The public issue is being made to augment the net worth and long term resources of the bank. SIB's capital adequacy ratio (CAR) as on March 31, 1998, stood at 9.4 per cent against the RBI stipulation of a minimum 8 per cent. The public issue will take up the CAR of the bank to 10.50 per cent. Following the issue, the banks paid-up equity will stand at Rs 35.28 crore against Rs 19.28 crore at present.

Of the total offer of 1.60 crore shares, the bank plans to offer 90 lakh shares to the general public. Of the balance, 16 lakh shares have been reserved for employees, 22 lakh for non-resident Indians, OCBs and FIIs and 32 lakh shares for banks and financial institutions. The Industrial Credit and Investment Corporation of India (ICICI), which holds about 22 percent of the equity in SIB, will see its stake in the bank come down after the issue.

SIB will concentrate on boosting its fee-based income during the current year through active participation in the securities and foreign exchange market. During 1997-98, while interest income accounted for Rs 338.69 crore, other income stood at just Rs 26.04 crore -- 8 per cent of total income.

The Thrissur-based SIB recorded a total income of Rs 364.73 crore during 1997-98 against Rs 301.54 crore in the previous year, while interest expended stood at Rs 261.45 crore against Rs 215.43 crore in 1996-97. The bank posted a net profit of Rs 20.74 crore during 1997-98 against Rs 7.77 crore during the previous year.

SIB's net worth as on March 31, 1998 stood at Rs 99.36 crore against Rs 67.71 crore during the previous financial year, while the earnings per share nearly doubled to Rs 10.47 from Rs 5.47 during 1996-97. SIB's book value as on March 31, 1998 stood at Rs 50.18. Deposits of the bank as on March 31, 1998 stood at Rs2,738.27 crore against Rs 2,096.59 crore in the previous year. Advances increased to Rs 1,463.23 crore against Rs 1,154.35 during 1996-97.

However, SIB's net non-performing assets (NPAs) during 1997-98 increased to 6.16 per cent (Rs 89.63 crore) against 5.25 per cent (Rs 59.62 crore) in the previous year.