GLOBAL ECONOMY
The global economy demonstrated a degree of resilience in 2025, even as it navigated an environment of tariff uncertainty, elevated geopolitical tensions, high public debt and volatile capital flows. According to the Reserve Bank of India Annual Report 2025-26, global real GDP growth edged up marginally to 3.4 per cent in CY2025 from 3.3 per cent in CY2024, supported by front-loading of imports ahead of anticipated tariff changes, supply- chain realignments, fiscal and monetary stimulus in key economies, accommodative financial conditions and accelerating investment in Artificial Intelligence-related infrastructure.
Global headline inflation continued to moderate, declining to 4.1 per cent in CY2025 from 5.8 per cent in CY2024, though it remained above pre-pandemic benchmarks in many economies. World goods and services trade volume expanded by 5.1 per cent in CY2025, a meaningful improvement from the prior year, driven largely by the same front-loading dynamic that temporarily supported growth. However, as trade-policy uncertainty deepened through the year, the underlying momentum in trade remained fragile.
The global outlook weakened perceptibly as CY2025 progressed into 2026. Geopolitical risk, particularly the conflict in West Asia and the Middle East, emerged as a more pronounced drag on growth expectations, energy prices, inflation trajectories and financial- market stability. The International Monetary Fund, in its World Economic Outlook of April 2026, projected global growth at 3.1 per cent for 2026 and 3.2 per cent for 2027 under its baseline. The World Bank, in its Global Economic Prospects of June 2026, presented a notably weaker projection of 2.5 per cent for 2026, reflecting a more cautious assessment of the energy and geopolitical shock. World goods and services trade volume growth is projected to slow to 2.8 per cent in 2026, underscoring the structural headwinds from trade fragmentation and policy uncertainty. Global inflation is expected to stabilise at around 4.4 per cent under the IMF and RBI baseline, though risks remain skewed upward given stickiness in services inflation and the potential for energy-price shocks. The IMFs subsequent WEO Update of July 2026 revised the 2026 baseline further to 3.0 per cent (from 3.1 per cent), with 2027 growth revised up to 3.4 percent, broadly unchanged in cumulative terms as partly offsetting AI-
driven technology investment cycle cushions the drag from the Middle East Conflict.
For Indian Banks, the global environment transmitted risk through four principal channels. Disruptions in energy-producing regions elevated oil, gas, fertiliser and logistics costs, affecting domestic inflation and the input-cost environment for corporate borrowers. Higher tariffs and weaker global trade volumes weighed on export-oriented industries and investment decisions in trade-linked sectors. Risk-off sentiment in global financial markets raised the prospect of foreign portfolio investment outflows, exchange-rate depreciation, higher bond yields and valuation corrections in domestic asset markets. Finally, elevated public debt in major economies constrained fiscal response capacity and kept sovereign yields high, sustaining a degree of global monetary divergence. The lesson for banks, even when domestic fundamentals are robust, is the need for vigilant treasury management, liquidity buffers and monitoring of export-sector borrower health.
INDIAN ECONOMY
Amidst a complex and uncertain global backdrop, the Indian economy delivered an exceptional growth performance in FY 2025-26. As per MoSPI Provisional Estimates, Real GDP growth accelerated to 7.7 per cent in FY26 from 7.1 per cent in FY25, sustaining Indias position as the fastest-growing major economy globally. The RBI Annual Report 2025-26, released ahead of the final provisional estimate, had placed FY26 growth at
7.6 per cent. Real Gross Value Added also expanded by
7.7 per cent in FY26, up from 7.3 per cent in FY25. The growth outcome was underpinned by strong domestic consumption, sustained investment activity, sound macroeconomic policy management and a buoyant services sector.
Sectorally, the growth profile was broadly positive, though with some divergence. The manufacturing sector emerged as a standout performer, with GVA expanding by 11.5 per cent in FY26 compared with 9.3 per cent in FY25, aided by the momentum from the Production-Linked Incentive Scheme and growth in strategic industries. Industry grew 9.5 per cent in FY26, up from 8.7 per cent in the previous year, supported by manufacturing and a sustained push in capital expenditure. The services sector, which remains the cornerstone of the economy, expanded by 8.7 per cent in FY26 compared with 7.8 per cent in FY25, driven by
financial services, real estate, information technology and professional services. Agriculture and allied activities, however, moderated to 3.0 per cent from 4.2 per cent in the previous year, reflecting weather- related disruptions to kharif crops, making rural credit demand and agri-linked asset quality important areas for monitoring.
Inflation conditions improved markedly during the year. Headline CPI inflation moderated sharply to 2.1 per cent in FY26 from 4.6 per cent in FY25, driven by easing food prices, deflation in fuel and a gradual decline in core inflation. This created significant headroom for the Monetary Policy Committee to shift its stance. The MPC reduced the policy repo rate by a cumulative 100 basis points during FY26, bringing it to 5.25 per cent through three tranches: 25 basis points in April 2025, 50 basis points in June 2025 and 25 basis points in December 2025. The policy stance moved to accommodative in April 2025 and returned to neutral in June 2025. Alongside rate action, the RBI reduced the cash reserve ratio by 100 basis points to 3.0 per cent of net demand and time liabilities in four equal monthly tranches during September to December 2025. Durable liquidity augmentation measures during FY26 totalled Rs13,78,323 crore through open market operations, forex swaps and longer-tenor variable rate repo operations. Policy transmission was meaningful: fresh rupee loan weighted average lending rates declined by 95 basis points and outstanding rupee loan rates by 78 basis points, while fresh deposit rates declined by 65 basis points.
On the external account, the merchandise trade deficit widened to US$ 333.2 billion in FY26 from US$ 282.5 billion in FY25, reflecting higher import demand in a stronger growth year. However, a robust services trade surplus and sustained private transfer receipts helped contain the current account deficit at 1.1 per cent of GDP during April to December 2025, compared with 1.3 per cent of GDP in the same period of the previous year. Foreign exchange reserves stood at US$ 691.1 billion at end-March 2026, equivalent to approximately 11 months of import cover, providing a substantial buffer against external shocks and global capital flow volatility. The Central Governments gross fiscal deficit stood at 4.4 per cent of GDP on a revised estimate basis for FY26, with the budget targeting consolidation to 4.3 per cent of GDP in FY27. RBIs subsequent full-year Balance of Payments release (June 08, 2026) put the FY26 merchandise trade deficit at a marginally higher US$ 337.3 billion (against US$ 286.9 billion in FY25) and the full-year current account deficit at US$ 25.2 billion, or 0.6 per cent of GDP, with reserves drawing down by US$ 23.6 billion over the year even as the Q4 current account recorded a surplus of US$ 7.1 billion on strong remittances.
Looking ahead to FY 2026-27, the RBI has projected Real GDP growth at 6.9 per cent and CPI inflation at 4.6 per cent. The outlook is supported by sustained domestic demand, healthy corporate and banking sector balance sheets, ongoing fiscal consolidation and continued public capital expenditure. The principal downside risks remain geopolitical tensions and their effect on energy prices, global trade-policy uncertainty, potential financial-market corrections driven by external volatility, and weather-related risks to agricultural output and rural incomes.
THE INDIAN BANKING AND FINANCIAL SECTOR
The Indian banking and financial sector remained resilient and well-capitalised through FY26, building on the Balance Sheet repair of preceding years. The total flow of financial resources to the commercial sector increased to Rs47.0 lakh crore in FY26 from Rs36.2 lakh crore in the previous year. Bank credit to the commercial sector grew by 15.9 per cent year-on-year in FY26, a significant acceleration from 10.9 per cent a year earlier. Credit from Non-Bank sources also expanded by 13.3 per cent, reflecting the growing intermediation role of Non-Banking Financial Companies, Bond markets, Foreign Direct Investment and other channels.
Credit Growth and Sectoral Distribution
Non-food credit grew 15.9 per cent year-on-year at end-March 2026, with momentum broad-based and particularly pronounced in the second half of FY26. Micro and Small Enterprises recorded the strongest growth among major segments at 33.1 per cent, followed by medium enterprises at 21.7 per cent, credit to NBFCs at 26.3 per cent - which resumed sharply from October 2025 following the restoration of risk weights - and services at 19.0 per cent. Vehicle loans grew 18.6 per cent, personal loans 16.2 per cent, agriculture and allied activities 15.7 per cent, and infrastructure 9.5 per cent. Industry overall expanded at 15.0 per cent, with large industry growing at a more moderate 8.9 per cent compared with the considerably faster pace seen in the MSME segments. Housing loans, the anchor of the personal loan portfolio, grew 11.5 per cent. Loans against gold jewellery recorded exceptional growth of 123.1 per cent, a segment that warrants careful attention to product design, collateral valuation and conduct standards. This broad distribution indicates that the credit cycle in FY26 became more balanced across MSMEs, services, retail and agriculture, rather than being concentrated in large corporate lending alone.
Deposit Mobilisation and Liability Environment
While credit expansion was broad-based, the liability side of the banking system remained under structural
strain. Scheduled Commercial Bank deposit growth broadly remained below credit growth for much of FY26, keeping the incremental credit-deposit ratio elevated. SCB deposits stood at Rs241.47 lakh crore at end-March 2025, with growth of 11.1 per cent during 2024-25, while loans and advances stood at Rs191.20 lakh crore with growth of 11.5 per cent during the same period. The credit-deposit ratio was 79.2 per cent at end-March 2025 and rose to 80.5 per cent at end-November 2025, reflecting the persistent wedge between credit and deposit growth. To bridge funding gaps, banks resorted to sizeable issuances of certificates of deposit. Household financial savings are increasingly being allocated across mutual funds, insurance, equities and other market-linked instruments alongside bank deposits, intensifying competition for stable granular retail deposits and making deposit franchise management a strategic differentiator for the sector.
Digital Banking and Payments
Digitalisation continued to reshape the Banking Sectors operating environment in a fundamental way. Retail payment transaction volumes increased from 22,22,885 lakh transactions in FY25 to 28,19,536 lakh transactions, a growth of 26.8 per cent, while retail payment value grew 14 per cent to Rs1,048.8 lakh crore.
The Unified Payments Interface consolidated its position as the dominant rail for retail transactions, accounting for nearly 86 per cent of total retail payment transactions during the year. During FY26, UPI transaction volume grew 30.0 per cent to 24,16,169 lakh transactions, while UPI transaction value grew 20.6 per cent to Rs314.2 lakh crore. The RBI released Payments Vision 2028 in March 2026, articulating a forward-looking agenda anchored in safety, financial inclusion, globalisation, efficiency and customer convenience.
The expanding digital-payments ecosystem creates significant business opportunities for Banks in customer engagement, transaction data analytics, cross-sell, embedded financial journeys and low-cost service delivery. Equally, it elevates the risk profile: cyber threats, digital fraud and customer data protection are now board-level business risks rather than purely technology concerns. The RBI operationalised the Cyber Range initiative during the year and conducted thematic supervisory studies covering transaction monitoring systems, Security Operations Centre (SOC) operations, manpower adequacy in information technology and cybersecurity, and vulnerability management frameworks.
Key Regulatory Developments
FY26 was a defining year for the regulatory architecture
of the banking sector, combining a large-scale consolidation of existing instructions with a series of substantive directions that reshaped how Banks lend, price risk, manage liquidity and protect customers.
The most visible structural step was the consolidation of regulations announced on November 28, 2025. The Reserve Bank folded more than 9,000 circulars, of which about 9,445 were withdrawn or repealed, into 244 Master Directions spanning 11 categories of Regulated Entities. Although the exercise was carried out largely on an as is basis, without altering the substance of individual requirements, it materially reduced fragmentation, brought overlapping instructions into single reference documents and introduced a colour coded mechanism for future amendments. For Banks the consolidation raises the expectation of structured compliance mapping, clearer internal policy ownership and a more systematic linkage between business lines, products and the applicable directions.
Alongside the consolidation, the year saw a distinct tightening and modernisation of the credit intermediation framework. The Digital Lending Directions, 2025 strengthened consumer protection, due diligence over lending service providers, standardised disclosures through the Key Fact Statement and a directory of approved digital lending apps. The Project Finance Directions, 2025, effective October 01, 2025,
harmonised the treatment of infrastructure and noninfrastructure project finance, with clearer provisioning during the construction phase and defined norms for deferment of the date of commencement of commercial operations. The Co-Lending Arrangements Directions, 2025, effective January 01, 2026, widened the colending framework beyond priority sector loans and prescribed minimum retention and disclosure standards for arrangements between Banks and Non-Banking Financial Companies, encouraging a more structured, partnership led model of credit delivery.
Prudential and liquidity norms were also recalibrated. Amendments to the Liquidity Coverage Ratio framework, applicable from April 01, 2026, updated deposit run off assumptions to reflect the ease with which digitally enabled retail and small business deposits can now be withdrawn, aligning liquidity risk management with mobile and internet banking behaviour. A harmonised framework for lending against gold and silver collateral brought consistency to loan to value ceilings, collateral valuation and end use monitoring across Regulated Entities. Amendments to the Priority Sector Lending framework in 2026, together with the enhancement of the collateral free MSME loan limit from Rs10 lakh to Rs20 lakh from April 01, 2026, reinforced the focus on last mile and small enterprise credit.
Conduct and customer protection formed the third strand of the regulatory agenda. In March 2026 the Reserve Bank issued a draft framework proposing wider coverage of customer liability in electronic banking frauds and faster processing of complaints, signalling that customer protection and grievance redress will be a sharper supervisory theme in the period ahead. Taken together, the consolidation and the amendment directions of FY26 point to a clear direction of travel: growth is being encouraged, but within a framework of stronger governance, fuller disclosure, disciplined liquidity management and heightened customer protection, all of which the Bank has factored into its compliance and business planning.
The Liquidity Coverage Ratio framework was amended in April 2025, with the revised norms effective from April 1, 2026. The amendments introduced a higher run-off factor for retail and small-business deposits that are accessible through internet and mobile banking platforms, requiring banks to build stronger liquidity analytics for the digitally engaged deposit base. Consolidated Digital Lending Directions were issued in May 2025, standardising the display of matched loan offers, establishing a public directory of digital lending applications and sharpening accountability for digital lending partners and customer protection mechanisms. Final Project Finance Directions were issued in June 2025, establishing a principle-based project- finance stress-resolution regime and clearer Debt Commencement of Commercial Operations deferment norms for infrastructure financing.
The co-lending framework was expanded beyond priority-sector loans, with the minimum co-originator retention reduced from 20 per cent to 10 per cent and First Loss Default Guarantee cover extended up to 5 per cent, creating broader opportunities for banks to partner for credit reach while maintaining clear risk-sharing and governance expectations. Separately, instructions effective July 2025 removed pre-payment charges on specified floating-rate loans to individuals and Micro and Small Enterprises, an important development with implications for loan pricing strategy, customer retention and spread management. Together, these regulatory developments signal a clear policy direction: credit intermediation is being actively supported, but within sharper guardrails around liquidity, digital risk, partner accountability, customer protection and operational resilience.
OUTLOOK AND IMPLICATIONS FOR THE BANKING SECTOR
The outlook for the Indian economy in FY 2026-27 remains broadly constructive, supported by a sustained revival in domestic consumption, continued Government
capital expenditure, robust financial-sector balance sheets and strong performance across services and manufacturing. The RBI has projected Real GDP growth at 6.9 per cent for FY27, with CPI inflation expected to return to 4.6 per cent from the unusually low levels of FY26. The benign inflation setting and easing financial conditions provide policy space to remain growth- supportive, while vigilance over evolving global risks is essential.
For the Banking Sector, the next year presents well- defined opportunities alongside real execution challenges. Credit demand is expected to remain supported by domestic consumption growth, MSME formalisation, services-sector expansion, infrastructure investment, manufacturing and housing finance. However, the sectors performance will increasingly be determined by execution quality rather than Balance Sheet repair. The most consequential operating variables are likely to be the ability to mobilise granular retail deposits to fund credit growth, the management of net interest margins in an easing rate environment where asset yields reprice faster than deposit costs, and the maintenance of asset quality discipline across portfolios that have grown rapidly.
The moderation in Net Interest Margins reinforces the need for enhanced focus on asset-liability management, product-mix optimisation, fee-income diversification and operating efficiency. With global uncertainties persisting, including interest rate divergence, geopolitical disruptions and the risk of financial-market corrections, Banks must maintain robust treasury risk management, adequate capital planning and exposuremonitoring frameworks for trade-linked and external- sector borrowers.
Digitalisation will continue to be a defining competitive variable. Banks with strong digital acquisition capabilities, secure technology infrastructure, cyberresilience frameworks and superior customer-data governance will be better positioned to benefit from the expanding digital-payments ecosystem and the customer engagement opportunities it creates. Regulatory readiness must be embedded into business processes rather than treated as a compliance overhead: the new directions on digital lending, project finance, co-lending, LCR and customer protection all require stronger policy ownership, partner due diligence and internal assurance mechanisms.
Indias financial system has demonstrated the capacity to adapt without compromising stability, with the Reserve Bank maintaining a calibrated policy approach backed by strong systemic buffers. The Banking Sectors outlook remains fundamentally constructive, anchored by credibility, strong capital and asset-quality
fundamentals, but dependent on disciplined execution and proactive, forward-looking management strategies.
FINANCIAL PERFORMANCE Vs OPERATIONAL PERFORMANCE
During the FY 2025-26, the total gross business of the Bank increased from Rs1,95,104.12 crore to Rs2,23,620.37 crore; deposits increased from Rs1,07,525.60 crore to Rs1,23,346.32 crore and gross advances increased from Rs87,578.52 crore to Rs1,00,274.05 crore. Operating profit of the Bank had increased to Rs2,373.36 crore in FY 202526 from Rs2,270.08 crore in FY 2024-25. The Net Profit increased to Rs1,455.14 crore in FY 2025-26 as against Rs1,302.88 crore in FY 2024-25. The Provision Coverage Ratio (PCR including write-off) has improved to 94.10 per cent in FY 2025-26 from previous level of 85.03 per cent in FY 2024-25. The Board has recommended a dividend of 45 per cent i.e. Rs0.45 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 1.43 per cent and the Net NPA to Net Advances stood at 0.29 per cent as on March 31, 2026. The CASA has increased by 17.47 per cent during current Financial Year to Rs39,620.92 crore from Rs33,729.72 crore in the FY 202425. Net Interest Income of the Bank has decreased from Rs3,485.64 crore in the FY 2024-25 to Rs3,437.36 crore in the FY 2025-26. Further, the Net profit margin increased by 66 bps from 11.61% in FY24-25 to 12.27% in FY25-26. Net worth increased by Rs1,357.48 Crore from Rs9,646.15 Crore in FY24-25 to Rs11,003.63 Crore in FY25-26.
The Capital Adequacy Ratio of the Bank was 19.66 under Basel III norms as on March 31, 2026, as against the RBI mandated level of 11.50. The Book value per share has increased from Rs38.60 as on March 31, 2025 to Rs43.57 as on March 31, 2026. The gross revenue from Treasury Operations segment increased from Rs2,204.18 crore in the FY 2024-25 to Rs2,596.37 crore in the FY 202526. During the FY 2025-26, the Corporate/Wholesale Banking segment has decreased from Rs3,646.52 crore to Rs3,442.34 crore, Retail Banking segment has increased from Rs4,883.01 crore to Rs5,340.06 crore and Other Banking Operations segment decreased from Rs493.03 crore to Rs477.22 crore.
The segment results, net of allocated/apportioned cost and provisions from Treasury segment has increased from Rs309.95 crore to Rs457.52 crore, Retail Banking segment has increased from Rs815.72 crore to Rs1,090.87 crore, whereas Corporate/Wholesale Banking segments have decreased from Rs448.99 crore to Rs247.11 crore, and other banking operations decreased from Rs182.23 crore to Rs160.54 crore.
Net Profit registered an impressive double-digit growth, increasing to Rs1,455.14 crore from Rs1,302.89 crore in the previous financial year. Simultaneously, we significantly strengthened our financial foundation, with Capital & Reserves expanding to Rs11,403.50 crore. Despite this substantial increase in Capital & Reserves, Return on Equity (ROE) remained resilient and stable at 12.76%, reflecting our ability to deliver consistent shareholder returns while reinforcing capital strength. For the purpose of ROE:- Capital + Reserve & Surplus is used.
KEY BUSINESS RATIOS
Interest income as a percentage to the Working Funds for the FY 2025-26 has decreased from 7.69 per cent to 7.32 per cent, which is mainly on account of decrease in Yield on Advance.
Non-interest income as a percentage to the Working Funds for the FY 2025-26 has increased from 1.48 per cent to 1.49 per cent, mainly on account of higher recovery income from written off accounts and Insurance income.
On account of the above-mentioned reasons, the operating profit as a percentage of Working Funds for the FY 2025-26 has decreased from 1.85 per cent to
I. 76 per cent, the Return on Assets (based on Working Fund) for the FY 2025-26 has increased from 1.06 per cent to 1.08 per cent. Return on Equity for the FY 202526 has decreased to 12.76 per cent from 12.90 per cent from Previous Financial Year. Profit per employee has increased from Rs14.15 lakh in the FY 2024-25 to Rs16.16 lakhs in the FY 2025-26.
UPDATE ON IND-AS IMPLEMENTATION
The Ministry of Corporate Affairs (MCA), Government of India notified the Companies (Indian Accounting Standards) Rules, 2015 on February 16, 2015. Further, a press release dated January 18, 2016, was issued by the MCA outlining the roadmap for implementation of IFRS converged Ind AS for Banks. This roadmap required Banks to prepare Ind AS based Standalone & Consolidated Financial Statements for the accounting periods beginning April 01,2018 onwards, with comparatives for the periods ending March 31,2018 or thereafter. RBI, through its notification dated February
II, 2016, required all Scheduled Commercial Banks to comply with Ind AS for financial statements from the stated periods and also stated that early adoption of Ind AS is not permitted. On April 05,2018, the RBI had announced deferment of Ind AS implementation date by one year and subsequently on March 22,2019, the RBI has announced deferment of the implementation of Ind AS by Banks till further notice. RBI has issued draft
guidelines on Asset Classification, Provisioning and Income Recognition Directions replacing the existing incurred loss model with Expected Credit Loss which will be effective April 1, 2027.
Based on the guidelines issued by RBI, the Bank is gearing itself to bring the necessary systems and processes in place to facilitate seamless transition to ECL. Bank has undertaken the following steps:
- Led by the MD & CEO, a cross-functional Steering Committee has been established to drive the Banks ECL implementation. The group oversees the progress and provides strategic oversight on technical requirements, operational processes, business impact, and project management.
- The refinement of IT solution procured to automate the computation of Expected Credit Losses (ECL), Effective Interest Rate, Fair valuation and other accounting changes mandated as per RBI guidelines are under progress.
- The Bank is submitting half yearly Proforma Ind AS Financial Statements to the RBI within the stipulated timeline. 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 in the preparation of its financial results for the year ended March 31, 2026 as compared to those followed for the year ended March 31, 2025.
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. 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, the Bank has 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 stakeholders.
While making strategies, the Bank take 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.
In line with the previous years strategy, 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 advance 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 its 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. The CI ratio for the year 2025-26 was better than the figure for FY25. |
| 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 nextgen 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 | - Focus on cohesive lending with emphasis of nurturing relationship through multiple banking products offerings |
| Sliuclui e | - 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 | - Competency building through newly launched LMS & instilling sense of ownership and sensitivity |
| - Continuous training programs for senior management team. Training/ Re-skilling of staff members gather pace | |
| - 1000+ employees trained for MSME and Intensive Service-to-Sales training | |
| c) Building Robust Infrastructure | - Building Frictionless Processes which include the GST Power, LAP Power, Power Drive, Power CONSOL, Edu Power, Micro Power, Composite Power, Aawas Power, SIB Gold Express, Captive power etc. which has brought in tremendous improvement in the TAT for various loans. |
| - Moved from Paper to Automated Systemic Solutions. | |
| - Faster approval for high-quality loans, Increased Branch Efficiency | |
| - Building out Digital as a new distribution channel | |
| - Quick PL and Quick FD two new offerings that are end to end Digital | |
| - Aim to create a Digital Bank - i.e. a fully digital offering to attract and engage new customers - Built out distribution capabilities in non-Kerala locations | |
| - The systems and controls are put in place and the utmost priority is given for quality over, growth. | |
| - Introduced performance-driven reward system to incentivize ECG front end sales team by focusing on disbursement. | |
| - 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 | - Adding High yielding assets like Power Consol, Loan against Shares, Personal loans, etc. |
| Products | - 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 - More focus in outside Kerala market, high potential regions within India like Maharashtra, TN, Karnataka & Delhi. - Focus on acquiring NTB business with quality by driving Higher IP value collection and sourcing of higher Variant of CA/SB products. - Re-organise structure with a new vertical focus on pan India basis - Expanding geographies by partnering with exchange houses, Banks and remittance platforms - Abroad RMs to be mapped with specific set of customers of Representative Office in order to deepen the portfolio. |
| b) Higher Share of Customer Wallet - Improving the product holding: Focus on a minimum of two product holdings per customer to enhance engagement and retention. Cross selling products such as deposits, cards, insurance, and digital services will improve customer lifetime value. - Acquiring Savings account relationship of One card customer completely through digital journey. - 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 - 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. - Drive activation of inactive and dormant accounts through targeted branch and direct customer campaigns. Personalized communication, digital nudges, and service interventions can help revive these accounts. |
> 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.
- Roll out of Comprehensive Board-approved policy for acquisition of stressed loans, implementation of its operational set up and acquiring Banks first tranche of stressed assets from permitted entities.
- Specialized team at CRT to Trace, Track & Trap (T3) alternate cash flows of NPA customers.
- Empanelling competent agencies with a special focus on recovery from unsecured NPA portfolio including credit card portfolio handled by SIB team.
- 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
> 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 the 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. Launched Sales Value Addition metric to track sales activities at Branch level named SIB MAX.
b. Enhancing Branch Morale and Increasing Sales Focus
i. Launched sales rewards from January 1, 2024
ii. Plan is based on Sales Value Addition and is 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. Material increase in branch productivity
c. Since the scheme is product agnostic it reduces risk of mis-selling
c. Enhance Branch Capabilities
i. Training branches on products and processes and customer relationship management
. 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. Shift from Corporate to MSME and Retail, gathers momentum
iii. Higher staffing count
a. Large proportion of staff in non-customer 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
. 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. The banking platforms of the Bank are API enabled allowing us to integrate with third- parties
i. Integrations at scale already operational vis- a-vis Credit Cards
ii. Other relationships under development
5. Enhancing Control / Compliance Architecture .
DIGITAL AND INFORMATION TECHNOLOGY, STRATEGIC ALLIANCES & MARKETING ENABLED SERVICES
This Fiscal Year, like previous years, marks a defining chapter in South Indian Banks journey of digital advancement. The all-time focus on technology underscores its dedication to innovation, continuous enhancement, and the strategic implementation of digital initiatives aligned with the Banks business goals.
It is with great pride that the Bank presents strategic milestones, technology initiatives, and forward-looking commitments from FY 2025-26.
The Bank has actively pursued the D-I-G-I-T-A-L strategy focused on the following key pillars.
- Digital Bank
South Indian Bank setup the Digital Bank, designed to function as a distinct revenue-generating unit, tapping into business opportunities from purely digital sources. The vision is to forge strategic alliances with fintechs and digital ecosystems, leveraging their agility and cutting-edge solutions to accelerate Banks digital transformation.
While utilizing digital technologies to elevate the banking experience by addressing the challenges faced by traditional branch banking, Bank targets cost optimization and scalability. This is further complemented by Banks Digital Marketing efforts to drive traffic and acquire customers using pure-play digital platforms.
Co-Lending: 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.
In addition to the below list, several tie-ups are in pipeline, spanning personal loans, MSME financing, and retail mortgages, with the aim of building a balanced, tech-led lending portfolio.
| 1. Moneyview | Co-lending for personal loans that are disbursed with fully digital customer journey. |
| 2. Muthoot Fincorp | Co-lending for EDI loans, enabling priority sectors business loans for merchants on UPI payments. |
| 3. Amazon Pay Later and Personal Loans, in association with Axio | Offering checkout finance solutions and Personal Loans to Amazon customers, expanding the Banks presence in the embedded finance space. |
| 4. IIFL Finance, Rupeek Capital, and Fedfina | Co-lending for Gold Loans, enabling rapid and secure disbursal at scale. |
| 5. Godrej Housing Finance Ltd. (GHFL) | Co-lending for Housing Loan under prime category. |
In-House Digital Product Innovation: Complementing external partnerships, the Bank is also focused on launching proprietary digital products under the Quick suite, targeting seamless customer journeys with minimal friction.
| 6. Quick FD | Enabling digital fixed deposit creation in minutes. |
| 7. Quick PL | Facilitating instant digital personal loan disbursement with minimal documentation. |
Driving Business Through Strategic Fintech Partnerships: At the heart lies a robust ecosystem of partnerships with leading Fintechs, unlocking new avenues for customer acquisition, digital engagement, and revenue generation.
| 8. Upswing Financial Technologies | Facilitating digital deposit sourcing through multiple partner platforms, helping expand the Banks liabilities base in a seamless, tech-enabled manner. |
| 9. Dhanlap & Case Platforms Pvt. Ltd. | 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. |
10. Finsall Resources Pvt. Ltd. To enable Health Insurance premium finance to customers in a fully
digital journey.
Through the above-mentioned tie-ups from CoLending, Fintech and Digital Business, Bank could generate a total asset business of Rs2236 Crore as on 31.03.2026.
Brand Visibility Enhancement Initiatives During the FY 2025-26
11. Brand Campaigns & Festive Marketing
To reinforce South Indian Banks PAN India presence and connect emotionally with diverse customer segments, the Bank rolled out high- impact festive campaigns regionally and nationally.
- Onam Campaign: The Bank launched an exclusive Onam festival commercial that received more than 34.2 Million views on digital platforms. This was heavily supported by an influencer campaign promoting various products and Onam offers, which garnered over 5 million views. The TV campaign ran extensively across all leading Malayalam channels, including news, GEC, and movies. Additionally, the festive performance campaign successfully generated a significant number of leads.
- Diwali Campaign: Centered on the multilanguage theme Khushiyon Ka Deep Jalaiye, the exclusive festive commercial achieved over 60 million views. This was amplified by a targeted festival influencer campaign receiving over 5 million views and performance campaigns generating significant leads. The Bank also executed branch-level activations across 6 cities in partnership with Radio Mirchi.
- Pongal & Makar Sankranti Campaign: The Bank launched dedicated TVCs in Tamil, Kannada, and Telugu languages, with the Tamil theme focused on Uravukal thaan thamizhakathin
valimai. The festival TVC achieved 80 million views on digital platforms during the festive season.
- 97 th Foundation Day: A comprehensive print campaign was rolled out in Kerala across all leading English and Malayalam dailies. Alongside print media, the Bank launched an exclusive brand video showcasing its role in the customer lifecycle, which garnered 6.6 million views in digital platforms.
12. Experiential & Regional Events
The Bank activated around 15 marquee onground events in FY26, specifically designed to build trust, deepen customer connections, and celebrate key milestones.
- NRI Engagement Events: Strategic NR Meets were conducted at Kannur, Kottayam, and Thiruvalla, where copies of the new My Financial Passport booklet were distributed to over 1,300 attendees to aid financial planning. Additionally, the Bank hosted an exclusive movie premiere night for the film Hridayapoorvam in Dubai for its valued NR customers.
- SIB Agam Live: This special musical evening by the renowned AGAM band organized in Kochi attracted over 650 attendees. The event was directly leveraged for brand visibility, relationship building and business generation.
- Fraud Proof Laughs: In partnership with Malayala Manorama, the Bank organized a unique stand-up comedy series featuring Sabari across Kottayam, Thrissur, Kozhikode, Kochi, and Trivandrum. Each location achieved a footfall of over 100 attendees, effectively blending entertainment with critical financial fraud awareness.
This was done as a customer awareness exercise to drive down the message of being prepared against Cyber awareness. Using its mascot, SIBro, the Bank prepares its customer to FIGHT against, F-Fear, I-Ignorance, G-Greed, H-Haste & T-Trickery, which are the normal social engineering techniques used by fraudsters.
13. Special Events & Womens Day
- Womens Day Celebration: Held in Chennai with over 220 attendees, this event focused on deep engagement with both existing and New-To-Bank women customers. To commemorate the occasion, the Bank created and launched Volume 2 of the special coffee table book, Women Like You, featuring 53 inspiring leadership stories of women achievers from diverse professional fields.
14. Digital Sourcing & Business Impact
In FY26, the Bank generated exceptional business exclusively through digital sourcing channels. The Bank sustained a dynamic and highly active presence across its social media ecosystem, systematically highlighting its comprehensive suite of financial products and services. To optimize audience, reach and maximize meaningful engagement, selected high-impact posts were strategically amplified through targeted promotional campaigns. The Bank also nurtured a strong emotional connection with its customer base by sharing curated greetings and interactive content during special occasions and major festive seasons. Leading digital platforms-including Facebook, X (formerly Twitter), Instagram, LinkedIn, and YouTube-were effectively leveraged to broadcast timely product announcements, promotional offers, corporate updates, key milestones, and customer-centric initiatives. This comprehensive, multi-channel strategy successfully ensured consistent, unified, and impactful digital engagement throughout the year.
- New-to-Bank (NTB) Performance Campaigns: Digital lead generation and performance campaigns were conducted for products like Gold Loans, Term Deposits, NRI accounts, Savings Accounts, Quick PL, Home Loans, Current Accounts, Car Loans, Personal Loans, and Quick FDs.
- Existing-to-Bank (ETB) Campaigns: Targeted lifecycle marketing campaigns were done for Pre-Approved Personal Loans, Gold Loans,
Auto Loans, and Home Loans.
- CIBIL Campaign: Specific campaigns centered on credit health drove additional leads across Home Loans, Mortgage Loans, and Vehicle Loans.
15. Digital Assets & Content Leadership
- Website Revamp: The Bank launched its newly designed website featuring an updated layout, fresh content, and creative sets, receiving 22 Lakh user visits since its launch.
- Google My Business Listing: The Bank verified and confirmed 95% of its branch listings on Google My Business, with plans underway to expand this activity to 1,273 ATM listings to ensure seamless local searchability.
- Fincredibles Multilingual Channel: Rolled out in English and Malayalam to share personal finance insights and practical money management tips. The channel built a significant community, achieving over 1,37,000 followers on Fincredibles English and over 30,000 followers on Fincredibles Malayalam.
- SIB Blog: The Bank published over 160 blogs that garnered more than 1.5 Lakh views, with the next phase targeting a 10% traffic increase through product-led content.
- Thought Leadership Materials: In addition to the Women Like You Vol. 2 book, the Bank launched the My Financial Passport NRI booklet and the SONA comic series to simplify investing and promote the SIB Power Console digital asset.
16. Other Key Initiatives & Strategic Partnerships
- Mothers Day Campaign: In partnership with Red FM, the Bank executed the Ammakkuvendi campaign at Technopark, Trivandrum in May 2025, featuring on-ground activations, on-air promotions, and social media reels. The exclusive campaign video achieved over 1.20 million views.
- Environment Day 2025: The Bank collaborated with The New Indian Express in June 2025 to distribute seed packets to all newspaper consumers, encouraging them to plant hope and nurture a greener tomorrow under the theme Tiny Seeds, Big Impact.
- Doctors Day Campaign: Partnering with Radio Mirchi in July 2025, the Bank launched
the Prescription of Trust campaign across Kochi, Trivandrum, and Kozhikode. Promoted via multiple influencers, the campaign successfully gathered more than 2 Lakh views.
- Media Partnership Campaigns: The Bank associated with the popular regional program Marimayam by Mazhavil Manorama, preparing 5 exclusive content pieces with the cast, which was released on various digital platforms. The campaign garnered over 10 million views.
- Influencer Campaigns: The Bank rolled out over 30 influencer collaborations focusing on Home Loans, Vehicle Loans, Personal Loans, Quick FD, Gold Loans, and NRI Banking, delivering over 21.5 million views.
- Radio Campaigns: The Bank launched 9 regional campaigns across 20+ stations in the strategic markets, broadcasting over 7,000+ ad spots with an average duration of 20 seconds, to promote core loan and deposit products.
- Social Campaigns: More than 25 microcampaigns were executed-including the Learn Finance series with UGC creators, SIB Shorts reels, Knowledge Hub series, SIBro Fraud Prevention Shorts, Teatime Thoughts, and festival teasers-driving over 25 Lakh views across formats to boost engagement and brand trust.
17. Hyper Local Marketing
- Merchant & Store Collaborations: Initiated in June 2025, the Bank partnered with over 35 plus brands covering 300 plus stores across Kerala, for debit card offers, utilizing both merchant-funded and co-funded models. Major participating brands included Navya Bakery, Pandhal Cakes, and Roms n Raks.
- Transaction Metrics: This hyper-local
strategy led to a significant increase in the transaction numbers and overall transaction volume at partner stores using SIB debit cards. The program also collaborated with top influencers like Eat Kochi Eat in Kerala to curate themed promotions.
18. Public Relations & Corporate Communications
During the Financial Year, the Banks Corporate
Communication initiatives achieved outstanding
results through a strategic combination of
targeted media interactions, well-crafted campaigns, and impactful press releases. These synchronized efforts significantly amplified the Banks Share of Voice (SoV), dramatically enhancing brand visibility across both regional and national media channels. By maintaining a proactive public relations strategy, the Bank successfully positioned its spokespeople as credible thought leaders, earning widespread recognition from key stakeholders and the media. Furthermore, consistent and meaningful engagement with leading journalists and media houses cultivated deep trust and credibility, allowing the Bank to transparently communicate crucial developments, milestone achievements, and corporate responses while reinforcing a strong, positive brand image.
A highly effective PR framework also secured global digital and print media visibility for the Banks key events and financial performance. Reflecting this momentum, high-impact exclusive interviews with the MD & CEO were prominently featured across premier media platforms, including CNBC TV18, The Hindu Business Line, Economic Times, Moneycontrol, Malayala Manorama, Mathrubhumi, PTI, Business Standard, and Financial Express. These elite media engagements successfully reinforced the Banks market leadership and ensured clear, consistent, and high-value communication with all stakeholders.
- Media Visibility & MAV: The Banks PR strategy significantly boosted its brand image via high- impact interviews and press releases across India and the GCC, capturing a significant Media Advertising Value (MAV) in FY26.
- Coverage Growth & Share of Voice: These efforts drove a 12% growth in PAN-India media coverage from FY25 to FY26, establishing a prominent Share of Voice (SOV) in the market. Proactive PR engagements successfully positioned SIB representatives as credible industry thought leaders among media houses and stakeholders.
- Press releases were issued for various occasions, such as the Declaration of Financial Results, Hosting of National Co-lending Summit-SEED, South Indian Bank being live on Non-tax Receipt Portal-Bharatkosh, South Indian Bank provides ambulance to General Hospital, Kochi as part of its CSR initiative, South Indian Bank donates dialysis units to Lissie Hospital, Ernakulam, Kerala, Partnership
with top restaurants for discounts, Launch of SIB Gold Express Loan, Launch of Paperless Digital Loan against Mutual Funds, Launch of UPI-based GST payment facility, Launch of Her Account, Premium Savings Account for Women, Launch of SIB Power Consol, offering a single EMI solution for multiple loan obligations, Launch of RuPay SIB Paytag, Celebration of 97 th Foundation Day and Appointment of Mr. Jose Joseph Kattoor as Non-Executive Part-Time Chairman.
- Innovation in Systems and Channels for Customer-Centric Enhancements
A key emphasis is placed on developing and improving intuitive and seamless platforms that cater to diverse customers, including both digitally savvy millennials and longstanding legacy customers.
Bank already offer robust and diverse payment modes through Mirror+, Net Banking, NACH, Debit Cards, Credit Cards, IMPS, UPI, AEPS etc. On the acquiring side the Bank has PGs, UPI-POS, Bharat QR etc. ensuring seamless payments aligned with high industry standards.
During the last Financial Year, the Bank continued its digital transformation journey, successfully rolling out several key initiatives designed to enhance customer convenience, expand its reach, and fortify the security of banking ecosystem.
1. Elevating the Everyday Digital Banking Experience: The Bank has significantly enriched its digital touchpoints to serve as a comprehensive, user-friendly hub for the customers:
- Wider Accessibility : Revamped Banks mobile app (SIB Mirror+) to allow users without an active operative account to explore and access digital banking services.
- Financial Wellness & Lifestyle :
Integrated features in the app that allow customers to check their CIBIL scores, view locker details, access a personalized financial calendar, and seamlessly redeem points through SIB Rewardz.
- Convenience : Introduced AutoPay
for hassle-free bill payments, instant payee addition for quicker transfers,
seamless in-app signature updates, and direct management of the SIB OneCard Credit Card.
- Revamped Website : Successfully
launched a completely modernized Bank website designed for intuitive navigation and enhanced customer engagement.
- Authenticated Customer
Engagement : Introduced a secure authentication module to safely verify requests initiated at the branch level directly through our digital channels.
2. Seamless Onboarding and Dedicated NRI Services: The Bank made joining and banking with us faster and fully digital:
- Simplified Account Opening :
Streamlined the onboarding process for customers who already hold a banking relationship with us but do not yet have an operative account, delivering seamless, branch-free experience.
- Frictionless NRI Account Opening :
Enhanced the existing in-house mobile onboarding app, SWIFTe, by adding a simplified, paperless account opening journey specifically for NRE/NRO accounts to expand the global NRI customer base.
- Tailored NRI Features : Empowered NRI customers with the flexibility to instantly switch between their Indian and overseas registered mobile numbers directly within the mobile app (SIB Mirror+).
3. Next-Generation Payments and ATM Innovations: The Bank has upgraded our payment infrastructure to make transactions faster, more inclusive, and highly accessible:
- UPI Enhancements : Upgraded the underlying UPI technology to process a higher volume of transactions with greater speed and reliability. We also introduced biometric and facial recognition for highly secure, seamless PIN setups and transactions.
- Modernizing Cards : Customers can now instantly generate and view
virtual debit cards on their mobile app (SIB Mirror+). The Bank also launched an innovative NFC-based Mobile Sticker that turns a smartphone into a tap-and-pay debit card.
- Tax & Bill Payments : Made business compliance easier by enabling GST payments via UPI. The Bank also has upgraded the Bharath Bill Payment platform capabilities for a smoother, more resilient customer experience.
4. Empowering Corporate and Trade
Finance Customers: Banks internet
banking platforms received substantial upgrades to better support businesses:
- Trade Finance Enhancements :
Introduced various enhancements in trade finance within the Internet Banking portal, making cross-border business easier to manage.
- EPFO Integration : Integrated directly with the Employees Provident Fund Organisation (EPFO) portal to streamline transactions for Banks corporate clients.
5. Fortifying Security, Trust, and Compliance: Protecting Banks customers wealth and data remains its top priority:
- Advanced Fraud Prevention :
Completely upgraded Banks Fraud Risk Management and dispute resolution systems to proactively monitor and secure transactions across all banking channels.
- Device-Level Security : Implemented SIM binding on Banks mobile app (SIB Mirror+) to prevent unauthorized access and ensure transactions are strictly linked to the customers registered device.
- Global Security Standards : Ensured that the entire ATM ecosystem meets the Payment Card Industry (PCI) compliance requirements.
- Growth with Adoption of Emerging Technologies (AI/ML)
Bank has undertaken a structured and systemic approach to adoption of Artificial Intelligence (AI), Machine Learning (ML) and Advanced Analytics-progressing from
early-stage exploratory pilots to mature, production-grade deployments across Gen AI tech, credit risk management, fraud detection, financial crime prevention and enterprise governance.
Banks strong emphasis is on developing internal capability. Several mission-critical platforms have been conceptualized, engineered and operationalized entirely inhouse. The Bank has built a suite of in-house Generative AI and Agentic AI platforms, collectively branded under the Zeni framework.
On the automation side, the Bank has 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.
1. Complai AI - Regulatory Intelligence Pilot AI system designed to answer queries relating to regulations and regulators in the Indian BFSI space.
2. AI Voucher matching solution: Financial/ Non-Financial voucher matching with the documents uploaded in Banks Document Management system against the CBS transactions using Artificial Intelligence Models.
In-house AI Deployments
3. Zeni NoteForge: A Generative AI-powered office notes creation tool. NoteForge generates standard, structured office notes from user instructions and reference documents. Where a relevant compliance note or policy document exists in the repository, the system automatically correlates it with the uploaded data and produces an initial draft revision - significantly reducing preparation time for formal communications and compliance submissions.
4. Zeni Bibliotheca: Bibliotheca enables
teams to store, search, and extract inferences from large volumes of internal documents.
5. Zeni Locus: Zeni Locus uses Agentic AI and RAG-based retrieval over the Banks internal document vector store to deliver accurate, context-aware information to staff without hours of manual searching.
6. Zeni Aegis: An Agentic Al-powered enterprise governance platform developed entirely in-house.
7. Zeni Aethel: Zeni Aethel is the data foundation for the Banks Retrieval- Augmented Generation (RAG) systems, ensuring that AI applications draw on accurate, current, and Bank-specific information.
8. Zeni Nexus: A foundational AI enablement framework built from scratch and adapted to Banks environment.
- Infra Resilience and Continuous Availability
Embracing technology and innovation is imperative to remain relevant in todays dynamic banking industry. The technology team of the Bank is committed to the continual enhancement and expansion of both applications and infrastructure necessary to align with the evolving business needs of the Bank under the following pillars.
o Cloud Expansion
o High Availability
o Fraud Detection
o Cyber Security
o Modernization of Infrastructure
o System Software
- Transforming Enterprise Applications
Aimed at improving efficiency, productivity and collaboration, expanding enterprise applications is a key focus area. The following initiatives were rolled out in the last FY.
Strengthening Loan Origination Platform
1. Affordable housing loan module is implemented under the new in-house retail LOS platform. This initiative is entirely inhouse. Login, sanction till disbursement will happen seamlessly through this platform.
2. Branch Personal Loan Module implementation in in-house Retail LOS platform. This is an end-to-end journey from login to disbursement.
3. Scorecard based STP workflow to facilitate the consolidation of multiple loans into a single loan by Assessing Customer Eligibility, Automating Documentation &
Offering Consolidated Loan Options.
4. Simplified Scorecard based STP workflow for Login, Sanction, Loan account opening and Charge collection of UDAY & UDAY MUDRA loans. Respective module was built in-house in the MSME LOS platform.
5. Auto generation of Loan documents using Artificial Intelligence Models by extracting data from Sanction Orders.
Enhancement of Workflow Solution
6. Enhancement of the Workflow for NonFunded Business management with integration to Banks trade finance portal.
7. Workflow for managing the Death Claim of retail customers as per the new RBI guidelines.
8. KYC Document Management System (DMS) to store and retrieve KYCs of customers.
9. Enhancement of existing customer onboarding workflow to accommodate the NRE/NRO account opening requests originating from Mobile based customer onboarding system (Swifte).
10. Centralized Signature addition, deletion and modification facility is introduced as a Workflow for better control and management.
11. ACE (Authenticated Customer Engagement) module to identify and invite customers to open deposits with integration to mobile app (SIB Mirror+).
12. Credit Approval Management System (CAMS)-Module launched for Top executives for simplifying the process of Committee approval of Credit files.
SIB Gold Xpress/Gold Aureate
Smart, in-house digital enhancement to the Banks gold loan service, designed to make borrowing against gold faster and more transparent for every customer. The gold loan sanctioning and processing is completely digitised. Built entirely by the Banks own technology team, the new gold loan model reflects South Indian Banks commitment to combining regulatory responsibility with customer convenience, ensuring that meeting lending guidelines never comes at the cost of a smooth banking experience.
CRM & Lead Management Automation
A completely in-house developed CRM software was rolled out with following features:
360-Degree Customer View
360-degree customer view has been successfully deployed to Relationship Managers (RMs) and branch users. Current operational modules include customer profile details, digital product usage and customer asset/liability holdings.
Lead Management:
Omnichannel Ingestion: The platform
seamlessly aggregates banking product leads sourced from Customers, Staff, and Fintech partners.
Module empowers Banks sales team to perform the lead management effectively. Also integrated with HRMS mobile application for performing lead tracking and modification through HRMS application.
Customer Service Management
Module enables customers and staff to create service request, complaints, feedback etc.
Escalations, alerts and TAT management of services requests/complaints are included in the module. This enables to perform better customer servicing.
- Agile and Adaptive Approach
IT projects follow a framework where each initiative passes through multiple stages with immaculate tracking from inception to completion.
- Long Term Trust Assurance and Regulatory Compliance
The Bank is actively prepared to ensure comprehensive compliance with all anticipated statutory and regulatory changes round the year. Dedicated training and awareness programs established to educate the workforce at all levels, fostering a culture of compliance seamlessly integrated into its overall digital strategy.
Few of the last years initiatives are listed below:
1. Kartavya Plus: New Unified Dashboard for Streamlining and Monitoring Compliance Function.
2. Track In Portal: The application is used for monitoring, purchase and sale of Banks shares and also tracking the shares held by the designated persons of the Bank and their relatives and to obtain clearance from Secretarial Department to purchase the shares by the Designated Employees above the threshold limits.
3. Structured Digital Database (SDD) Application: A digital application for recording, tracking and maintaining the complete movement and sharing of Unpublished Price Sensitive Information (UPSI), in compliance with Regulations 3(5) and 3(6) of the SEBI (Prohibition of Insider Trading) Regulations, 2015. The application captures the nature of UPSI, details and unique identifiers of persons sharing and receiving the UPSI, and maintains the database internally with adequate controls, time-stamping and a non-tamperable audit trail. Records are preserved for the prescribed period and the requisite data and audit trail can be made available for regulatory inspection and verification by the Secretarial Auditor as part of the Annual Secretarial Compliance Report/Secretarial Audit Review.
4. New AML Application: The existing Anti Money Laundering (AML) solution was migrated to a new application Compass, with more features and enhancements and better streamlined processing of AML alerts.
5. Mule Hunter: New Application using AI/ ML based modelling to identify potential mule accounts in collaboration with RBI Innovation Hub (RBIH).
6. CTS Continuous Clearing: Implementation of Phase 1 Continuous Clearing and Settlement on Realisation system upgrade of Cheque Truncation System (CTS). The new system replaces the traditional batch processing model to same-day continuous clearing, significantly reducing the standard T+1 cheque clearing cycle to a matter of hours.
7. SWIFT Message Standard Migration: Phase 1 implementation of the SWIFT ISO 20022 message standard migration which represents the SWIFT financial industrys shift from legacy, text-based MT
(Message Type) formats to a structured, data-rich XML format.
8. Implemented RBI Mandate to migrate Banks digital banking domains to .bank. in
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 & SMS services for retrieving balance.
- 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.
- Chatbotbased banking services through SAM and SONA - leveraging Banks chatbot platform to deliver automated, conversational banking experiences.
- 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 - Provides instant opening of individual savings and current accounts for both domestic and NRI customers, delivering a seamless, branch free onboarding experience.
- Quick FD for digital deposit opening for NTB customers
- Authenticated Customer Engagement-Customer module on SIB Mirror+ & SIBerNet 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 through NCRM 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 365x24x7, 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.
- BBPS Facility for Corporates: Corporates can present bills and accept payments directly through the BBPS platform by integrating the system with their existing ERP solutions.
- 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.
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 onboarding of Loans.
- Technology backed Infrastructure powering Banks branches and ATMs.
- Enterprise Risk Management Solution.
Technology Infrastructure ront
- Core Banking Solution (CBS) Finacle 10. from Infosys. T he B^H 1 ^ ^ awards ^ accolades during
the FY 2025-26 also. These awards are a testimony
- Enhanced Security Operation Centre. to the Banks strategy, commitment and execution of
- ISO 9001:2015 and ISO 27001:2022 Certified Bank various d gital/IT initiatives a ^ h ave brought in acclaim
from both customers and stakeholders.
| Infosys Finacle Innovation Awards 2025 | - - Process Innovation-Platinum Winner-SIB Power Drive Product Innovation-Platinum Winner-GST Power Business Loan |
| 21 st IBA Technology Awards | - - - - - - Winner-Best Tech Talent Runner Up-Best AI/ML Adoption Runner Up-Best Tech Bank Runner Up-Best Digital Sales Special Mention-Best Fintech & Digital Payment Index Adoption Special Mention-Best IT & Risk Management |
| Protean, ET BrandEquity | Digital Disruptors 2026-Sri. Sony A, CGM & CIO |
| SNSin CIO 500 Awards | CIO Accelerator X Awards 2025- Sri. Sony A, CGM&CIO |
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 technology training and certification programs 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 employees key performance indicators.
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. The Bank have implemented robust fraud detection systems and enhanced Banks cyber defense mechanisms, ensuring the highest level of security for customer data and transactions.
As part of mitigation, the Bank continue to deploy advanced cybersecurity technologies such as firewalls, intrusion detections and prevention systems to fortify network and systems. Bank also focus on investing 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. Bank also ensure 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 analyzing security events or incidents within the real-time IT environment.
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, the Bank is 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 real time replication methods are in place for critical workloads to Nearline DR Site, 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.
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, Prepaid Instruments, 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+ delivers a customer-centric digital banking experience with a refreshed user interface and modern iconography, designed to enhance customer engagement in banking and beyond. The app offers a comprehensive suite of services including Instant Account Opening, Investments, Goal-Based Deposit Creation, Loans, Faster Checkouts through Recent Payment Capsules, Recharge & Bill Payments, Foreign Outward Remittances, Online Fee Payments, Free CIBIL
Score Check facility, and much more - enabling users to manage their financial needs seamlessly through a single, intuitive platform.
Now do much more with SIB Mirror+
s Online account opening instantly.
s Remit money abroad.
s Instant PIS Account opening.
s e-Lock with personalized limit setting for digital transactions providing enhanced security.
s Simplified Scan and Pay option.
s Invest online through Mutual funds.
s Free CIBIL Score check
s Debit card management - Apply/close cards, Set/ reset ATM PIN, International On/OFF switch.
s Recharges and bill payments made easy.
s Option to set Autopay for Bill Payments
s Instant fund transfers limit enhancement facility.
s Online Fee payments.
s Instant Demat Account Opening.
s Manage deposits online - FD/RD opening and closure.
s SIB Dream - Goal based RD opening.
s Apply for IPO/NCD/Right issue
s Update KYC details digitally
s NSDL Demat account opening
s Option to avail Loan Against Mutual Fund
s Online opening of Loan against deposits
s Swipe to Pay for authenticating online Debit card transactions
s 24x7 IMPS, UPI & NEFT fund transfer
s Submission of Form 121
s Pre-Approved Personal Loan
s Instant payee addition
s 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 Retail: 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, 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
s IMPS (Immediate Payment System) Fund Transfer facility (24 x 7 x 365)
s Fund Transfer facility -Within SIB accounts and to other Bank Accounts
s Online Bill payments/Mobile -DTH recharge/Online Shopping etc.
s Accounts summary, statements/mini statements, consolidated balance statement
s Tax payment facility - Direct Tax and Indirect Tax
s e-Filing of IT Returns
s Online IPOs (Initial Public Offering) can be subscribed through ASBA
s Online application for Sovereign Gold Bond
s Online mutual fund Investment [SIB e-Invest]
s Online loan repayment - Instant credit to loan account.
s Debit card management - enable/disable International usage
s Block Debit card online, Personalize transaction limit
s ATM PIN SET/RESET online through SIBerNet
s Online Flexi /Fixed/Recurring Deposit opening
s Online closure for RD/FDs opened through Net Banking
s Online instant loan against deposit facility (FSLD)
s Online Preapproved Personal Loan
s Online Instant Limit enhancement for Retail users
s One-time User ID change facility
s Online password reset, set favourite activities, Transaction limit enquiry
s Bulk fund transfer file upload and Bulk beneficiary creation facility for Corporate customers
s Missed call E-mail OTP service
s Retrieve Forgot User ID online
s Direct tie-up IRCTC, KSEB (Kerala State Electricity Board) and EPFO for online payment
s Instant payee activation using debit card
s Instant payee activation for DSC & SIB Authenticator users
s Online Undeletion of User ID s Online Demat Account opening s Online Atal Pension Yojana enrolment s Online Trade Finance module s Online Account category upgrade s Online Loan enquiry & Lead generation s Online upgrade to Priority Banking s Online Foreign Outward Remittance s E-Certificates download facility s Positive Pay system s Online Locker availability enquiry s Online KYC update for retail customers s Online Email ID update facility s PFMS module s PIS Account Opening s Stop Cheque Facility s Engagement HUB s Online Nominee update facility 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. The Bank is Issuing major brands of Debit Card variants of Visa, Master and Rupay NFC Debit Cards. Currently the Bank is issuing basic, premium & super
D o n 1/
premium variants of debit cards. The existing super premium variants of debit cards are Master Card World, MasterCard Business and VISA Signature Card which is specially targeted to meet the requirements of HNI customers. Premium Variants of debit cards offers Airport Lounge facility inside and outside India with lounge eligibility validation checks. Bank has tied-up with Corporate and Hyperlocal merchants to provide discounts to all debit card customers.
Bank also have RuPay-On-The-Go Wearable Payment Keychain & Mobile Sticker -SIB PayTag that enables customers with hassle free tap and pay facility to make quick contactless payments without the need to carry physical debit card.
For Domestic as well as international transactions, Bank offers EMV CHIP and PIN enabled debit cards as well as contactless debit cards [NFC]. The Banks all debit cards wearables 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 ten currencies in a single card- US Dollars, Great Britain Pound, EURO, Swiss Franc, Canadian Dollars, Australian Dollars, Japanese Yen, 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
s Tie-up with All Point Network-the largest surcharge- free ATM network in the world
s Enhanced security with chip and PIN protection and real-time fraud monitoring with instant card block
s Zero chargeback fee
s Inbuilt Tap & Pay technology enables contactless payment
s Online PIN change facility
s E-commerce access
s Available in VISA & Master card variants.
s Insurance cover of up to $10,000 in case of fraud transactions
s Pre-authorisation release and instant encashment
s Global usage offers better value by avoiding any currency fluctuation risks
s Free card statements
s Free card replacement
s 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
- Annual Pass 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 its merchants. The Tagline of Banks 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 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 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. |
| 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 - One Branded Credit Card
South Indian Bank-One Co Branded Credit Card is a premium metal-based Credit Card with 100% digital, app based onboarding experience. A truly Next-Gen Banking product with 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. SIBOne Credit Card can be fully controlled through the OneCard app which serves an irresistible blend of convenience & security.
Features of South Indian Bank - One Co Branded Credit Card
- Lifetime-free Credit Card with zero joining and annual fees
- Premium metal-based card on the Visa Signature platform
- 100% digital customer on-boarding with 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
- 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 Banks 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 Banks customers to simply spend and simply save. It provides gratifying rewards while allowing the customers to fulfil all their 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 the customers shopping more delightful. The card offers the customers a host of attractive benefits. This card is available for both Domestic and NRI customers (against Deposit).
NEW PRODUCTS
During FY 2025-26, Bank introduced segments specific offerings, including SIB HER-a unique Savings Bank Account, which is a premium lifestyle-focused savings account designed exclusively for women combining multiple benefits including life insurance and health coverage.
In the Financial Year 2025-26, the Bank further introduced a range of new loan products to strengthen its presence in the Gold Loan, MSME, and Retail segments and to address the evolving financial needs of customers. The key product launches included SIB Power CONSOL, SIB Loan Against Mutual Fund (SIB- LAMF), SIB Solar Roof Top Finance, Credit Line on UPI (Secured FD), Gold Aureate, SIB Gold Xpress, Finance Scheme for Harvesting and Transport, KCC Gold-ULI, and Agri TL Gold-ULI.
To further enhance its digital lending ecosystem, the Bank entered into strategic partnerships with Godrej Housing Finance Ltd., Whizdm Finance Pvt. Ltd., Muthoot Fincorp Ltd., CapFloat Financial Services Pvt. Ltd., and Finsall Resources Pvt. Ltd. These initiatives expanded the Banks digital credit offerings, improved customer accessibility and convenience, accelerated credit delivery, and supported sustainable growth in the Banks advances portfolio.
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 with the opportunity to attend internal training sessions and external courses to increase their knowledge of 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.
- The Bank is in the process of selecting solutions to strengthen protection against AI-enabled cyberattacks through implementation of AI-driven threat detection and response capabilities.
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.
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 center 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
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.
6. Insurance of Secured Assets
7. Booking expenses in NPA Accounts
8. OTS/Write Off Accounting
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 (SIB SWIFTe and Video
KYC)
8. Account/Customer Modifications via Digital
Channels (SIB SWIFTe/Video KYC/SIB Mirror
Plus/SIBerNet/Website)
9. Centralization of Signature Maintenance
10. Change in Nomination
11. Change in Mode of Operation in Liability Accounts
12. Account Maintenance
- Joint Holder - Addition/Deletion
- Nominee - Addition/Deletion
- Updation of Mode of Operation
Major initiatives
- Modification requests of NR customers through Registered mail ID
- KYC DMS enabled in BPM Module - Repository for KYC Documents - to avoid redundant collection of documents
- Simplified Legal Entity ReKYC process - ReKYC can be completed at Branch end with one page declaration from the customer
- Implementation of smart forms
Achievements
- 95% Liability Processing users certified as KYC AML Professional.
- Appreciation from CERSAI towards the performance in CKYCRR Performance Metrics-Superior rejection index performance in CKYCR, recording rejection rates below 5%.
C. Reconciliation and Digital Channel Support
Operations
Dispute management and reconciliation process of:
1) Debit Cards (NFS,MASTERCARD/MAESTRO,
VISA, RUPAY)
2) RUPAY PREPAID CARDS
3) ONE CARD Credit Card
4) NFS, IMPS, UPI (UPI-Collect, UPI-FIR, UPI- Global), ONUS POS, AEPS, BBPS (COU), ICD, NETC Fastag, Payment Aggregators
5) Online Deposits reconciliation (Upswing)
6) Online Loan Repayment reconciliation-NSEIT
7) Managing customer complaints pertaining to unauthorized Electronic Transactions
8) ATM cash shortage
9) Card Cell GST Operations
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
10. ASBA
11. PIS
12. SGB
E. Payment & Settlement Operations
The Bank continues to play a pivotal role in facilitating secure, efficient, and seamless payment and settlement services through its robust participation in the countrys key payment infrastructure systems, namely the Cheque Truncation System (CTS), National Automated Clearing House (NACH), and Real Time Gross Settlement (RTGS). These systems form the backbone of the Banks transaction processing framework and contribute significantly to customer service excellence, operational efficiency, and financial system stability.
1) Cheque Truncation System (CTS)
The Cheque Truncation System (CTS), operated under the regulatory framework of the Reserve Bank of India (RBI), enables electronic processing of cheques through the transmission of cheque images and associated data, eliminating the
need for physical movement of instruments. The Bank continues to maintain high standards of operational efficiency in CTS processing through centralized clearing operations, robust image- based verification controls, and adherence to prescribed regulatory guidelines.
During the year, the Bank processed substantial volumes of inward and outward clearing transactions through CTS, ensuring timely settlement, effective risk management, and enhanced customer convenience. Continuous monitoring of operational parameters, implementation of process improvements, and strengthening of reconciliation mechanisms contributed to maintaining service reliability and minimizing operational risks.
2) National Automated Clearing House (NACH)
The National Automated Clearing House (NACH), operated by the National Payments Corporation of India (NPCI), serves as a centralized platform for bulk electronic transactions including recurring debit and credit mandates. The Bank actively supports NACH services for various customer segments, facilitating transactions such as loan repayments, utility bill payments, insurance premium collections, dividend distributions, pension payments, and government benefit transfers.
The Banks NACH operations continued to witness steady growth during the year, driven by increasing adoption of digital mandate registration and automated payment solutions. Stringent validation processes, efficient mandate management, and timely transaction processing ensured high levels of service quality and compliance.
3) Real Time Gross Settlement (RTGS)
RTGS is the RBI-operated payment system designed for real-time, high-value fund transfers with immediate final settlement. The Bank provides RTGS services to customers through multiple delivery channels, enabling secure and instantaneous transfer of funds across participating banks.
The RTGS platform continues to be a critical component of the Banks payment ecosystem, supporting corporate, institutional, and retail customers requiring time-sensitive fund transfers. The Bank maintained high levels of system availability and operational resilience throughout the year, ensuring uninterrupted processing of transactions.
Operational Excellence and Future Readiness
The Bank remains committed to strengthening its payment and settlement infrastructure through continuous process optimization, technology enhancements, and risk management initiatives. Regular system audits, business continuity testing, and adoption of evolving regulatory standards have further reinforced the Banks operational resilience.
As the payments landscape continues to evolve, the Bank will continue to focus on improving operational efficiency, enhancing customer experience, ensuring regulatory compliance, and supporting the broader objective of promoting a safe, secure, and digitally enabled financial ecosystem.
F. Trade Finance Central Processing Centre (TFCPC)
The Trade Finance Central Processing Centre (TFCPC) serves as a specialized centralized processing unit responsible for managing trade finance transactions across branches with enhanced operational efficiency, standardization, regulatory compliance, and risk mitigation.
During the FY 2025-26, the Bank centralized the Bank Guarantee Closure activities 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. Inland BG Closure operations.
7. Supply Chain Finance.
8. Domestic Non-LC Bill operations.
9. ECGC Premium collection and Payment.
10. Other Forex Operations (Foreign Cheques, Vostro operations etc.).
Key objectives of TFCPC include:
- Standardization of trade finance operations across branches
- Reduction in turnaround time (TAT) and operational risk
- Enhanced compliance with RBI / FEMA / UCPDC / ISBP / FEDAI guidelines
- Strengthening of transaction monitoring and audit controls
- Improved customer service and seamless execution of international trade transaction
- Centralized expertise for handling complex trade and foreign exchange transactions
- Enhanced digital processing and Straight- Through Processing (STP) capabilities
The centralized processing framework also enables branches to focus more effectively on business development, customer acquisition, and relationship management, while operational processing is undertaken by specialized trade finance teams.
The TFCPC model promotes scalability, operational resilience, regulatory adherence, and an enhanced customer experience, thereby contributing significantly to the Banks overall trade finance growth strategy.
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. Document Management Solution (DMS)- enables branches to scan the daybook slips on daily basis and RO BOV staff to scrutinize the scannec documents.
c. Arranging periodical drills on operational areas.
d. Training staff on compliant operations.
e. Introducing outsourced staff for regular works tc bring down salary expenses.
f. Document storage center-centralized storage by deposition of AOF opened via paper mode with vendor. Ensuring proper storage and retrieval ir case required by LEA.
g. Death Claim settlement-centralized processing of death claims under instructions and guidelines of RBI recent circular.
h. Integrated logistics management introduced fo cheque book delivery.
i. Operational Excellence Program- Adoption ol branches by RO BOV team for improvement in inspection points pertaining to operations.
j. Conducting half year branch visit by RO BOV.
k. Conducting monthly BLCSC meeting.
Way Forward:
BOG proposes to commence the following operational activities during the FY 2026-2027 as part of the vision of the Bank.
1) Agentic AI based corporate customer onboarding and servicing
2) Centralization of LEA Activities:
In order to support the branches and standardize the handling of LEA activities, it has been proposed to centralize the LEA functions. The Bank is required to provide prompt and timely responses to LEA requests by furnishing all information and documents called for by the concerned authorities.
At present, the related functions are being carries: out separately by the Inspection Department (FRM Cell) and Compliance Department. To streamline the process, it is proposed to consolidate the activities of both departments into a single centralized unit a BOG.
The Centralized Unit will undertake all LEA-relateo activities, including the collection and retrieval ol data, coordination with the concerned departments and arrangement of the required documents and supporting records.
Under the centralized framework, the LEA team will process and coordinate requests relating to KYC details, account statements, compliance with court orders, lien marking and lifting, account freeze and de-freeze instructions, and other related matters. BOG will manage these activities from the Central office by liaising with the relevant departments, thereby ensuring timely, accurate, and effective responses to LEA requests while reducing the operational burden on branches.
This initiative is expected to enhance efficiency, improve coordination, ensure regulatory compliance and facilitate prompt support to both branches and law enforcement agencies.
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 aftei collating data from various internal systems and from e 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.
The Bank has a dedicated Analytics CoE focusec on supporting data-backed decision making across business, risk, marketing and finance functions This CoE focuses on both Descriptive Analytics and Predictive Analytics requirements of the Bank. During the year, the department developed and deployed several in-house analytical models and scorecards for credit risk assessment, fraud monitoring, portfolio management and customer acquisition. Efforts also continued towards evaluating alternate data sources for various risk and fraud-related use cases, while expanding automated decisioning capabilities fo eligible customer segments.
The department maintains a robust framework fo model governance, validation, performance monitoring and periodic review to ensure effectiveness and regulatory compliance. Through Tableau-based dashboards and business intelligence solutions, the department provides timely insights into key business risk and financial metrics for Senior Management Continued focus is also placed on strengthening data quality, governance standards and the centralized data repository to support reliable reporting and informed decision making across the Bank.
The Data Science department handles all reporting activities, the daily operational reports are created and provided through the respective application 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 o 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 November 06, 2023, BPGs initial thrust has been or 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. Later on this stands extended tc Trade Finance, Liability as well.
Key Achievements:
Since inception, BPG has successfully developed:
? 8 distinct workflows within the existing Loan Origination System (LOS)
? 8 proprietary LOS platforms, built in collaboration with the Digital and Technology Department
? 7 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.
These developments have been providing significant improvements in the business front achieved through process automation, optimization and innovation. Impact of the same is constantly reviewed for further refinements and excellence.
Within BPG, a dedicated Process Refinement Group (PRG) operates with the mission to implement progressive enhancements in existing processes. PRG focuses on agile changes that yield significant improvements in:
? Operational execution
? Service delivery
? Complaint redressal
? Turnaround Time (TAT) improvement
The major changes brought out by this group for the review period ending 31 st March 26 are as follows:
? Centralisation of Outsources Salary Payments
? Centralisation of Recovery Expense
? Streamlining OTS & Write-Off Transactions
? Signature Modification in SIB Mirror Plus
? Loan Repayment Links through WhatsApp
? NRI Mobile Number Switch
? FCNR Auto Renewal
? AI based Loan Document Generation
? Digital Employment Verification
? Branch Escalation System (mHRMS - HR Mobile
app)
Going forward BPG remains committed to further simplification and optimization of processes and procedures, besides innovative fresh business solutions. 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 two- dimensional rating system and retail scoring system in line with RBIs guidelines. 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. 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 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. Banking Operations Group (BOG) ensures compliance of pre-disbursement conditions from verticals/ sanctioning authority/legal before loan account opening. Post disbursement, BOG will ensure compliance with critical post disbursement/special conditions specified in the sanction order. 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 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 the Bank 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.
Internal audit function provides vital assurance to a Banks Board of Directors, Senior Management and the Regulator as to the quality of the Banks internal control system. The scope of internal audit activities includes the examination and evaluation of the effectiveness of internal control, risk management and governance systems and processes of the Bank and monitoring of compliance with laws and regulations. The inspection/ audit brings out the irregularities/deficiencies in the working of branches/offices and enables the Bank to take corrective action.
Audit/Inspection
The Primary focus of Internal Audit is to provide reasonable assurance to the Board and Top Management about the adequacy and effectiveness of the risk management and control framework in the Banks operations. The Department is manned by appropriately qualified personnel to handle the Risk Based Internal Audit, Management Audits, Credit Audits including Centralized Credit Audits, Information Systems Audit and Special Audits including Investigations. All the internal audits are conducted based on the RBI guidance note in relation to conducting risk based internal audit and RBI circular on concurrent audit of branches and identified critical processes of the branches.
In respect of matters relating to Inspection & Vigilance Department, Head of Internal Audit and Chief of Internal Vigilance (HIA & CIV) directly reports to MD & CEO.
All activities (including outsourced activities) of the Bank and its Wholly Owned Non-Financial Subsidiary, M/s. SIB Operations and Services Limited (SIBOSL), whose main objective is to provide manpower supply to Bank, 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/ Firms/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 risk based internal audits and concurrent audits, the branches are subjected to Surprise Inspection, IS Audit, Revenue Audit, Gold Loan Inspection/Asset Verification, Surprise Gold Asset Verification/Inspection 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.
Internal inspectors conduct inspection at regular intervals based on the risk rating 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 ).
Audit of Departments and critical process
Management Audit involves the review of managerial aspects like organizational objective, policies, procedures, structure, control and system to check the efficiency and performance of the management over the activities of the Bank.
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.
Further to the traditional audits, the department introduced Thematic Audits to assess the risks and evaluate the controls across the selected areas/ activities/sub-activities to verify whether the process is effective, controlled and compliant with regulatory and internal guidelines. The Audit aims to ensure that management is made aware of the status and can initiate appropriate steps for correction and remediation.
The Management Audit is conducted at periodical intervals based on the risk perception of respective Department/Business Vertical/Regional Offices. 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 Centres, etc., are subjected to concurrent audit by independent Chartered Accountant firms.
All these reports are reviewed by Audit Committee of Executives (ACE/SACE) and Audit Committee of Board(ACB) 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, 2026 was Rs10,84,662 crore. At present the Bank is having rupee inward remittance arrangement with 2 Banks and 65 Exchange Houses. The Bank has concluded speed remittance arrangement with the following Exchange Houses during the FY 2025-26:
> Alfanow Payment Services LLC, UAE
> Wizz Cross Border Services Ltd, UAE
> Salim Exchange, UAE
> First Exchange, Oman
> Al Amanah Exchange, Oman
> AT services Topco, Mauritius
> Global For Exchange and Money Transfer Services, Qatar
> Upesi Money Transfer U Limited, Uganda
> Khalil Al Fardan Exchange, UAE
> Horizon Exchange, UAE
Considering the scope in improving the remittance business through arrangements with exchange houses,
the Bank has deputed 13 officers to UAE, 4 officers to Qatar with City Exchange, Islamic Exchange, Gulf Exchange and Al Fardan 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, Euro, GBP, AED and all other currencies during the daily market timings.
SIB TF ONLINE is Banks dedicated Online Trade portal for Corporate SIBerNet and Trade Finance customers managing regular cross-border foreign exchange transactions. The platform streamlines import and export related payments, significantly reducing transaction costs, manual efforts, and Turnaround Time (TAT) for both clients and the Bank. Key advantages include 24x7 online transaction capabilities, with all Inward Remittance, Export, and trade-related Outward Remittance (Import) modules which are currently fully operational. SIB TF Online portal is being added with new modules and features in the upcoming enhancements.
Trade MIS Dashboard
Trade MIS Dashboard is the module 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., and is made available in the Corporate Internet Banking under TF online-Trade MIS module.
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.
NRI PORTFOLIO
The NRI Business of South Indian Bank continues to be a key pillar of growth and resilience. In FY 2025-26, the
Bank crossed a landmark milestone by growing its NRI portfolio to over Rs35,000 crore, reaffirming its strong position in the NR business segment.
Leveraging the potential of the global Indian diaspora, the Bank continues to focuses on sustainable growth through a range of initiatives aimed at deepening engagement enhancing product offerings and improving customer experience for its NRI clientele.
With over 5.58 lakh NRI customers, the Banks NRI deposits continue to account for nearly 29% of total deposits, underscoring the segments contribution to the Banks stable and diversified liability profile. NR Book grew by Rs3,768 Crores in FY 2025-26. Some of the key initiatives and focus areas for the business were:
a) Customer Experience:
To serve the globally spread customers, the Bank
strengthened its digital banking platforms with NRI
specific enhancements like;
- Digital Onboarding through SWIFTe Platform:
Introduced digital onboarding of NRI customers through the SWIFTe platform, enabling a seamless and convenient account opening experience with reduced turnaround time. The initiative strengthened digital accessibility and enhanced the onboarding experience for NR customers.
- Mobile Number Switching Facility in SIB Mirror+: Enabled the facility for NRI customers to seamlessly switch between Indian and overseas mobile numbers through the SIB Mirror+ application. This feature ensured uninterrupted access to digital banking services and improved customer convenience for NR customers worldwide.
- Process simplifications aimed at easing the NRI customer journey by introducing processes for addition of alternative mobile number and change of primary mobile number through secured channels.
b) Business Growth Initiatives :
- The Bank has intensified its presence and relationship building efforts in key NRI corridors by expanding tie-ups with exchange houses and remittance partners, further strengthening the cross-border service capabilities. The Bank has entered into 10 New remittance arrangements in UAE, Oman, Qatar, Mauritius & Uganda and a new correspondent banking arrangement in UAE 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 Premiere Plus in Dubai, participated in the Come On Kerala - Season 7 in Sharjah, and conducted NRI meets in various parts of Kerala to strengthen the customer relationships.
- To reinforce the customer outreach and to update NRI customers about the current global economy and recent developments across financial sector the Bank is publishing Banks NRI Newsletter every month.
- Executed periodic digital campaigns to engage prospective NRI customers and enhance visibility of NRI offerings.
c) Specialized NRI designated branch in Goa:
A specialised NRI designated branch was opened in NRI hotspot location in Panaji, Goa to provide dedicated banking and relationship support services for Non-Resident customers.
d) Strategic Knowledge Partnership for NRI Customer Engagement :
Entered a strategic collaboration with PravasiTax Solutions Private Limited to conduct exclusive webinars for NRI customers on topics such as taxation, inheritance, repatriation, investments etc. The initiative enhanced customer engagement by providing expert guidance and improving awareness on key financial and regulatory matters relevant to the NRI community.
e) 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 2025-26.
- Cross-Selling Initiatives: Emphasis is placed on cross-selling key products including Portfolio Investment Schemes (PIS) and Recurring Deposits, especially among New-To-Bank (NTB) customers, to deepen the relationship.
As part of Banks business growth strategy, we aim to further enhance the 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 the offerings with the customer aspirations and financial needs.
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, the Bank remains deeply invested in building capabilities that not only align with the business strategy of the Bank but also uphold the core tenets of Environmental, Social and Governance (ESG) responsibility.
The 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 units work in tandem to provide holistic, inclusive and strategically aligned learning experiences to the 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 Banks proprietary Learning Management System- SIB iLearn. In FY 2025-26, the team launched 37 new courses aggregating to 106 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 contents.
Employees earn credit points through successful completion, contributing to their score in annual performance appraisals.
2. In-Person Training at SIBSTC
The SIB Staff Training College continues to be the nucleus of its 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 is periodically conducted to design focused interventions.
3. ESG-Aligned Learning Framework
In line with emerging global standards and best practices, the 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 is conducted across most grades. The Banks 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 during the FY, with 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 ISB, IIBF, NIBM, IIM, Southern India Banks Staff Training Collage, 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.
During the FY 2025-26, the Bank has launched Leadership Management Program, a structured leadership pipeline initiative to support succession planning in collaboration with ISB, Hyderabad.
5. Training for Probationary Officers
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 and first aid workshops.
- Occupational Health and Safety guidelines.
7. Strategic Publications and Knowledge Sharing
- 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.
- SIB Students Economic Forum (SEF): Banks flagship monthly publication reached its 411 th edition in March 2026, 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 the FY 2025-26, a total of 8,877 staff members underwent various internal/external training, both in-person and online. 8,968 staff members successfully completed courses on the learning platform with a total of 4,93,404 learning hours.
10. 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 Financia Year 2025-26. These tests, administered through the LMS platform, iLearn, saw active participation from branches and offices. The objective was tc enhance cyber security awareness among Banks staff members, ensuring they are well-prepared to handle security challenges in the digital age.
The Way Forward
The Bank will continue to build a future-ready workforce through a balanced learning framework covering classroom, digital and blended training interventions. During the year, the Learning 8 Development function strengthened role-based capacity building through initiatives such as Branch Heads Certification, Open Classes, Induction 8 Refresher Trainings, Branch Transition Programs and Faculty Led Video Modules on the learning platform. Greater emphasis will continue to be placed on compliance, ESG, customer service, cybei security, operational risk leadership and business readiness. The Bank will also further strengther training governance through HRMS based tracking continuous training needs analysis, and more rigorous periodic review of learning outcomes.
The Bank believes that investing in people is investing in purpose. The Banks commitment to cultivating e knowledgeable, ethical, and future ready workforce remains unwavering.
CUSTOMER EXPERIENCE GROUP (CEG)
The Customer Experience Group (CEG) was established with the objective of enhancing customer service fostering strong customer relationships, and ensuring maximum customer satisfaction by providing round the-clock banking support. CEG operates through four key divisions: Inbound Call Centre, Outbounc Call Centre, Digital Quick Support Team (DQST), and Collections & Tele Sales.
Inbound Call Centre
The Inbound Call Centre serves as the first point o contact for customers, addressing a wide range ol banking needs on a 24x7 basis. Customers can conned with CEG through the customer care helpline to raise queries, place service requests, or lodge complaints Trained customer service executives conduct the necessary verification checks and provide prompi resolutions.
A structured escalation matrix is in place to ensure the effective resolution of complex issues, thereby enhancing customer satisfaction and service quality.
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, and promotion of digital offerings such as SIB Mirror+, Internet Banking, and Debit Card activations. The team also disseminates important reminders relating to Re- KYC compliance, insurance renewals, and 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 Call Centre, plays a pivotal role in the Banks collection efforts. The team engages with customers to ensure timely repayment of dues across retail and MSME loan products. A structured calling strategy is followed by prioritising delinquency buckets and risk categories to improve recovery efficiency.
Call Quality Audit Team
A dedicated Call Quality Audit Team functions within CEG to monitor and evaluate the quality of customer interactions across both inbound and outbound operations. The team plays a crucial role in enhancing overall customer experience through continuous feedback, monitoring, and process improvements. Additionally, the team manages real-time customer interactions through the website chat platform.
Digital Quick Support Team (DQST)
The Digital Quick Support Team (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 requests and complaints related to digital banking services, including Debit Cards, SIBerNET, and the SIB Mirror+ app.
The teams swift response mechanism ensures efficient redressal of requests and complaints, thereby delivering a seamless digital banking experience.
CRM - Tele Sales
On a pilot basis, CEG introduced a new sales vertical for converting Personal Loan (PL) leads generated through various digital platforms via CRM. Initially, the vertical catered to PL leads from the Ernakulam Region and selected branches under Bangalore Region. Subsequently, the scope was expanded to cover the entire Kerala Region along with Bangalore RO.
At present, PL leads are handled on a PAN-India basis. In addition, Vehicle Loan (VL) leads from Kerala, Bangalore, and Coimbatore Regions have also been integrated into the process.
Highlights
- 1,44,597 Debit card activations for new accounts, achieving 71% activation during FY 2025-26.
- The CRM Tele Sales pilot study initiated in November 2025 and 1,430 eligible leads, resulting in 199 logins and 46 disbursements amounting to Rs182.94 Lakhs during Q4 of FY 2025-26.
- During FY 2025-26, CEG managed an average monthly allocation of 15,683 SMA accounts worth Rs981.75 crores, achieved 52% connectivity and 91% overall resolution (93% in retail), reduced flow percentage from 12% to 9%.
BRANCH BANKING DEPARTMENT
The Branch Banking Department is the cornerstone of retail banking, serving as the primary touchpoint between the Bank and its customers. The Bank is 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), Demat Services, Insurance and Mutual fund. Branch Banking Department also handle MSME loans upto 200 lakhs and Debt Consolidation loans from 10 lakhs to 300 lakhs. The Department 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, 2026, 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 Rs32,475 crore and Current Account deposits stood at Rs7,146 crore. As a result, total CASA deposits reached Rs39,621 crore, registering a year-on-year growth of
17.46%. The CASA ratio of the Bank stood at 32.12% as of March 31, 2026.
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. Focus on customer connect through Staff-Mapped Portfolio Management
Increased focus on customer connects for optimising business and customer satisfaction through dedicated staff allotted to each customer.
- 80% of the Banks total CASA book have been mapped to branch employees for personalized engagement.
- Full automation of portfolio creation, transfer, and maintenance processes ensures seamless relationship management.
- This initiative contributed 10% growth in the total liability book through relationship-led deepening.
2. Focus on Priority Banking
Greater thrust and focus on acquiring New-To- Bank(NTB) Priority Banking customers, supported by scorecard-linked metrics and family grouping, is driving deeper penetration and long-term value creation.
The number of high value NTB priority customers grew 180% in FY 2025-26 compared to FY 2024-25.
Program Performance:
As on March 31, 2026, the Bank serviced 2.62 lakh customers under the Priority Banking programs. The savings deposit base under these programs stood at Rs13,671 crore, while term deposits aggregated to Rs40,981 crore.
The strong traction in this segment reflects the Banks growing appeal among affluent customer segments and its commitment to delivering superior banking experiences.
3. New Product introduction SIB HER
To strengthen the Banks presence in the premium women customer segment, a new savings account variant titled SIB HER was introduced in October, 2025. This product is designed with exclusive features and lifestyle benefits targeting affluent women customers, with the objective of enhancing premium CASA acquisition, improving customer engagement and increasing Banks overall CASA portfolio value.
4. Focus on High-Variant Current Accounts
Dedicated thrust on higher variant Current Accounts catering to MSME, Startup, and corporate segments to improve CASA value per customer and strengthen business banking relationships.
The continuous focus given to high value accounts resulted in a growth of 67% over and above previous FY, in the high variant Current Account category.
Refined scorecard framework
Scoring model has been implemented across all account segments to drive acquisition of high-value and high-variant CASA accounts.
- The scoring system is now integrated with the performance scorecard to ensure quality onboarding and reward value-driven acquisition.
- This approach encourages teams to focus on accounts that contribute meaningfully to the Banks CASA growth and profitability.
5. Performance-Driven Business Expectations and Productivity Measurement
To foster accountability and consistent performance, clear business expectations have been institutionalized at the individual, 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.
6. Quality Business Acquisition with Value-Based CASA account Concentration
Focus on acquiring high quality and sustainable business by onboarding customers with strong relationship potential, healthy financial profile and long-term engagement opportunities. A focused Value-Based CASA Accounts has been initiated to mobilize higher balances and acquire premium customers.
Key objectives include:
- Increasing average balance per account to enhance the CASA base.
- Engaging high-value customers through exclusive benefits and relationship-led acquisition.
7. Ecosystem Banking Partnerships
Adopting an integrated relationship approach by leveraging every customer onboarded across multiple banking verticals. Customers acquired
through one segment will be systematically mapped for cross-sell and eco system management to deepen relationship and enhance overall customer value to increase the product holding.
Government Business Division:
The Government Business Division (GBD) is structured to address the banking requirements of Central and State Governments, PSUs, Boards, and other Government-affiliated institutions. The division focuses on canvassing and liaising with Government bodies across India to enhance South Indian Banks presence in the Government ecosystem.
South Indian Bank has been an Agency Bank of the Reserve Bank of India since 2021. The Bank is accredited by the Central Board of Indirect Taxes and Customs (CBIC) for the collection of GST and Customs Duty, and by the Central Board of Direct Taxes (CBDT) for the collection of Direct Taxes. The Bank is also live on the Telangana Treasury and Karnataka State Treasury platforms for e-payments.
Government Business Division is mandated to drive the Banks overall Government Business portfolio with a strong emphasis on CASA growth and Term Deposit mobilization. Government business acquisition is supported by Regional Sales Managers, Branches, Regional Offices, and Cluster Heads. The Bank offers state-of-the-art, customized collection and payment solutions tailored to the specific requirements of Government Entities.
Milestones Achieved - FY 2025-26
- GST collection through UPI mode of payment went live.
- Netbanking integration with Employees Provident Fund Organisation (EPFO) for EPF collections moved live.
- Tie-ups established with Tourism Development Corporations across multiple States.
- Improved shareholding in Local Self Government (LSG) relationships through digital initiatives of the Government of Kerala.
- Kerala Electronic Fund Transfer (KEFT) under the K-Smart Project of Government of Kerala went live.
- Digital integration with Kerala Governments Harithamithram Project under Suchitwa Mission moved live.
- Integration completed with the Central Governments Government e-Marketplace (GeM) portal.
Agency Business
In addition to the integration of SIB in the collection of Direct Tax and Indirect tax (Customs duty+GST) through Netbanking/Over the Counter, we went live for UPI mode of payment for GST collection and has also initiated Integration of Payment Gateway for CBDT, GST & ICEGATE, 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 Financial Year 2025-26, Rs4,193 Crores volume and Rs47 lakhs income was collected by South Indian Bank with Agency Business. An improvement of Rs585 Crores in Agency Business transaction volume and Rs18 lakhs in Agency Commission was seen comparing to Previous Financial Year.
Other Major Collaborations with Central & State Government
- Official Banker to M/s IRCTC for Online Booking of Railway tickets.
- Banker to more than 10+ Welfare Boards & 25+ Government Companies/Corporations, in Kerala.
- Banker to State Development Authorities, Government Hospitals, Devaswoms, Electricity Boards, Water Authorities, Central/State Department Projects, LSGDs, Government Companies/ Corporations/PSUs across India.
- NTRP - Bharatkosh for Non Tax Revenue Collections.
MSME Business Group:
The MSME Business Group has been strategically focusing on strengthening its portfolio through a combination of process transformation, enhanced sourcing capability, improved branch engagement, and quality-driven growth initiatives. The approach has been centred around building a scalable, profitable, and sustainable MSME business model.
- Targeted business development initiatives and structured market penetration strategies
Dedicated efforts have been undertaken to enhance outreach, improve customer acquisition, and strengthen relationships with emerging and established enterprises, thereby expanding the
overall MSME portfolio
- Digitalisation of the file journey
The implementation of digital workflows and streamlined approval mechanisms has considerably improved Turnaround Time (TAT) across the credit lifecycle. Reduced manual intervention, faster movement of proposals, and improved process visibility have enhanced operational efficiency and customer experience.
- Improved file sourcing capability through the introduction of simplified products and streamlined processes
Product structures have been made more customer-friendly and operationally efficient, enabling faster understanding, quicker decision-making, and improved accessibility for both customers and sourcing teams. This simplification has contributed to increased sourcing momentum and improved conversion levels.
- Branch activation initiatives
Focused branch activation initiatives have played a major role in driving overall business contribution and improving productivity. Branches have been actively engaged through structured campaigns, regular monitoring, and targeted support, resulting in wider participation in MSME sourcing and improved business generation across the network. The enhanced involvement of branches has contributed to stronger productivity metrics and better portfolio distribution.
- Focus on Yield
Another major emphasis area has been yield improvement. The MSME Business Group has consistently focused on optimising pricing, rationalising concessions, and improving income generation across the portfolio. Strategic attention to yield enhancement has supported better profitability while maintaining competitiveness in the market.
- Portfolio Quality
Alongside growth and profitability, strong importance has been placed on maintaining the quality of sourced files. Robust appraisal standards, prudent credit assessment practices, and continuous monitoring mechanisms have been reinforced to ensure the sourcing of quality business with sustainable credit performance. The focus on portfolio quality remains integral to the Groups long-term growth strategy.
MSME Business Group was able to showcase 19% growth in FY 2025-26, thereby effectively making a positive shift in the MBG growth trend compared to previous years. MBG disbursement improved 102% compared to previous FY. Branch activation increased from 74% in FY 2024-25 to 93% in FY 2025-26.
Overall, the MSME Business Group continues to drive balanced growth through a combination of business expansion, process efficiency, profitability enhancement, and disciplined credit quality management.
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 with a growth rate of an impressive Rs111.47 Crore income and 15% income growth 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 grew by Rs1,200 Crores and income generated is Rs7 Crores as on 31 st March, 2026. 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 its branches. For Trading, we offer SIBerTrade, an online trading facility that allows domestic customers to buy and sell stocks on Indian stock exchanges through its 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 Banks 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 513 issues (including IPO/FPO/NCD/ Rights Issue) in the FY 2025-26.
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 and FY 2025-26.
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 . PIS accounts grew by 894 accounts in FY 2025-26 comparing to the Previous Financial Year.
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 124(1) of IT Act, 2025 and it is over and above Rs1.50 lakh of Section 123 deductions applicable as per the relevant provisions of the IT Act, 2025. 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 31.03.2026 | |
| NPS -All Citizen Model | 18,427 |
| NPS Corporate (Including Staff) | 12,230 |
| APY | 1,46,226 |
| Total | 1,76,883 |
Bank has successfully Qualified for NPS Campaign initiative from PFRDA in the name of ENRICH ELEVATE ENROL - TRIPLE E
Bank won APY Annual Awards for the FY: 2025-26 in APY Annual Award of Excellence Achiever Category
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.
RETAIL ASSET 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. Personal Segment contributed 29% (Growth from Rs22,405 cr to Rs28,901 cr) of the total Advance Growth of the Bank in FY 2025-26 and on a Y-o-Y basis, Retail loans (Incl. gold) disbursement has grown by 70%. With a commitment to facilitating accessible and structured credit offerings, the department oversees the following key verticals:
Housing Loan Vertical:
Home loan continues to be a cornerstone for the Bank among the asset products, offering stable yields, superior asset quality and deep customer engagement. During FY 2025-26, the home loan portfolio registered a 16.82 % growth, translating to an increase of Rs709 crore over the previous year supported by focused
acquisitions and strategic partnerships. The business momentum reflects strong market acceptance of the Banks value propositions and product suitability. As of 31 st March 2026, Home Loans remains the second largest contributor to the Banks retail asset portfolio reinforcing their importance in Balance Sheet growth, customer acquisition and cross sell opportunities.
Strategy for FY 2026-27
The current years strategy focuses on scalable growth & quality sourcing through
- Accelerated scale up through Alternate channels
o Strengthen Regional Asset Hub with dedicated sales teams and enhanced productivity benchmarks.
o Increase contribution from Direct Sales Agent, Builders and Connectors.
- Expand sourcing through strategic alliances with leading developers housing aggregators and Fintech Ecosystems.
- Geographic Diversification to Tier II & III cities exhibiting string housing demands.
- Digital transformation of the Home Loan Journey- Implementation of a fully integrated In House Loan Origination System (LOS) to deliver a seamless digital experience through
o End to end Digital onboarding
o Paperless Application Processing
o Scorecard based instant sanction
o Realtime application tracking
With this strategic roadmap, strong distribution network, partnerships and enhanced digital capabilities, the Home Loan vertical is positioned to deliver sustainable growth of 21% while supporting the Banks overall retail transformation.
Vehicle Loan Vertical:
The Vehicle Loan Vertical is one of the Banks key retail lending businesses, contributing significantly to the growth of the retail asset portfolio. Through a well- diversified sourcing model comprising branch, dealer, DSA, and digital channels, the Vertical continues to strengthen its market presence and expand its customer base across geographies. The business remains focused on sustainable growth, portfolio quality, and enhancing customer experience through strategic partnerships and technology-driven initiatives.
During FY 2025-26, the Vertical achieved cumulative disbursements of 1,052 crore and an outstanding
loan book of 1,850 crore. The non-branch channel contributed 56% of the overall business, reflecting the success of the Banks diversified sourcing strategy and channel expansion initiatives.
To sustain growth momentum and strengthen market presence, the following strategic initiatives were undertaken during the year:
- Focused on selective high-performing dealers and market Direct Selling Agents (DSAs) to strengthen the non-branch business channel.
- Prioritized dealer relationships with inventory funding facilities from the Bank to improve retail vehicle loan penetration through existing partnerships.
- Targeted major Toyota dealerships by extending Working Capital facilities, thereby enhancing retail business opportunities.
- Leveraged Digital Referral Agents to expand market reach and improve business acquisition efficiency.
- Increased focus on lead generation through the Maruti Suzuki Smart Finance(MSSF) platform, enabling better-quality lead sourcing and deeper market penetration.
- Established business tie-ups with outlets of major automobile dealers under Auto Motive Manufacture Ltd. (AMPL) to strengthen the distribution network.
- Planned the rollout of Pre-Approved Car Loan offers for eligible customers through the Power Drive platform to improve customer acquisition and turnaround time.
- Enhanced focus on Government and Public Sector Undertaking (PSU) employees through the revamping of the GEMS Scheme to drive quality portfolio growth.
The above initiatives are expected to further strengthen the Vehicle Loan Verticals market position, improve business sourcing efficiency, and contribute significantly to the Banks retail asset growth in the coming years.
Personal Loan Business - Driving Scalable Retail Growth Through Digital Innovation
The Personal Loan business continues to be a key pillar of South Indian Banks retail asset strategy, supporting the Banks objective of building a diversified, high-yield, and customer-centric loan portfolio. During the year, the Bank strengthened its personal loan franchise through a calibrated blend of digital innovation, distribution expansion, and strategic partnerships, enabling faster customer acquisition and enhanced portfolio scalability.
Recognizing the evolving preferences of customers for speed, convenience, and seamless service, the Bank
has adopted a dual-delivery model comprising fully digital lending solutions alongside assisted branch- led offerings. Digital products such as Pre-Approved Personal Loans and Quick Personal Loans provide eligible customers with an end-to-end paperless borrowing experience through Internet Banking, Mobile Banking, and other digital channels, delivering instant credit decisions and accelerated disbursements. At the same time, branch-assisted personal loans continue to serve customers seeking personalized guidance and relationship-based banking support.
As part of its long-term retail growth strategy, the Bank is investing in next-generation loan origination capabilities, digital customer journeys, and ecosystem- led distribution models. The rollout of an advanced Personal Loan Origination System (LOS) with Straight Through Processing (STP) capabilities is expected to significantly enhance operational efficiency, reduce turnaround times, and improve customer experience across acquisition channels.
The Bank is also actively expanding its reach through strategic alliances, co-lending arrangements, and partnerships with digital platforms, branded corporates, and referral ecosystems. These initiatives are designed to strengthen the Banks presence in the rapidly growing unsecured lending market while enabling access to new customer segments, particularly New-to-Bank borrowers. The Quick Personal Loan proposition serves as a cornerstone of this strategy, facilitating digital customer acquisition at scale through technology- enabled partnerships.
Looking ahead, the Bank remains focused on building a sustainable and profitable personal loan portfolio through data-driven underwriting, diversified sourcing channels, enhanced risk management frameworks, and deeper digital integration. The continued expansion of tele-sales capabilities, customer self-service journeys, partnership-led sourcing, and ecosystem-based lending is expected to accelerate portfolio growth while maintaining prudent risk standards and superior customer outcomes.
Strategic Theme: Building a scalable, digitally enabled, partnership-driven personal loan franchise that enhances customer convenience, accelerates retail asset growth, and strengthens the Banks position in the unsecured lending ecosystem.
Jewel Loan Vertical:
The Vertical is primarily engaged in facilitating branches by providing the necessary support on products, processes, compliance requirements, and various business development activities, including BDE recruitment and performance monitoring. We
continuously strive to make the system more efficient and competitive by enabling suitable assessment models and process enhancements that help reduce turnaround time while ensuring there is no adverse ; impact on compliance and risk management standards. ; Productivity, Profitability & Compliance stands three t pillars for vertical.
JLBG has emerged as a significant contributor to the I Banks business, accounting for approximately 25% of the Banks total advances during FY 2025-26 and recording an impressive 45% year-to-date growth during the period. This growth reflects the strength of the product, process improvements, and the collective efforts of branches and the support team in driving business expansion while maintaining operational t discipline.
Drives/Targeted strategies -
j - Watchful on Gold price volatility. Conservative approach on LTV.
i - To continue to be high yielding product. j
- Higher Ticket size Loans to Credit Quality Customers. Focus on Income Generation Loans.
1
j - Maintain Gold Loan portfolio at 25% of the Total Advances.
- Focus on scaling up New To Gold (NTG) customer
l acquisition by enhancing engagement at the branch
l level activation.
- Expand and strengthen the empanelment of appraisers through third party engagement and a pert of risk mitigation process.
Strengthening Feet on Street, by adding more Business Development Executives and Team Leader positions f with focus on productivity/NTG Acquisition.
Drives/Targeted strategies -
i - Focus on scaling up New To Gold (NTG) customer acquisition by enhancing engagement at the branch level activation and
, - Strengthening of DST Channel by introduction of
t Team Leader position and focus on productivity/ l 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
1 and align products with market trends.
j
, - 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:
Building on the foundation established in the Previous Financial Year, the Affordable Housing Loan Vertical under the brand name SIB Ashirwad continued to strengthen its presence during FY 2025-26 as a strategic growth segment within the Retail Assets portfolio. The vertical focuses on providing housing finance solutions to economically weaker sections, low-income households, first-time homebuyers, and self-employed customers, thereby supporting financial inclusion while maintaining prudent credit standards.
During the year, the Bank introduced various product enhancements aimed at improving customer accessibility, strengthening competitiveness, and expanding market reach. The product offering was further supported through geographical expansion and enhanced customer assessment methodologies, enabling the Bank to serve a wider customer base across diverse income segments. A key milestone during the year was the phased rollout of the Banks in-house digital loan origination platform, Awaas Power, which enhanced operational efficiency, improved customer experience, reduced turnaround time, and strengthened process controls. The platform provides a scalable framework for future growth while ensuring consistency in credit assessment and portfolio monitoring. The Affordable Housing Vertical was further strengthened through the implementation of Pradhan Mantri Awas Yojana - Urban (PMAY-U) 2.0, reinforcing the Banks commitment to supporting affordable home ownership and expanding access to formal housing finance. The operationalisation of the Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH) framework further enhanced the risk management architecture of the portfolio while supporting sustainable business growth.
Supported by a diversified sourcing model comprising branches, Direct Selling Teams (DSTs), Direct Selling Agents (DSAs), and strategic partnerships, the vertical continued to expand its reach while maintaining a strong focus on asset quality, customer service, and operational effectiveness. The Affordable Housing Vertical remains well positioned to contribute to the Banks Priority Sector Lending objectives while creating a scalable retail asset franchise. With growing demand for affordable housing, technology-enabled processes, strengthened risk management practices, and supportive policy initiatives, the vertical is expected
to remain a meaningful contributor to the Banks sustainable growth, portfolio diversification, and longterm value creation.
LAP Vertical:
FY 2025-26 marked the first full year of operations of the Loan Against Property (LAP) Vertical following its establishment in September 2024. Created as the Banks dedicated platform for sourcing mortgage business through alternate channels, the vertical focused on strengthening its market presence, expanding distribution reach, and building a scalable business model. During the year, a structured zonal and regional sales framework was implemented to enhance market penetration across key real estate and business centres. The vertical also strengthened its alternate channel ecosystem through focused DSA engagement, centralized business monitoring, and process improvements, thereby establishing a strong foundation for sustainable growth, portfolio quality, and profitability.
Drive/Strategy for FY 2026-27
- Expand presence across key real estate and outbound business centres including Mumbai, Delhi, Pune, Ahmedabad, Hyderabad, Bengaluru, Chennai, Coimbatore, Ernakulam, Kozhikode, and Thiruvananthapuram.
- Deepen market penetration through the expanded zonal sales structure and strengthened regional coverage model.
- Drive exclusive sourcing of alternate channel mortgage business up to Rs7.50 Crore through the LAP Vertical.
- Strengthen the Banks position in the competitive DSA market through focused partner acquisition, engagement, and productivity enhancement initiatives.
- Execute Annual Operating Plans (AOPs) with key DSA partners to accelerate outbound business growth and improve sourcing productivity.
- Enhance customer acquisition through targeted sales initiatives and relationship-driven sourcing strategies.
- Improve operational efficiency and turnaround time through process standardization, centralized monitoring, and technology-enabled controls.
- Maintain focus on portfolio quality, profitability, and sustainable growth through prudent risk management and continuous performance monitoring.
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 2025-26.
Targeted strategies:
- Increase Non- Kerala business with the support of Corporate BC M/s WeMakeScholars.
- Digital onboarding of customers for improvement of TAT.
Subsidiary Companies/Joint Ventures or Associate Companies
As on March 31, 2026, 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, 2026, 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 Tele calling, Business Development, Data Entry Operations, IT Support and other services permitted by the Reserve Bank of India.
DEVELOPMENT OF HUMAN RESOURCES
The strength of any institution lies in its people. At South Indian Bank, Human Resources continues to play a central role in enabling business growth by building a capable workforce, creating meaningful employee experiences, strengthening organisational culture, and supporting the Banks long-term strategic objectives. During FY 2025-26, the Human Resources function remained focused on balancing performance, employee wellbeing, capability development, and digital transformation while creating an environment where employees could thrive both professionally and personally.
As the Bank continues its journey towards its centenary year, significant efforts are being undertaken to strengthen workforce capability, simplify employee services, improve productivity, and deepen employee engagement across the organisation.
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 customer facing roles and 15% in backend support, remains an ongoing aspiration. While Banks current ratio stands at 79:21, significant strides have been made towards narrowing this gap.
Developing Capabilities for a Changing Banking Environment
The rapidly evolving banking landscape demands continuous learning and adaptation. Throughout the year, the Human Resources Department focused on creating opportunities for employees to enhance their knowledge, strengthen professional skills, and prepare for future challenges.
A wide range of internal and external training programmes were conducted covering banking operations, risk management, compliance, leadership development, technology, customer service, and business growth. The Banks Staff Training College and Learning & Development teams continued to deliver learning interventions through both classroom and digital platforms, ensuring accessibility and flexibility for employees across locations.
The Learning Management System was further expanded with new learning content and enhanced learning opportunities. Employees actively participated in structured learning programmes, enabling continuous skill enhancement.
Leadership development remained an important area of focus. Development interventions aimed at strengthening managerial effectiveness and preparing employees for larger responsibilities, which aims to create a strong pipeline of future leaders for the Bank.
Driving Digital Transformation in Human Resources
Technology continued to be a key enabler in improving employee experience and operational efficiency. During the year, multiple enhancements were introduced across the HRMS and mHRMS platforms, simplifying employee interactions and reducing manual processes.
Several employee services were digitised or enhanced through self-service workflows, dashboards, automated processes, and mobile-based solutions. New functionalities relating to employee welfare, rewards and recognition, attendance management, recruitment support, training administration, taxation, and employee communication were introduced to improve accessibility and convenience.
The continued evolution of HR technology enabled faster service delivery, improved transparency, enhanced compliance, and better user experiences for employees across the Bank. These initiatives also contributed to reducing administrative effort and allowed employees to focus more effectively on business priorities.
Building a Culture of Recognition and Engagement
Employee engagement continued to be one of the key focus areas during the year. The Bank strengthened its recognition framework through initiatives aimed at appreciating contributions, encouraging participation, and celebrating achievements across all levels of the organisation.
The SIB Max Rewards programme continued to recognise outstanding performance across business verticals, while additional recognition initiatives ensured that employees across support and administrative functions also received visibility and appreciation for their contributions.
The year also witnessed a series of employee engagement initiatives that encouraged creativity, collaboration, and participation. Cultural programmes, competitions, festive celebrations, national observance events, and employee interaction forums provided opportunities for employees to connect beyond their regular work responsibilities. Initiatives such as SIB Symphony, employee contests, festive engagement programmes, and various participation-based activities received enthusiastic response from employees across the country.
These initiatives played an important role in strengthening organisational culture and reinforcing a sense of belonging among employees.
Prioritising Employee Wellbeing
Recognising that employee wellbeing is fundamental to organisational success, the Bank continued to invest in initiatives focused on physical, emotional, and mental wellness.
The Wellness Wednesday series remained a flagship employee wellbeing initiative during the year. Through regular sessions conducted by healthcare professionals and subject matter experts, employees received practical guidance on health awareness, lifestyle management, preventive healthcare, and mental wellbeing.
A significant milestone during the year was the introduction of Employee Counselling Services, providing employees access to professional support and guidance whenever required. This initiative reflected the Banks commitment to create a supportive
workplace environment that recognises the importance of mental and emotional wellbeing.
Strengthening Employee Benefits and Welfare
The Human Resources Department continued its efforts to enhance employee welfare through strategic partnerships and employee-centric initiatives.
Several new corporate tie-ups and renewals were established during the year across healthcare, hospitality, travel, wellness, and lifestyle sectors. These partnerships enabled employees, retirees, and eligible family members to access quality services and benefits at preferential terms.
The Bank also continued to strengthen employee welfare schemes and support mechanisms aimed at enhancing employee experience throughout various stages of their professional journey. These initiatives reflected the organisations commitment towards supporting employees beyond the workplace and creating a comprehensive ecosystem of care and support.
Promoting Inclusion and Social Responsibility
The year witnessed several initiatives that reflected the Banks commitment towards inclusion, diversity, and social responsibility. Programmes organised in connection with International Womens Day, employee volunteering efforts, awareness campaigns, and community-oriented activities received encouraging participation from employees across the organisation.
One of the notable initiatives during the year was the voluntary hair donation drive conducted in support of cancer patients. The programme demonstrated the compassion and social consciousness of employees while creating an opportunity to contribute towards a meaningful cause.
Such initiatives continue to strengthen the values-driven culture of the organisation and reinforce the Banks belief that responsible institutions must contribute positively to the communities they serve.
Supporting Organisational Excellence
The Human Resources function continued to support organisational effectiveness through initiatives focused on recruitment, workforce planning, productivity enhancement, process simplification, and performance management.
Structured recruitment processes, enhanced assessment methodologies, and improved workforce planning practices helped ensure the availability of quality talent aligned with the Banks business requirements. The continued use of objective assessment tools and data-driven decision-making
strengthened talent acquisition and workforce management practices.
The Department also continued its efforts to simplify processes, improve service delivery standards, and strengthen governance frameworks. These initiatives contributed to greater operational efficiency while maintaining a strong focus on employee experience.
Looking Ahead
As South Indian Bank approaches a significant milestone in its history, the Human Resources function remains committed to building a workplace that combines performance excellence with employee wellbeing, innovation with inclusiveness, and business growth with people development.
The initiatives undertaken during FY 2025-26 reaffirm the Banks conviction that sustainable success is built upon the strength of its people. Through continued investment in learning, technology, engagement, wellbeing, and organisational culture, the Bank remains focused on creating an environment where employees are empowered to contribute, grow, and succeed.
The Human Resources Department will continue to partner with the business in shaping a workforce that is agile, customer-focused, future-ready, and aligned with the values that have defined South Indian Bank throughout its journey.
DISTRIBUTION OF MANPOWER (CADRE WISE)
As on March 31, 2026, the Bank had 9,147 personnel on its payroll. The cadre wise break up is as follows:
| Cadre | Gender | Total | |
| Male | Female | ||
| Officers | 3932 | 2560 | 6492 |
| Customer Service Associate | 819 | 1544 | 2363 |
| Senior Office Assistant / Driver | 129 | 19 | 148 |
| Full-Time / Part-Time House Keeper | 34 | 110 | 144 |
| GRAND TOTAL | 4914 | 4233 | 9147 |
The average age of employees as on March 31, 2026, is 34.5 years.
As on March 31, 2026, Staff members having professional qualification constitute 59% of the overall workforce. The detailed breakup is as follows:
| Number of Staff Members having Professional Qualification as on 31-03-2026 |
| Educational Stream Number of Staff |
| CA 60 CS 6 ENGINEERING 2039 ICWA/CMA 38 LEGAL 81 MANAGEMENT 1568 PhD 2 POST GRADUATION 1616 Total:- 5410 TOTAL STAFF AS ON 31-03-2026 9147 |
PERFORMANCE MANAGEMtNI SYSIEM
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.
EXPERIENCE NEXT-GEN BANKING
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.
Looking Ahead
The Human Resources Department remains committed to creating a workplace where employees feel valued, supported, and empowered to succeed. As the Bank progresses towards its centenary year, employee engagement, wellbeing, recognition, and inclusion will continue to remain important pillars of the people strategy.
The initiatives undertaken during FY 2025-26 reaffirm the Banks belief that organisational success is built upon the strength, commitment, and wellbeing of its people. By creating meaningful experiences and supporting employees at every stage of their journey, South Indian Bank continues to strengthen a culture where people and performance grow together.
EMPLOYEE WELL-BEING
The South Indian Bank Staff Welfare Scheme: This year 326 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 childcare, 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 2025-26 is 2146. The scheme has proved to be effective in its implementation with the aim of encouraging the children of staff members to soar greater heights.
The bank has reduced the mandatory notice period for resigned staff from 90 days to 30 days. This enhances 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 6.01%.
it TECHNOLOGY DRIVEN HRMS SYSTEM
n HR Technology Transformation and Digital Initiatives d FY 2025-26
;. During FY 2025-26, the HR Technology Team continued d its focus on digital transformation, process simplification, it automation, and employee experience enhancement. t, Several new modules, workflow improvements, and >f self-service capabilities were introduced across HRMS and mHRMS platforms, reducing manual interventions, improving compliance, and delivering a more seamless experience for employees, managers, and HR teams.
d Learning and Development Technology
k A significant milestone during the year was the e successful implementation and go-live of the Banks n in-house Learning Management System (LMS). e The platform provides a centralized ecosystem for learning administration, training delivery, assessments, certifications, and learning analytics. The solution lt enables improved monitoring of employee development f initiatives while reducing dependence on external d f platforms.
, To strengthen learning accessibility and employee e engagement, Podcast functionality was also introduced through the mHRMS platform, enabling employees to access learning and knowledge content conveniently through mobile devices.
i r HRMS and Mobile Platform Enhancements
e
n The Bank released multiple upgrades to the mHRMS s platform through versions 3.0.0, 3.1, and 3.2.0, e introducing several usability improvements, new h workflows, and employee self-service features. These y enhancements improved accessibility, user experience, and the overall effectiveness of HR technology services f across the organization.
d A comprehensive revamp of the Recruitment Portal s user interface was also completed, improving candidate l experience, application management, and recruitment e process efficiency.
e Employee Benefits and Allowance Automation
n
ff Several employee reimbursement and allowance processes were simplified through automation. Allowances such as Briefcase Allowance and Annual ir Vehicle Maintenance Allowance were redesigned by s eliminating document verification requirements and n enabling declaration-based processing with automated credits. This significantly reduced administrative effort s for both employees and HR teams while accelerating f benefit disbursement.
Additional automation was introduced in Professional Tax payments, ensuring streamlined processing and improved compliance.
Internal settlement workflows were also enhanced with automated eligibility validations covering travel allowances, house rent allowance, staff loans, and other employee benefits, ensuring greater accuracy and consistency during employee transfers and settlements.
Performance Recognition and Reward Systems
The SIB Max Rewards ecosystem was further expanded during the year through the implementation of automated reward payment facilities for ECG and MBG teams. The scope of the SIB Max Reward Scheme was also extended to additional business verticals, enabling wider participation and recognition across the organization.
To strengthen performance visibility and business monitoring, multiple analytics and reporting dashboards were developed, including:
- Target vs Achievement Dashboard
- Gold Business Dashboard
- Travel Allowance Dashboard
- SIB Max Analytics Dashboard
These dashboards provided management with real-time visibility into performance metrics, reward tracking, and operational effectiveness.
Employee Lifecycle Digitization
Several initiatives were introduced to digitize critical employee lifecycle processes.
The Experience Certificate generation process was fully automated through HRMS, enabling employees to obtain certificates without manual intervention. In addition, a facility was introduced for retired employees to access and download their Relieving-cum-Experience Certificates through the system.
A Post Exit Feedback mechanism was implemented through the SIB Ex-Staff Portal to capture feedback from resigned employees, providing valuable insights for organizational improvement and employee retention strategies.
A dedicated TA Claim facility was also introduced for ex-staff members, improving service delivery for former employees.
Compliance and Governance Automation
The HR Technology Team implemented several compliance-focused digital solutions during the year.
A Dependent Declaration Module was introduced
n HRMS for specified persons covered under SEBI (Prohibition of Insider Trading) Regulations, 2015, and Banks Policy strengthening regulatory compliance and governance controls.
A facility was created for subsistence allowance tax projection and tax deduction calculations for employees under suspension, ensuring compliance with statutory requirements.
The SWLS Indemnity Bond execution process and Executive Custom Training Bond execution process were digitized through HRMS, eliminating physical documentation and enhancing process efficiency, transparency, and record management.
Workforce Administration and Employee Services
The year also witnessed the implementation of several employee-centric service enhancements.
A Staff ID Card Management Module was introduced to streamline ID card issuance and lifecycle management.
An Internship Management Module was launched to facilitate the administration and tracking of internship programmes through HRMS.
Attendance Regularisation rules and workflows were enhanced to improve consistency, governance, and ease of use.
A Customer Greeting facility was introduced to automatically enable Branch Heads to send personalized greetings to customers transferred from one branch to another, strengthening customer relationship management and improving service continuity.
Strategic and Emerging Initiatives
The first phase of the Key Management Module was successfully launched with an Asset Capture Facility, creating the foundation for a broader enterprise asset management framework.
A digital Suggestion Box was introduced in connection with the Banks Centenary Celebrations, providing employees with a structured platform to submit ideas and suggestions for organizational improvement and commemorative initiatives.
A Branch Process Governance (BPG) Survey module was also deployed for branch functions, enabling structured feedback collection and process improvement assessments across the branch network.
Impact
Collectively, these initiatives strengthened the Banks HR technology landscape by enhancing automation, improving employee experience, reducing manual processing, increasing compliance, and providing data-
driven decision support. The continued evolution of HRMS and mHRMS platforms during FY 2025-26 reflects the Banks commitment to leveraging technology to create efficient, scalable, and employee-centric HR processes that support organizational growth and operational excellence.
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 411 themes as of March 31, 2026. 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 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 6.01%.
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, objectively designed to assess and reward employees based on their performance, as 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 details of ESOS granted during various tranches are as follows:
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)/Material Risk Takers 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 follows Black Scholes model for calculating fair value of option to account for its stock-based employee compensation plans as per the Guidelines. 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 2026, 6,37,05,722 stock options were vested, out of which 3,05,90,831 stock options were exercised by eligible employees. The money realised due to exercise of the said options was Rs45,73,47,682.39 and consequently 3,05,90,831 shares of Rs1/- each have been allotted to the employees/legal heirs concerned.
| By orders of the Board | |
| (Jose Joseph Kattoor) | (P R Seshadri) |
| Chairman Managing | Director & CEO |
| DIN :09213852 | DIN:07820690 |
| Place : Kochi | |
| Date : July 16, 2026 |
| Financial Year Details Tranches | No. of Options granted | |
| 2009-10 | Tranche - I | 3,07,25,000 |
| 2010-11 | Tranche - II | 5,10,500 |
| 2011-12 | Tranche - III | 9,42,000 |
| 2012-13 | Tranche - IV | 21,000 |
| Tranche - V | 10,66,500 | |
| 2013-14 | Tranche - VI | 2,13,52,100 |
| 2014-15 | Tranche - VII | 22,26,500 |
| 2017-18 | Tranche - VIII | 43,04,710 |
| Tranche - IX | 1,50,000 | |
| 2020-21 | Tranche - X | 1,50,000 |
| 2022-23 | Tranche - XI | 3,99,171 |
| Tranche -XII | 11,06,194 | |
| 2023-24 | Tranche - XIII | 68,69,004 |
| 2024-25 | Tranche - XIV | 20,14,396 |
| Tranche - XV | 31,48,500 | |
| Tranche - XVI | 1,18,226 | |
| Tranche - XVII | 8,66,738 | |
| 2025-26 | Tranche - XVIII | 8,28,179 |
| Tranche - XIX | 22,71,961 | |
| Tranche - XX | 1,21,206 | |
| Total options | 79,19,1885 | |
| granted |
IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000
IIFL Capital Services Support WhatsApp Number
+91 9892691696
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IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132 (Member ID - NSE: 10975 BSE: 179 MCX: 55995 NCDEX: 01249), DP SEBI Reg. No. IN-DP-185-2016, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, Merchant Banker SEBI Regn. No. INM000010940, RA SEBI Regn. No: INH000000248, BSE Enlistment Number (RA): 5016, AMFI-Registered Mutual Fund Distributor & SIF Distributor
ARN NO : 47791 (Date of initial registration – 17/02/2007; Current validity of ARN – 08/02/2027), PFRDA Reg. No. PoP 20092018, IRDAI Corporate Agent (Composite) : CA1099
This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.
