South Indian Bank will convene its 98th Annual General Meeting (AGM) on Thursday, August 20, 2026, to approve a record net profit of ₹1,455.14 crore for FY26 and a recommended dividend of ₹0.45 per equity share. The meeting, held via Video Conferencing (VC) / Other Audio Visual Means (OAVM), also seeks shareholder approval for the appointment of Mahesh Muralidhar Pai as Managing Director and Chief Executive Officer (MD & CEO) and authorizes a Tier-II bond issuance of up to ₹1,000 crore. These developments underscore the bank’s strong financial health, marked by gross advances crossing the ₹1 lakh crore milestone for the first time.

The Board of Directors has recommended a dividend of 45%, translating to ₹0.45 per equity share of face value ₹1 each, for the financial year ended March 31, 2026. This represents a 12.50% increase over the previous year’s payout of ₹0.40 per share. Once approved by shareholders, the dividend will be paid on or before September 18, 2026. Shareholders holding shares in demat form are advised to update their bank account details with their Depository Participants, while physical shareholders should coordinate with the Registrar to an Issue and Share Transfer Agent, M/s. MUFG Intime India Pvt. Ltd. In compliance with the Income Tax Act, 2025, and the Finance Act, 2026, the bank will deduct tax at source (TDS) from dividends; for resident individuals, TDS is applicable at 10% unless a valid PAN is not provided (20%) or total annual dividend does not exceed ₹10,000.

Special Business and Leadership Changes

The AGM will transact several critical items of special business aimed at strengthening governance and capital adequacy. A key resolution involves the appointment of Sri. Mahesh Muralidhar Pai as Director and MD & CEO for a three-year term from October 1, 2026, to September 30, 2029. This appointment is subject to Reserve Bank of India (RBI) approval, which was conveyed vide letter dated July 7, 2026. Mr. Pai, currently serving as Chief General Manager at Canara Bank, brings nearly three decades of experience in treasury, foreign exchange, and credit governance. He succeeds Sri. P R Seshadri, whose term expires on September 30, 2026.

Additionally, shareholders will vote on re-appointing Smt. Lakshmi Ramakrishna Srinivas as an Independent Director for a second five-year term, effective November 20, 2026. The bank also seeks approval to raise funds up to ₹1,000 crore through the private placement of Tier-II bonds/debentures/securities, enhancing its capital buffer under Basel III norms. Furthermore, the remuneration for Joint Statutory Auditors M/s. M P Chitale & Co. and M/s. Borkar & Muzumdar has been set at ₹2,60,00,000 per annum plus GST, reflecting a ~15% increase from the previous year’s fee of ₹2,26,00,000.

Financial Performance Highlights

South Indian Bank reported robust growth in FY26, with net profit rising to ₹1,455.14 crore from ₹1,302.88 crore in FY25. Operating profit expanded to ₹2,373.36 crore. The bank’s asset quality improved significantly, with Gross NPA dropping to 1.43% from 3.20% in the prior year, and Net NPA declining to 0.29% from 0.92%. Provision Coverage Ratio stood at 94.10%. Total deposits grew to ₹1,23,346.32 crore, while gross advances reached ₹1,00,274.05 crore. CASA ratio improved to 32.12% from 31.37%, indicating better low-cost funding stability. Capital adequacy remained strong with a CRAR of 19.66%.

E-Voting and Participation Details

Shareholders can participate in the AGM electronically. Remote e-voting opens on Sunday, August 16, 2026, at 10:00 AM (IST) and closes on Wednesday, August 19, 2026, at 5:00 PM (IST). Eligible voters are those recorded in the Register of Members or Beneficial Owners as of the cut-off date, Thursday, August 13, 2026. The VC/OAVM facility is available for 1,000 members on a first-come, first-served basis, excluding large shareholders, promoters, and institutional investors. Electronic copies of the AGM notice and annual report are accessible on the bank’s website and stock exchange portals. Physical copies will not be dispatched unless specifically requested, in line with regulatory circulars.

The South Indian Bank submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 on July 27, 2026, revealing robust operational growth and expanded financial inclusion metrics. As of March 31, 2026, the bank’s total business stood at ₹2.23 lakh crore, marking a 14.6% increase from the previous fiscal year. This growth was accompanied by an expansion in its customer base, which rose from 8.0 million in March 2025 to 8.3 million in March 2026, driven by aggressive acquisition strategies across retail and corporate segments.

The filing, made pursuant to Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, forms part of the bank’s annual report. Jimmy Mathew, Company Secretary, signed the submission, which is also hosted on the bank’s investor relations website. The report outlines the bank’s adherence to National Guidelines on Responsible Business Conduct (NGRBC), covering nine principles ranging from ethical governance to environmental protection.

Operational and Digital Highlights

The bank emphasized its strategic pivot toward digital banking, reporting that more than 98% of transactions were conducted through digital channels during FY26. This shift supports operational efficiency and reduces paper consumption. The bank operates a network of 948 branches, three satellite branches, two ultra-small branches, 19 regional offices, and one service branch nationwide, along with a representative office in Dubai.

Sustainability and Environmental Initiatives

Under Principle 6, the bank detailed its environmental management practices, including the installation of solar power systems across six locations with a total capacity of 385kW. A new 75 KLD Sewage Treatment Plant (STP) was commissioned at the SIB Tower in Kakkanad, Ernakulam. The bank also implemented energy efficiency measures such as maintaining air conditioner temperatures at 24°C and procuring 5-star rated inverter ACs. Green financing remains a key focus, with the Green Deposit Scheme mobilizing ₹97.66 crore during the year. Of this amount, ₹156.28 crore (including ₹58.62 crore carried forward) was allocated to eligible green projects.

Social Impact and Governance

The bank reported that women constituted 46.28% of its total workforce, comprising 9,147 employees. More than 98% of employees were covered under training programs related to skill upgradation, health and safety, and compliance. Corporate Social Responsibility (CSR) initiatives reached more than 32 lakh beneficiaries, with over 71% belonging to marginalized and underserved communities. The bank’s CSR spending focused on healthcare, education, and environmental sustainability.

Governance structures were reinforced through an Executive Level Committee overseeing ESG implementation, chaired by the Chief Operating Officer. The Board’s Corporate Social Responsibility Committee, led by Non-Executive Non-Independent Director Benny P Thomas, oversees ESG reporting. Independent assessment of policies was conducted by CARE Analytics and Advisory Private Limited.

What the Numbers Show

The correlation between the 14.6% growth in total business and the >98% digital transaction share indicates a successful scaling of low-cost distribution channels. This operational efficiency likely contributed to the ability to expand the customer base by 300,000 users within a single year without proportional increases in physical infrastructure costs. Furthermore, the allocation of ₹156.28 crore to green projects against ₹97.66 crore mobilized suggests the bank is leveraging prior-year deposits to meet current sustainability targets, demonstrating active portfolio management toward environmental goals.