South Indian Bank (SIB) has released important information regarding the maturity of its Non-Convertible, Redeemable, Fully Paid-Up, Unsecured, Basel III Compliant, Tier II Bonds. These bonds, which were issued on September 30, 2015, are set to mature on October 31, 2025, marking a significant event for the bank and its bondholders.

Bond Details

The bonds, identified by the ISIN INE683A08028, carry a face value of Rs. 10,00,000 each and offer a coupon rate of 10.25% per annum. The total issue size amounts to Rs 300 crore, representing a substantial financial instrument for the bank.

Key Dates for Bondholders

Payment Information

South Indian Bank has confirmed that interest will be paid up to October 30, 2025, along with the principal amount at par to eligible bondholders. The interest payment will be calculated on an actual/actual basis as per the terms of issue.

Bondholder Eligibility

Bondholders whose names appear in the Beneficiary position as of the record date (October 16, 2025) will be eligible for the final interest payment and principal repayment.

Important Notes for Bondholders

1. The bank's liability towards bondholders will cease from the maturity date.
2. South Indian Bank will not be liable for any interest or compensation after the maturity date.
3. Eligible bondholders are advised to update their correct bank account details with their respective depository participants to ensure smooth payment processing.

Bank's Statement

Jimmy Mathew, Company Secretary of South Indian Bank, stated in the official notice, "The Bonds shall be taken as discharged on payment of interest and principal amount by the Bank as aforesaid. Bank's liability to the Bondholders towards all their rights including for the payment or otherwise shall cease and stand extinguished from the maturity date."

This announcement provides clarity to bondholders and the market regarding the maturity process of these Tier II bonds, demonstrating South Indian Bank's commitment to transparent communication with its investors.

South Indian Bank has announced changes to its Marginal Cost of Funds Based Lending Rates (MCLR) across multiple tenors, set to take effect from August 20, 2025. This revision in lending rates is likely to impact borrowers with MCLR-linked loans.

New MCLR Structure

The bank has revised its MCLR for various tenors as follows:

Key Highlights

• The overnight MCLR, which is the lowest in the structure, is set at 8.20%.
• The one-year MCLR, often used as a benchmark for many loan products, stands at 9.70%.
• The bank has introduced a gradual increase in rates from shorter to longer tenors.

Regulatory Compliance

South Indian Bank has made this announcement in compliance with Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. The bank has duly informed both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) about these changes.

Impact on Borrowers

The revision in MCLR rates is likely to affect the interest rates on various loan products offered by South Indian Bank. Existing borrowers with MCLR-linked loans may see changes in their interest rates as per their loan reset dates.

Additional Information

The bank has stated that this information will also be available on its official website for public reference. Borrowers and potential customers are advised to check the bank's website or contact their nearest South Indian Bank branch for more details on how these changes might affect their specific loan products.

As banks continue to adjust their lending rates in response to various economic factors, it's crucial for borrowers to stay informed about such changes and understand their impact on loan repayments.