South Indian Bank price band at Rs60 - Rs66 per share

Our Banking Bureau
08 February 2006

The bank is planning to raise up to Rs150 crore to augment capital base and meet the proposed Basel II norms on capital adequacy.

The Kerala-based bank is one of the older private sector banks in the country. The branch network is also concentrated mostly in Kerala and other southern states. The bank is considerably dependent on business from non-resident Indians mostly in the Middle East.

ICICI Bank held more than 11 per cent stake in South Indian Bank while FII''s hold more than 4 per cent. Public holding is as high as 64 per cent.

ICICI Bank is required to bring down its stake to a maximum of 5 per cent as per RBI guidelines.

The bank reported a net profit of Rs20.65 crore or Rs4.33 per share for the December quarter on total income of Rs207.49 crore. The bank earned Rs194.03 crore in interest income and Rs13.46 crore in other income during the quarter.

For the quarter ended 30 September, the bank earned Rs8.63 crore or Rs1.81 per share on total income of Rs196.27 crore.