Financial Performance Highlights
South Indian Bank reported strong financial results for FY26 with net profit increasing 11.7% to ₹1,455.14 crore from ₹1,302.88 crore in FY25. Total business grew 14.6% to ₹2,23,620 crore, comprising deposits of ₹1,23,346 crore (up 14.71%) and gross advances of ₹1,00,274 crore (up 14.50%). The Bank demonstrated significant improvement in asset quality with Gross NPA declining to 1.43% from 3.20% and Net NPA reducing to 0.29% from 0.92%.
Dividend Declaration and Capital Raising
The Board recommended a dividend of ₹0.45 per equity share (45%) for FY26, subject to shareholder approval at the 98th AGM. The Bank also seeks approval to raise up to ₹1,000 crore through issuance of Tier-II bonds/debentures on private placement basis within one year. Capital adequacy remained strong at 19.66% CRAR with Tier I capital at 18.76%.
98th Annual General Meeting Details
The 98th AGM will be held virtually on August 20, 2026, with seven resolutions including adoption of financial statements, dividend declaration, director appointments, and capital raising. Key resolutions include appointment of Mahesh Muralidhar Pai as MD & CEO for three years and re-appointment of Lakshmi Ramakrishna Srinivas as Independent Director for five years. Remote e-voting will be conducted through NSDL platform from August 16-19, 2026.
Corporate Governance and Committee Oversight
The Bank maintained robust corporate governance with 12 Board meetings and extensive committee oversight. The Audit Committee met 9 times, while the Nomination & Remuneration Committee held 14 meetings during FY26. The Bank identified three Material Risk Takers including MD & CEO, Executive Director, and Head Treasury, with comprehensive remuneration disclosures including variable pay structures and ESOS details.
Regulatory Compliance and Disclosures
The Bank confirmed compliance with all applicable laws including Companies Act, 2013, Banking Regulation Act, 1949, SEBI LODR Regulations, and RBI guidelines. Shareholders approved two resolutions via postal ballot including appointment of Thomson Thomas as independent director with 99.77% votes in favor. The Bank maintained 953 banking outlets across 26 States and 4 Union Territories.
Remuneration and Employee Benefits
MD & CEO P R Seshadri received total remuneration of ₹4.58 crore including fixed pay, variable cash components, and non-cash ESOS grants. The Bank's ESOS scheme had 1,49,39,989 options outstanding with employee compensation cost of ₹18.81 crore for FY26. Retirement benefits including pension, gratuity, and leave encashment totaled significant provisions.
Business Ratios and Performance Metrics
Key performance indicators showed Return on Assets at 1.08%, Net Interest Margin at 2.91%, and Operating Profit to Working Funds at 1.76%. Business per employee improved to ₹24.80 crore from ₹21.15 crore. The Bank also reported green deposits of ₹258.37 crore cumulative allocation to renewable energy and clean transportation projects.