The South Indian Bank Limited — Credit Ratings, 29-07-2025: Credit Rating- Revision

South Indian Bank's Basel III Tier 2 debt (INR 1,250 Cr) credit rating has been upgraded by India Ratings from IND A+/Stable to IND AA-/Stable. This positive action reflects the bank's improving profitability in FY25, driven by better internal accruals and efficient capital use, which has strengthened its capital base. The upgrade also highlights prudent provisioning and ongoing asset quality improvement, with a steady decline in bad loans (NPAs) and stressed assets. A strong retail deposit base provides further room for credit growth. This upgrade is expected to lower the bank's cost of borrowing, boost investor confidence, and offer greater strategic flexibility for future operations.