THE SOUTH INDIAN BANK LTD.

(A SCHEDULED COMMERCIAL BANK)
[Incorporated on January 25, 1929 under the Companies Act, 1913]
Registered Office, "SIB HOUSE", P.B.No.28, T.B. Road, Thrissur 680 001, Kerala.
Tel: (0487) 2420020 Fax (0487) 2442021
E-mail: sib@vsnl.com, Contact Person: Mr. A. S. Narayanan; Website www.southindianbank.com

BASIS OF ALLOCATION

PUBLIC ISSUE OF 22,727,272 EQUITY SHARES OF RS.10 EACH FOR CASH AT A PRICE OF Rs.66 PER EQUITY SHARE AGGREGATING Rs.1,500 MILLION BY THE SOUTH INDIAN BANK LIMITED ("THE BANK OR "ISSUER") (THE ISSUE COMPRISES A NET ISSUE TO THE PUBLIC OF 18,181,818 EQUITY SHARES OF Rs. 10 EACH (THE "NET ISSUE") AGGREGATING Rs.1,200 MILLION AND A RESERVATION FOR ELIGIBLE EMPLOYEES AND SHARE HOLDERS OF UP TO 2,272,727 EQUITY SHARES EACH AT THE ISSUE PRICE AGGREGATING Rs.150 MILLION EACH. THE ISSUE WOULD CONSTITUTE 82.28 % OF THE FULLY DILUTED POST ISSUE PAID-UP CAPITAL OF THE BANK

ISSUE PRICE Rs.66 PER EQUITY SHARE, THE ISSUE PRICE 6.6 TIMES OF THE FACE VALUE

The Issue made through the 100% Book Building Process where up to 50% of the net issue to the public was to be allocated on a Qualified Institutional Buyers("QIB")(including 5% of the QIB portion that was to specifically be allotted to mutual funds)., Further, not less than 15% of the net issue to the public shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the net issue to the public shall be available for allocation on a proportionate basis to Retail Bidders, subject tto valid bids being received at or above the Issue Price.

The issue received 66598 applications for 165434755 equity shares resulting in 7.2791 times subscription.The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional,Retail Individual Investors, Existing Shareholders and Employee and categories are as under (Before technical rejections):

Final Demand
The final demand at different bid prices is as under:

The Basis of Allocation was finalized in consultation with the Bombay Stock Exchange Limited ("BSE") on 28th February, 2006.

A. Allocation to Employees
The Basis of Allocation to the Employees category, who have bid at cut-off or at and above the Issue Price of Rs.66/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 1.21818 times. The total number of shares allotted in this category is 2272727 Equity Shares. The category-wise details of the Basis of Allocation (Sample) are as under:

B. Allocation to Existing Shareholders
The Basis of Allocation to the Existing Shareholder category, who have bid at cut-off or at and above the Issue Price of Rs.66/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 1.44632 times.The total number of shares allotted in this category is 2272727 Equity Shares. The category-wise details of the Basis of Allocation (Sample) are as under:

C. Allocation to Retail Investors

The Basis of Allocation to the Retail Investors, who have bid at cut-off or at and above the Issue Price of Rs.66/- per Equity Share, was finalized in consultation with BSE. The category was over subscribed 3.74607 times.The total number of shares allotted in this category is 6363640 Equity Shares. The category-wise details of the Basis of Allocation are as follows:

D. Allocation to Non Institutional Investors

The Basis of Allocation to the Non institutional, who have bid at and above the Issue Price of Rs.66/- per Equity Share, was finalized in consultation with BSE. The category was subscribed 5.55254 times. The total number of shares allotted in this category is 2727269 Equity Shares. The category-wise details of the Basis of Allocation (Sample) are as under:

E. Allocation to QIBs
Allocation to QIBs have been done on a proportionate basis in consultation with the Bombay Stock Exchange Limited. As per the SEBI guidelines, Mutual Funds were initially allotted 5% of the quantum of shares available (454545) and other QIBs and unsatisfied demands of Mutual Funds were allotted the remaining available shares (8636364) on proportionate basis. The sectoral cap and other limits applicable to the holding of shares in company have been taken into account while allotting shares. Mutual Funds were allotted 5.00% for QIB segment and other QIB applicants were allotted 95.00% of the shares for QIB segment.

The Board of Directors of the company at it's Meeting held at Thrissur on February 28, 2006 has approved the basis of allocation of shares of the Issue and has allotted the shares to various successful applicants.

The Refund Orders and allotment advice and notice has been dispatched to the address of the investors as registered with the depositories. In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been over-printed with the Bank Mandate details as registered, if any, with the depositories. The shares allocated to successful applicants are being credited to their beneficiary accounts subject to validation of the account details with the depositories concerned. The company is taking steps to get the equity shares admitted for trading on Bombay Stock Exchange Limited, National Stock Exchange of India Limited and Cochin Stock Exchange within seven working days from the date of approval of the basis of allocation.

INVESTORS PLEASE NOTE

The new fully paid up Equity Shares will have the same ISIN as that of the existing listed shares of South Indian Bank Limited. Investors should note that though the new shares may get credited to their respective depository accounts, they should trade in the new shares only after ascertaining that trading approvals have been issued and notified by the stock exchanges.

This details of the allocation made would be hosted on the website of Registrars to the Issue, Intime Spectrum Registry Limited at www.intimespectrum.com

All future correspondence in this regard may kindly be addressed to the Registrars to the issue quoting full name of the First/ Sole applicant, Serial number of the bid-cum-application form, number of shares bid for, name of the Member of the Syndicate and Place where the bid was submitted and payment details at the address given below:

INTIME SPECTRUM REGISTRY LIMITED
C-13, Pannalal Silk Mills Compound,
L.B.S. Marg, Bhandup (West), Mumbai - 400 078
Tel. No.: (91 22) 25960320-28, Fax. No.: (91 22) 25960329

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN INDICATIVE OF EITHER THE MARKET PRICE OF   THE EQUITY SHARE ON LISTING OR THE BUSINESS PROSPECTS OF SOUTH INDIAN BANK LIMITED.