South Indian Bank needs Rs 1,000 cr tier-I capital in next 15 months

South Indian Bank (SIB) will require Rs 1,000 crore capital (tier-I) in the next 15 months to improve its provision cover for bad loans and maintain a growth rate above the banking sector. Its provision coverage ratio (PCR) was at a low of 30 per cent in September against over 60 per cent for most banks. 

Tier-I capital of the bank stood at 9.6 per cent at the end of September 2019.

India Ratings and Research (Ind-Ra) has revised outlook for the lender from “stable” to “negative” and affirmed its long-term issuer rating at ‘A+’.

The outlook revision reflects the Kerala-based lender’s higher