South Indian Bank gets RBI nod for non-financial subsidiary

SIB said it has already centralised all its operations, both on the liability and asset sides.

South Indian Bank (SIB) said on Monday it has got in-principle approval from the RBI for a non-financial subsidiary. The subsidiary would commence operations once it receives nod from the regulator and the bank completes related formalities.

“The subsidiary would enable us to streamline and optimise various operations so as to improve the overall productivity and efficiency of the institution,” said VG Mathew, MD and CEO of SIB. The subsidiary is a further step in consolidating SIB’s position as a retail banking powerhouse.

SIB said it has already centralised all its operations, both on the liability and asset sides. With the setting-up of the subsidiary, the bank would be able to further streamline its operations and achieve significant gains on the efficiency and cost fronts, facilitating major expansion in business in the retail sector. By centralising various outsourced functions under an umbrella, the bank would be better equipped to expand its operations, Mathew said.