South Indian Bank Board Okays Rs 1,151 Cr Rights Issue In 1:4 Ratio

On Thursday, South Indian Bank said that its board of directors authorised raising up to Rs 1,151 crore through a rights issue to finance its expansion goals. Following the announcement, the bank's shares closed 9.71% higher at Rs 35.70 per share on the BSE. According to a regulatory filing from South Indian Bank, the board has authorised the proposal to issue 5,231,85,254 rights issue on a fully-paid up basis for a total amount of up to Rs 1,151.01 crores assuming full subscription with regard to rights equity shares.

The Board has fixed Tuesday, February 27,2024 as the record date and the rights issue will open on Wednesday, March 6, 2024 whereas it will close on Wednesday, March 20, 2024.

The issue has been priced at Rs 22 per rights equity share fully paid-up (including a premium of Rs 21 per rights equity share) on application, as per a regulatory filing.

Assuming full subscription with respect to rights equity shares, South Indian Bank said its 209,27,41,018 equity shares will be its outstanding shares prior to the rights issue while post rights issue its outstanding equity shares will be 261,59,26,272.

For every four fully paid-up equity shares of the bank owned by the bank's eligible equity shareholders as of the record date, there will be one right equity share allowed by the bank.

For the quarter that ended on December 23, the bank recorded a rise in net profit of about 200% to Rs 305.4 crore for the third quarter of the current fiscal year from Rs 103 crore in the same quarter of FY23. The bank's net interest income (NII) dropped by 0.7% to Rs 819 crore from Rs 825 crore during the October-December quarter of the previous fiscal.

For the quarter that ended in December of FY24, South Indian Bank reported gross advances that jumped by 10.83 per cent year on year to Rs 77,713 crore. Deposits climbed by 9.37 per cent YoY reaching Rs 99,164 crore. At Rs 31,529 crore, the lender's CASA (Current Account Savings Account) saw a growth of 2.8 per cent YoY.