The Bank’s shareholding is well-diversified with a large proportion of individual investor holding and Foreign Institutional Investors (FII) holding. There is no single identifiable Sponsor/Promoter. As of June 30, 2007, public shareholding in SIB was 44.2%, FII holding 43.2%, domestic financial institutions holding 7.8% and corporate bodies holding 4.8%.

IFC’s investment in the project is an equity investment of about $ 17.5 million for 4.8% equity stake in SIB.

18.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	18.0

* These investment figures are indicative

SIB is headquartered in Thrissur in the state of Kerala in India and has a large network of 475 branches across 23 states across India as of March 31, 2007.

The project will support the growth of the private sector in the banking sector and improve the quality of banking services through increased competition and introduction of best banking practices. This project will also help in expanding the reach of banking services to the underserved segments such as Small and Medium Enterprises, retail and agriculture, which are key to SIB’s growth strategy. SIB has a large proportion of its branches located in rural and semi-urban areas which will help stimulate rural development.

IFC’s expected development contribution is to:

- provide funding support to help the Bank meet its expansion plans; and
- to assist the Bank with appropriate advisory services in areas like risk management and business strategy to help it transform to a national player from being a regional player.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

IFC analyzed the Bank’s portfolio for types of transactions, size, tenor and industry sectors, and determined the Applicable Performance Requirements based on an analysis of the potential social and environmental risks associated with the FI portfolio and considering IFC’s investment. The Applicable Performance Requirements are:

- The IFC FI Exclusion List; and
- The applicable Indian social and environmental Laws and regulations.

IFC also reviewed the Bank’s existing Social & Environmental Management System (SEMS), and capacity to implement the same. Based on the Applicable Performance Requirements and FI SEMS and capacity review, the project will be required to:

- Develop an SEMS according to a timebound action plan;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that its investments/activities are in compliance with the Applicable Performance Requirements; and
- Submit a periodic report to IFC as per a format to be provided by IFC.