Shareholders of The South Indian Bank Limited approved a final dividend of ₹0.45 per equity share for FY26 and backed the appointment of Mahesh Muralidhar Pai as Managing Director and Chief Executive Officer.

The 98th Annual General Meeting (AGM) was held on August 20, 2026, via video conferencing. All seven resolutions on the agenda passed with the requisite majority.

Key Resolutions Passed

The shareholders approved the adoption of standalone and consolidated financial statements for the year ended March 31, 2026. The audit reports were unmodified, and the secretarial audit report had no qualifications or adverse remarks.

Leadership Changes

The board secured approval to appoint Sri. Mahesh Muralidhar Pai as Director and MD & CEO, including his terms and remuneration. This resolution received support from 99.13% of votes polled.

Sri. Dolphy Jose, who retires by rotation, was re-appointed as Director with 98.94% approval. Smt. Lakshmi Ramakrishna Srinivas was re-appointed as Independent Director under a special resolution, securing 91.15% of votes in favour.

Capital Raise Authorization

In a significant strategic move, shareholders passed a special resolution authorizing the bank to raise funds by issuing Tier-II bonds, debentures, or securities on a private placement basis. The authorization allows for raising up to ₹1,000 crore. This resolution saw overwhelming support, with 99.99% of votes cast in favour.

Voting Participation

A total of 188 shareholders attended the meeting through video conferencing. Remote e-voting remained open from August 16 to August 19, 2026. The total number of shareholders on the record date of August 13, 2026, was 12,38,348, comprising entirely public shareholders as there are no promoter holdings.

What the Numbers Show

The voting data highlights a distinct divergence in shareholder sentiment between institutional and non-institutional investors regarding the re-appointment of Independent Director Smt. Lakshmi Ramakrishna Srinivas. While public non-institutional shareholders supported the resolution with 99.76% approval, public institutional investors voted against it at a rate of 10.24%. Despite this institutional dissent, the resolution passed comfortably due to the high volume of shares held by institutions that still voted in favour, alongside near-unanimous support from retail investors.

South Indian Bank approved the grant of 27,36,230 employee stock options during its board meeting on August 20, 2026. The awards form part of the non-cash variable pay for FY26.

The bank allocated the options under Tranche 21 of the SIB ESOS Scheme 2008 to 306 eligible employees. The move complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015.

Pricing and Valuation

The exercise price is set at ₹22.50, representing a 50% discount to the market price of ₹45.00. This market price reflects the NSE closing price on August 19, 2026, the trading day immediately preceding the grant date with the highest volume.

A registered valuer computed the option premium at ₹30.96 per option using the Black-Scholes model, in accordance with extant RBI guidelines.

Vesting Schedule

The options vest in three tranches over three years from the grant date:

• 30% vests after 12 months
• 30% vests after 24 months
• 40% vests after 36 months

Employees may exercise the options within five years from the respective vesting dates. If fully exercised, the options will convert into 27,36,230 equity shares of face value Re.1 each.

What the Numbers Show

The significant discount between the exercise price (₹22.50) and the market price (₹45.00) highlights the value proposition of the non-cash compensation. This pricing structure aims to align employee incentives with long-term share price performance while providing immediate intrinsic value upon vesting.