Leadership
South Indian Bank CEO Mahesh Pai Sets 65% RAM Loan Target and May Credit Card Launch
By News Desk ·
Key takeaways
- Mahesh Muralidhar Pai took charge as South Indian Bank MD and CEO on October 15, 2026.
- South Indian Bank trades at a price-to-book ratio of 1.1x, trailing RBL Bank at 1.4x and Federal Bank at 2.1x.
- RAM loans are about 60% of advances and the bank wants 65% within a year, cutting corporate loans to 35%.
- South Indian Bank plans a standalone credit card by May on the Visa, Mastercard and RuPay networks.
South Indian Bank managing director and chief executive officer Mahesh Muralidhar Pai, who took charge on October 15, 2026, said improving fund deployment is key to narrowing the bank's valuation gap with peers. Pai, in his first post-results interview with Business News Today, said the Thrissur-based lender trades at a price-to-book ratio of 1.1x.
Pai's First Weeks and the Valuation Gap
Pai said South Indian Bank trails mid-sized peers including RBL Bank at 1.4x, Federal Bank at 2.1x and Karur Vysya Bank at 2.4x. "We are currently trading at a very low price-to-book ratio compared to the other peers in the market," Pai said. "As far as asset quality, slippages, and recoveries are concerned, the bank has done a very good job."
Pai said the bank has a strong liability franchise but needs to deploy funds better. "Some concerns are there about the overall growth of the bank, whether we have caught up with the other peers in the market, but the base is very strong for me to launch," he said.
South Indian Bank offers co-branded credit cards with SBI Card and OneCard, according to akta.pro company records. SBI Card and Eternal Limited launched the Eternal SBI Card on October 15, 2026, with a ₹499 joining fee waivable after ₹2 lakh spend and applications opening October 22, according to CNBC TV18.
RAM Loans and the Corporate Book
Pai said retail, agriculture and MSME loans account for around 60 percent of advances, with corporate loans at 40 percent at the end of the September quarter. The bank wants to raise the RAM share to 65 percent over the next year and lower the corporate share to 35 percent.
"One priority has been to try to reduce the corporate segment and make the RAM segment more prominent," Pai said. "Though there has been some success, it is not big. But this shift towards RAM has started giving good results in the last two quarters."
South Indian Bank plans to launch its standalone credit card by May and is exploring partnerships on the Visa, Mastercard and RuPay networks. The initial focus will be existing customers. Pai said the bank is also planning a wealth management vertical and declined to comment on a timeline.
South Indian Bank's Recent Moves
South Indian Bank's board approved senior management designation changes effective October and November 2026, including Anto George T moving from COO to Chief Business Officer, ScanX reported. The board also designated SIB Tower in Kakkanad, Kerala, as the new corporate office on October 15, 2026, while the registered office remains at SIB House in Thrissur.
The Times of India reported that South Indian Bank plans a proprietary credit card platform by the first quarter of FY28, after being barred from co-branded cards, and that its Q2 net profit rose 21 percent to Rs 426 crore. BusinessLine reported that South Indian Bank appointed Mahesh Muralidhar Pai as Managing Director and CEO effective October 1, 2026, bringing nearly three decades of universal banking experience.