South Indian Bank, established in 1929 and headquartered in Thrissur, Kerala, is one of India’s oldest private sector banks with deep roots in southern India. Originally the first scheduled private bank in Kerala, it has evolved into a modern financial institution offering retail banking, corporate banking, treasury operations, and digital financial services. After years of balance sheet stress, the bank has turned a corner—reporting consistent profitability, strong capital buffers, and improving asset quality. As of January 2026, it presents a compelling value opportunity for long-term investors seeking exposure to a recovering mid-sized private bank. This article provides a data-driven outlook on the South Indian Bank share price target 2026–2030.
South Indian Bank: Company Overview
- Founded: 1929
- Managing Director: Mr. Murali Ramakrishnan
- NSE Symbol: SOUTHBANK
- Business Segments: Retail Banking (~65%), Wholesale Banking (~20%), Treasury (~15%)
- Market Position: Strong regional presence in Kerala, Tamil Nadu, and Karnataka; expanding pan-India footprint
South Indian Bank maintains a robust capital adequacy ratio (CAR) of 19.31%, well above the RBI’s 11.5% requirement. Its gross NPA stands at 4.74% and net NPA at 1.61%, reflecting steady credit recovery since FY2022.
South Indian Bank: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹42.40 |
| Market Capitalization | ₹11,107.20 Cr |
| No. of Shares Outstanding | 261.72 Cr |
| 52-Week High / Low | ₹42.50 / ₹22.10 |
| P/E Ratio (TTM) | 8.18 |
| P/B Ratio | 1.04 |
| EPS (TTM) | ₹5.19 |
| Book Value (TTM) | ₹40.64 |
| ROE | 13.77% |
| ROCE | 14.73% |
| Dividend Yield | 0.94% |
| Face Value | ₹1 |
| Net Interest Income | ₹3,485.64 Cr |
| Cost-to-Income Ratio | 57.16% |
| Capital Adequacy Ratio (CAR) | 19.31% |
| Profit Growth (YoY) | 21.76% |
| CASA % | 31.37% |
South Indian Bank Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹45 – ₹51 |
| 2027 | ₹49 – ₹57 |
| 2028 | ₹53 – ₹64 |
| 2029 | ₹57 – ₹71 |
| 2030 | ₹61 – ₹78 |
South Indian Bank Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹45 | ₹51 |
South Indian Bank reported 21.76% YoY profit growth in FY2025, supported by stable asset quality and lower provisioning. Trading at a P/E of 8.18 and P/B of 1.04—with ROE of 13.77%—the stock appears fairly valued relative to PSU peers and undemanding for a profitable private bank. A 2026 target range of ₹45–₹51 assumes continued credit discipline and no fresh slippages.
South Indian Bank Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹49 | ₹57 |
If the bank gradually improves its cost-to-income ratio (currently 57.16%) and expands its retail loan book, earnings could grow at 15–18% annually. Assuming EPS reaches ₹5.70–₹6.20 by FY27 and P/E stabilizes at 8.5–9x, the 2027 target range of ₹49–₹57 is justified.
South Indian Bank Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹53 | ₹64 |
By 2028, benefits from digital scaling, branch rationalization, and cross-selling should reflect in margins. With a ROCE of 14.73%—higher than ROE—the bank efficiently deploys capital. A P/E of 9–9.5x on projected EPS of ₹6.00–₹6.70 supports the ₹53–₹64 band.
South Indian Bank Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹57 | ₹71 |
Long-term tailwinds include rising credit penetration in South India and SIB’s strong regional franchise. If competition doesn’t erode margins, EPS could reach ₹6.40–₹7.10 by FY29. At a P/E of 9–10x, the 2029 target is ₹57–₹71.
South Indian Bank Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹61 | ₹78 |
Over a five-year horizon, SIB’s appeal lies in capital strength and niche focus—not explosive growth. If ROE holds above 13% and dividends resume consistently, investor confidence could improve. A terminal P/E of 10–11x on FY30 EPS (~₹6.50–₹7.10) justifies the ₹61–₹78 range.
South Indian Bank: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Public & Retail | 70.18% |
| Foreign Institutional Investors (FII) | 17.91% |
| Domestic Institutional Investors (DII) | 11.91% |
| Promoters | 0% |
The absence of promoters reflects its widely held structure. High public holding ensures liquidity, while institutional ownership (29.82%) provides analyst coverage.
South Indian Bank: Strengths vs Risks
Strengths:
- Exceptional capital buffer (CAR: 19.31%)
- Consistent ROE (~14%) and improving profitability
- Strong legacy in Kerala with growing national footprint
- Trading near book value (P/B: 1.04)—rare among profitable private banks
Risks:
- High cost-to-income ratio (57.16%) limits margin expansion
- CASA ratio (31.37%) lags behind peers like ICICI (41.8%)
- Limited brand recognition outside South India
- Contingent liabilities of ₹19,546 Cr require monitoring
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Ideal Time Horizon | 5+ years |
| Volatility | Higher than large-cap private banks |
| Dividend/Income Potential | Low (0.94% yield), but consistent payouts |
| Best For | Value-oriented investors seeking regional private banking exposure |
FAQs
Is it good to buy South Indian Bank shares?
Yes—for long-term portfolios focused on undervalued, recovering private banks. At a P/B of 1.04 and ROE of 13.77%, it offers reasonable value. However, avoid it if you seek low-cost efficiency or high dividend income.
What is the future of SOUTHBANK?
The bank is transitioning from turnaround to growth. If it sustains asset quality, improves operational efficiency, and expands beyond South India, it could become a credible mid-tier private bank. Long-term success depends on execution consistency.
Is SOUTHBANK overvalued?
No. With a P/E of 8.18 and P/B of 1.04 against ROE of 13.77%, it trades at a significant discount to HDFC (P/E: 20x, ROE: 14.4%) and ICICI (P/E: 18x, ROE: 18%). It is fairly valued to slightly undervalued.
Is South Indian Bank a large-cap company?
No. With a market cap of ₹11,107 Cr, it is classified as a small-cap stock under SEBI guidelines (large-cap threshold: top 100 companies by market cap).
Final Verdict
South Indian Bank has successfully stabilized after years of stress and is now delivering consistent profits with strong capital buffers. While it lacks the scale of HDFC or ICICI, its regional moat, clean balance sheet, and undemanding valuation make it a credible long-term holding.
Our South Indian Bank share price target 2026–2030 (₹45 to ₹78) reflects steady earnings growth, moderate multiple expansion, and sustained investor confidence. It won’t deliver explosive gains, but offers reliable compounding for those betting on India’s tier-2 banking evolution.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – South Indian Bank Consolidated Page (FY2025 + TTM)
- Finology Ticker – SOUTHBANK Financials & Analysis
- Groww.in – South Indian Bank Stock Profile
- South Indian Bank Investor Presentation (Q3 FY26, Jan 2026)
- RBI Guidelines on Capital Adequacy and Asset Classification
