The South Indian Bank Limited has informed the Exchange about Credit Rating- Revision
SOUTHBANK · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
India Ratings and Research has upgraded South Indian Bank's Basel III Tier 2 debt (worth INR 12.5 Billion) from IND A+/Stable to IND AA-/Stable, citing improving profitability in FY25, stronger internal accruals, better capital base, declining gross NPAs, and a granular retail deposit franchise. Separately, the rating on the bank's Basel III AT1 perpetual bonds (INR 5 Billion) has been withdrawn because the bank redeemed the debt by exercising the call option on January 24, 2025. The agency noted that relatively low margins and elevated operating expenses remain areas to watch, though they are improving.
This is a positive development for shareholders — a rating upgrade to AA- on Tier 2 bonds signals improved financial health and lower perceived credit risk, which could reduce future borrowing costs and boost investor confidence in the stock.