South Indian Bank (SIB), post the onboarding of new MD (Murali Ramakrishnan) in September 2020, reimagined its business model and adopted 6Cs strategy which focuses on – CASA, cost ratios, customer focus, capital, compliance and competency building, said domestic brokerage and research firm ICICI Securities in a note. “In order to ensure the successful implementation of the above stated strategy, it initiated a series of corrective measures like – reducing exposure to BBB and below rated corporates, revamp HR policies to bring in ‘ownership’ approach, focus on ‘profitable growth’ rather than ‘volume growth’ and restructure asset and liability operations," the note stated. TRENDING STORIES See All Premium Royal Enfield recalls nearly 5,000 units of Himalayan: . . . Premium JSW Steel USA adopts Smart EPD to determine environment . . . Premium InCred Capital acquires 20% stake in payroll and HR tec . . . Premium India, US to have dialogue on semiconductors: US Commer . . . The bank also realigned organisational structure by setting up a separate operations team for asset and liability, segregating underwriting and business functions, strengthening capabilities in digital, risk management and analytics with focus on mitigating frauds and improving collections. “We believe South Indian Bank is on the right path to build sustainable, scalable and profitable model under the leadership of Mr. Murali Ramakrishnan," said ICICI Securities which has maintained its Buy rating on the multibagger stock with a target price of ₹ 25 per share. While the new management was focused on building granular quality asset book, it remained equally focused on building retail liability base. Hence, to bring in sharper focus on deposit mobilisation, it introduced a concept of Clusters – each region will have 5-6 clusters and each cluster will handle 8-9 branches, the brokerage said. “Considering the legacy of higher stress in SIB’s corporate and mid-corporate segments, the new management (post taking charge in Sep’20) revisited the business strategy with emphasis on ‘quality over quantity’. Further, it completely revamped the sourcing and underwriting process with clear focus on margins and asset quality. Based on renewed business strategy, it has built a new book of ₹ 377 bn (54% of the total loans) with GNPA of 0. 06% and SMA2 of 0. 22%. " South Indian Bank shares have given multibagger return by rallying more than 114% in the last six months. The banking stock has gained over 133% in a year's period. MINT PREMIUM See All Premium How China Inc is tackling the TikTok problem Premium The economics of censoring Roald Dahl Premium Top performing midcap stocks of 2023 so far Premium When Parag Parikh's wife stepped up to help him become . . . The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach. Take the test Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. More Less Topics South Indian Bank OPEN IN APP.