Why Did South Indian Bank Shares Crash 19% Today? Check the Reason

Synopsis: Shares of South Indian Bank fell nearly 19% to Rs. 38.11 after CEO PR Seshadri announced he will not seek reappointment. Investor concern over leadership uncertainty triggered a sharp sell-off and negative sentiment.

This bank is the first scheduled bank amongst the private banks in Kerala. It has a strong presence in South India and particularly in Kerala by providing retail and corporate banking, para banking activities such as debit card, third-party financial product distribution is now in the spotlight after it fell by 19% in today’s market.

With a market capitalisation of Rs. 9,973 cr, the shares of South Indian Bank Ltd are currently trading at Rs. 38.11 per share, decreasing by 19% in today’s market session, making a low of Rs. 36.01, down from its previous close of Rs. 44.27 per share. 

Reason for the fall 

South Indian Bank has announced that Mr PR Seshadri, the current Managing Director and CEO, will not be seeking reappointment after his current term ends. He has decided to step down so that he can focus on personal interests. However, he will continue to serve as the CEO until his term officially ends on September 30, 2026.

The bank’s Board of Directors met on January 29, 2026 and officially considered his request. During the meeting, the Board decided to begin the process of finding a successor. This includes identifying and shortlisting potential candidates and following all legal and regulatory requirements to finalize the appointment. The process will require approvals from both the Reserve Bank of India (RBI) and the bank’s shareholders once a suitable candidate is selected.

Following this announcement, the stock of South Indian Bank experienced a sharp decline, falling by nearly 19% in today’s trading. The market reacted negatively because investors were concerned about the uncertainty and leadership change at the top of the bank, creating a strong sell-off and negative sentiment.

About the company and Financials

South Indian Bank is a private sector bank that offers a range of banking products and services, including personal banking, corporate banking, and treasury services. The Bank has a significant presence in South India and has expanded its operations to other regions, providing services through a network of branches and ATMs.

South Indian Bank showed healthy growth across most key metrics for Q3FY26, compared to the same period last year. Its gross advances rose by 11% to Rs. 96,764 crore, while retail deposits increased 13% to Rs. 1,15,563 crore. NRI deposits were up 9% to Rs. 33,965 crore, and current and savings deposits also grew strongly, resulting in CASA rising 15% to Rs. 37,640 crore, with CASA ratio improving slightly to 31.84%.

Asset quality showed significant improvement, with gross NPA declining from 4.3% to 2.67%, and net NPA dropping sharply from 1.25% to 0.45%, reflecting better credit management.

On the income front, the net interest income edged up 1.31% to Rs. 881 crore, while other income surged 18.75% to Rs. 486 crore, supporting overall profitability. The operating profit rose 10.49% to Rs. 584 crore, and after accounting for provisions of Rs. 80 crore, the profit before tax reached Rs. 504 crore, up 8.84%.  Net profit after tax improved 9.49% to Rs. 374 crore, indicating steady growth and strong operational performance despite the challenging environment.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Why Did South Indian Bank Shares Crash 19% Today? Check the Reason appeared first on Trade Brains.