Released on: August 19, 2008, 6:48 am

Press Release Author: south indian bank

Industry: Financial

Press Release Summary: The 80th Annual General Meeting of the shareholders of South
Indian Bank (SIB) has approved the recommendations of the Board of Directors to
effect Bonus Issue, Employees Stock Option Scheme and the highest ever dividend @
30% in the 79 year history of the Bank.


Press Release Body:

The capital base of the South Indian Bank had been strengthened by various types of
issue of shares, viz.: right issue, public issue, follow-on-public issue and
qualified institutional placement . However, it has not at any time issued bonus
shares. Bonus shares now will be issued to the existing shareholders in the ratio
1:4 i.e. one bonus share for every four equity shares held on the record date.

Considering the substantial contribution of the staff members to the tremendous
leap the Bank has made in the areas of deposits, advances, net profit, earnings per
share etc., the Annual General Meeting of the shareholders has also approved "SIB
Employee Stock Option Scheme 2008" which will be implemented to reward the existing
employees who have put in long years of service and also to offer incentive to the
new staff members.

Directors - Dr. John Joseph, Dr. C.J. Jose and Mr. Jose Alapatt were re-elected to
the Director Board.

Speaking on the occasion, Dr. V. A. Joseph, Chairman & CEO of the Bank said, "Bonus
issue is intended to enhance the value for our long-term shareholders in the wake of
the unprecedented all-round growth of the Bank. The dividend @ 30% approved for the
previous fiscal is the highest in the history of our Bank. Incidentally it was also
the year in which our net profit crossed the Rs. 150 Crore mark."

"ESOPS also has been approved which is a way of rewarding the employees for
participating in the excellent performance of the Bank. Employee Stock Option has
been recognized generally as an effective step to attract, retain and motivate the
employees. This scheme is expected to create a proprietary interest and provide
them an opportunity to share the growth of the Bank and also create long-term
wealth in their hands", stated Dr. Joseph.

"During the current fiscal we will strive to achieve our net profit target of Rs.
190 Crore and also total business target of Rs. 30500 Crore. At the beginning of
this fiscal, we had decided to add 5 Lakh new customers in Savings Bank accounts
and are assiduously working towards this target. This addition will increase our
CASA (Current Account, Savings Account) by 3%. Besides CASA, we will also focus
during this fiscal on increasing non-interest income by sale of Mutual Funds and
Insurance Products."



"We, as the preferred Bank of NRIs, are celebrating now one-month-long 'Pravasi
Utsav'. We have chosen this period as it coincides with the arrival of large number
of NRIs and Persons of Indian Origin to India. The Bank is organizing this festival
to publicize our bouquet of products and services to NRIs and also to listen to
their suggestions. The new product very recently launched for the NRIs with a lot of
freebies called 'NRE SB - Diamond' for those NRIs who maintain an average balance of
Rs. 50,000 will be introduced to more pravasis during this period."

SIB has become the First Bank to offer online booking of offerings to its customers
who are devotees of Sri Guruvayurappan. With the launch of this facility, customers
of SIB are facilitated, especially NRIs who want to book offerings also on behalf
of their aged parents resident in India, to effect offerings with greater
transparency and security at the click of a button."

"The first Indian traditional Bank to achieve all branch/ office inter-connectivity
and register cent percent CBS, SIB will open 19 more branches during this fiscal to
increase the CBS branch network to 530 spread over 23 states/ Union Territories",
Dr. V.A. Joseph, Chairman & CEO concluded.




Web Site: http://southindianbank.com

Contact Details: Simon Joseph,
Senior Manager,
Corporate Comunications,
The South Indian Bank Ltd.,Head Office,Trichur,Kerala Ph:0487-2423858
Mob:91-9847404555 E-mail: ccm@sib.co.in