |
| - Leveraging large legacy customer base to offer pre-approved home loan and vehicle loan through extensive use of data analytics. |
Continues to build Robust Retail Liability Franchise by focusing on:
| a) NRI Business | - Focusing on the Product Mix - Right Product to Right Customer strategy. |
| - Focus on acquiring NTB business with quality by driving Higher IP value collection and sourcing of higher variant CA/SB products. | |
| - Customer referral model for acquiring NTB customers. | |
| - Re-organise structure with a new vertical focus on Pan India basis | |
| - Expanding geographies by partnering with exchange houses, banks and remittance platforms. | |
| b) Higher Share of Customer Wallet | - Analyzing transaction history and behavior for giving the right offers. |
| - Introducing WEALTH X account, a savings bank account to privileged customers. | |
| - Digital on boarding of resident customers. | |
| - Acquiring Savings account relationship of One Card customers completely through digital journey. | |
| - Chatbot assistance in MF investment | |
| - Use of data analytics for deeper customer penetration with multiple product offerings | |
| - Focused drive on making South Indian Bank as a primary Bank for all asset and liability customers | |
| c) Customer Segments | - Focused activation drive on small vendors for increasing the count of UPI QR POS. |
| - Fintech tie-ups/on-boarding of external agencies (DSA/DRA) for increasing the New to Bank account opening and increasing the digital activation numbers. | |
| - Setting up of salary team for Corporate Salary Tie-ups and acquisition in major cities. | |
| - Focus on segments like trust, co-operative society and Govt. banking | |
| - Digital mapping of customer life cycle management | |
| - Centralized lead sharing activity to support NTB customer acquisition. |
> More emphasis on collection and recovery of stressed accounts
• The Collection and Recovery department was decentralized with dedicated regional collection managers at each region thereby lowering the slippages and stringent recovery has led to a better performance in reducing the NPAs and lower provisions for the quarter
• Alignment of Recovery team with asset verticals to target each customer segments
• Implementation of new collection system with better management capabilities
• Emphasis on one-time settlement against long drawn regulatory processes
• Dedicated focus on mitigating frauds
• Deployment of N-Collect system to enable seamless recovery and reconciliation
> Digital Technology
All financial organizations have their technology strategies to deal with a rapidly evolving environment. Technology strategy is a critical aspect of banking, and banks are leveraging cloud adoption, high availability, fraud detection, cybersecurity, and modernization of infrastructure to stay competitive and provide better services to their customers. Banks need to embrace technology and innovation to remain relevant in the dynamic banking industry. By leveraging the use of digital technology the Bank will be able to offer better experience to customer and staff, thereby increase the customer base, improve other income, reduce operation cost and prepare the business for the future. Bank has initiated various digital initiatives for supporting the below mentioned areas and through further scaling up of the same, bank is expected to reap more benefits in coming years:
a) Cloud Adoption
• Cloud adoption to increase operational efficiency and improve scalability
• Provide better services to customers, reduce downtime, and enhance the speed of processing.
b) Fraud Detection
• Advanced analytics, machine learning, and Artificial Intelligence (AI) to detect frauds and suspicious activities
• Protection of the customers assets
c) Model Based Underwriting
• Build robust score based lending models
• Revamping underwriting platform to improve TAT
• Integration with multiple external data sources including non-traditional
d) Digital Marketing
• Meaningful engagement with millennials, Gen Z customers •
• Leveraging social media platforms for sales and customer experience
• Sentimental analysis for brand building
e) Customer Experience
• Enrich self-service features on all digital channels
• Digital onboarding of customers on assets and liabilities
• Streamline customer experience with intelligent automation/RPA
f) Leveraging Data & Technology
• Strengthening data analytics infrastructure and loan management systems
• Enhancing systems for seamless operations
• Optimizing cost through cloud adoption
g) Digital Partnership
• Partnering with Neo-age lenders and aggregators
• Ramping up of merchant acquisitions using digital innovations.
• Leveraging API platform capabilities for partnerships for Open Bank fintech
h) Culture
• Digital to be one of the DNA for each staff backed by trainings, campaigns & workshops
• Using kiosks, recyclers, and other mobile devices at branches and salesforce
• Digital empowering of front-end staff with necessary tools and training to solve customer queries
Apart from the above, bank continues to focus on the following strategies
• Quality of the portfolio will be maintained, even if there are small pockets of weakness that is expected to flow through the Balance Sheet over time contractually.
• Growth in Low risk / high quality assets
• Portfolio realignment - higher rated corporate, lower tenures etc.
• Gold loans growth
• Reduction in high "experienced" risk books
• Revenue diversification with controlled growth of Credit Cards and Retail Personal Loans
• Enhanced control environment
• Centralisation of Risk Acceptance
• Creation of business verticals for specialized origination / maintenance
• Substantial influx of high-quality talent to bolster overall in-house talent pool
• Hired professionals in Credit Policy / Acceptance, Data Science, Risk, Business and other areas since 2020
• Investment initiated in high quality tools to enhance business capabilities
• Invested in LOS systems for Retail and MSME
• Enhancing institutional capabilities in various dimensions - Data Science / Risk Measurement and Containment / Underwriting / Technology
Going forward, Banks five Areas of Focus will be as follows:
1. Enhancing Portfolio Resilience
2. Improving Branch Productivity
3. Cost Optimisation
4. Growing Non-branch Distribution & Leveraging
Partnerships
5. Enhancing Control / Compliance Architecture
1. Enhancing Portfolio Resilience
a. Granularising the portfolio
i. Building Frictionless processes
a. Modifying existing LOS systems to create swim-lanes for targeted segments
b. Building high-quality score-cards to facilitate risk acceptance
c. Modifying policies to reduce wax and improving customer centricity
ii. Making processes front facing
a. Empowering the Branch to meet customer needs (and thereby building differentiation)
b. Ensuring quality through the system
iii. Claim our rightful share of Retail business
a. Home / Mortgage / Auto and Personal are subscale
i. Buildout in a controlled manner while focusing on profitability
iv. Renew Growth of MSME business
a. Tap MSME across its life cycle / product lines
2. Improving Branch Productivity
a. Improving "Tooth to Tail" ratio
i. From 75:25 to 85:15 over time
b. Launched Sales Value Addition metric to track sales activities at Branch level named SIB MAX.
c. Enhancing Branch Morale and Increasing Sales
Focus
i. Launched sales rewards from January 1, 2024
ii. Plan is based on Sales Value Addition and i product agnostic - i.e. customer focused - to enable branch to provide the products and services desired by the customer
a. Plan rewards branches if their Sales Value Addition is above preset thresholds so as to foster recovery of branch costs through incremental sales
b. Since the scheme is product agnostic it reduces risk of mis-selling
d. Enhance Branch Capabilities
i. Training branches on products and processes and customer relationship management
3. Cost Optimisation
a. SIB has higher cost : income relative to its peers
i. Lower NIM - Large concentration of lower yield, short duration, high quality assets leading to NIM compression
ii. Higher staffing count
a. Substantial proportion of staff in noncustomer facing roles (control / risk / credit / operations)
b. Working on a plan to reduce Cost to Income Ratio
c. Immediate / Near term action steps:
i. Hiring reduction
ii. Branch review based on Sales Value Added & Service Intensity
a. Branches with Low Sales Value Added and Low Service Intensity to be reviewed
iii. Review other expense heads judiciously excising cost
4. Growing Non-Branch Distribution & Leveraging Partnerships
a. Branch is the main source of business for the bank
i. Building non-branch distribution is critical. This is to be achieved in two ways:
a. Creating Non-branch architecture - leveraging traditional non-branch sources
b. Building Partnerships
b. Head of Partnerships appointed
c. Our banking platforms are API enabled allowing us to integrate with third-parties
i. Integrations at scale already operational visa-vis Credit Cards
ii. Other relationships under development
5. Enhancing Control / Compliance Architecture
a. Develop a matrix for Compliance Risk Assessment with suitable risk scoring and risk categorization.
b. Leveraging technology to automate compliance and risk management processes
c. Conduct business line risk assessments for more business lines/products.
d. Implementing continuous monitoring and review processes.
DIGITAL AND INFORMATION TECHNOLOGY ENABLED SERVICES
This fiscal year, like previous years, has borne witness to South Indian Banks unwavering commitment to digital advancement. The focus on technology underscores our dedication to innovation, continuous enhancement, and the strategic implementation of digital initiatives aligned with our business goals. The initiatives span across multiple channels including ATM, Internet Banking, Mobile Banking, UPI, Customer On-boarding, Loan Underwriting etc. with particular emphasis on emerging technologies.
Tech Driven CX transformation
Banks relentless focus on enhancing customer experiences has led us to develop intuitive and seamless digital platforms that cater to our diverse user base, encompassing digitally savvy millennials & longstanding legacy customers.
Strategic Alliances and Open Banking
In line with its vision to transform into a digitally driven and future-ready institution, South Indian Bank introduced the Strategic Alliance and Digital Business Department - a pivotal initiative aimed at driving alternate channels of business growth and deepening the banks digital footprint. This department has emerged as the nerve center for innovative collaborations, digital product rollouts, and curated content strategies that position South Indian Bank at the forefront of future embedded banking journeys.
The integration journey is streamlined with API (Application Programming Interface)-first strategy which predominantly concentrates on delivering open APIs to partners in a time effective manner. Currently, about 600 APIs have been developed and published on our developer platform, which can be accessed over the internet to utilize the sandbox environment and test solutions effectively.
Strategic Pillars and Major Initiatives
The Digital strategy of the Bank is instituted on four pillars,(1) Indulge (customer self-service), (2) Nudge (assistance to be nudged to go digital), (3) Purge (remove redundant processes using automation) and (4) Forge (impactful Fintech partnerships).
Technology strategy focuses on leveraging cloud adoption, high availability, fraud detection, cyber
security, and modernisation of infrastructure to stay competitive and provide better services to the customers.
This year, we have made significant strides under Banks strategic pillars:
Indulge: Enhancing self-service capability across channels
• Quick FD - We have introduced a very simple, intuitive and user-friendly web-flow for NTB customers to open fixed deposits digitally even for small amounts, without mandatory requirement of operative account. This was well accepted by the new generation of young customers.
• UPI merchant integration kit - This solution has been designed with collection solutions of dynamic QR, intent and collect, allowing effortless integration. Merchants can now choose to receive their UPI credits as a consolidated bulk credit on the next day for smoother business operations and reconciliation.
• UPI Circle-allowing SIB customers to securely delegate trusted secondary users for making payments from their accounts, UPI Lite-facilitating faster small ticket spends and UPI Lite Auto Top-Up are few other notable payment features enabled by the Bank.
• The mobile banking and internet banking platforms have been further enhanced with a host of new features like facility to view/recharge NCMC wallet, digitally update the nominee in your account, opt to buy PMJJBY/PMSBY/other third party insurances etc.
• Our software team, rolled out a fully in-house developed, zero-paper, Digital Vehicle Loan Origination System-SIB Power Drive, which allows customers to begin their vehicle loan journey from dealer points, DSA/DST locations with quicker processing, or through traditional route of branches. Another in-house LOS, Quick PL, rolled out for Personal Loan on-boarding has also gone Live, strengthening our digital lending capabilities and reducing turnaround time. We are using digital marketing to drive business through these new age platforms.
• The trade finance portal—SIB TF Online, developed for our corporate customers to initiate import payments through Internet Banking platform, was enhanced last year with improvements and continues to undergo further expansion in the upcoming years.
• We have enabled the option to convert debit card purchases into EMIs. Along with that, "Swipe to Pay" feature, a secure alternative to OTP for
authenticating online debit card transactions, is also implemented, offering added convenience.
• SIB Video KYC-remote customer on-boarding platform has been enhanced to allow customer profile updates and minor to major conversion of account category.
Nudge: Empowering branches with technology
solutions to nudge the customers to go digital
• Introduced Aadhaar based face authentication and enabled digital re-activation of dormant accounts through SIB SWIFTe, branch assisted onboarding platform, enhancing customer convenience and engagement.
• An Authenticated Customer Engagement(ACE) Hub facilitating secured authentication from customers for requests generated from branches, has been implemented. Currently, we have rolled out this module with deposit opening and closure options, which will be extended to customer modification and other generic requests in a phased manner. This gives a blended option between physical and digital as a way to engage with our customers and source business.
Forge: Driving Business Through Strategic Partnerships
At the heart of the Strategic Alliance and Digital Business Departments strategy lies a robust ecosystem of partnerships with leading Fintechs and NBFCs, unlocking new avenues for customer acquisition, digital engagement, and revenue generation.
Among key fintech collaborations:
• Upswing Financial Technologies: Facilitating digital deposit sourcing through multiple partner platforms, helping expand the banks liabilities base in a seamless, tech-enabled manner.
• Dhanlap: Powering the banks digital Loan Against Mutual Funds (LAMF) offering, enabling customers to access liquidity against their mutual fund investments via a fully digital process.
• Digital Referral Agents (DRAs) to generate qualified lead referrals across multiple product verticals, ensuring scalable and targeted customer reach.
Further, partnerships are being actively pursued in areas like Equated Daily Installment Loans, Loan Against Insurance, and Premium Financing, with several fintech tie-ups already in advanced stages. These partnerships are not only accelerating business growth but also helping the Bank to build a robust digital distribution framework.
Innovating in Co-Lending: Bridging Reach and Risk
In the co-lending space, South Indian Bank has made significant strides through partnerships with reputed NBFCs. The co-lending model allows the bank to efficiently serve a broader customer base by leveraging the agility of fintechs and NBFCs, while also maintaining risk discipline.
Key collaborations include:
• IIFL Finance, Rupeek, and Fedfina: Co-lending for Gold Loans, enabling rapid and secure disbursal at scale.
• Amazon Pay Later, in association with Axio: Offering checkout finance solutions to Amazon customers, expanding the banks presence in the embedded finance space.
Several more tie-ups are in the pipeline, spanning personal loans, MSME financing, and retail mortgages, with the aim of building a balanced, tech-led lending portfolio.
In-House Digital Product Innovation
Complementing external partnerships, the department is also focused on launching proprietary digital products under the "Quick" suite, targeting seamless customer journeys with minimal friction:
o Quick FD: Enabling digital fixed deposit creation in minutes.
o Quick PL: Facilitating instant digital personal loan disbursement with minimal documentation.
More such in-house innovations are under development, reflecting the banks commitment to becoming a "digital-first" bank while maintaining the core values of trust and service excellence.
Vision Ahead: "Bank Inside a Bank" Model
With an agile and innovation-driven mind-set, the Strategic Alliance and Digital Business Department aims to operate as a "Digital Bank Inside a Bank", focusing solely on alternative business sourcing, digital engagement, and ecosystem partnerships. It aspires to evolve South Indian Bank into a digital powerhouse that delivers contextual, convenient, and customer-centric solutions across platforms.
As the department continues to expand its network of partnerships, launch new digital offerings, and deepen customer engagement through data and technology, it is well-positioned to script the next phase of South Indian Banks digital journey—marked by scale, sustainability, and speed.
Purge: Automating manual processes at branches and back-offices to improve customer TAT using AI and RPA
• We have already automated more than 285 processes through Robotic Process Automation (RPA) and are prepared to continue the automation endeavour in the upcoming years as well.
• Simplified the IVR structure for quicker and easier customer access.
• We have introduced data-models, in CRM which employs AI/ML and NLP technologies to enhance banking workflows by providing data driven insights and personalized recommendations. This AI backed system empowers SIB-Relationship Managers with next-best-action advice to enable proactive retention strategies.
• Control mechanisms have been implemented to proactively detect and eliminate money mule activities.
Payment Systems
We already offer robust and diverse payment modes through Mirror+, Net Banking, NACH, Debit Cards, Credit Cards, IMPS, UPI, AEPS etc. On the acquiring side we have PGs, UPI-POS, Bharat QR etc. ensuring seamless payments aligned with high industry standards. The share of digital transaction of the Bank has grown to more than 98 per cent in the Financial Year 2024-25. We expect a considerable increase in digital transactions, further driven by this years newly introduced features, along with the upcoming UPI enhancements in pipeline and introduction of digital currency.
Cyber Security
Banks focus on cyber security has been paramount. A strong cyber security setup is essential to protect customer data, ensure regulatory compliance and maintain trust. Effective cyber security ensures operational resilience and builds trust in the financial ecosystem. We have implemented robust fraud detection systems and enhanced Banks cyber defense mechanisms, ensuring the highest level of security for customers data and transactions.
As part of mitigation, we continue to deploy advance cybersecurity technologies such as firewalls, intrusion detections and prevention systems to fortify network and systems. We also focus to invest in staff training to enhance awareness of cyber threats and promote the adoption of best practices.
IT Departments including Data Centre, DR site & BCP site and CISO Office are ISO 27001:2022 certified for the implementation of Information Security Management System (ISMS). The Bank has a full time CISO Office for surveillance of the security architecture/ infrastructure and for coordinating security incident-response activities. We have also ensured that Security Operation Centre (SOC) does 24X7 surveillance and keeps itself regularly updated on the latest nature of cyber threats. We are using several monitoring tools for identifying, monitoring, detecting, preventing, recording and analyzing security events or incidents within the realtime IT environment.
In conclusion, South Indian Bank stands at the forefront of digital innovation, poised to redefine the future of banking.
Digital Marketing and Thought Leadership
Recognizing the need to engage todays digital-savvy customers, we have rolled out innovative content and digital marketing initiatives:
• Launched two curated channels (fincredibles) for financial literacy and awareness—one in Malayalam and the other in English, catering to diverse demographics.
• Started the SIB Blogs, a platform for in-depth financial content aimed at a serious, informed audience.
These initiatives are building a strong brand presence online and positioning South Indian Bank as a thought leader in the digital financial literacy and education space.
BANKS DIGITAL BANKING PRODUCT OFFERING Retail Customers
The Bank offers best-in-class technology services to meet the diverse requirements of retail clientele. The technology stack includes well designed customer touch points and robust back end systems providing 24x7 digital availability of the highest quality to the customers, which inter-alia, include the following:
• Robust Internet Banking platform - SIBerNet.
• Customer Centric and secure Mobile Banking platform - SIB Mirror +.
• Variants of VISA, Mastercard & RuPay Debit Cards.
• RuPay Prepaid Cards.
• Student Smart Cards for Institutions- used for Identity cum financial transactions.
• ATM, Cash Recyclers (CRM) with Interoperable Cash Deposit (ICD) and Call Centre Solution catering to customers 24x7.
• ATM network spread across the country, which supports Mastercard, VISA and RuPay cards allowing customers quick access to money.
• Missed call services for retrieving balance through SMS.
• Online investment in primary and secondary markets offered to customers through ASBA and e-trade modes.
• Convenient and secure Whatsapp Banking.
• Portfolio Investment Scheme for NRIs, allowing them to invest in Indian equity market.
• Remittance Platform powered by IMPS, UPI, NEFT, RTGS modes.
• FASTag for toll fee payment.
• Kiosk based Financial Inclusion Solution to enable the Bank to reach nook and corner of the country, even in remote villages using technology enabled tools.
• Payment Options such as Automated Clearing House (NACH) Payment Service, Cheque Truncation System (CTS), RTGS/ NEFT, etc.
• Account Opening for NRI directly through Banks website.
• Artificial Intelligence based banking services such as SAM and SONA (Chatbot).
• Central Plan Scheme Monitoring System (CPSMS), which links to the DBT (Direct Benefit Transfer) for instant receipt of Government subsidies to the beneficiaries of various Govt. schemes.
• SIB SWIFTe mobile App based instant account opening for individual Savings Accounts and Current Accounts
• Quick FD for digital deposit opening for NTB customers
• Authenticated Customer Engagement- Customer module on SIB Mirror+ to quickly approve service requests initiated at branches
• Pre-Approved Personal Loan /Car Loan through Channels.
• Instant Demat account opening through SIBerNet.
• Video KYC solution for on-boarding customers digitally.
• IPO/ASBA through SIBerNet.
• Fully digital Electronic Bank Guarantee through NeSL platform.
• Lead Management/Compliant Management through CRM Software.
• Pre-Approved Personal Loan through OneScore App.
• Quick PL to extend digital Personal Loan to NTB customers
• Digital transformation of Retail & MSME LOS with STP covering GST Power, LAP Power, Composite Power, Micro Power and Power Drive (VLOS)
Corporate Customers
• The Bank has Internet Banking facility which provides all the workflow capabilities required for each corporate to facilitate fund payouts and view/ manage accounts 24x7.
• The Bank also offers Host to Host Integration facility ("Hi-Hi Banking") which will handle fund transfer in a seamless fashion by real time interface with ERP solutions of corporates. This facility is available for 365 X 24 X 7 and the clients can securely access the system from anywhere.
• Supply Chain Management Solution caters to the dealer/ vendor financing requirement of corporates.
• SIB PAYGATE provides the platform for the business entity to accept online payment through UPI, all Major Debit Card and Credit Cards, Internet Banking against the services provided Online.
• The Bank is offering business debit cards to the business customers.
• SIB FeeBook is an online event-based fund management/collection portal which enables organisations to create a payment portal as per their needs.
• On the business acquiring capabilities, the Bank has full suite of payment acquiring including POS terminals, Bharat QR, UPI QR, Payment Gateway etc. which gives the merchants a whole host of accepting payments instantly from their customers.
• Integration through APIs for full-fledged automation done with several corporate and Government agencies.
• Trade Finance Portal for Customers.
• VAN based NEFT/RTGS collection API.
• Complete end to end NACH integration through API model for mandate creation, transaction processing etc.
Technology Infrastructure
• Core Banking Solution (CBS) Finacle 10. from Infosys.
• Enhanced Security Operation Centre.
• ISO 9001:2015 and ISO 27001:2022 Certified Bank owned Data Centre (DC).
• PCI DSS certified Secure Card ecosystem.
• ISO 27001:2022 Certified Disaster Recovery and BCP Setup.
• Zero Data Loss high availability setup with DC, DR and Near line DC Setup.
• Cyber resilience solution for data security and backup protection
• Automation of payments.
• Process Automation using RPA.
• Full Fledged API banking system capable of quick integration with partners
• Fraud Risk Management (FRM) Solutions for CBS and channel transactions.
• CRM solution providing 360-degree view of customers.
• Business Process Management (BPM) to enable centralisation.
• Multiple Loan Origination Systems(LOS) including in-house solution for seamless on-boarding of Loans.
• Technology backed Infrastructure powering Banks branches and ATMs.
• Enterprise Risk Management Solution.
Awards and Certifications Received on Technology Front
The Bank has won various awards and accolades in the FY 2024-25 also. These awards are a testimony to the Banks strategy, commitment and execution of various digital/IT initiatives and have brought in acclaim from both customers and stakeholders.
| Infosys Finacle Innovation Awards 2024 | Winner- Business Model Innovation |
| Winner- Corporate Banking Innovation | |
| Winner-Ecosystem Led Innovation | |
| Winner-Maximizing customer engagement | |
| Banking Frontier Finnoviti Awards 2024 | Winner - SME LOS |
| ETBFSI Exceller Awards 2024 | Winner-Best Innovation in Digital Lending-Banks- Power Drive(VLOS) |
| Navabharat BFSI Conclave and Awards 2025 | Excellence in Digital Banking |
| IBEX India 2025 BFSI Technology Awards | Winner- Excellence in Operational Efficiencies (SWIFTe) Special Mention- Enhanced Customer Service experience (CRM AI) |
| 20th IBA Technology Awards | Best Tech talent and organization- Winner |
| Best Financial Inclusion- Runner Up | |
| Best digital sales, payments and engagement- Special Mention | |
| Best IT Risk Management- Special Mention | |
| Best FinTech and DPI adoption- Special Mention | |
| ETNow-Times Group | ET Now Top 100 BFSI Tech Leader 2025- Mr. Sony A |
| CIO Axis | Innovative CIO-10th Innovative CIO Awards 2025- Mr. Sony A |
IT Training
During the year, many training events had been arranged for the Banks officers in premier institutions to keep themselves abreast with the advancements in Infrastructure Technologies, Cyber Security, Security in Cloud Computing, Mobile App Security, FinTech, etc. The Bank has also tied-up with leading online technology training platforms to offer all year-free technology training and certification programmes for its technology team. Also, staff are encouraged to pursue training and certification in their respective domains. The Bank has also integrated training and certification as a key component of employee key performance indicators.
Business Continuity Planning
The Bank maintains a comprehensive Business Continuity Plan (BCP) and Disaster Recovery (DR) setup, certified with ISO/IEC 27001:2022. Banks BCP locations include Bangalore and Delhi, where regular drills ensure preparedness for any emergencies. Equipped with robust infrastructure and trained personnel, we are ready to quickly respond and resume critical services from Banks DR locations.
In anticipation of various scenarios like pandemics, natural disasters, and accessibility issues, the Bank has implemented measures including secure Work From Home (WFH) options for critical personnel and online meeting facilities, ensuring uninterrupted customer services. Zero data loss replication methods are in place for critical workloads, enhancing Banks disaster recovery capabilities.
Banks BCP operations proved effective during the pandemic and forecasted flood alerts, with seamless transitions to DR without impacting customer services. The Bank has also strengthened cyber recovery and ransomware protection measures, ensuring systems operate at full capacity without disruption. Banks BCP policy is regularly reviewed and updated to align with industry standards, with oversight from the IT BCP Committee, Information Security Committee (ISC), and the Board.
NEW PRODUCTS
During FY 2024-25, the Bank had introduced new loan products to provide focused thrust on advances to Housing, Gold Loan, MSME and Agricultural Sectors. The Bank has introduced new products like SIB Ashirwad (affordable housing loan), gold loan products like Gold Max Lite (Retail), Gold Max LT (Agri. Allied & Non Crop), Gold Max LT (Retail) and Gold Max LT Lite (Retail), business loans like SIB Captive Plus, SIB GST Power, SIB Uday, ESG products to promote MSE sector like MSE SPICE (Scheme for Promotion and Investment in Circular Economy) & MSE GIFT (Green Investment Financing for Transformation) and Farm Gate Processors for agricultural sector. Also, new colending arrangement for online checkout finance was introduced.
To bring more transparency, control and to reduce the Turnaround time (TAT) in processing the loan applications, Bank had introduced Straight Through Process (STP) modules for various loans like Loan against property, business loans, mudra loans, car loans etc. and in the coming year, Bank is planning to introduce STP modules in other products and to enhance asset portfolio, the Bank plans to implement new co-lending arrangements with Fintech partners.
Further, during FY 2024-25, Bank introduced segment- specific offerings, including SIB Start Up -a unique Current Account offering for newly started business ventures ,SIB SAGA-a tailored proposition for the NRI salaried class and SIB Q-End-a deposit product with interest pay-out option at Financial Year Quarter Ends."
INFORMATION SECURITY AND RISK MANAGEMENT
As banks adopt sophisticated technology to roll-out the most effective banking solutions to customers, they are increasingly exposed to technology risks. It is therefore imperative for each Bank to work out appropriate IT risk management strategies to secure its most vital information assets and to ensure that related Information Security, risk management systems and processes are strengthened and made secure for smooth, continuous banking and customer operations.
• IT Departments including Data Centre, DR Site & BCP site and CISO Office are ISO 27001:2022 certified for the implementation of Information Security Management System (ISMS). As a part of ISMS implementation, the Bank has prepared IS Security Policy and related IT risk management procedures.
• The Bank also ensures that all cyber security requirements as per statutory/regulatory guidelines and best industrial practices are implemented on priority basis.
• The Bank has a full time CISO Office for surveillance of the security architecture/ infrastructure and for coordinating security incident-response activities. The Bank has formulated Cyber Security Policy and Cyber Crisis Management Plan to provide guidance in addressing various cyber threat scenarios. The Bank has also identified various types of IT risks and the required preventive, detective and corrective cyber security controls are implemented/updated.
• The Bank has also ensured that Security Operation Centre (SOC) does 24x7 surveillance and keeps itself regularly updated on the latest nature of cyber threats. The Bank is using several monitoring tools for identifying, monitoring, detecting, preventing, recording and analysing security events or incidents within the real-time IT environment.
• The Bank has put in place a number of security solutions to manage cyber-attacks. The Bank has implemented multiple advanced security solutions to protect IT infrastructure, employees, customers, partners etc. from malware, advanced persistent threats, denial of service type of attacks and variety of other threats and malicious attacks.
• The employees are updated with the latest security threats and the best security practices. In order to
ensure continuous awareness on best cyber security practices and cyber security risks, a dedicated internal web portal to disseminate relevant security information has been set up and it is accessible to all the employees. Courses on information security are being launched through iLearn portal. Employees are provided opportunity to attend internal training sessions and external courses to increase their knowledge on various cyber security topics.
• The Bank provides cyber security awareness to its customers on a continuous basis through various channels like SMS/Email/Website/Social media, etc.
• The Bank is also committed to Data Privacy of customers, employees, stakeholders, etc. and is undertaking initiatives to further enhance and improve its Data Privacy posture.
Measures for the effective implementation of Cyber Security Framework and management philosophy
Effective measures have been taken to address the gaps, if any, identified, in each area such as IT Governance, Information Security, IT Service outsourcing, IS Audit, IT Operations, Cyber Frauds, Business Continuity Plan (BCP), Customer Education and Legal issues. Information Security policy is periodically revamped incorporating various guidelines and stipulations mentioned in regulatory framework/guidelines/other best practices. In addition, other relevant IT Policies such as IT Operations Policy, IT Governance Policy etc. are also enforced.
Various management level and Board level committees are in place to oversee the related activities. Cyber security preparedness of the Bank is reviewed by Information Security Committee, IT Strategy Committee of the Board and Board of Directors on a quarterly basis.
BANKING OPERATIONS GROUP (BOG)
The Banking Operations Group (BOG) has been set up to centralize and to streamline various operations which were happening at branches/sales/product, making them free from those operational activities. This helps to empower the sales teams/branches to focus and garner more business, improving the top line as well as bottom line of the Bank.
Asset and Liability operations of BOG has been awarded with the iSo 9001:2015 Quality Management Certification.
BOG operates with a well-organized business continuity plan including operation teams working at Coimbatore, Chennai and Ernakulam with facilities to continue operations even if the operations at one centre is disrupted.
BOG operations are of hybrid in nature - in house and outsourced.
Outsourced personnel are predominantly employed from Banks wholly-owned subsidiary M/s. SIB Operations and Services Limited.
BOG covers the following functional operations in a centralized environment with a view to bring standardization of processes and procedures, scalability in line with business expansion, compliance with regulatory and statutory requirements, enforcement of internal controls, besides expeditious service to the customers.
A. Asset Operations
Banking Operations Group (BOG) - Asset Operations covers the following functional operations which centrally carried out and managed:
1. Loan document preparation and verification of executed documents.
2. Loan Opening and Disbursement of Retail Loans.
3. Capturing Collateral details and facilitate CERSAI registration in all the applicable cases.
4. Central Subsidy Schemes - Education, MSME, Export.
5. OTS (One Time Settlement) Validation and Vetting.
B. Liability Operations
Liability Operations include relationship and servicing, covering the following:
1. Retail & Corporate Account Opening
2. NR Account Opening & Servicing
3. CIF ID creation
4. Account /Customer Modifications
5. Re-KYC/Periodic KYC Updation
6. Central KYC Records Registry (CKYCRR)
7. Digital Account Opening (Diya, SIB SWIFTe and Video KYC)
8. Account/Customer Modifications via Digital Channels (SIB SWIFTe/Video KYC/SIB Mirror Plus/Sibernet/Website)
9. Post facto verification of co-lending arrangements.
10. Account Maintenance
• Joint Holder - Addition/Deletion
• Nominee - Addition/Deletion
• Updation of Mode of Operation
C. Reconciliation and Digital Channel Support Operations
Reconciliation operations covers the following areas:
1. Dispute management and reconciliation process of:
i. Debit Cards (NFS,MASTERCARD/MAESTRO, VISA, RUPAY)
ii. RUPAY PREPAID CARDS
iii. ONECARD Credit Card
iv. NFS,IMPS,UPI, ONUS POS, AEPS, BBPS, ICD, NETC Fastag ,Payment Aggregators,
v. Reconciliation of payments / receipts received through Fintech Tie Ups
2. Managing customer complaints pertaining to unauthorized Electronic Transactions and ATM cash shortage
D. Retail Product Support Services
Retail Product Support Services covers the operations related to,
1. PFMS/WPS
2. Direct Debit
3. NPS/NPS Lite/APY
4. Internet Banking/Hi-Hi Banking/Mirror Corporate
5. Debit Card
6. POS/UPI POS
7. Travel Card
8. Payment Gateway/SIB Fee /E Academia /Fee Book
9. DEMAT
E. Payment & Settlement Operations
Payment & settlement operations covers:
1. RTGS/NEFT
2. CTS Operations
3. NACH Operations
F. Trade Finance Central Processing Centre (TFCPC)
TFCPC undertakes the Trade Finance Operations of the Bank centrally. During the FY 2024-25, the Bank centralized the Domestic Non LC Bills Purchase activities and ECGC Premium collection and Payment at TFCPC which ensures better control and compliance. The following operational activities are centralized at TFCPC:
1. Inward and Outward Remittances.
2. Export Bill Operations and Post Shipment Finance.
3. Import Bill Operations.
4. SWIFT Operations.
5. Issuance of LC and BG (Foreign and Domestic).
6. Other Forex Operations (Foreign Cheques, Vostro, Money Transfer Services, FCNR Deposits etc.).
7. Supply Chain Finance.
8. Domestic Non LC Bill operations.
9. ECGC Premium collection and Payment
G. Branch Operations Vertical (BOV)
Branch Operation Vertical (BOV) was conceptualized and established under Banking Operations Group (BOG) for the purpose of monitoring the branch operations to mitigate the inherent risks embedded in branch operations. The structure includes a central team at Head Office with extended hands in Regional Offices (Regional Operations Managers) and Branches (Branch Operations Managers and Customer Service Officers-Operations)
The vertical facilitates compliant operations by providing SOP on various branch activities, automated process flows, follow up and implementation of statutory directions and effective monitoring and audit, thereby facilitating business growth with compliance to regulatory/legal norms.
Key Objectives:
a. Enabling compliant branch activities by laying down easy processes and readily available reference data
b. Monitoring the day-to-day operations
c. Auditing and rectification of deficiencies
d. Timely reporting to stakeholders
e. Expenses and pay-out management
f. Cash Management of the Branches and Currency Chests.
Projects and Initiatives:
a. Rolling out of fresh SOP and setting up of annual review process.
b. Launching Document Management Solution (DMS) to enables branches to scan the day book slips on daily basis. Scrutiny of sample of the scanned documents is being done at Regional Office level.
c. Setting up of automated audit and monitoring mechanism.
d. Training staff on compliant operations.
e. Introducing outsourced staff for regular works to bring down salary expenses.
f. A Mega Currency Chest was opened at Kakkanad, Ernakulam recently.
Way Forward:
BOG proposes to commence/expand the following operational activities during the FY 2025-26 as part of the vision of the Bank.
1. SWIFT ISO 20022 migration
2. BG Closure centralization
3. Partial centralization of UBD/DBD
4. Centralization of Packing Credit operations
5. Online application of BG through Internet Banking
6. Charge module creation for domestic non fund based facilities
7. Outsourcing of Reconciliation and dispute management process.
8. Automation and enhancing the scope for outsourcing of the routine operational activities in order to reduce the cost of operations
9. Enabling Proprietorship Account Opening through SWIFTe and VCIP/Video KYC
10. Enhancing and Building a strong work force for operations (BOV)
11. Introducing automated processes, digital registers etc to ensure smooth and fast processes (BOV)
COMPLIANCE DEPARTMENT
The Bank has institutionalized a strong compliance culture and mechanism across the organization, in pursuit of its strategic goals of transparency and trust, among all its stakeholders. The Bank has a dedicated independent Compliance Department headed by a Senior General Manager which operates as per a well- documented compliance policy for ensuring regulatory compliance, across all businesses and operations. The key functions of the department include tracking of regulatory updates affecting various functions of the Bank, dissemination of regulatory updates to functional units, monitoring of timely implementation of regulatory instructions, review of processes from a regulatory compliance perspective, providing guidance on compliance-related matters, vetting of Banks policies and internal guidelines, imparting training
to employees on compliance aspects among others. Compliance Department acts as the nodal office to handle regular communication between bank and RBI and also takes care of the activities associated with the Risk Based Supervision process of RBI. The Bank has a well-defined and structured mechanism to assess the compliance risk and monitor its mitigation measures, thereby ensuring the effectiveness of the compliance function in managing the compliance risk. Compliance officials have been designated in all business units and departments for monitoring and mitigation of compliance risk. All the circulars of the Bank are made available in electronic form. Banks policies, guidelines and forms are also uploaded in software platform so as to empower the branches with readily accessible pool of information/ guidelines.
DATA SCIENCE DEPARTMENT
The Bank has a full-fledged Data Science Department, with the primary objective of accelerating and improving decision making with valuable insights, optimising internal business processes, enhancing operational efficiencies, driving new revenues and gaining competitive advantage over business rivals and thereby achieving the pre-determined corporate goals in an engineered manner. Towards achieving this a single centralized data repository is created after collating data from various internal systems and from a few external sources. This database serves as the single source of truth and is consumed for data analytics and all reporting activities including regulatory reporting.
On the data analytics, the department built and implemented several Descriptive analytical models for providing valuable insights to the top management and operations staff. The Bank has also deployed several Predictive analytical models for identifying the right customers to extend various asset products like Digital Pre-Approved Personal loan, Digital EMI loans, Cash forecasting, Targeted marketing through system assisted campaigns, etc. We have also partnered with external agencies to build application score cards for enabling quicker sanctions of assets. On the technology front we predominantly use IBM stack of tools for data analytics and reporting in addition to the leading open source tools.
The Data Science department handles all reporting activities, the daily operational reports are created and provided through the respective applications softwares. MIS and Business intelligent reports are provided through BI tools using the Centralized Data Repository. For Regulatory reporting, an in-house regulatory reporting solution is built as per the specifications of the Reserve Bank of India and regulatory reports are submitted to RBI systems online.
BUSINESS PROCESS GROUP
The Business Process Group (BPG) was established with the objective of fostering a frictionless and efficient business environment, with a sharp focus on enhancing operational effectiveness. Operational since 6th November 2023, BPGs initial thrust has been on the Asset Business vertical, with special attention given to the Retail and MSME segments. These segments were prioritized for designing streamlined workflows to enable seamless user experience and improve operational efficiency.
The Key Achievements of BPG includes successfully developing 5 distinct workflows within the existing Loan Origination System (LOS), 3 proprietary LOS platforms, built in collaboration with the Digital and Technology Department and development of 5 renewal workflows for recurring credit needs.
All these systems are built upon the concept of Straight Through Process with automation and score card based underwriting, followed by a scrutiny of whole actions at credit end prior to disbursement. The summary is tabulated as follows.
Going forward BPG remains committed to further simplification and optimization of processes and procedures. The aim is to ensure better utilization of infrastructure and resources, thereby reducing operational costs.
RISK MANAGEMENT
The Bank has an Integrated Risk Management Department (IRMD), independent of business functions, covering Credit Risk, Market Risk, Assets-Liabilities Management (ALM) Operational Risk Management and Cyber risk. IRMD as part of its role, identifies risks and uncertainties that are faced by the Bank, participates in risk mitigation at strategic, policy, and operational levels and works collaboratively with business teams to build consensus and ensure ownership of risk in the first line of defense.
The Bank has put in place independent risk management architecture and practices that are overseen by Risk Management Committee of the Board (RMCB). Appropriate policies to manage various types of risks are approved by the Board of Directors after review by Risk Management Committee of the Board (RMCB), which provides strategic guidance while reviewing portfolio behaviour. The Board of Directors appoints the CRO, who heads the independent risk function in the Bank. The senior level executive committees like Credit Risk Management Committee (CRMC), Market Risk Management Committee (MRMC), Operational Risk Management Committee (ORMC) and Asset Liability Management Committee (ALCO) develop the
risk management policies and vet the risk limits to ensure better control. The Risk function provides an independent and integrated assessment of risks across various business lines. Risk Management Department holds the ISO 9001:2015 certification, a testament to commitment to excellence in quality management.
With an objective to be socially and environmentally sustainable, the Bank has established an Environmental and Social Management System (ESMS) Policy which defines guiding principles for mitigating the Environmental & Social (E&S) risks arising out of Banks lending activities. This approach integrates Environmental & Social factors in addition to the various credit, operational & financial risk factors, while undertaking high value lending and investment decisions. The policy also prescribes an exclusion list consisting of activities prohibited for lending operations considering their negative impact on the environment and the society.
RISK APPETITE
Risk appetite of the Bank refers to the level of risk that the banking organisation is prepared to accept in pursuit of its financial and strategic objectives, before action is deemed necessary to reduce the risk. It is determined through the assessment of risk taking capabilities of the Bank in the form of sound risk mitigation techniques and capital base. Risk Appetite forms a key input to the business and capital planning process by linking business strategy to risk appetite. Risk appetite of the Bank is defined by the Board of Directors through the Risk Appetite Framework which encompasses the general risk appetite of the Bank as well as risk appetite with respect to specific categories of risks. Qualitative and quantitative measures, risk tolerances as well as targeted limits for various categories of risks are included within the risk appetite and are monitored on a quarterly basis. The framework ensures that aggregate risk exposure of the Bank is always within the desired risk bearing capacity. Further, constant monitoring of such limit is done by Risk Management Department to ensure that activity of the stakeholders is well within the Board approved limits.
RISK MANAGEMENT POLICY FRAMEWORK
The Bank has a comprehensive policy framework which contains separate policies for identification, measurement and management of all material risks including but not limited to credit, market, operational, liquidity and other Pillar-II risks. The Bank has put in place an integrated risk management policy which ensures independence of the risk governance structure. The required standard operating procedures also follows the Policies to ensure that all the parameters are well covered while implementing the approved polices.
RISK MANAGEMENT PRACTICES
It is imperative to have robust and effective risk management practices not only to manage risks inherent in the banking business but also the risks emanating from financial markets as a whole. The Bank has in place a robust risk management structure which proactively identifies the risks faced by the Bank and helps in mitigating the same, while maintaining proper trade-off between risk and return thereby maximising shareholder value.
a) Credit Risk Management:
Credit risk management policy defines credit risk as the possibility of losses associated with the diminution in the credit worthiness of the borrower or the counterparty or the failure on the part of the borrower to meet its obligations in accordance with the agreed terms. The Bank has a comprehensive credit risk management framework, which deals with identification, assessment, measurement and mitigation of credit risk. The Bank has devised twodimensional rating system and retail scoring system in line with RBIs guidelines. Further, the Banks Board has approved the methodology for estimation of risk components namely Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) for its Corporate and Retail exposures. The Credit risk of the Bank is overseen by RMCB at Board level and Credit Risk Management Committee (CRMC) at executive level. Of the strategic measures employed in managing credit risk, risk rating occupies a position of prominence, as it involves the rating of borrowers from a risk perspective for the purpose of credit decision, pricing and supervision. RMCB/ CRMC approves the launch/modification of new rating models/ scorecards, reviews exposures against prescribed ceilings, oversees the monitoring of size, rating distribution and concentration of credit exposures and timely amendments/review of Credit Risk Management Framework. Credit Risk Management cell, which functions under their guidance executes the directions of RMCB/ CRMC and it ensures that appropriate system level changes (including IT) are also implemented. For the purpose of credit risk assessment, the Banks exposure is broadly classified into retail and nonretail. All corporate loans are rated using dual rating models/specialised lending rating models and retail exposures are scored using scorecards. Ratings and scorings are performed in proprietary automated platforms which ensure integrity, objectivity and consistency of ratings. Further, rating/ scoring data is captured in core IT systems of the Bank to facilitate seamless reporting and timely validation of rating models/scorecards. The Bank has deployed
checks to ensure timely review of borrower ratings and capture of scoring information of all retail loans at granular level. Bank has eight non-default rating grades and one default rating grade. The customers are assessed based on their financial performance, industry characteristics, business positioning, project risks, operating performance and other non-financial parameters, such as quality of management and conduct of account. The Bank validates its rating models and scorecards on a periodic basis. Corporate/Retail loan applications sourced at different Business units are processed at Centralised Processing Centres/Credit Hubs.
The corporate loan proposals are independently reviewed by Risk Management Department during the risk rating process. Committee system of loan approvals have been implemented in the Bank for exposures that fall beyond the powers of individual functionaries. A well-defined approval matrix is in place for approving exceptions. Credit Mid Office Group (CMOG)/Banking Operations Group (BOG) ensures compliance of pre-disbursement conditions before issuing clearance certificate for non-retail loan account opening. Post disbursement, CMOG/ BOG will ensure compliance with critical post- disbursement/ special conditions specified in the sanction order and also track activities that happen at regular intervals like stock statement submission. The pricing system is suitably aligned to the cost of funds and to the perceived risk that a borrower poses. Appropriate credit underwriting and approval processes, risk mitigation, post-disbursement monitoring and timely remedial actions are part of the credit risk management. Segment-wise and borrower category-wise exposure limits are fixed and monitored by the Bank to address the risk of concentration. Rating migration studies and default rate analysis, based on the credit risk rating of the borrowers, are undertaken on a periodic basis to analyse the changes in credit risk profile of the borrowers and to provide input for policy and strategic decisions. The portfolio analysis of various products/industries, covering various credit quality indicators are being carried out on a periodic basis for identifying portfolio trends, and generating portfolio level MIS. PD Term structure and LGD estimates are used as inputs for ECL computation under Ind-AS, for proforma reporting purpose.
Market Intelligence Unit: A dedicated Market Intelligence Unit (MIU) attached to Risk Management Department comes out with detailed reports half-yearly on the outlook pertaining to different industry sectors. Early Warning System has been put in place to enable the Bank to take proactive
Annual Rennrt 2024-25
measures for addressing the possibility of credit quality deterioration of specific borrowers. MIU is actively involved in regular monitoring of the sector, economy, industries and large credit borrowers and any positive/negative movements are immediately brought to the notice of all the stakeholders. Gathering and dissemination of market information to facilitate efficient credit risk management and any other activities for improving the quality of credit profile as well as ensuring effective and prudent risk management. To bolster the risk management strategy, the MIU undertook event risk studies. These studies provided valuable insights into potential threats to take proactive actions like credit decisions and monitoring activities.
b) Market Risk Management:
The Bank has laid down comprehensive policies, framework and procedures to manage market risk in a holistic manner. The Investment Management Policy lays down broad guidelines to proactively manage market risk. The Board, supported by the Market Risk Management Committee (MRMC), frames the Market risk management policy, which details the methods to identify, measure, monitor and control market risks. The Bank has dedicated independent mid-offices for forex and domestic treasury at Treasury Department, reporting directly to the head of the Risk Management Department. The mid-offices closely monitor market risk inherent in treasury dealings. The market risk at an overall level is measured by applying techniques, such as VaR and Modified Duration. The stop loss levels for individual securities and limit framework for different categories of investments play a pivotal role in controlling market risk associated with different securities at micro level.
c) Operational Risk Management:
The Bank has developed and implemented an operational risk management framework that is fully integrated into the Banks overall risk management system. The Bank has put in place process, systems, and procedures to actively manage and mitigate operational risks and to optimize resources not only to protect the interests of the Bank but also to ensure a return commensurate with the risk profile adopted. Identification and assessment of risk, together with the assessment of control effectiveness, are key to the operational risk management process. The Bank has implemented risk management tools like Risk and Control Self-Assessment (RCSA) and Key Risk Indicator (KRI) frameworks to ensure continuous monitoring, evaluation, and trend analysis of various risk elements. All new products and processes are
reviewed and approved by the Risk Management Department, ensuring that all risks involved in new products and processes are clearly documented, and adequate procedures and controls are implemented well before the launch/implementation of the product/process. Further, an organizationwide awareness program on the importance of operational risk and timely and adequate reporting of incidents of any nature is also initiated. To ensure adequate and timely identification, measurement, monitoring, control, and mitigation of reputation risk posed by the business, a Board-approved reputation risk management policy is put in place. With a view to monitor reputation risk emanating from various forms of media, a Media monitoring mechanism is put in place to ensure timely and proactive identification and mitigation of risk. Risk drivers for reputation risk are identified and monitored on a quarterly basis. Quantification of reputation risk is accomplished through a Reputation risk scorecard and is undertaken on a quarterly basis along with the ICAAP process. Further, a reputation risk matrix is prepared to identify the magnitude and direction of various risk drivers. The Bank is also evaluating the criticality of outsourced activities based on the foreseen inherent risk and the risk score/level of the respective activity. The Operational Risk Management Committee is monitoring and reviewing the overall outsourcing risk management.
d) Liquidity Risk:
Liquidity risk refers to the risk that the Bank is unable to meet its obligations as and when they fall due. The Asset Liability Management Policy of the Bank stipulates broad framework for liquidity risk management to ensure that the Bank is in a position to manage its daily liquidity requirements and to withstand stress situations stemming from, Bank-specific factors, market-specific factors or a combination of both. Asset Liability Management Committee (ALCO) of the Bank, comprising of senior executives of the Bank oversees Asset Liability Management (ALM) functions within the framework prescribed under the ALM Policy and other relevant policies and guidelines. The core objective of the ALM policy adopted by ALCO is to ensure planned and profitable growth in business through appropriate management of the liquidity risk and interest rate risk. The ALCO is responsible for
(i) recommending pricing of deposits and advances,
(ii) preparing forecasts showing the effects of various possible changes in market conditions
(iii) recommending appropriate actions in anticipation of such forecasts,
(iv) deciding on the desired maturity profile and mix of assets and liabilities, and
(v) conducting funding, capital planning, profit planning and growth projection.
The liquidity profile of the Bank is analyzed on a static as well as on a dynamic basis by using the gap analysis technique supplemented by monitoring of key liquidity ratios and periodic liquidity stress tests. The Bank has put in place a liquidity risk management framework adhering to the guidelines issued by RBI on liquidity risk management and the best practices. These include the intraday liquidity management and monitoring of the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).
e) Information Security and Cyber Risk Management:
In order to provide guidelines for cyber security- related initiatives, a Board-approved Cyber Security policy is in place. Also, a Cyber Crisis Management Plan (CCMP) is in place to provide the requisite strategy, direction, and roadmap towards cyber threat mitigation. The Digital and Technology Department and CISO Office are ISO 27001:2022 certified for the implementation of Information Security Management System (ISMS). As a part of ISMS implementation, the Bank has prepared an IS Security Policy and related IT risk management procedures. Cyber security governance is a part of the Banks Information Security framework. In order to consider cyber security from the Bank-wide perspective, a steering committee of executives known as the Information Security Committee is formed with formal terms of reference. The Chief Information Security Officer (CISO) is the member secretary of the committee. The committee serves as an effective communication channel for managements cyber security aims and directions. The Committee also guides and monitors the development, facilitation, and implementation of Cyber Security Policies, standards and procedures to ensure that all identified risks are managed within the Banks risk appetite. Also, the Bank has a comprehensive Incident Management procedure that proactively addresses potential threats/risks arising out of cyber security incidents. The incident management procedure specifies the requirements for establishing, implementing, maintaining and continually improving the incident management process as applicable to IT in the Bank. Key Risk Indicators are used to track various security parameters and their progress/changes. Regular IS audits and VA/PT are carried out to assess the vulnerabilities, if any, in the IT systems. The Bank has a fully operational Security Operation Centre (SOC) and network & endpoint security devices to monitor any security incident and to take appropriate actions. The SOC is operational on a 24x7 basis. The
Bank is using several monitoring tools for identifying, monitoring, recording and analyzing security events or incidents within the real-time IT environment.
Employees are updated with the latest security threats and the best security practices. In order to ensure continuous awareness of best cybersecurity practices and cyber security risks, a dedicated internal web portal to disseminate relevant security information has been set up, and it is accessible to all employees.
The Bank provides cyber security awareness to its customers on a continuous basis through various channels like SMS, Email, Website, Social media, etc. The Bank is also committed to the data privacy of customers, employees, stakeholders, etc., and is undertaking initiatives to further enhance and improve its data privacy posture.
f) Business Continuity Plan:
The Bank has a comprehensive Business Continuity Plan (BCP) to ensure the continuity of critical business operations of the Bank identified through criticality assessment using Business Impact Analysis (BIA), at times of disruptions. In line with the Business Continuity Plan, the Bank has constituted a BCP Committee incorporating the heads of all major departments, to exercise, maintain, and invoke the business continuity plan as needed and to ensure that the business functions are back to normalcy with minimum delay. As a measure to enhance the Banks operational resilience and to effectively manage adverse situations, a Crisis Management Group (CMG) is instituted with objectives to ensure the safety of stakeholders and to ensure that critical business processes continue to function during the crisis, to the extent possible Disaster Recovery drill for the Core Banking System (CBS) and critical IT systems of the Bank are conducted at regular intervals to ensure the continuance of the same during emergency situations. The Bank undertakes periodical testing of the recovery speed of critical applications from alternate locations. The Bank has taken multiple steps, including enabling alternate locations, work from home facilities, etc., to ensure business continuity.
g) Climate Risk & Sustainable Finance:
Climate change presents a growing set of long-term challenges that can be broken down into two main categories:
• Physical Risk: Direct physical impacts of climate change ranging from acute risk (such as extreme weather events) to chronic risks (like gradual rise in sea level and temperatures).
• Transition Risk: Risks arising from external efforts to address climate change such as regulatory and policy changes, technological advancement or shifts in investor sentiment and consumer behavior.
As the frequency and intensity of climate events rise, the Bank faces potential disruptions to its infrastructure, employees and client performance. This translates to financial consequences, impacting both revenues streams and operational costs. Stricter environmental regulations and policy changes may impact operations / strategy of the Bank and/or its clients.
Sustainable finance desk in the Bank focuses on financial products and services that align with environmental and social considerations. They factor in environmental and social risks alongside traditional financial risks when evaluating high value loan applications or investments. This ensures Bank is supporting businesses that are not only financially sound but also environmentally and socially responsible.
Environmental and Social Management System (ESMS) Policy reflects the Banks commitment to integrating environmental and social considerations into the business practices and decision-making processes. The Bank employs a robust grading model to assess environmental and social risks, with particular emphasis on climate risk for high-value credit, in accordance with the thresholds prescribed by ESMS Policy.
Green Deposit and Green Finance: The Bank has committed to promote sustainable finance and environmental stewardship. One of the ways we demonstrate this commitment is through the green deposit program. Green deposits are a unique financial product that allows customers to align their savings with environmentally responsible initiatives. By depositing funds into green deposit accounts, customers can be assured that their money is being used to support projects and activities that have a positive impact on the environment.
INTERNAL CONTROL AND AUDIT/INSPECTION
Internal Control and their Adequacy
The Bank has put in place extensive internal controls and processes to mitigate operational risks, which includes maker checker authentication of CBS transactions, centralized processing of opening and modifications of CASA accounts and loan accounts, centralized sanctioning of loan facilities etc.
Various preventive controls viz., dual custody for cash, gold and other security items, maintenance of
daily control registers for security items, finger-scan- authentication for processing of transactions in CBS in addition to login passwords, stringent guidelines on password usage, STP processes between CBS and payment interface systems for transmission of messages etc. are in place.
The transactions generated in the CBS is monitored by the Fraud Risk Management(FRM) CBS by the way of alert generated in a near real time basis and the transactions happening through various digital channels are being monitored centrally on a 24x7 basis by Fraud Risk Management (FRM) Cell, for real time detection and prevention of frauds.
As per requirement of Companies Act, 2013, the Bank has formulated Internal Financial Controls Framework. Risk and Controls associated with each process in the Bank are documented under the Internal Financial Controls Framework. Inspection and Vigilance Department plays a significant role in testing the control effectiveness for each process under the framework.
The Internal Audit function provides independent assurance to the Board of Directors and Senior Management on the quality and effectiveness of the Banks internal control, risk management and governance systems and processes, thereby helping the Board and Senior Management to protect the Bank and its reputation.
Audit/Inspection
The Bank has an Inspection & Vigilance Department which is responsible for independently evaluating the adequacy and effectiveness of all internal controls, risk management systems, governance systems and processes. The Department is manned by appropriately qualified personnel to handle the Risk Based Internal Audit, Management Audits, Information Systems Audit and Special Audits including Investigations. All the internal audits are conducted based on the RBI direction in relation to conducting risk based internal audit and concurrent audit of branches and identified critical processes of the branches.
Head of Internal Audit & Vigilance is directly reporting to MD & CEO.
Internal inspectors conduct inspection at regular intervals and the inspection reports are placed to Audit Committee at Executive level (Sub Committee of Audit Committee of Executives (SACE)/Audit Committee of Executives - (ACE)) for review, which is overseen and controlled by Board Level committee (Audit Committee of Board - ACB).
All activities (including outsourced activities) of the Bank and the Subsidiary Company fall within the ambit of Internal Audit.
Audit of Branches
All the branches are subjected to Risk Based Internal Audit (RBIA). This audit is conducted at periodic intervals based on the risk perception. All the audits are conducted based on predefined check points and all the operational areas are covered under this audit. Credit audit/ Centralized Credit Audit (CCA) is also conducted as part of Risk Based Internal Audit where aggregate credit exposure of a borrower is Rs5 crore and above.
In addition to RBIA of branches, the Bank has concurrent audit system, which covers selected Branches, conducted by qualified Chartered Accountants/retired officers. The selection of branches for concurrent audit is done in such a way that it covers branches having substantial advance or deposit, entire specialized Branches such as B Category Branches, Corporate Branches etc., and all poorly rated branches as per the latest rating awarded.
In addition to the concurrent and risk based internal audits, the branches are subjected to Surprise Inspection, IS Audit, Revenue Inspection, Gold Loan Inspection/ Asset Verification and compliance inspection during the financial year. Separate monitoring team - Inspection Monitoring Group (IMG) closely monitors various inspections/ audits at the Branches. There are four IMGs who are reporting to Head of IMG. These Monitoring Groups are assigned the task of ensuring the compliance and closure of the inspection report of the branches. During the course of inspections, serious irregularities if any, concerning regulatory guidelines, legal requirements and operational processes are found, these are escalated to the Management for timely action.
All the branch related audits are presently automated through system where reporting, risk rating, compliance and closure of the reports are done through software application which provides the Bank with an overall control on various audits conducted in the branches. Continuous improvements are made to the application to automate several activities at HO and digitize the records in single application.
Audit of Departments and critical process
Management Audit of Regional Offices (RO) and Departments are conducted to review the managerial aspects like organizational objective, policies, procedures, structure, control and systems in order to assess their efficiency and performance.
As part of the transformation process, new exclusive asset verticals and specialized operational groups were formed by Bank and these verticals are also covered under Management Audit. The scope of audit in each vertical are based on nature/function/services/ business achievement carried out by them in line with the Regulator as well as internal guidelines.
The Management Audit is conducted at periodical intervals based on the risk perception of respective office. In addition to the management audit conducted by Inspection Department, all the critical operations such as International Banking Division, Treasury Department, Credit Department and Centralized Processing Centers, etc., are subjected to concurrent audit by independent Chartered Accountant firms. All these reports are reviewed by Audit Committee of Executives (ACE/SACE) and corrective steps are taken to rectify the lapses/ irregularities, if any, pointed out in such inspection reports as recommended by vetting department.
There is a team available with in Inspection department exclusively for conducting audit of IT systems and applications. Various IS audits and Vulnerability Assessment & Penetration Testing are conducted in a stipulated frequency as per approved audit plan. Guidelines from regulators like RBI, Cert-In, NPCI, UIDAI, SEBI, etc. related to IT security are incorporated in the periodic IS audits. Any new software application or modification in the existing application undergoes a thorough audit with respect to IT controls before going live.
New product/process whenever introduced in the Bank is reviewed by Inspection Department and recommendations are made for necessary controls/ improvements for deficiencies/gaps observed in existing internal controls. Inspection Department also carries out independent evaluation of Banks internal financial controls in terms of Companies Act, 2013 and also the adequacy of internal financial controls with reference to the Financial Statements.
INTERNATIONAL BANKING
The total forex business turnover for the year ended March 31, 2025 was Rs8,72,400 crore. At present the Bank is having rupee inward remittance arrangement with 2 banks and 59 Exchange Houses. The Bank has concluded speed remittance arrangement during the FY 2024-25 with the following Exchange Houses:
> Habib Qatar International Exchange, Qatar
> Al Jaber Exchange, UAE
> Al Zamil Exchange, Kuwait
> Baniyas Exchange, UAE
> Al Bader Exchange, UAE
> Smart Remittance Pty Ltd, Australia
Considering the scope in improving the remittance business through arrangements with exchange houses, the Bank has deputed 14 officers to UAE, 3 officers to Qatar with City Exchange, Islamic Exchange and AlFardan Exchange LLC, Doha Qatar and 1 officer to Oman with Purushottam Kanji Exchange Co LLC and 1 officer to Kuwait with UAE Exchange Kuwait WLL.
Following are the digital initiatives launched by the Bank in Forex and Trade Finance segment which enable customers to initiate Cross Border Transactions online with convenience, secure, fast and paperless.
• The Bank has rolled out the new product "Online Foreign Outward remittance" in the Internet Banking platform (SIBERNET) for Resident SB & NRE SB clients. The same facility is also available in SIB Mirror+ Mobile App under the module "Remit Money Abroad". This will enable the customers to initiate outward remittances in 100+ currencies via online without visiting the branches. Customers can also initiate outward remittance request in online 24x7 including holidays in US Dollar Currency. Euro, GBP, AED and all other currencies during the daily market timings.
"SIB TF ONLINE" is the new Online Trade portal available for EXIM Customers which facilitates initiating import related payments. This facility will reduce the cost, manpower and TAT of clients as well as Bank. The advantage is that clients can initiate forex transactions 24X7 through online mode. Currently, in the Phase I of SIB TF ONLINE, import transaction modules are available for clients. Other forex transactions in SIB TF ONLINE portal will also be made available in the next phases.
"Trade MIS Dashboard" is the new module implemented which facilitates Forex Customers to view / download various Reports like outstanding Letter of Credit (Foreign/Inland), Foreign Bank Guarantee, Forward Contracts, Export/Import Bills, Outstanding shipping bills etc. is made available in the Corporate Internet Banking under TF online- Trade MIS module.
NRI PORTFOLIO
The NRI Business of South Indian Bank continues to be a key pillar of growth and resilience. In FY 2024-25, the Bank crossed a landmark milestone by growing its NRI portfolio to over Rs31,000 crore, reaffirming its strong position in the NR business segment. Recognizing the pivotal role of the global Indian diaspora in our growth story, we undertook a range of initiatives aimed at deepening engagement, enhancing product offerings, and improving customer experience for our NRI clientele.
With over 5.20 lakh NRI customers, the Banks NRI deposits continue to account for nearly 30% of total deposits, underscoring the segments contribution to the Banks stable and diversified liability profile. NR Book grew by 1900 crores in FY 2024-25. Some of the key initiatives and focus areas for the business were:
a) Customer Experience
To serve our globally spread customers, we strengthened our digital banking platforms with NRI- specific enhancements like;
• Authenticated Customer Engagement (ACE):
Implemented ACE module to streamline term deposit operations for NRIs. Through the SIB Mirror+ application, NR customers can now authenticate deposit opening and closure requests securely and seamlessly.
• WhatsApp Banking services: We extended our WhatsApp Banking services to our NRI customers enabling quick, secure and hassle-free banking from anywhere in the world.
• Process simplifications aimed at easing the NRI customer journey by introducing processes like KYC updation & Mobile number modification through secured channels.
b) Business Growth Initiatives
• We intensified our presence and relationshipbuilding efforts in key NRI corridors by expanding our tie-ups with exchange houses and remittance partners, further strengthening our cross-border service capabilities. We have entered into 6 New remittance arrangements in UAE, Kuwait, Qatar & Australia targeting increased share of NRI Remittances.
• As part of the banks customer engagement activities, the bank had conducted various events in India and abroad, such as SIB RAGA in Dubai, participated in the Come On Kerala - Season 6 in Sharjah, and conducted NRI meets in various parts of Kerala to strengthen the customer relationships.
• To reinforce our customer outreach and to update our NRI customers about the current global economy and recent developments across financial sector we are publishing our NRI Newsletter every month.
• Executed periodic digital campaigns to engage prospective NRI customers and enhance visibility of NRI offerings.
c) Product innovation
• Launch of NRE/NRO SAGA Account: Keeping in line with the business growth initiatives, the bank
launched an exclusive salary account tailored for NRIs employed under corporate tie-ups in the UAE. The account features, attractive benefits designed to meet the needs of this segment.
d) Enhancing sourcing quality
• The bank focused on acquiring high-value customer relationships by promoting premium variants such as Gold and Platinum accounts. This has improved the overall quality of the accounts sourced during the FY 2024-25.
• Cross-Selling Initiatives: Emphasis was placed on cross-selling key products including Portfolio Investment Schemes (PIS) and Recurring Deposits, especially among NTB customers, to deepen the relationship.
As part of our business growth strategy, we aim to further deepen our NRI market penetration through greater digital innovation, data-driven insights, and seamless integration across geographies. We remain committed to being the preferred banking partner for NRIs worldwide by continuously aligning our offerings with the customer aspirations and financial needs.
Foreign Exchange Advisory Cell
The Bank has launched Foreign Exchange Advisory Cell to provide advisory services by subject experts on FEMA rules and trade finance related issues to the general public. The complimentary service is available to all Foreign Exchange Trade Fraternity.
TRAINING & DEVELOPMENT
In the rapidly evolving banking landscape, a future- ready workforce is the cornerstone of sustainable growth and institutional resilience. At South Indian Bank, we remain deeply invested in building capabilities that not only align with our business strategy but also uphold the core tenets of Environmental, Social and Governance (ESG) responsibility.
Our learning architecture is built upon the dual pillars of digitized learning and structured in-person training; anchored by the Learning & Development Unit at Ernakulam and the SIB Staff Training College (SIBSTC), Thrissur. These verticals work in tandem to provide holistic, inclusive and strategically aligned learning experiences to our employees across levels and functions.
1. Digitally-Enabled Learning (LMS - SIB iLearn)
The Learning & Development Unit has spearheaded the design and deployment of e-learning content via our proprietary Learning Management System -
SIB iLearn. In FY 2024 - 25, the team launched 47 new courses aggregating to 107 credit hours. All content is developed in-house, ensuring contextual relevance and alignment with the Banks functional and compliance requirements.
Modules have been tailored to support:
- Role-based upskilling (e.g., Branch Operations, Treasury, Audit)
- Mandatory regulatory compliance training (AML/ KYC, Cybersecurity, POSH, Data Privacy etc.)
- Functional training on credit underwriting, digital banking products and risk management
- ESG-centric training content
Employees earn credit points through successful completion, contributing to their annual performance appraisals.
2. In-Person Training at SIBSTC
The SIB Staff Training College continues to be the nucleus of our classroom - led learning efforts. Programs delivered include:
- Induction and On-boarding Modules
- Refresher Programs for Role-Based Competency Building
- Leadership Development Programs
- Specialized Regulatory Trainings (conducted in coordination with RBI-certified trainers or industry experts)
- Skill gap analysis are periodically conducted to design focused interventions.
3. ESG-Aligned Learning Framework
In line with emerging global standards and best practices, South Indian Bank is consciously integrating ESG themes into its training ecosystem:
Environmental Awareness
Staff are sensitized on resource conservation, green banking initiatives and climate risk through dedicated learning capsules.
Social Inclusion & Ethical Conduct
Mandatory training on workplace ethics, human rights, anti-harassment and inclusion are conducted across most grades. Our internal POSH policy is reinforced through digital and classroom trainings. Human Rights Awareness sessions related sessions are also made available.
Governance
Modules on internal compliance, governance mechanisms, risk frameworks and whistle-blower policy were delivered, with particular emphasis on executive and branch-level responsibilities.
4. Executive & Leadership Development
Senior executives and high-potential leaders were nominated for strategic leadership programs in collaboration with external institutions such as IIBF, NIBM, IIM, SIBSTC, Manipal Academy of BFSI etc.
Flagship topics covered include:
- Navigating the Emerging Compliance Landscape.
- Cybersecurity Frameworks for CXOs.
- Risk in Agri-financing and Priority Sector Lending.
- Future of Banking - AI, Data and Digital Governance
- MSME Lending.
Additionally, the Bank has launched Leadership Management Program, a structured leadership pipeline initiative to support succession planning.
5. Probationary Officer Development
Each batch of Probationary Officers undergoes rigorous training and continuous assessment through 20 e-learning modules. Confirmation assessments are mapped to role-readiness and are closely monitored to ensure timely confirmation. The pass percentage for the year reflects the robustness of the learning process.
6. Health, Safety, and Employee Well-being
In line with global practices, the Bank has institutionalized employee wellness through:
- Wellness Wednesdays: A holistic physical & mental wellness program.
- Safety awareness & first aid workshops.
- Occupational Health & Safety guidelines
7. Strategic Publications and Knowledge Sharing
- SIB Executive Brief: A daily curated newsletter covering economic, financial and regulatory updates is circulated to senior management and accessible to all staff via SIB Insight / SIB mHRMS.
- SIB Students Economic Forum (SEF): Our
flagship monthly publication reached its 399th edition in March 2025, contributing to financial literacy among students and academicians.
- SIBLink: The quarterly internal magazine fosters employee engagement and community bonding through staff and family contributions.
8. Gamified Learning and Continuous Engagement
The Bank promotes continuous learning through interactive formats such as:
- Daily Quiz via HRMS platform
- Interactive E-learning Tests
- Recognitions and Rewards for top performers across regions
9. Total Learning Hours
During FY 2024-25, a total of 7546 staff members underwent training through Internal/External programs & 8572 staff members successfully completed courses on our iLearn platform, amounting to a total of 5,05,930 learning hours.
The Way Forward
In a world increasingly driven by sustainability, digital transformation and compliance rigor, South Indian Bank will continue to evolve its learning framework. The coming year will focus on:
- Expanding ESG & general training coverage to 100% of employees.
- Targeted talent grooming & succession planning.
- Driving cross-functional upskilling in digital banking, AI and analytics.
At South Indian Bank, we believe that investing in people is investing in purpose. Our commitment to cultivating a knowledgeable, ethical, and future- ready workforce remains unwavering.
RETAIL BANKING DEPARTMENT
The Retail Banking Department focuses primarily on increasing retail business for the Bank through customer acquisition and retention. The Retail Banking Department consists the verticals - Digital Products, Third Party Products and Digital Sales. The digital vertical constitutes the entire digital portfolio of the Bank and managing the Digital Sales part. Third Party Products includes Insurance, Mutual Fund etc. Apart from above, the Department also plays a vital role in ensuring continuous product development and promotion by creating awareness on products through customer centric campaigns.
Digital Products & Services of the Bank
With more customers being boarded to digital channels every day, Digital Technology is revolutionizing the
traditional banking. Introduction of UPI has boosted the payment ecosystem by simplifying contactless and real time payments. The Bank is a frontrunner in adapting the changes in technology, by strengthening the digital banking space. The Bank has effectively leveraged digital technology and introduced several variants of traditional products and latest digital technology based services, tailor-made to suit the diversified needs of customers. Services like Contactless Debit Cards, Internet Banking, Mobile Banking with UPI, QR based payment acceptance, Digital POS, Payment Gateway Services, Co-Branded Credit Card, API Banking and WhatsApp Banking have transformed the customers Digital Banking experience from branch banking to anytime, anywhere banking. The Bank has Digital Products vertical under Retail Banking Department to introduce and enhance the digital offerings of the Bank. The Digital Technology Department of the Bank facilitates the technological development. Retail Banking Department also has an exclusive Digital Sales vertical to enhance the digital outreach to its customers.
SIB Mirror+ [Mobile Banking App]
SIB Mirror+ provides customer centric digital banking experience with a refreshed User Interface and Iconography; driving customer engagement to Banking and beyond. The App offers a plethora of services ranging from Instant Account opening, Investment, Goal Based Deposit Opening, Loans, Faster checkouts through recent payment capsules, recharge & bill payments, Foreign Outward Remittance, Online Fee payments etc.
Now do much more with SIB Mirror+
• Online account opening instantly.
• Remit money abroad.
• Instant PIS Account opening.
• e-Lock with personalized limit setting for digital transactions providing enhanced security.
• Simplified Scan and Pay option.
• Invest online through Mutual funds.
• SIB Maximo Deposit opening.
• Debit card management - Apply/close cards, Set/ reset ATM PIN, International On/OFF switch.
• Recharges and bill payments made easy.
• Upcoming payments notification, bills due reminder.
• Instant fund transfers limit enhancement facility.
• Online Fee payments.
• Instant Demat Account Opening.
• Manage deposits online - FD/RD opening and closure.
• SIB Dream - Goal based RD opening.
• Secured Credit Card.
• Update KYC details digitally
• NSDL Demat account opening
• Purchase Sovereign Gold Bond
• Online opening of Loan against deposits
• NETC FASTag recharge online
• 24x7 IMPS, UPI & NEFT fund transfer
• Submission of Form 15G/H
• Pre-Approved Personal Loan
• Instant payee addition
• Upgrade to Prime/Prime Platinum
SIBerNet (Net Banking Platform)
The Internet Banking service under the brand name "SIBerNet" positioned the Bank as a technology- driven Bank offering superior banking services to both Retail and Corporate customers. SIBerNet as an online platform that extends the comfort of digital banking services 24x7 from home, office or anywhere.
Types of Net Banking Services
Internet Banking (SIBerNet) is available in two modes:
1. SIBerNet Personal: All retail including proprietorship can apply for SIBerNet Personal.
2. SIBerNet Corporate: All Partnerships, Trust,
Institutions, Society, Companies etc. can apply for SIBerNet Corporate
CRAYONS - Online Instant SIBerNet Activation Process
The customer can register and activate Internet Banking online without visiting the branch. For this the Customer need to visit banks website, www. southindianbank.com and under Online banking, click on New User Registration and enter 16-digit account number, registered mobile number, email ID (optional) and OTP to complete the registration process for internet banking. The Net Banking User ID & Password can be created instantly with debit card validation.
Services/ Features offered through SIBerNet
• IMPS (Immediate Payment System) Fund Transfer facility (24 x 7 x 365)
• Fund Transfer facility -Within SIB accounts and to other Bank Accounts
• Online Bill payments/Mobile -DTH recharge/Online Shopping etc.
• Accounts summary, statements/mini statements
• Tax payment facility - Direct Tax, Indirect Tax & GST
• e-Filing of IT Returns
• Online IPOs (Initial Public Offering) can be subscribed through ASBA
• Online application for Sovereign Gold Bond
• Online Investment Platform [e-Invest]
• Online loan repayment - Instant credit to loan account.
• Debit card management - enable/disable
International usage.
• Block Debit card online, Personalize transaction limit.
• ATM PIN SET/RESET online through SIBerNet
• Online Flexi /Fixed/Recurring Deposit opening
• Online Submission of Form 15G/H
• Online closure for RD/FDs opened through Net Banking
• Online instant loan against deposit facility (FSLD)
• Online Preapproved Personal Loan.
• Online Instant Limit enhancement for Retail users.
• One-time User ID change facility
• Online password reset, set favourite activities, Transaction limit enquiry.
• Bulk fund transfer file upload and Bulk beneficiary creation facility for Corporate customers
• Missed call E-mail OTP service
• Retrieve Forgot User ID online
• Direct tie-up IRCTC & KSEB (Kerala State Electricity Board) for online payment.
• Instant payee activation using debit card
• Instant payee activation for DSC & SIB Authenticator users
• Online Undeletion of User ID
• Online Demat Account opening
• Online Atal Pension Yojana enrolment
• Online Trade Finance module
• Online Account category upgrade
• Online loan enquiry & Lead generation
• Online upgrade to Priority Banking
• Online Foreign Outward Remittance
• E-Certificates download facility
• Positive Pay system
• Online Locker availability enquiry
• Online KYC update for retail customers
• Online Email ID update facility
• PFMS ePA module
• PIS Account Opening
Debit Cards
South Indian Bank Debit cards come with features of Global acceptance, Contactless payments, Online Shopping, Utility bill payments and Cash withdrawal from ATMs in India and millions of ATMs across the world. Premium Variants of debit cards also offer Airport Lounge facility.
For Domestic as well as International transactions, SIB offers EMV CHIP and PIN enabled debit cards as well as contactless debit cards [NFC]. All our debit cards can be used for cash withdrawals from ATMs displaying the VISA/MASTERCARD/RUPAY/DINERS/DISCOVER/ JCB/UPI logo across the World. Customers can also use the debit card for making purchases from all merchant outlets globally, accepting VISA/ MASTERCARD/ RUPAY/ DINERS/ DISCOVER/JCB/UPI and earn points with the SIB Rewardz program. The accumulated points can be redeemed at more than thousands of retail outlets and online shopping websites or can be redeemed with exciting gifts.
Travel Card
South Indian Bank is having tie up with M/s Thomas Cook (India) Ltd for the travel card issuance. Thomas Cook-Travel Card is a Multi-Currency Card which can be loaded with multiple currencies in single wallet for the journey to different destinations. Thomas Cook Travel Card comes in different variants:
1. VISA-Borderless Prepaid Multi Currency card enables travellers to load nine currencies in a single card-US Dollars, Great Britain Pound, EURO, Swiss Franc, Canadian Dollars, Australian Dollars, Singapore Dollars, Thai Baht and Arab Emirates Dirham.
2. Mastercard- Borderless Prepaid Multi Currency card enables travellers to load Ten currencies in a single card-US Dollars, Great Britain Pound, EURO, Swiss Franc, Canadian Dollars, Australian Dollars,
Singapore Dollars, Thai Baht, Arab Emirates Dirham & Japanese Yen.
Study Buddy is a specially designed travel card to cater the needs of students studying overseas
Features of the Travel Card
• Tie-up with All Point Network-the largest surcharge- free ATM network in the world
• Enhanced security with chip and PIN protection and real-time fraud monitoring with instant card block
• Zero chargeback fee
• Inbuilt Tap & Pay technology enables contactless payment
• Online PIN change facility
• E-commerce access
• Available in VISA & Master card variants.
• Insurance cover of up to $10,000 in case of fraud transactions
• Pre authorisation release and instant encashment
• Global usage offers better value by avoiding any currency fluctuation risks
• Free card statements
• Free card replacement
• Enhanced health and safety protocols while packaging your card to ensure minimal human contact
South Indian Bank Prepaid Gift cards
Prepaid cards or pre-loaded cards can be used similar to Debit cards for Online/POS transactions but not at ATMs. SIB Gift Cards are one-time cards issued in value as per the choice of the customer. These cards can be gifted and used for multiple purchases. However, cash withdrawals from ATMs are not permitted using SIB Gift Cards and these cards cannot be reloaded.
South Indian Bank Reloadable Prepaid Cards
South Indian Bank presents Reloadable Prepaid Cards in RuPay platform. Reloadable Prepaid Cards can be used for POS/E-commerce as well as for ATM transactions. Prepaid Cards can be reloaded umpteen number of times as per the choice of the customer. The below category of Reloadable Prepaid card is available:
• DigiCash is offered to corporate customers for onward issuance to their employees, customers, etc. These cards can be loaded to a maximum amount up to Rs50,000/-.
SIB NETC FASTag
NETC FASTag is a project from National Highways Authority of India (NHAI) and the Indian Highways Management Company Ltd. (IHMCL) in association with National Payments Corporation of India (NPCI). Through this system, any vehicle with a FASTag (RFID) tag can easily to cruise through the Toll gates without making any cash payments. NETC FASTags are Preloaded RFID Tags for making the Toll Payments electronically. When the vehicle passes through the Toll gate, the RFID reader at the Toll plaza receives information about the vehicle and the Toll amount is deducted automatically from the FASTag, thus saving time and fuel.
Benefits of SIB NETC FASTag
• Avoid Long queue at the Toll plaza & parking plazas
• Saves time and Fuel
• SMS alerts for each toll transaction
• Online portal for Tag holders
• Easy recharge options through QR/UPI
• Easy to track toll transactions
• Quick Dispute Resolution
• Integrated with Vaahan
Point of Sale (POS)
The Bank is offering different types of POS terminals - PSTN (wired terminal), GPrS (wireless), Android (wireless) and GPRS Paperless terminal (wireless) in association with M/s. Atos Worldline India Pvt. Ltd., M/s Skilworth Technologies (Bijlipay) and M/s Pine Labs Ltd., the market leaders in India in this segment for catering the needs of the Merchants.
Bank has also introduced a new product "Soundbox" which is widely accepted by the merchants, which is a voice-activated BQR device that will notify the merchant when a successful payment has been accepted by declaring the value aloud.
Corporate Payment & Acceptance Enablers from SIB
SIB offers a wide range of solutions for corporates / institutions for collection & payments.
| Online Collections Solutions | |
| Name | Brief Description |
| Internet Payment Gateway (IPG)/ SIB PAY GATE | SIB- Internet Payment Gateway (IPG) service, act as a platform for facilitating online e-payment transactions between customers (shoppers/clients) and merchants (institutions). This service enables merchants to accept various forms of payment including UPI, Debit cards, Credit cards, and Internet banking modes against the services offered online. The integration of IPG directly into the merchants website /APP /ERP ensures a seamless and secure payment experience for customers. |
| Feebook/SIB INSTA COLLECT | Feebook is a customisable Collection application designed to streamline and manage any collections for our merchants. The Tagline of our in-house solution is "You decide; You Collect". It offers customization options, allowing merchants to tailor it according to their specific collection requirements. With an admin URL, merchants can efficiently create and manage user portals and reports. The integration of Feebook with the Payment Gateway facilitates smooth and efficient collection of fees, making payment process convenient for both merchants and their customers. |
| e-academia/SIB FEE | e-academia is the comprehensive online collection solution to education institutions to manage fee collections from SIB. This in house solution allows educational institutions to take their fee collection online, offering convenience to students and parents. Institutions can seamlessly integrate the provided URL into their websites, enabling an online fee collection process. By leveraging Payment Gateway integration, e-academia ensures a secure and efficient online payment experience, contributing to an improved fee collection process for educational institutions. SIB FEE allows FEE collection of institutions through SIB Branch channels. |
| VAN | Virtual Account Number (VAN) is an innovative payment method where merchant accepting payments can suffix a unique identifier to the Virtual Account Code given by Bank and create a unique account number for collecting the payments in RTGS, NEFT, IMPS modes. Remitter can be easily identified unlike Traditional methods. The VAN functionality enhances the ease and flexibility of payment transactions, making it a convenient option for both institutions and individuals conducting transactions. |
| POS | POS terminal is a machine installed at merchant establishment that can accept payments through payment cards. |
| SIB Smart Card | Customizable photo Debit card for an institution for a cashless campus. Specially designed Debit Card branded with institution logo can be used as an identity/access card and give a digital face to the institution. |
| UPI QR based Scan and Pay | SIB UPI POS is an exclusive mobile application in the UPI platform, for our Merchant customer to receive payments for the everyday sale. Merchants are provided with a customized QR Standee & Sticker for enabling payment receipts. |
| NACH | NPCI has introduced a new channel for effectively undertaking recurring collection requests. NACH System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc. |
| Online Payment Solutions | |
| SIBerNet Corporate | Corporate net banking offers a secure bulk payment option. Fund transfer rules can be predefined and transfer can be scheduled which makes Corporate Net banking an ideal solution for salary and other bulk disbursements. |
| Remote Cheque Printing (RCP) | An integrated system for automatic cheque printing for corporates. RCP offers a secure solution with hierarchical security for printing cheques with signature. |
| Online Collections Solutions | |
| Name | Brief Description |
| Hi-Hi Banking | Hi-Hi banking is the corporate bulk payment solution of South Indian Bank. The customers can do NEFT, RTGS, IMPS and within bank fund transfers by uploading a single file in the Hi-Hi banking platform. Direct integration with tally software is also available in Hi-Hi banking. |
API Banking
API Banking enables corporates/institutions to customise their ERPs to use Banks APIs for Payments, Collection and other banking features. All the important banking functionalities like fund transfer, remittance, account creation, Loan disbursements etc can be exposed to outer external applications.
WhatsApp Banking
WhatsApp is one of the most popular social media communication tool used for banking services. Major services like Account services, Debit card services, Fastag Services, locate nearby Branch/ATM are available through this service.
BBPS: Bharat Bill Payment System
BBPS platform connect billers, consumers, Bank, e-commerce portals, online payment platforms and National Payment Corporation of India (NPCI) to offer bill/utility payments to consumers along with instant confirmation of payment.
Credit Card: South Indian Bank - OneCard
South Indian Bank-One Card is a premium metal based Credit Card with a 100% digital, app based onboarding experience. A truly Next-Gen Banking product which offers instant virtual card issuance, attractive reward points with 5X rewards on top two spend categories, exciting offers on dining, shopping, grocery, attractive EMI facilities and zero joining fees or annual fees. SIB- OneCard can be fully controlled through the OneCard app which serves an irresistible blend of convenience & security. SIB-OneCard is offered to pre-approved customers, existing customers, new to Bank customers & also as secured card against eligible fixed deposits. Customers can share their credit limit with immediate family members by issuing Add on Cards.
Features of South Indian Bank - OneCard
• Lifetime-free Credit Card with zero joining and annual fees
• Premium metal-based card on the Visa Signature platform
• 100% digital customer on-boarding process
• Instant virtual card issuance
• Fully controllable from the OneCard app
• Among the lowest Forex fees in the market at just 1%
• Easy management of EMIs from the EMI Dashboard in the app
• Instant issuance of Reward Points and easy redemption within the app
• Tap your card at an NFC PoS terminal to make contactless payments of up to Rs5,000 per day without PIN
South Indian Bank-SBI Co-Branded Credit cards
South Indian Bank in association with SBI Cards launched Co-Branded Credit Card named as South Indian Bank- SBI Credit Card. South Indian Bank- SBI credit card ensures that our customers enjoy more convenience and privileges. Two variants of cards are available for SIB customers.
1. South Indian Bank Simply SAVE SBI Card
South Indian Bank Simply SAVE -SBI Credit Card, allows our customers to simply spend and simply save. Exciting offers on ticket bookings, dining, shopping, Grocery and much more, makes it the ultimate choice. It provides gratifying rewards while allowing you to fulfil all your shopping and entertainment needs. This International Credit card is available for domestic customers of the Bank.
2. South Indian Bank- SBI Platinum Card
South Indian Bank- SBI Platinum Card is specifically designed to make your shopping more delightful. The card offers you a host of attractive benefits. This card is available for both Domestic and NRI customers (against Deposit).
THIRD PARTY PRODUCTS
Insurance: The Bank has tied-up with the following partners for soliciting insurance under the corporate agency model.
Life Insurance
• HDFC Life Insurance Co. Ltd.
• SBI Life Insurance Co. Ltd.
• Kotak Mahindra Life Insurance Co. Ltd.
• Axis Max Life Insurance Company Ltd.
• Bajaj Allianz Life Insurance Company Ltd.
• Life Insurance Corporation of India
Health Insurance
• NivaBupa Health Insurance Co. Ltd.
• Manipal Cigna Health Insurance Co. Ltd.
• Star Health & Allied Insurance Co. Ltd.
General Insurance
• Bajaj Allianz General Insurance Co. Ltd.
• New India Assurance Co. Ltd.
• ICICI Lombard General Insurance Co. Ltd.
• Chola MS General Insurance Co. Ltd.
• Go Digit General Insurance Co. Ltd.
It was a highly successful year with regard to the performance in insurance sector. The Bank has got a significant increase in income from Life, Health, and General insurance by adding Rs101.85 crore for the financial year with a growth rate of an impressive 60 % over the previous FY.
Bank has also procured ISNP licence from IRDA in order to digitalise the insurance subscription mode through Banks Mirror+ app and SiberNet. The Bank has also processed an application for Tele and Distance marketing.
The insurance cell is collaborating with a fintech company, to acquire a business management platform that will enable seamless online and offline end-to-end insurance sales. The platform will also have the ability to generate business management information systems, manage complaints, and ensure regulatory compliance by adhering to the guidelines set by IRDAI for both sales and operations.
Mutual Funds: Mutual Fund is a popular form of investment since it provides the advantages of professional portfolio management and dividend reinvestment. The Bank has tied up with 22 leading Mutual Fund companies, thereby offering a variety of mutual fund products to the customers. Asset Under Management (AUM) of the Bank is Rs960 crore and income generated from mutual fund business is Rs5.75 crore as on March 31, 2025. With the aim of increasing
the mutual fund business and thereby increasing third party income, the Bank has launched an online mutual fund platform SIB E-Invest to facilitate online purchase and sale of mutual funds. SIB E invest Platform is currently live in SIB Mirror+ and in SIBerNet, which made Mutual Fund investments of the customers very easy. The platform is also live in Branches, where a branch can initiate mutual fund investment online after getting customers authorisation. Now this online channel contributes about 85% of the Banks mutual fund business.
Bonds: The Bank has been enrolled as a Channel Partner for the distribution of bonds issued by different companies through Banks tie up with IFIN - a subsidiary of IFCI (Industrial Financial Corporation of India)
Financial services Limited. Through this tie up the Bank has been enrolled as a channel partner of IFCI for the distribution of capital gain bonds.
Depository services: The Bank offers Depository services to benefit its customers. Through this facility, customers can hold their securities in electronic form in a Demat account with Central Depository Services (India) Ltd. (CDSL) and National Securities Depository Limited (NSDL).
Our customers can open a Demat account digitally through SIBerNet & Mirror+ or in physical mode through any of our branches. For Trading, we offer SIBerTrade, an online trading facility that allows domestic customers to buy and sell stocks on Indian stock exchanges through our partnerships with:
- Geojit Financial Services Ltd.
- Religare Broking Ltd.
- IIFL Securities Ltd.
- Motilal Oswal Financial Services Ltd.
Additionally, customers have the option to trade through a mobile application, where their Demat and Bank accounts are with us, and their trading account is with one of our broking partners.
ASBA: SEBI has also registered the Bank as Self Certified Syndicate Bank (SCSB) for accepting application under Application Supported by Blocked Amount (ASBA) through all the branches of the Bank and through SIB Mirror+ app and SIB Internet Banking. ASBA enables the Banks customers to apply for IPO/FPO, Rights issue,
NCD etc. by marking a lien on the account instead of actual debit at the time of applying, which is more beneficial for the customers. The Bank has participated in 219 issues (including IPO/FPO/NCD/ Rights Issue) in the FY 2024-25.
SGB: Sovereign Gold Bond is expected to provide an alternative and attractive investment option to retail individuals. Investors can apply Sovereign Gold Bond sponsored by Government of India through SIB Digital and Offline platform. Digital platform for applying SGB is introduced in the year 2020. No tranche was announced by RBI during FY 2024-25.
PIS: An extensive share trading facility for the NRI customers through tie-up with M/s. Geojit Financial Services Ltd., M/s Motilal Oswal Financial Services Ltd & DBFS Financial Services Ltd under PIS, NRI customers can directly invest in the Indian securities market through recognised stock exchanges under repatriable/ non-repatriable basis.
Achievement (Nos.) as on 31.03.2025
Cumulative PIS accounts No: 4029
PIS opened during the FY 2024-25: 985
Income generated as on March 31, 2025: 59.31 Lakh (Excluding brokerage)
The National Pension System (NPS): The Government of India has introduced the National Pension System (NPS) on January 1, 2004 (except for armed forces). NPS was made available to all citizens of India from May 1, 2009. The Bank is appointed as a Point of Presence (POP) since then and all the branches are authorized to extend the product and services of NPS. The Government of India (Union Budget 2019) has announced the increase of tax exemption limit for NPS to 60%. This has effectively made NPS tax free at maturity and an effective EEE status is attained, i.e. Tax Exempt at Entry, Earning and Exit stages. NPS is a very appealing product for NRIs. Now it is being offered to minors also in the name NPS Vatsalya. Only NPS offers the additional tax benefits up to Rs50,000/- u/s 80 CCD (1B) of IT Act and it is over and above Rs1.50 lakh of 80C investments. APY was introduced by Government of India in place of NPS Lite providing minimum assured pension ranging from Rs1,000/- to Rs5,000/- to subscribers, who are Banks customers.
APY/NPS Achievement (Nos.) as on 31.03.2025
| NPS -All Citizen Model | 16,059 |
| NPS Corporate ( Including Staff) | 8,197 |
| APY | 96,357 |
| Total | 1,20,613 |
BSNL E-Pay: In association with BSNL, the Bank is facilitating the payment of BSNL Landline bill of its customers through their accounts maintained with the branches. A customer can avail this facility by submitting a mandate form at the branch where the account is being maintained. Once registered, the BSNL landline bill of the customer will be automatically debited from the customers account every month. The key feature of this facility is that it is totally hassle free and is offered free of cost to the customers.
Centralised Direct Debit Service
Centralised direct debit facility is a service offered by the Bank to the customers, through which monthly/ quarterly/ half yearly payments of Mutual Fund SIP investments/Loan EMIs (Vehicle/Equipment Loans)/ insurance premium can be made directly by debiting their account and thereby making payments to various billers/ institutions. At present, the Bank has direct debit mandate processing arrangements with 3 vendors namely Bajaj Finance, TVS Credit Services & Billdesk.
Customer Experience Group (CEG)
The Customer Experience Group (CEG) was established with the objective of enhancing customer service, fostering strong relationships, and ensuring maximum customer satisfaction by providing round-the-clock banking support.CEG operates three key divisions: Inbound Call Centre, Outbound Call Centre, and the Digital Quick Support Team (DQST).
Inbound Call Centre
The Inbound Call Centre serves as a first point of contact for customers of the bank, addressing a wide range of banking needs 24x7. Customers can connect with CEG through the customer care helpline to raise queries, place requests, or lodge complaints. Our trained customer service tele callers conduct necessary verification checks and provide resolutions. A structured escalation matrix is in place to ensure effective resolution of complex issues, thereby driving enhanced customer satisfaction.
Outbound Call Centre
The Outbound Call Centre undertakes a variety of proactive customer engagement initiatives including welcome calls for newly opened accounts, lead generation for asset and liability products, promotion of digital offerings such as SIB Mirror+, Internet Banking, and Debit Card activations. The team also handles dissemination of important reminders for Re-KYC, insurance renewals, gold loan due dates, among other activities. Furthermore, the team plays a vital role in the sales conversion of pre-approved products. All leads are systematically managed through the CRM platform and routed to the relevant sales verticals for fulfilment. The collections tele calling team operating under the Outbound team plays a pivotal role in banks collections efforts. The team engages with the customers to ensure timely repayment of dues across retail and MSME loan Annual Rennrt 2024-25 products. The team follows a structured calling strategy by prioritising delinquency buckets and risk.
Call Quality Audit team
A dedicated Call Audit Team functions within CEG to monitor and evaluate the quality of customer interactions across both inbound and outbound operations. This team is instrumental in enhancing the overall customer experience through continuous feedback and process improvements. Additionally, the team manages realtime customer interactions through the website chat platform.
Digital Quick Support Team (DQST)
The DQST acts as the digital touchpoint for customers and branches by handling service requests and grievances received through emails, IP calls and social media channels. The team manages service requests and complaints related to digital banking services, including Debit Cards, SIBerNET and Mirror+ app. The teams swift response ensures efficient redressal of requests and complaints and also a seamless digital experience.
Highlights
• Debit card activations of new accounts is 70% for FY 2024-25.
• 44,897 Leads generated through CEG in FY 2024-25.
• Pre-approved Personal Loan conversion for FY 2024-25 is Rs102.62 crore with 6640 accounts.
BRANCH BANKING DEPARTMENT
The Branch Banking Department is the cornerstone of retail banking, serving as the primary touchpoint between the bank and its customers. We are committed towards operational excellence along with delivering superior customer service. The department plays a crucial role in building strong, trust-based relationships with customers while upholding the high standards of compliance.
Branch Banking Department primarily handles a suite of essential banking products and services, which includes Deposits, CASA, NRI Business, TASC(Trust-Association- Society-Club), Government business, Locker, National Pension System (NPS), Assets & Government Sponsored Schemes (GSS). We also closely monitor the market trends and changing customer needs to develop and offer banking products. Branch banking focuses on improving staff and branch productivity by ensuring target achievement through various campaigns, drives and initiatives. Business score cards for assessment of staff, branches, clusters & regions are devised and performance is closely monitored and reviewed to measure and track the target attainment to ensure business growth along with quality of service.
Liability Portfolio and CASA Performance
During the financial year ended March 31, 2025, the Banks focus on strengthening its liability franchise resulted in steady growth in its CASA (Current Account and Savings Account) portfolio. Savings deposits grew to Rs27,699 crore and Current Account deposits stood at Rs6,030 crore. As a result, total CASA deposits reached Rs33,729 crore, registering a year-on-year growth of 3.17%. The CASA ratio of the Bank stood at 31.37% as of March 31, 2025.
Key CASA Initiatives
To deepen customer engagement and drive growth in retail liabilities, the Bank implemented a series of strategic initiatives across product innovation, digital transformation, and customer-centric service delivery:
1. Adoption of Eco System Concept
The bank adopted an integrated eco system strategy by fostering synergy across all verticals including Branch Banking, Corporate Business Group (CBG), MSME Business Group (MBG), Emerging Business Group (ECG), Retail Assets, CASA and other support functions. This collaborative approach aims to identify cross selling opportunities and deliver holistic solutions, ensuring that customers benefit from the full suite of the Banks offerings while enhancing productivity and inter departmental efficiency.
2. Focus on Niche Segments:
The Bank introduced segment-specific offerings, including SIB Start Up -a unique Current Account offering for newly started business ventures and SIB SAGA-a tailored proposition for the NRI salaried class - strengthening its value proposition across diverse customer segments.
3. Digital Transformation for Seamless Onboarding:
Continuing its digital-first approach, the Bank enhanced its app-based account opening platform, SIB SWIFTe, for Resident Individual Savings, Salary, and Individual Current Accounts. New features such as Aadhaar face authentication, KYC updation, and dormant account activation were added to further streamline the onboarding experience and reduce dependence on biometric-based authentication.
4. Growth with a Quality-Centric Approach:
The Bank emphasized acquiring high-quality CASA relationships. The Priority Banking program was pivotal in attracting High Net-Worth Individuals (HNIs), enabling effective cross-sell and up-sell of revenue-generating products.
Priority Banking Services
The Banks flagship Priority Banking offerings— Prime Platinum and Prime—continue to deliver exclusive and personalized banking services to its High Net-Worth clientele.
Program Performance:
As on March 31, 2025, the Bank serviced 2.18 lakh customers under the Priority Banking programs. The savings deposit base under these programs stood at Rs11,475 crore, while term deposits aggregated to Rs35,648 crore. The strong traction in this segment reflects the Banks growing appeal among affluent customer segments and its commitment to delivering superior banking experiences.
5. Strengthening the Salary Portfolio:
The Bank registered a robust 44% YoY growth in the acquisition of higher variant salary accounts. This was driven by focused efforts on premium segment customers and leveraging existing corporate relationships. The Banks empaneled corporate base for salary accounts crossed 10,000 companies.
6. Staff-Mapped Portfolio Management:
To enhance customer engagement and product penetration, high-value CASA relationships were mapped to branch staff. Portfolio creation, transfer, and maintenance processes were fully automated to ensure smooth and effective relationship management.
7. Driving Performance through Business Expectations and Productivity Measurement:
To ensure accountability and consistent performance across the organization, the Bank institutionalized clear minimum business expectations at the individual staff, branch, and cluster levels. Individual staff productivity is actively monitored and aligned with defined KPIs, while branches and clusters are assigned measurable business targets. Regular reviews and performance dashboards have helped foster a performance-driven culture and ensure alignment with the Banks strategic objectives.
8. Re-Engagement with Dormant and Inactive Accounts:
A range of measures was implemented to reactivate dormant accounts, including targeted communication and enabling seamless activation via SIB SWIFTe. These efforts led to a marked increase in account activity and contributed positively to customer retention and satisfaction.
Government Business Division
Government Business Division (GBD) is institutionalized to cater to the Banking requirements of Central Government/State Governments/PSUs/Boards/other Government affiliates, with a focus on canvassing & liaising with various Government institutions Pan India. South Indian Bank is an Agency Bank of Reserve Bank of India since 2021. South Indian Bank is accredited by Central Board of Indirect Taxes and Customs (CBIC) for the collection of GST and Customs Duty & is accredited by Central Board of Direct Taxes (CBDT) for the collection of Direct Taxes. South Indian Bank is also LIVE in Telangana Treasury & Karnataka State Treasury for e-payments.
GBD aims at driving the Government Business portfolio of the Bank, with a special emphasis to boost up CASA & Term Deposits. Regional Sales Managers, Branches, Regional Offices and Cluster Heads are the major acquisition channels to augment Government Business segment. South Indian Bank offers state of the art customized Collection and Payment arrangements to cater the specific needs of the Government entities.
Milestones for the FY 2024-25
• Went LIVE in Non-Tax Receipts Portal (NTRP) - Bharatkosh, Govt of India for for accepting payments to 65+ Central Govt Departments via Payment Gateway
• MoU executed with Employees Provident Fund Organisation (EPFO) & Employees State Insurance Corporation (ESIC) for digital collection arrangements
• Went LIVE for the KSMART project ( Phase 2) -Govt of Kerala , for offering digital solutions via integrated POS & QR across all LSGDs in Kerala in addition to Payment Gateway services.
• Went LIVE for accepting digital donations via Kiosk facility at Tirumala Tirupati Devasthanams
• Reinitiated our Banks association with M/s CMDRF - Kerala for accepting public contributions via our Payment Gateway towards Wayanad landslide
• Completed the 2nd term of Travancore Devaswom Board digitalisation Project and provided digital solutions for eKanikka & Appam/Aravana collection at Sabarimala for the Mandala Makaravilakku season 24-25.
• Went LIVE as the sole Digital Partner to Kerala State Forest Department, Govt of Kerala by offering POS & Soundbox to 100+ Ecotourism Centres, Vanasree Shops etc across all 36 Forest Divisions in Kerala.
• Partnered with various Central/ State Government Project / Schemes rolled out through various LSGDs entities.
Agency Business
In addition to the Go Live of our Bank in the collection of Direct Taxes & Indirect Taxes (Customs Duty & GST), we are also Live for Treasury Integration in the States of Karnataka & Telangana, which is a testament to Banks commitment in providing hassle- free tax payment services to its customers thereby supporting the Governments initiatives in digitalizing its collection and payment arrangements. Numerous marketing and customer awareness initiatives were done to sensitize the customers on Banks facility to collect these taxes furthering the Nations economic growth and enhancing customer convenience. In FY 24-25, Rs 3500+ Cr tax volume was collected by South Indian Bank with an Agency Business Commission Income of more than Rs28 lakhs.
Other Major Central & State Government Collaborations
• Official Banker to M/s IRCTC for Online Booking of Railway tickets.
• Banker to more than 10 + Welfare Boards and 25 + Government Companies/Corporations in Kerala.
• Banker to State Development Authorities , Devaswoms, Electricity Boards, Water Authorities, Central/State Department Projects, LSGDs, Government Companies/ Corporations/PSUs across India.
• Associated with Government of India for numerous Single Nodal Agency (SNA) Projects in Kerala & Tamil Nadu.
RETAIL ASSETS DEPARTMENT
The Retail Assets Department of South Indian Bank plays a pivotal role in driving the banks strategic growth through innovative and customer-centric financial solutions. Retail Assets Contributed 33.70% of the total Advance Growth of the bank in FY 2024-2025. With a commitment to facilitating accessible and structured credit offerings, the department oversees the following key verticals:
Housing Loan Vertical:
Home loan is a key retail product for the bank, offering stable asset quality, deep customer engagement, and yield. In FY 2024-25, the Home loan book recorded a 19% growth, translating to an increase of 979 crores over the previous year. As of 31st March 2025, Home Loan Segment is the second largest contributor to the total retail asset portfolio and this was achieved through focused campaigns (Shift & Save, Her Haven, Builder Plus), digital adoption, and strengthened sourcing across direct and partner channels.
The growth trajectory reflects strong demand and trust in the banks home loan offering and underlines its significance in driving balance sheet
Drives/Strategy for FY 2025-26
The current years strategy focuses on scalable growth & quality sourcing through
• Strengthening in-house sales teams and deploying result-oriented sourcing partners.
• Geographic Diversification with focus on Builder tie- ups & Portfolio Buyouts.
• Targeted Offers for customer segments
Expedite the turnaround time and enhance customer delight through
• Digital enablement
• Rollout of RAH (Retail Asset Hub) for faster documentation and seamless processing.
• Launch of Pre-Approved Loans through analytics- based offers.
With this strategic roadmap, the Home Loan vertical is positioned to deliver sustainable growth while supporting the banks overall retail transformation.
Vehicle Loan Vertical:
The Vehicle Loan Vertical has emerged as one of the fastest-growing and strategically important business segments in the bank, demonstrating remarkable performance in recent years. In FY 2024-25, the vertical achieved a 65% YoY growth, marking a significant milestone by crossing Rs1,000 crores in auto loan disbursements for the first time in the banks history.
A major catalyst for this success has been the implementation of Power Drive, the banks in-house developed platform which enabled faster sanctioning and disbursal of loans, leading to a substantial reduction in TAT and improved customer experience. Notably, 44% of the disbursements came from non-branch channels, highlighting the effectiveness of the banks multi-channel sourcing strategy and partnerships.
Drives /Targeted strategies: -
• A renewed focus on the used car segment to enhance yields and expand the product mix.
• Introduction of attractive offers for EV customers, including pre-approved limits, higher LTVs, extended tenures, and special pricing.
• Pre-Approved car loan offers for eligible priority customers, integrated with the Power Drive platform for seamless processing.
EXPERIENCE NEXT-GEN BANKING
• Additional business venue from the tie up with Maruti dealers via Maruti Suzuki Smart Finance (MSSF) integration
• Expansion of Non-Branch business through tie up with M/s Kuwy, M/s Cardekho, M/s Panobiz etc.
Personal Loan Vertical:
Based on the urgency, tech comfort and loan requirements of customer, bank offers Digital personal loans and traditional personal loans. Pre-approved Personal Loans and Quick PL are the two key digital personal loans offering to customers which is processed entirely online, offering quick approval and disbursal through banks website, internet banking and mobile app. Non digital personal loans involve manual process including customer interaction and document verification and traditional underwriting.
PL contributes to 2.6 % of banks total assets. In order to accomplish the changing customer needs, digitization and regulatory shifts, Bank has stepped into co lending arrangements for instant loans at checkout in E-commerce platforms. Quick PL- an end to end digital personal loan exclusively for new to bank customers will be promoted through Branded corporate digital partners who are identified as digital referral agents. Co-lending and co-origination tie ups for personal loans are under process for penetration to more consumer segments. Introduction of an additional sales channel, professional tele sales force, digital application forms and new strategic partners are expected to augment the Personal Loan Portfolio of the bank.
Jewel Loan Vertical:
Facilitating secure and accelerated financing secured by gold assets, our service delivers bespoke liquidity solutions characterized by highly competitive interest rates and seamless, efficient processing. Designed to meet diverse financial needs, we ensure a robust, transparent, and customer-centric approach, unlocking the intrinsic value of your gold with unparalleled speed and reliability. JLBG contributes to 19.20% of banks total advance. In FY 2024-25, the vertical achieved a 9.52% YoY growth.
Drives /Targeted strategies -
• Focus on scaling up New to Gold (NTG) customer acquisition by enhancing activation and engagement at the branch level
• Strengthening of DST Channel by introduction of Team Leader position and focus on productivity/ NTG Acquisition
• Evaluate the exposure limits of existing co-lending partners and explore opportunities to on-board new co-lending partners to expand lending network
• Continuous focus on product development with competitive gold loan products, with higher yields and align products with market trends.
• Reduction of SMA accounts to support sustainable portfolio growth and improve asset quality
• Expand and strengthen the empanelment of appraisers to drive business growth and enhance opportunities for scaling.
• To continue the branch wise bucketing strategy.
Affordable Housing Loan Vertical - SIB Ashirwad:
During the financial year 2024-25, South Indian Bank strengthened its focus on inclusive credit by establishing a dedicated vertical for Affordable Housing Loans under the product name SIB Ashirwad. This vertical is designed to serve the housing finance needs of economically weaker sections, low-income groups, and informal sector borrowers. The bank has also initiated the implementation of the Government of Indias Pradhan Mantri Awas Yojana - Urban (PMAY-U) 2.0, aligning with the National Mission of Housing for All. In compliance with the Priority Sector Lending (PSL) guidelines, the vertical has enabled deeper financial inclusion while simultaneously supporting the banks strategic objectives. It has also contributed to crosssell growth, CASA mobilization, and customer loyalty, making it a key driver of sustainable and quality asset growth.
LAP Vertical:
LAP Vertical has been structured to focus on sourcing and managing LAP Business through diversified and strategic channels. It primarily emphasises tapping into alternative sourcing platforms such as DSA, DST and DRA to broaden reach and drive business growth with the aim of ensuring streamlined operations and enhanced efficiency across all touchpoints. This vertical plays a crucial role in business development, ensuring structured sourcing, enhanced channel utilization, and portfolio growth through strategic initiatives.
Global Education Loan Vertical:
The global education loan vertical facilitates comprehensive financial assistance to students aspiring to pursue higher education abroad, ensuring seamless funding support tailored to academic ambitions. The SIB Global Education Loan scheme offers students with flexible repayment options, competitive interest rates and tailored loan amounts based on the cost
of education. There was a growth of 3% in the global education loan book in FY 2024-2025.
Targeted strategies:
• Increase Non- Kerala business with the support of Corporate BC M/s WeMakeScholars.
• Digital onboarding of customers for improvement of TAT.
Through these diversified lending verticals, the Retail Assets Department continues to reinforce South Indian Banks vision of financial empowerment, ensuring sustainable and inclusive growth while maintaining a strong risk framework and operational.
Brand Visibility Enhancement Initiatives during the FY 2024-25
• The Bank launched a series of well-planned promotional campaigns across diverse media platforms—including print, television, radio, outdoor, and digital channels. Each campaign was designed to be cost-effective while focusing on region- specific targeting, ensuring maximum reach and brand recall across key markets. These integrated marketing efforts helped reinforce the Banks presence and connect meaningfully with various customer segments.
• The Banks Corporate Communication initiatives delivered strong results during the year, with a strategic mix of well-crafted campaigns, targeted media interactions, and impactful press releases. These efforts significantly boosted the Banks Share of Voice (SoV), enhancing visibility across both national and regional media. Proactive public relations positioned Bank spokespeople as credible thought leaders, garnering recognition from the media and stakeholders. Consistent engagement with journalists and media houses helped build trust and credibility, enabling the Bank to effectively communicate key developments, milestones, and responses—thereby reinforcing a strong and positive brand image. •
• An effective PR strategy enabled the Bank to achieve wide-reaching visibility for key events and financial results across global digital and print media. Throughout the financial year, exclusive interviews with the MD & CEO were featured in leading media platforms, including CNBC TV18, The Hindu Business Line, Economic Times, Moneycontrol, Malayala Manorama, Mathrubhumi, Mint, PTI, Business Standard, and Financial Express. These strategic media engagements reinforced the Banks leadership position and ensured consistent, high-impact communication with stakeholders.
• Press releases were issued for various occasions, including the declaration of financial results, appointment of new CFO for the Bank, signing of MoU with Ashok Leyland Limited for Dealer Financing, tie up with Tata Motors for commercial vehicle finance, alliance with Northern Arc Capital for joint lending initiatives, launch of SIB Ashirwad, an affordable home loan for low-income families, launch of Her Heaven home loan for women, SIB won 4 awards at Infosys Finacle Innovation Awards, launch of Swagatham Malayalamannilek campaign for NRIs at Cochin International Airport, appointment of Sri. Dolphy Jose as Executive Director, appointment of Sri. Jose Joseph Kattoor as Additional Director, signing of MoU with Daimler India Commercial Vehicles for tailored dealer financing solutions, Exim Connect 2024 to connect with exporters and importers for trade facilitation, alliance with Fedbank Financial Services Limited for joint lending initiatives, inauguration of second mega currency chest in Kakkanad, Kochi, Kerala, celebration of 96th foundation day at the new SIB Tower in Kakkanad, Kochi and launch of SIB Quick FD and SIB Quick PL.
• Investing in Relationships campaign- Leveraging the festival seasons
To reinforce South Indian Bank as a Pan Indian Bank we rolled out multiple festival campaigns both regionally and nationally. Exclusive commercial was prepared for Onam and Diwali which was live in multiple languages. Along with Digital, the ads were live across TV and Theatre. We focused on creating awareness about the brand and its various products through these ads in the south as well as in the nonsouth markets. The TV campaign achieved a total reach of 2.4 Mn across Kerala and Theatre Campaign delivered a reach of 1.21 lakhs across metro cities in India. In digital, along with the prominent platforms like Google & Meta, we also tried out other mediums like Disney Hotstar, Manorama Online etc. to expand our reach among the youth segment. Digital innovation in the form of interactive ad was also tried out during the festive season targeting the mobile users which received 62K engagement. Our festival ads achieved 43 Million views in digital from our target segment.
• The Bank had conducted Meet and Greet programs at Malappuram, Thrissur, Trivandrum, Chennai, and Delhi for its priority customers.
• Womens day event at Bengaluru
South Indian Bank celebrated International Womens Day by launching Women Like You, a special coffee table book chronicling the inspirational journey of 52 remarkable women from diverse fields. Ms. Lakshmi
Ramakrishna Srinivas, Director, South Indian Bank, unveiled the book at a grand event in Bengaluru in the presence of distinguished guests, industry leaders and women customers.
This unique coffee table book showcases inspirational stories of ordinary women who have overcome challenges with strength and resilience, ultimately achieving lasting success. Much like the evenings celebration, the book honours women achievers who have broken barriers and paved their own paths to success. Their journeys serve as a testament to the fact that behind every successful woman lies a story worth reading and emulating.
It was an inspirational evening headlined by international para-athlete, and Padma Shri and Arjuna awardee Dr. Malathi Holla. She shared her extraordinary journey in a session titled "Wings to Fly - An Inspiring Journey." Subsequently, the versatile sports and celebrity anchor Madhu Mailankody moderated a panel discussion on "The Art of Balance". The panel brought together many women achievers to discuss strategies for achieving personal and professional fulfilment. The panellists included:
Sreedevi Ragavan - Founder, Tattvamassi & Board of Governors, IIM Kozhikode, Rasika Iyer - Co-founder & CMO, Tata Soulfull, Priya Sunder - Co-founder & Director, Peak Alpha Investments, Simi Sabhaney - Chief Growth Officer, Dentsu India
The celebration concluded with a mesmerising performance by Saxophone Subbalaxmi, the first female saxophonist to hold a world record for playing the instrument for the longest duration. The evening reaffirmed the banks ethos to empower women by recognising their achievements while strengthening its engagement with customers and the community.
• The "Paint Your Dreams" initiative was successfully conducted across Mumbai, Pune, and Goa, with the central theme of empowering children to paint their aspirations, supported by SIBs commitment to help finance those ambitions. South Indian Bank partnered with MyGate to coordinate the activity across seven premium RWAs, distributed branded stationery kits and plantable Indian flags as giveaways, and promoted the event on Instagram, garnering 1,552 impressions within 24 hours. The initiative engaged approximately 30-40 participants per branch, fostered relationships with RWA committees for future collaborations, and enabled SIB to secure complimentary push notifications on MyGate for lead generation.
• Onam celebration at Mumbai
We hosted an Onam celebration in Mumbai on 28th September, with over 100 customers attending. The event featured a traditional Onam Sadhya and cultural performances, reinforcing SIBs commitment to regional traditions and strengthening customer relationships in a warm and festive setting.
• Following the successful execution of the South Indian Bank visibility campaign during the St. Francis Xavier Exposition held at the Basilica of Bom Jesus from Dec 2 2024 to Jan 2 2025, the team effectively implemented a 30-day integrated plan across key channels. Influencers including Reuben Rodrigues produced engaging static and reel content highlighting SIBs QR code-based digital donation facility, generating a total reach of approximately 170k+ impressions. Simultaneously, regional media promotions ran across TV (Goa 24x7), radio spots (Big FM and Indigo), and on-ground activations — including standees and posters at 5 branches and churches — ensuring sustained daily visibility. A branded OOH mobile van was deployed across Panaji to promote the new branch and digital offerings. Overall, the campaign achieved its objective of increasing brand awareness and positioning, driving QR code transactions and awareness.
• NR Promotional Activity - Swagatham Malayala Mannilek
On the onset of NR Season our Bank carried out a campaign at Cochin International Airport Ltd. targeting NR customers who visited their homeland during July and August 2024.
• The Bank maintained an active presence across its social media channels, regularly showcasing various products and services. Selected posts were strategically promoted to maximise reach and engagement. Special occasions and festive greetings were shared to foster an emotional connection with customers. Platforms such as Facebook, X (formerly Twitter), Instagram, LinkedIn, YouTube, and others were effectively leveraged to communicate product announcements, promotional offers, corporate updates, key milestones, and customer-focused initiatives. This multi-platform approach ensured consistent and impactful digital engagement.
• For better connecting with the millennials and for expanding our brand and product awareness, we rolled out multiple Influencer campaigns during the year, focusing regional and HSM markets. During FY25 we rolled out more than 15 influencer campaigns, which helped us to garner over 80 Lakh
views, which also helped us to increase Banks follower base in leading Social Media channels.
• Various Digital Centric campaigns were rolled out during the year focusing TG with in India and NRIs. Focused product and brand campaigns approach helped us to cater more among the TG and affinity segments. More than 70% of the website traffic are between the age group of 18 to 44 years. The Bank is also able to expand the brand visibility beyond its strong markets of South India.
• We launched multiple digital centric products during the year targeting both investment oriented customers and those with immediate fund needs. SIBQuickFD & SIBQuickPL was launched with targeted campaigns in digital mediums. Focus was given to promote the product through active content marketing which also helped to increase the awareness of the 100% fully digital journey offered by both the platforms.
• A full-fledged campaign was launched in the month of January on the occasion of our new Admin Building, SIB Tower, inauguration. Along with print campaign, exclusive online visibility was carried out for 2 days with ads in leading regional online publications along with social media promotion. Our exclusive brand video with the 96 Year theme launched during the occasion received nearly 10 lakh views in social media.
• With the importance of giving prominence to content marketing and positon the brand as a thought leader, we launched an exclusive blog for insightful contents on our various products and services. The blog articles also covered trending topics that are search relevant which helped us to bring more quality traffic to our website. Many of our articles ranked in the first page of Google Search Listing. Considering the increased consumption of video content, we launched two exclusive social media channels Fincredibles in English and Malayalam with a key objective of promoting short videos on general and trending topics, targeting Millenials and GenZ population.
• The Bank executed over 300 segmented cross sell campaigns in FY25 which helped the bank to position right products to right set of TG and increase the conversion rate.
• In FY 25 , bank on boarded a full stack Martech platform , this will help us to automate all our marketing campaigns and to effectively run life cycle campaigns.
• The Bank had also associated in major events like Southern India Regional Council and Regional
Conference by Institute of Chartered Accountants of India, 42nd KMA Annual Management Convention of Kerala Management Association, 16th SFBCK Banking Excellence Award of State Forum of Bankers Club, 3rd National Summit by ASSOCHAM, Great Mandolin Show at Chennai, Dhanam Business Summit and Award Nite 2024 by Dhanam Publications Pvt. Ltd. and many more.
AWARDS & RECOGNITIONS
The Bank had received the following awards: -
• SIB won 5 awards at the 20th Annual IBA Technology Awards 2024:
Winner - Best Tech Talent & Organisation
Runner Up - Best Financial Inclusion
Special Mention - Best Digital Sales, Payments & Engagement, Best IT Risk Management and Best Fintech & DPI Adoption
• SIB bagged four awards in the Infosys Finacle Innovation Awards 2024 in the following categories:
1. Business Model Innovation - Platinum Winner - SIB eDirect
2. Corporate Banking Innovation - Gold Winner - SIB TF Online / MSME Web Portal
3. Ecosystem-led Innovation - Gold Winner - CoLending / One Score
4. Maximizing Customer Engagement - Gold Winner - WhatsApp Banking
• Banks SGM & CIO Mr. Sony A has been recognised by IDC as game changer in the dynamic digital world of financial services
• SIB CISO Mr. Shibu K Thomas received an award under the category Smart CISO in the CSO100 Awards & Symposium held at Jaipur.
• SIB won the Banking Frontier, Finnoviti Award for the SME LOS at The DIGITAL CONTINUUm: Fintech Resurgence 2.0 conference at Mumbai
Subsidiary Companies/Joint Ventures or Associate Companies
As on March 31, 2025, the Bank has one unlisted wholly owned subsidiary - M/s. SIB Operations and Services Limited, which was incorporated on May 28, 2021. SIB Operations and Services Limited is a wholly owned Non-Financial Subsidiary Company of the South Indian Bank Ltd. RBI has accorded the final approval on March 25, 2021 for setting up the Subsidiary Company and the Company was incorporated on May 28, 2021 to cater to the operational needs of The South Indian Bank
Ltd. The authorized Capital as on March 31, 2025 is Rs2 crore and the Issued and Paid-up Capital is Rs50 lakh. The Company is providing exclusive services to the Bank in the operational areas of Telecalling, Business Development, Data Entry Operations, IT Support and other services permitted by the Reserve Bank of India.
HUMAN RESOURCE DEVELOPMENT
In the dynamic landscape of the banking industry, staying ahead necessitates a workforce that is not only skilled but also strategically aligned to meet the evolving needs of Banks customers. Over the past year, we have dedicated ourselves to achieving this objective by focusing on three key areas: optimizing the Tooth to Tail ratio, empowering customer-facing roles, and bolstering employee productivity.
Optimizing the Tooth to Tail Ratio
The Tooth to Tail ratio serves as a cornerstone in assessing Banks organizational efficiency, ensuring an appropriate balance between customer-facing roles and backend support functions. Banks ideal ratio of 85:15, representing 85% of Banks workforce in customerfacing roles and 15% in backend support, remains an ongoing aspiration. While Banks current ratio stands at 78:22, significant strides have been made towards narrowing this gap.
Efforts to optimize this ratio have been multifaceted. A dedicated team of experts within the department has spearheaded initiatives aimed at streamlining processes, reallocating resources, and enhancing the effectiveness of customer-facing roles. Through meticulous analysis and strategic planning, we have identified areas for improvement and implemented targeted interventions to drive progress towards our ideal ratio.
Empowering Customer-Facing Roles
At the heart of Banks business lies the imperative to deliver exceptional service and value to Banks customers. Recognizing the pivotal role of customerfacing employees in achieving this objective, we have undertaken initiatives to empower and equip them for success.
Central to this endeavor has been the strategic relocation of staff to branches, ensuring a more responsive and personalized approach to customer service. Additionally, we have invested in specialized training programs designed to enhance the skills and competencies of Banks frontline staff, aligning them with the latest industry trends and technological advancements.
Bolstering Employee Productivity
Employee productivity forms the bedrock of Banks operational efficiency and competitive advantage. In Banks pursuit of excellence, we have implemented a range of measures aimed at fostering a culture of productivity and continuous improvement.
Key among these initiatives has been the simplification of processes and workflows, eliminating bottlenecks and redundancies to streamline operations. By harnessing the power of technology, we have augmented the capabilities of Banks backend support functions, enabling them to provide more efficient and responsive assistance to Banks customer-facing teams. Moreover, we have cultivated an environment that encourages innovation and collaboration, empowering employees to contribute their ideas and insights towards driving organizational success.
Through Banks unwavering focus on optimizing the Tooth to Tail ratio, empowering customer-facing roles, and bolstering employee productivity, we have positioned ourselves for sustained growth and success in the years to come.
Looking ahead, we remain steadfast in Banks dedication to nurturing a workforce that is agile, innovative, and customer-centric. By continuing to invest in Banks people and aligning Banks efforts with the evolving needs of our customers, we are confident in Banks ability to navigate the challenges and opportunities that lie ahead.
DISTRIBUTION OF MANPOWER (CADRE WISE)
As on March 31, 2025, the Bank had 9369 personnel on its payroll. The cadre wise break up is as follows:
| Cadre | Gender | Total | |
| Male | Female | ||
| Officers | 3943 | 2507 | 6450 |
| Customer Service Associate | 926 | 1672 | 2598 |
| Senior Office Assistant / Driver | 144 | 18 | 162 |
| Full-Time / Part-Time House Keeper | 35 | 124 | 159 |
| GRAND TOTAL | 5048 | 4321 | 9369 |
The average age of employees as on March 31, 2025 is 33.91.
As on March 31,2025 Staff members having professional qualification constitute 57% of the overall workforce. The detailed breakup is as follows:
| Number of Staff Members Having Professional Qualification as on 31-03-2025 | |
| Educational Stream | Number of Staff |
| CA | 51 |
| CS | 6 |
| ENGINEERING | 2222 |
| ICWA/CMA | 38 |
| LEGAL | 85 |
| MANAGEMENT | 1574 |
| PhD | 1 |
| POST GRADUATION | 1634 |
| Total:- | 5611 |
| TOTAL STAFF AS ON 31-03-2025 | 9369 |
PERFORMANCE MANAGEMENT SYSTEM
The HR Department has successfully implemented and stabilized a robust Performance Management System (PMS). By introducing transparent and fair performance evaluation processes, the department ensures that employees efforts are recognized, rewarded, and aligned with the Banks strategic objectives. This has not only enhanced individual performance but also fostered a culture of accountability and continuous improvement throughout the organization.
To achieve this, HR Department has redefined existing job roles to be directly linked to performance metrics, resulting in the development of a job role-based performance management system. This system is founded on the Balanced Scorecard framework, one of the most popular and widely accepted models for performance management. The Balanced Scorecard approach ensures a comprehensive evaluation by incorporating financial and non-financial performance measures.
A significant enhancement was the quantitative refinement of the Scorecard. This change ensures that every employee is clearly aware of their key deliverables both upfront and on a day-to-day basis. The quantitative nature of the Scorecard provides specific, measurable goals that employees can strive to achieve, thereby improving overall productivity and focus.
To facilitate accessibility, these Scorecards are made available through the HRMS and mHRMS, allowing staff members easy and timely access to their performance metrics. This transparency empowers employees to take charge of their performance, understand expectations, and track their progress continuously.
Overall, the revamped Performance Management
System has brought about a marked improvement in employee engagement and performance. It has created a structured environment where employees can thrive, contributing positively to the Banks long-term success. The focus on fair and transparent evaluations, coupled with clear and measurable objectives, ensures that every employee is motivated to perform at their best, aligning personal goals with the strategic objectives of the organization.
EMPLOYEE ENGAGEMENT
The Human Resources function at South Indian Bank continues to play a critical role in shaping the internal fabric of the organisation during the financial year 2024-25. The year witnessed a meaningful combination of strategy and empathy, with initiatives that reached out to employees at every stage of their journey — from young professionals stepping into leadership roles to those concluding decades of service. The Banks commitment to efficiency, recognition, wellbeing, and inclusiveness found clear expression through the programmes launched and refined throughout the year. The following sections present a detailed narrative of the key interventions and accomplishments of the HR Department.
Leadership Development and Capability Building
Developing the next generation of leaders remained a key strategic priority. The Bank continued its focus on structured development through the "SIB Talent Program," a comprehensive initiative designed to equip selected officers with the mindset, skillsets, and strategic clarity required for future leadership roles. The program was implemented in phases, beginning with personalised Individual Development Plans (IDPs), followed by one-on-one executive coaching and culminating in intensive classroom sessions at IIM Bangalore. The learnings were applied through real-time projects, and the entire cohort concluded their journey with a formal presentation and valedictory ceremony, which served as both a reflection and celebration of their growth.
In addition to structured training, the Bank introduced "SIB Empower," a mentorship platform aimed at facilitating professional guidance through meaningful mentor-mentee relationships. Senior leaders were paired with emerging talent based on function and interests. The framework was supported by HRMS- based dashboards that allowed for regular progress tracking and ensured that mentoring relationships remained goal-oriented and consistent.
Recognition and Appreciation
Recognising employee effort and contribution remained central to the HR philosophy. The Bank continued to
build on the success of the "SIB Max" performance recognition scheme, which acknowledged employees on a quarterly basis for their contributions to business outcomes. These recognitions were not limited to results alone but also factored in behaviours, initiatives, and consistency, thereby allowing a broader spectrum of staff to be celebrated. Recognised individuals were featured on HRMS dashboards with custom visuals and department-level communications, which gave their efforts visibility and respect among peers.
A key milestone during the year was the introduction of the "Employee of the Month" program, which specifically focused on acknowledging high-performing employees in backend and support roles — those who may not often be visible in revenue-facing activities but remain essential to the Banks functioning. Department heads were empowered to nominate individuals based on well-defined criteria, and selected staff members were honoured with digital certificates, HRMS badges, and featured stories in the internal recognition magazine "SIB Spotlight." The magazine itself, published quarterly, became a window into the lives and journeys of colleagues across geographies and roles, and emerged as a strong internal brand that reinforced the culture of appreciation.
Employee Engagement and Cultural Vitality
Throughout the year, the Bank invested in strengthening the social and emotional connection among its employees. One of the most visible and energising initiatives was "Thursday Thrills," a cultural engagement series launched across key offices under the suggestion of the MD & CEO. These monthly events transformed ordinary workdays into memorable occasions with live music, refreshments, and informal team interactions. The inaugural event at Kakkanad featured a well- coordinated programme that included external artists and internal performances. The concept was quickly embraced and replicated across multiple zones, giving employees space to unwind and interact outside of structured meetings.
Creative expression was encouraged through initiatives like "SIB Symphony 3.0," a virtual music competition that invited staff from across the country to showcase their vocal and instrumental talent. Submissions were uploaded on social media platforms with designated hashtags, and participation was open to both classical and contemporary categories. An external jury evaluated the entries, and popular choice awards ensured inclusivity. The event created excitement across branches and ROs, reinforcing that creativity and community could co-exist even in a digital format.
December brought with it "Santa Vibes," a carol singing competition that brought festive energy into the
workplace. Both solo and group entries were accepted, with separate categories for branch and department staff. Submissions were evaluated by an external panel, and the contest also incorporated a social media angle, with winners announced based on both merit and engagement. Earlier in the year, the Diwali season saw the successful execution of a pan-bank greeting card design contest under the theme "Triumph Over Darkness." The top cards, selected by a judging panel, were turned into official festive wallpapers and widely appreciated across departments.
Health and Wellbeing
The physical and mental wellbeing of employees remained a recurring theme in HR interventions. The "Wellness Wednesday" series, held monthly, featured webinars conducted by health professionals on topics that ranged from monsoon-related illness prevention to diabetes management in workplace contexts. One of the most appreciated sessions was the October webinar on mental resilience, which addressed the realities of working in high-pressure banking environments and offered strategies to handle stress, anxiety, and burnout.
These wellness interventions were not limited to awareness sessions. They were designed to reinforce a longer-term approach to health and self-care and helped in normalising conversations around topics that are often avoided due to stigma or time constraints.
Commemorative Events and Social Causes
The Bank celebrated Indias 78th Independence Day with a flag hoisting ceremony at the Head Office, followed by a short cultural program. Participation was voluntary but saw a significant turnout, with employees from nearby branches and departments attending in person. In parallel, a virtual quiz competition on Indias freedom movement was conducted through HRMS and WebEx. The event witnessed enthusiastic participation and reflected a sense of shared history and national pride.
One of the most impactful initiatives of the year was the Womens Day Hair Donation drive, Conducted in partnership with Hair Donation 555. The drive encouraged female staff to voluntarily donate their hair for the creation of wigs for cancer patients undergoing chemotherapy. The initiative was humane, thoughtful, and deeply resonant. Donors received appreciation certificates signed by the COO, and the campaign received significant visibility across social media. Additionally, cultural programmes were organised exclusively for women staff at Thrissur and Ernakulam, allowing for celebration, conversation, and connection.
On the other end of the employee lifecycle, a more
personal approach was introduced for retirees. The Bank formalised the issuance of personalised greetings featuring a photograph and farewell message, sent to the employees HRMS dashboard and personal email. This thoughtful gesture was not transactional but celebratory, acknowledging the years of service and contributions made.
Corporate Tie-ups and Employee Benefits
A significant portion of the HR teams efforts went into negotiating, renewing, and communicating corporate tie-ups that directly benefited staff and their families. The year saw a surge in both volume and variety of tie- ups, spanning healthcare, travel, wellness, and lifestyle services.
In the healthcare category, the Bank strengthened its association with Vasan Eye Care Hospitals, which offered complimentary consultations, discounted investigations, optical products, and surgeries. Similar arrangements were put in place with SIMS Hospital in Chennai and Metropolis Labs, offering access to reliable diagnostics and care at reduced rates.
Under travel and hospitality, the Bank entered into rate agreements with premium chains such as Sterling Resorts, Lemon Tree Hotels, and Rhythm Kumarakom. These tie-ups were particularly popular during festive seasons and annual leave periods. The launch of a dedicated travel portal in collaboration with MakeMyTrip, named "myBiz," was another major breakthrough. The portal provided access to corporate fares, streamlined the booking and reimbursement process, and allowed for centralised travel tracking. The partnership with Indigo Airlines within this platform enabled reduced cancellation charges and simplified payment processes.
Wellness tie-ups included discounts with Dental, Skin, and Ayurvedic centres. The benefits were not restricted to employees alone — they were extended to spouses, children, parents, in-laws, and even retired staff. To ensure these arrangements were accessible and well understood, all tie-ups were communicated with detailed contact information through the Banks internal portal and newsletters.
Digital and Operational Improvements
Operational efficiency received a significant boost through process digitisation and automation. The allowance reimbursement workflow was revamped, enabling employees to submit eligibility declarations digitally and receive approvals without the need for physical documentation. This move reduced processing time and eliminated delays in claim settlement.
The HRMS saw further enhancements with the inclusion of digital certificates for employee recognition, polls for
ID card designs, and modules for mentorship tracking. A full revamp of employee ID cards was also completed, covering all business units and departments across locations.
The Banks commitment to compliance and quality was reaffirmed through the successful completion of the ISO 9001:2015 Surveillance Audit. The audit, conducted by IR Class Systems, validated the robustness of the HR Departments processes, documentation, and service standards.
The initiatives undertaken by the Human Resources Department in FY 2024-25 were consistent in intent and impactful in execution. Whether it was celebrating a singer from a rural branch, simplifying allowances for a field officer, offering health benefits to a retirees family, or preparing future leaders for transition, each action reflected attention to both structure and spirit.
Looking ahead, the Department remains committed to staying responsive, relevant, and rooted in the belief that people are not just the workforce, but the soul of the organisation.
EMPLOYEE WELL-BEING
The South Indian Bank Staff Welfare Scheme: This year 276 staff members have availed the benefit of The South Indian Bank Staff Welfare Scheme introduced in December 2008. Leave can be availed for the purposes of child care, medical treatment, Higher Education. The scheme ensures the Banks employee friendly approach towards its employees and the concern for their family members.
The Staff Welfare Study Support Scheme: The Staff Welfare Study Support Scheme which was introduced in the FY 2016-17 for children of staff members has been successfully continued in the current financial year also. The number of children availed Staff Welfare Study Support Scheme for the FY 2024-25 is 2006. The scheme has proved to be effective in its implementation with the aim of encouraging the children of staff members to soar greater heights.
Further to the above the Bank has introduced New Schemes in Staff Welfare Scheme for FY 2024-25:
• Nutrition allowance to female employees who became mothers.
• Scheme to recognize employees who have donated blood.
The bank has reduced the mandatory notice period of resigned staff from 90 days to 30 days. This enhance organizational agility, improves employee satisfaction and accelerates talent transitions.
A jovial and employee friendly approach by the Bank is
the only reason to have a very minimal attrition rate of 4.96%.
TECHNOLOGY DRIVEN HRMS SYSTEM
The HRMS section of South Indian Bank continued its steady transformation journey through the financial year 2024-25, with a range of strategic technology- driven interventions designed to streamline employee services, enhance compliance, and digitize core HR operations. Several initiatives undertaken during the year directly contributed to improved operational efficiency and employee experience across the Bank.
One of the most impactful implementations was the prompt rollout of the 12th Bipartite Agreement changes, which included crucial modifications in payroll, pension, and terminal benefit modules. This entailed complex system adjustments to disburse eligible arrears and benefits as per the revised industry-wide settlements, ensuring timely and error-free processing for all eligible employees and retirees. Closely associated with this was the integration of rebate computation under Section 89, which enabled employees to view detailed calculations for arrears-related tax relief, directly through HRMS. These efforts collectively reflect the systems enhanced adaptability to regulatory and statutory updates.
Another area of significant enhancement was the SIB mHRMS mobile application, which underwent multiple version upgrades over the year. Notable releases included v2.7.7, v2.7.9, and v2.8.0, each of which introduced meaningful new functionalities. These included location capture via Google Maps for attendance marking (pilot phase), training attendance, travel logs, a service desk interface, and CRM-related tools for lead processing. The mobile platforms evolution helped bring HR services closer to employees and offered enhanced accessibility, particularly for field staff.
In response to the Banks focus on staff welfare and digital governance, the HRMS section enabled several workflow-based modules for employee engagement and compliance. A notable addition was the digital execution of Employer-Employee Agreements linked to special training programs and qualification reimbursements, which was integrated with NeSLs DDE portal for secure execution. This facility not only ensured legal and procedural compliance but also digitized a previously paper-heavy process.
Further, the section contributed to the timely execution of strategic rewards and benefits. The SIB Max reward disbursal workflow, implemented in Q1, streamlined reward payments for qualifying branches, aligning with the Banks quarterly performance recognition strategy. Similarly, enhancements to the leave encashment module allowed for consolidated processing of multiple encashment types (such as LFC and annual leave) within a single payroll cycle—an improvement from the earlier sequential reporting method.
Supporting the Banks growing emphasis on self-service and employee empowerment, the team also introduced utilities like Form 16 email alerts for staff on long leave, the ability to digitally generate Form L for gratuity, and automated retiree greeting messages from the Chief Operating Officer, further digitizing key HR touchpoints. The integration of the Key Fact Statement (KFS) for staff term loans in accordance with RBI guidelines was also a compliance-oriented step, reinforcing transparency in staff lending operations.
On the administrative side, the section introduced subtle yet meaningful automation such as the meeting room booking system for Head Office and Administrative departments, and the collection and storage of key documents like relieving letters and commercial employment certificates for retirees, allowing better archival and retrieval mechanisms for the Staff Welfare section.
Among the notable welfare-focused initiatives, the Bank rolled out a Bereavement Assistance Scheme for retired staff members, backed by a structured HRMS workflow to facilitate benefit disbursal. In addition, the automation of CRAR-related benefit calculations which was earlier performed manually significantly improved the efficiency and accuracy of quarterly reporting to IRMD.
To aid in new workforce integration and staffing operations, a dedicated apprentice sourcing workflow was introduced, enabling branches to request apprentices and track the status of allocations and exits seamlessly. Another important operational upgrade was the NEFT facility for pension disbursement to other bank accounts, offering greater flexibility and convenience to pensioners.
While many of these projects were major enablers of systemic change, several subtle improvements were also quietly integrated into HRMS. These included Aadhaar name capture for seamless validations across systems and minor enhancements like Ex-Staff portal CAPTCHA simplification. These reflect the sections commitment to incremental upgrades without compromising on user convenience.
Through all these developments, the HRMS section has underscored its role as a backbone enabler for people-centric transformation within the Bank. The blend of regulatory compliance, employee experience enhancement, and operational streamlining has helped ensure that South Indian Banks HR technology landscape remains agile, responsive, and future-ready.
SIB-Executive Brief
The "SIB-Executive Brief" is a meticulously compiled daily news update prepared by HR-L&D. It encompasses a wide range of topics, including banking, finance, the economy, industry, sports and market rates. This brief is emailed daily to members of the Board and executives and is also available on SIB Insight for easy access by all staff members. To provide comprehensive information, it includes data on 10-year G-Sec yields, AAA corporate bonds for 5 years, 3-month CD & CP rates, 3-month forward premiums, US 10-year yields, and forex reserves. This valuable resource keeps Banks team well-informed on crucial market dynamics and trends.
E-Learning Tests
The Bank conducted two online tests focusing on Information Security and Cyber Security for Customer Service Associates and Officers across various grades (Scale I to Scale V) during the financial year 2024-25. These tests, administered through the LMS platform, iLearn, saw active participation from branches and offices. The objective was to enhance cyber security awareness among Banks staff members, ensuring they are well-prepared to handle security challenges in the digital age.
Continuous Assessment Test for Probationary Officers
To ensure the continuous learning and knowledge enhancement of Banks Probationary Officers, HR-L&D conducts e-learning tests covering 20 modules for each batch of Probationary Officers (POs), HR-L&D diligently ensures that all Probationary Officers make the necessary efforts to pass these tests on time, thereby securing their confirmation without delay. This rigorous assessment process helps maintain high standards of competency within Banks workforce.
SIB STUDENTS ECONOMIC FORUM (SIB SEF)
SIB SEF is a prestigious monthly publication that delves into and scrutinizes pertinent themes in the realms of economics, finance, and banking. Since its inception in December 1991, it has published 399 themes as of March 31, 2025. This initiative is designed to ignite a passion for economic affairs among the younger generation and serves as a comprehensive learning platform for students. Each edition covers a wide array of contemporary topics in economics and finance, ensuring that readers stay informed about the latest developments. The publication is extensively distributed to the offices of the Reserve Bank of India (RBI), various banks, corporate entities, and numerous educational institutions. Its insightful content and analytical depth have made it a highly respected and appreciated resource among students, professionals, and academic circles.
SIBLINK
SIBLINK is Banks quarterly corporate family magazine, showcasing a diverse range of content contributed by Banks staff and their families. This magazine includes articles, reviews, interviews with distinguished personalities, personal experiences, and other literary works. The hard copies are distributed to the Banks branches, departments, and offices, while digital versions are accessible on SIB Insight and the Banks website. SIBLINK also highlights the achievements of Banks staff members, including their wedding photos and campaign results. A new section introduced last year features contributions from the children of staff members, fostering a sense of community and pride. During the last financial year, the Bank has successfully published four issues of SIBLINK.
Daily Quiz
The HR-L&D department is steadfast in its commitment to the continuous learning and development of Banks staff members. To support this goal, we administer a Daily Quiz through the HRMS platform. This quiz includes five questions based on the content from the Executive Brief, covering general topics such as credit, forex, and NRI business. The Daily Quiz is an engaging way to ensure that staff members stay updated and continuously enhance their knowledge.
INDUSTRIAL RELATIONS
The Bank has enjoyed a mutually respectful and cooperative relationship with its employees and their representative organisations, namely the Workmen Union and Officers Association. This harmonious atmosphere has fostered a strong sense of shared responsibility towards the overall progress and wellbeing of the Bank and its staff. As a result of the positive industrial relations established with both associations, the Bank has experienced significant growth throughout the years.
A jovial and employee friendly approach by the Bank is the only reason to have a very minimal attrition rate of 4.96%.
PERFORMANCE LINKED INCENTIVE SCHEME (PLIS)
With an unwavering commitment to bolstering productivity and efficiency across every facet of its operations while nurturing a culture of motivation among its diverse cadre of employees, the Bank introduced the Performance Linked Incentive Scheme (PLIS) commencing from the fiscal year 2007-08. This visionary initiative has since served as a cornerstone in driving organizational excellence and fostering a performance-driven culture within the Bank.
The essence of the PLIS lies in its methodology, intricately designed to assess and reward employees based on their performance, as meticulously measured by the holistic Balanced Scorecard. This comprehensive framework evaluates not only the quantitative aspects of performance but also encompasses qualitative factors, ensuring a nuanced understanding of employees contributions towards the Banks overarching objectives.
A pivotal evolution occurred in the fiscal year 2021-22, marked by the Banks pivotal shift towards a Balanced Scorecard-based appraisal process across all job roles. This transformative paradigm shift heralded a new era of performance evaluation, wherein a singular score derived from the Balanced Scorecard serves as the quintessential benchmark for various pivotal aspects, including promotions and PLIS calculations.
This streamlined approach not only enhances transparency and objectivity in performance assessments but also reinforces the symbiotic relationship between individual performance and organizational success. By aligning incentives with performance metrics embedded within the Balanced Scorecard, the PLIS serves as a potent catalyst for igniting intrinsic motivation and driving continuous improvement among employees at every echelon of the organization.
Moreover, the PLIS transcends beyond mere financial incentives, embodying a holistic ethos that celebrates and recognizes employees contributions towards fostering a culture of excellence. The transparent and equitable nature of the scheme instills a profound sense of accountability, empowering employees to take ownership of their performance and actively contribute towards the Banks strategic imperatives.
EMPLOYEE STOCK OPTION SCHEME (ESOS)
To motivate the employees further and to inculcate in them a sense of ownership, Employees Stock Option Scheme (ESOS) was approved by the Shareholders at
the Annual General Meeting held on August 18, 2008. The Bank has introduced Tranche 1 of the scheme in 2009-10, Tranche 2 of the scheme in 2010-11, Tranche 3 of the scheme in 2011-12, Tranche 4 and Tranche 5 during 2012- 13, Tranche 6 during 2013-14, Tranche 7 during 2014-15, Tranche 8 & Tranche 9 during 201718 and Tranche 10 during 2020-21, Tranche 11 and Tranche 12 during the FY 2022-23, Tranche 13 during the FY 2023-24 and Tranche 14, Tranche 15, Tranche 16 and Tranche 17 during the FY 2024-25. The SIB ESOS 2008 Employee Stock Option Scheme (the Scheme) provides for grant of stock options on equity shares of the Bank to employees and Managing Director & CEO and Whole Time Director (s) of the Bank. The Scheme is in compliance with Securities and Exchange Board of India (Share-Based Employee Benefits and Sweat Equity) Regulations, 2021. The Bank followed Black Scholes model for calculating fair value of option to account for its stock based employee compensation plans as per the Guidelines for all the options granted till the accounting period ended March 31, 2025. The fair value thus arrived were being recognised as expense beginning with the accounting period for which approval has been granted as per RBI circular No. RBI/2021-22/95 DOR.GOV. REC.44/29.67.001/2021- 22 dated August 30, 2021. Till March 2025, 5,98,13,014 stock options were vested, out of which 2,93,24,218 stock options were exercised by eligible employees. The money realised due to exercise of the said options was Rs43,21,64,754.34 and consequently 2,93,24,218 shares of Rs1/- each have been allotted to the employees/ legal heirs concerned.
| (V J Kurian) | (P R Seshadri) |
| Chairman | Managing Director & CEO |
| DIN : 01806859 | DIN : 07820690 |
| Place: Thrissur | |
| Date: July 17, 2025 |
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