Latest Souban Share Price & Analysis

South Indian Bank, listed as SOUTHBANK on NSE and 532218 on BSE, continues to draw investor attention as one of India’s most undervalued private banks. 

Often referred to by retail traders as Souban, the stock currently trades around ₹30.00, marking a moderate gain of 0.77% as of October 2025.

Despite challenges in past years, the bank has shown consistent progress in profitability, asset quality, and capital adequacy. Its improving fundamentals, coupled with a cheap valuation, have made it a stock to watch among small-cap financial players.

Key Takeaways

• Current Price: ₹30.00
• 52-Week Range: ₹22.10 – ₹32.30
• Market Cap: ₹7,850 crore
• Book Value: ₹39.8 per share
• P/E Ratio: 5.88x
• Dividend Yield: 1.32%
• ROE: 13.8%
• Capital Adequacy Ratio: 16.04%
• CASA Ratio: 31.9%
• Net NPA: 0.68% (as of June 2025)

Recent Price Performance

Over the last year, Souban has delivered a 24% annual gain, moving from around ₹24 in October 2024 to ₹30 in October 2025. The stock saw high trading volumes between April and June, where prices rallied to the ₹31–₹32 range. Since then, it has consolidated around ₹29–₹30, suggesting accumulation at this level.

Technically, a decisive breakout above ₹32 could trigger another leg up, while ₹27–₹28 remains a strong support zone. Given the valuation gap compared to peers, long-term investors are closely monitoring whether this consolidation phase leads to a broader re-rating.

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Fundamental Snapshot

South Indian Bank’s financial performance has stabilized significantly since its restructuring phase. The past three years have been marked by improving NPAs, rising profits, and steady deposit growth.

Here’s a closer look at the key metrics driving investor sentiment:

• Low Valuation: The stock trades at just 0.77 times its book value, a steep discount compared to larger peers such as HDFC Bank and ICICI Bank, which trade above 2.5x book value.
• Earnings Growth: Net profit has improved sharply, growing from ₹775 crore in FY23 to ₹1,303 crore in FY25, with EPS at ₹5.09.
• Return Ratios: ROE improved to 13.8%, reflecting healthier capital deployment.
• NIM (Net Interest Margin): Currently around 3.28%, within the industry average for mid-tier private banks.
• Asset Quality: Gross NPA dropped from 5.87% in 2022 to just 3.15% by June 2025.

This consistent improvement has attracted both retail and institutional attention.

Quarterly Highlights (June 2025 Quarter)

• Net Profit: ₹322 crore
• EPS: ₹1.23
• Gross NPA: 3.15%
• Net NPA: 0.68%
• Advances: ₹92,287 crore (up 9% YoY)
• Deposits: ₹1,15,635 crore
• CASA Ratio: 31.86%

The steady growth in advances and deposits suggests that the bank’s credit portfolio is expanding sustainably. The CASA ratio, at nearly 32%, also provides stability to the bank’s cost of funds.

Valuation Perspective

At a P/E of just 5.88x, South Indian Bank is among the cheapest private banks on the market. The price-to-book ratio of 0.77x indicates that the stock still trades below its intrinsic asset value.

What this means for investors:

• The low multiple offers margin of safety for long-term holders.
• If profitability sustains and NPA levels remain controlled, the stock could re-rate closer to book value, implying 20–30% upside potential.
• Dividend yield of 1.32% adds income stability to the investment case.

However, investors should note that while profitability has improved, revenue growth remains modest at around 4% CAGR over the last five years, reflecting the bank’s conservative lending stance.

Financial Strength

The bank’s balance sheet shows clear signs of strengthening:

• Capital Adequacy Ratio: 16.04% provides ample cushion for future growth.
• Other Income: ₹2,053 crore in FY25 supports overall profitability.
• Contingent Liabilities: ₹19,546 crore remain a key area of risk.
• Credit Rating: Recently upgraded to AA (Stable) by multiple rating agencies, including CRISIL and Infometrics.

The rating upgrade in October 2025 indicates growing confidence among institutional lenders and investors regarding South Indian Bank’s operational resilience.

Pros

• Trades at below-book valuation with room for upside.
• Profit growth of 65% CAGR over the last five years.
• Steady CASA base ensures low-cost funding.
• Improved NPAs and capital ratios reflect better risk management.
• Positive credit rating actions strengthen credibility and funding access.

Cons

• Weak sales growth at just 3.9% CAGR over five years.
• Low interest coverage leaves limited buffer against rising borrowing costs.
• High contingent liabilities could affect future earnings if materialized.
• Reliance on other income for profit boosts may mask core performance.
• ROE of 13–14%, while improving, still trails leading peers.

Growth Outlook

South Indian Bank’s growth trajectory hinges on maintaining asset quality and expanding its retail and MSME portfolio. The bank has emphasized:

• Retail Lending Expansion: Diversifying into housing, gold, and personal loans to improve yield.
• Digital Banking Push: Ongoing tech upgrades aimed at reducing cost-to-income ratios.
• CASA Growth Focus: Targeting a CASA ratio of 35%+ over the next two years.
• Regional Strength: Leveraging its dominance in Kerala and South India for low-risk loan origination.

If these initiatives deliver steady credit growth and a stronger deposit mix, Souban could see valuation multiples expand meaningfully.

Final Thoughts

Souban, or South Indian Bank, represents a classic turnaround play among India’s private-sector banks. It has cleaned up its balance sheet, improved profitability, and secured multiple rating upgrades, yet it remains undervalued compared to its peers.

While risks such as low revenue growth and contingent liabilities persist, the direction of improvement is unmistakable. Investors with a medium to long-term horizon can consider accumulating at current levels, especially if the stock holds above ₹28. A break above ₹32 could confirm the next bullish phase.

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FAQ

What is the current Souban share price?

As of October 2025, the share trades around ₹30.00 on the NSE.

Is Souban the same as South Indian Bank?

Yes, Souban refers to South Indian Bank, listed as SOUTHBANK on NSE and 532218 on BSE.

Why is the stock considered undervalued?

It trades at only 0.77x book value and under 6x earnings, making it one of the cheapest private banks in India.

What are the major risks?

Low revenue growth, contingent liabilities, and reliance on non-core income remain the main concerns.

Can Souban re-rate in 2026?

Yes, if the bank sustains low NPAs, improves CASA, and maintains profit growth, it could re-rate toward ₹35–₹40 over the next year.