The South Indian Bank Limited has informed the Exchange about General Updates
SOUTHBANK · price
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South Indian Bank has received approval from the Reserve Bank of India (RBI) dated August 14, 2025, to exercise the call option on its Tier II Bond (ISIN: INE683A08036). The bond was issued on November 28, 2017, with a maturity date of May 28, 2028, carrying a 9.50% coupon rate payable half-yearly. The total outstanding amount is Rs. 490 crore. A Board meeting is scheduled for August 20, 2025, to formally decide on exercising the call option, set the record date, and issue notice to bondholders.
Exercising the call option will allow the bank to redeem the high-cost 9.50% Tier II bond ahead of its 2028 maturity, which could lower interest expenses and improve profitability in the medium term. For shareholders, this reflects active liability management, though the actual financial benefit will depend on the cost of any replacement capital.