The Kerala businessman, who is based in the Gulf region, already has stakes in at least two other lenders -- Federal Bank and Dhanlaxmi Bank -- all of which are based in South India.
Yussufali purchased three crore shares of South Indian Bank at a price of Rs 21 per scrip valuing the transaction at Rs 63 crore, as per bulk deal data available on the NSE yesterday.
Three crore shares account for about 2.23 per cent stake in the lender.
Meanwhile, FID Funds Mauritius offloaded more than 2.7 crore shares of the lender.
Yusuffali -- who is steering the diversified LuLu Group -- held 3.69 per cent stake in Federal Bank at the end of December, 2013.
During that period, he held 4.88 per cent shareholding in Dhanlaxmi Bank.
He also has stake in Catholic Syrian Bank.