In recent years, the banking industry has been facing challenges in mobilising low-cost deposits, specifically CASA (Current Account Savings Account). Having said that, the Bank is well poised in this segment with 30% of the liability portfolio coming from the Non-Resident remittance front, shared Dolphy Jose, Executive Director, South Indian Bank, in an exclusive interaction with Srajan Agarwal of Elets News Network (ENN).
South Indian Bank has a rich legacy in the Indian banking sector. How has the Bank’s history shaped its current mission and values?
South Indian Bank’s journey, which began in 1929, is built on a foundation of trust and customer-centricity. Our legacy of serving diverse communities across India has ingrained in us the values of integrity, empathy, and excellence. This historical foundation continues to shape our mission of empowering customers with accessible, reliable financial services, ensuring that our growth aligns with their evolving needs. We remain focused on building lasting relationships, fostering financial inclusion, and contributing positively to India’s economic landscape.
What are the key pillars of South Indian Bank’s growth strategy as you look to strengthen your market position in the coming years?
Our growth strategy is anchored in three key pillars: digital transformation, customer-centricity, and operational excellence. By investing in cuttingedge technology, we aim to provide seamless, personalized experiences that cater to the diverse needs of our customers. Additionally, we are deepening our focus on customer engagement, enhancing our service delivery across all touchpoints. Operationally, we are committed to optimizing efficiencies, managing risks prudently, and fostering a culture of continuous learning and adaptability among our teams.
As we continue to evolve, we are strategically poised to garner incremental growth in the MSME and retail advance segments by developing businesses and setting footprints in geographies rich for such segments. Our focus is also on the retail unsecured loan segment in the form of Personal Loans and Business Loans, where we will develop our businesses through strategic alliances and partnerships in the colending/co-origination space.
This approach is part of our broader journey from being a regional bank to a truly universal one. The concept of “OUTSIDE-IN” will guide us in seeking new expertise, exploring untapped markets, and expanding into new geographies. This strategic focus will broaden our horizons, laying the foundation for sustainable growth and helping us position South Indian Bank as not only a national player but one with an international outlook.
With the evolving digital landscape, how is South Indian Bank leveraging technology to enhance customer experience and operational efficiency?
We are committed to leveraging technology to elevate customer experience and streamline operations. We have implemented various digital initiatives aimed at making banking seamless and secure. For instance, we have significantly improved loan processing to ensure faster turnaround times and introduced UPI transactions via voice commands for added convenience. Our innovative SIB PayTAG allows for effortless contactless payments, while specialised savings products cater to niche segments like medical professionals, seafarers etc.
Our flagship SIB Mirror+ app, available in 9 languages, comes equipped with safety features such as e-Lock and e-Limit, empowering customers to manage funds, make international transfers, open PIS accounts instantly, and renew pre-approved loans—all from their own devices. We also facilitate instant account opening via VKYC and offer Hi-Hi Banking for corporate bulk payments.
To further enhance service, we’ve equipped our staff with Aadhaar-based mobility solutions and launched a Visa Signature card for HNI customers, packed with rewards and higher limits. Recent innovations also include insurance enrollment via SIB Mirror+, a revamped phone banking journey, and UPI enhancements like UPI Circle and NFC-based Tap & Pay.
Our focus on operational efficiency includes an in-house digital LOS for vehicle loans and an STP-based LOS for GST business loans. To ensure customer data safety, we have strengthened our cybersecurity measures. Additionally, the integration with the Telangana Treasury for SIBerNet and the use of Digital Document Execution for loan processing further enrich our digital landscape. Today, 98% of our transactions are conducted digitally, showcasing our commitment to providing seamless and secure banking experiences.
As the Bank continues its journey toward growth, what specific areas are you prioritising for expanding the Bank’s footprint, especially in regional and semiurban markets?
We currently have around 955 branches across India, with about 501 in Kerala and 148 in Tamil Nadu. With the growth of electronic funds transfer and national clearing, customers can transfer money across the country without needing local branches. This reduces the urgency to expand the branch network in new regions. Instead, we’re focusing on consolidating our position in markets where we’re already strong with a well-established brand, particularly South India other than Kerala and markets like Maharashtra, Gujarat and Delhi & NCR.
We recognise the vast potential these markets hold and are working to provide tailored financial solutions that address the unique needs of customers in these areas. By strengthening our existing branch network, expanding our reach through digital channels, and collaborating with local institutions, we aim to support regional growth and financial inclusion. Our efforts are focused on, building a high-quality MSME book, and also focusing on Retail loans like Housing, Vehicle, Mortgage (LAP) etc.
In terms of new products and services, what innovations can we expect from South Indian Bank to cater to the changing needs of the modern customer?
We are actively developing innovative products and services that cater to the modern customer’s evolving needs. Our focus remains on providing flexibility, convenience, and a digital-first approach. Upcoming product offerings will include tailored loan solutions, advanced digital payment services, and integrated wealth management options. We are also designing solutions that align with customer lifestyles, promoting responsible financial habits while utilising digital ecosystems for faster, more efficient, and personalised banking.
Our completed projects include GST Power Business Loans, LAP Power, Power Drive, Transaction-Based Renewals for MSME files up to INR 2 Cr, and the MSME Renewal Module in the new Loan Origination System (LOS) for amounts up to INR 25 Cr.
We are currently working on projects such as Automation of Renewal processes, Composite Power (a mix of funded and non-funded options), a Unified Flow for proposals up to INR 25 lakhs, and simplifying the Global Education Loan process with an enhanced system. Additionally, we are advancing STP for Affordable Housing Finance to improve accessibility and efficiency.
Looking to the future, what challenges do you foresee for South Indian Bank, and how do you plan to overcome them to sustain growth and resilience?
In recent years, the banking industry has been facing challenges in mobilising low-cost deposits, specifically CASA (Current Account Savings Account). Having said that, our Bank is well poised in this segment with 30% of the liability portfolio coming from the Non-Resident remittance front. We are well established in GCC countries, with a Representative Office in Dubai, UAE and also intend to expand outside of GCC. Another significant edge we have is that our Cost of Deposits is one of the lowest in comparison to our peers.
In a rapidly evolving financial landscape, we foresee challenges in maintaining pace with technological advancements, managing regulatory complexities, and meeting the diverse expectations of customers. To address these, we are investing in talent development, fostering a culture of continuous improvement, and emphasising adaptability in our operations. By staying attuned to market trends, working closely with regulators, and being agile in our digital initiatives, we aim to sustain growth, build resilience, and continue delivering value to our customers and stakeholders.
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