South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q3 FY2021 Earnings Presentation
33 slides from South Indian Bank's earnings presentation, Jan 21, 2021
Slide 1: Exchange filing cover letter: Presentation to Investors and Analysts
DEPT: SECRETARIAL REF No. SEC/ST EX.STT/ 124 /2020-21 21-01-2021 National Stock Exchange of India Ltd., BSE Ltd. Exchange Plaza, 5th Floor, Department of Corporate Services (Listing), Plot No.C/1, G Block, First Floor, New Trading Wing, Bandra-Kurla Complex, Bandra (E), Rotunda Building, P J Towers,
Slide 2: Investor Presentation, January 21, 2021
PHOTO Investor Presentation January 21, 2021
Slide 3: Safe Harbour
Safe Harbour No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or corr ectness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Cer
Slide 4: Operating Performance
Operating Performance Deposits Retail CASA Advances (excl. CD) Deposits Q3FY21 Rs. 83,537 cr Q3FY21 Rs. 76,573 cr Q3FY21 Rs. 23,332 cr Q3FY21 Rs. 63,353 cr + 4% + 8% + 9% - 3% Q3FY20: Rs. 80,451 cr Q3FY20: Rs. 70,703 cr Q3FY20: Rs. 21,422 cr Q3FY20: Rs. 65,334 cr NII Operating Profit Provisions PCR
Slide 5: Profit & Loss Overview
Profit & Loss Overview Rs. in Crore Q3 FY21 Q3 FY20 Y-o-Y (%) Q2 FY21 Q-o-Q (%) 9M FY21 9M FY20 Y-o-Y (%) Net Interest Income 596 602 (1%) 663 (10%) 1,846 1,722 7% Other Income 270 220 23% 240 13% 795 652 22% - Core Fee Income 162 178 (9%) 194 (16%) 494 456 8% -Treasury & Forex 109 42 160% 46 134% 3
Slide 6: Net Interest Income
Net Interest Income Quarterly (Rs. in Crore) 680 2.94% 3.00% 660 NII NIM Cost Of Deposits Yield on Advances Cost Of Funds Yield on Funds 2.90% 640 9.82 2.80% 9.59 9.35 620 2.72% 9.25 2.67% 2.62% 8.78 8.08 7.97 2.64% 2.70% 7.74 7.73 600 663 7.24 2.60% 580 5.61 5.53 602 596 597 6.14 6.00 5.33 5.03 560
Slide 7: Non-Interest Income
Non-Interest Income Core Fee Income Treasury & Forex Income (Rs. in Crore) (Rs. in Crore) 238 193 178 155 54 162 57 138 58 147 65 38 49 226 50 108 46 42 33 140 101 46 96 43 71 49 57 58 33 32 11 12 7 13 12 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Transaction Fees Technolo
Slide 8: Operating Efficiency
Operating Efficiency Employee Additions Cost-to-Income Ratio 304 53.7 53.9 54.8 53.1 -51 51.1 -129 57 -59 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 9M FY20 FY20 Q1 FY21 H1 FY21 9M FY21 Business per Employee Business per Branch (Rs. in Crore) 17.9 17.9 18.1 18.2 (Rs. in Crore) 165 166 168 168 167 17.3
Slide 9: Provisions
Provisions (Rs. in Crore) Particulars Q3 FY21 Q2 FY21 Q3 FY20 For NPA & NPI 284 286 203 For Depreciation on Investments 45 13 23 For Standard Assets 155 21 16 For Restructured Advances/Sacrifices & FITL 11 7 8 For Unhedged Forex Exposure 4 1 0 Others (1) (1) 12 Taxes (30) 23 32 Total Provisions 469
Slide 10: Balance Sheet Overview
Balance Sheet Overview (Rs. in Crore) Particulars Dec 2020 Dec 2019 Y-o-Y (%) Sep 2020 Q-o-Q (%) Capital & Liabilities 95,554 96,530 (1%) 96,646 (1%) Capital 181 181 0% 181 0% Reserves and Surplus 5,379 5,468 (2%) 5,471 (2%) Deposits 83,537 84,874 (2%) 82,621 1% Borrowings 4,438 4,311 3% 6,462 (31%)
Slide 11: Key Metrics – Quarterly
Key Metrics – Quarterly FY20 FY21 Particulars Q3 Q4 Q1 Q2 Q3 Net Interest Margin (NIM) 2.72% 2.67% 2.62% 2.94% 2.64% CRAR Basel III 12.02% 13.41% 13.49% 13.94% 14.47% RoAA (Annualized) 0.37% (0.59%) 0.33% 0.27% (0.37%) Provision Coverage 50.37% 54.20% 58.76% 65.21% 72.03% CASA 25.24% 25.00% 26.89% 2
Slide 12: Deposits
Deposits Deposits (excl. CDs) Rs. Cr. Dec 2020 Dec 2020 Dec 2020 76,573 6,964 83,537 -29% -2% 8% -2% 4% 70,703 9,748 80,451 Dec 2019 Dec 2019 Dec 2019 Core Deposit Bulk Deposit Customer Deposits CASA Deposits Rs. Cr. Dec 2020 Dec 2020 Dec 2020 3,785 19,547 23,332 -3% 12% 9% 3,904 17,518 21,422 Dec 2
Slide 13: Well Distributed Deposit Base
Well Distributed Deposit Base Breakup of Deposits Break Up of Non-Resident Deposits Rs. Cr. 84,874 83,034 82,621 83,537 82,469 Dec Mar Jun Sep Dec Deposit Type 2019 2020 2020 2020 2020 NR SB 4,754 5,068 5,609 5,873 6,048 49,281 49,066 50,712 51,997 53,241 NR CD 27 26 30 33 36 FCNR (B), RFC & Others
Slide 14: Composition of Loan Book
Composition of Loan Book Segment wise Break Up of Total Loan Book Advances (Excluding Corporate) (Below Rs. 25 Cr) Rs. Cr. +7% 16% 48,947 24% 46,865 47,563 48,126 45,621 Corporate Personal Segment Business Loans Agriculture 37% 23% Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Break up of Loan book Advances Ac
Slide 15: Gold loans
Gold loans Gaining traction in Gold loans… (Rs. in Crore) 8,823 One of the lowest LTV of 66% among 8,500 the Banks 8,125 7,816 Separate Vertical Head for Gold business with Regional Heads to be set up for 7,342 business expansion Improved the yield to commensurate with risk Exploring tie-ups
Slide 16: Personal Segment
Personal Segment Personal Segment Loans Rs. Cr. 15,025 14,972 15,131 14,798 14,393 1,468 1,149 1,501 1,469 1,335 1,165 1,180 1,058 1,031 1,105 864 856 865 841 803 3,837 3,867 3,897 3,881 3,739 2,442 2,568 2,347 2,073 1,945 5,249 5,352 5,463 5,503 5,466 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Housing Gold
Slide 17: Agriculture loans
Agriculture loans Agri loans growing steadily… Rs. Cr. 8,681 9,028 9,778 9,999 10,365 3,681 4,028 4,778 4,999 5,365 3,934 3,969 4,584 4,214 4,144 4,747 5,059 5,194 5,785 6,221 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Backed by Gold Others Key Focus Area Focused drive on Tractor financing Tie ups with
Slide 18: Business loans
Business loans Business Loans (Less than Rs. 25 Crore exposure) MSME Loan Book by Geography Rest of Rs. in Crore Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 India 21% Kerala MSME 16,041 15,819 16,319 16,466 17,156 45% Non-MSME 5,874 7,046 6,335 7,684 6,212 South (Ex- Kerala) Total 21,915 22,865 22,654 24,150
Slide 19: Corporate lending
Corporate lending Corporate Advances (Rs. 25 Cr and above ) Standard Large Corporate Advances (Rs.100 Cr and above ) (Rs. in Crores) 10,121 (Rs. in Crores) 10,592 10,146 19,713 18,659 9,997 18,256 9,437 16,402 27 15,227 25 22 6,516 18 3,6371 15 10 6 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Dec-20 D
Slide 20: Overall stress within guidance
Overall stress within guidance H2-2021 Guidance Q3-2021 March 2021 Estimates Rs. in Crore Amount % of Advances Amount % of Advances Amount % of Advances NPA 1,4001 2.2% 1,3792 2.2% 1,500-1,600 2.4%-2.5% Restructuring 1,200 1.9% 44 0.1% 800-900 1.3%-1.4% Total 2,600 4.1% 1,423 2.3% 2,300-2,500 3.7%-3
Slide 21: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA In % In % 4.96 4.98 3.44 3.34 4.93 3.09 4.87 4.90 2.59 2.12 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Gross NPA Movement Net NPA Movement Rs. Cr. Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Rs. Cr. Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Opening
Slide 22: Stressed Assets
Stressed Assets Restructured Standard Advance Sector Break up (Rs. in Crores) 3.0% On Account of Kerala Floods 6.0% 14.0% On Account of MSME Restructuring 1,205 General - DCCO Extention 1,065 1,104 848 742 OTR COVID Personal Segment 77.0% OTR COVID MSME Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 (Rs. in Cro
Slide 23: Capital Composition
Capital Composition Risk Weighted Assets BASEL III 14.0 14.5 Rs. in Crore Dec 31, 2020 Sep 30, 2020 13.4 13.5 12.0 Total Capital 7,182.7 14.47% 7,161.6 13.94% - Tier I 5,732.1 11.55% 5,732.9 11.16% 11.6 - OF which CET1 5,232.1 10.54% 5,232.9 10.38% 11.2 10.8 10.8 9.6 - Tier II 1,450.6 2.92% 1,428.7
Slide 24: Investments
Investments Investment Book as on Dec-20 Details Rs. in Crore Modified Duration HTM 18,719 5.34 AFS 4,172 1.4 HFT 76 6.44 Total 22,967 4.87 SLR NON SLR Rs. in Crore Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 SLR 18,265 18,956 18,326 19,828 20,821 NON-SLR 2,711 2,431 2,275 2,187 2,146 Total 20,976 21,387 20,
Slide 25: Wide network and young work force
Wide network and young work force Total Employees 01 Q3 FY21: 7,759 Q3 FY20: 7,694 01 04 01 01 Experienced Work Force 05 24 09 01 3% 3% 02 01 01 01 01 19% 34% ~55% of workforce are 04 02 18 01 professionals 01 01 19 03 02 41% Average age of employees 34 40 is ~32 years < 1 Year 1-2 Years 2-5 Years 5
Slide 26: Digital – A catalyst that touches all verticals
Digital – A catalyst that touches all verticals MODEL BASED UNDERWRITING LEVERAGING DATA & TECHNOLOGY • Build robust score based lending models • Strengthening data analytics infrastructure and loan • Revamping underwriting platform to improve management systems TAT • Enhancing systems for seamless
Slide 27: Digital Banking
Digital Banking Digital vs Branch Transactions (In Lakhs) Internet Transaction Volume Mobile Transaction Volume Debit Card Transaction Volumes (000)’s (000)’s In Millions 1,461 27,625 1,314 29.5 27.8 27.8 1,178 1,181 20,905 23.9 949 15,427 16,629 18.9 14,507 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19
Slide 28: Digital Initiatives & Awards
Digital Initiatives & Awards SIB Namaste 01 A Virtual Booking System has been introduced to enable customers to book their branch visit appointments online. This helps customers ensure timely service at the branches and avoid crowding, especially significant in our current pandemic situation. SOnA (
Slide 29: Value Add Tie Ups
Value Add Tie Ups 3rd Party Tie Ups Digital Tie Ups NRI Remittance o Life Insurance More than 15 Tie Ups with More than 25 Tie Ups in o Kotak Mahindra Life Insurance Fintech/start ups Middle East o SBI Life Insurance o LIC of India o Appointment booking o Hadi Express Exchange, o Health Insurance so
Slide 30: CSR activities
CSR activities The bank spearheaded renovation work of the Vadakkechira Bus Stand at Adoption of Pullu Village to developed it as model village. First instance Thrissur and transformed the same to a hub with all modern amenities where a private sector banks was entrusted with village adoption in Ker
Slide 31: Medium Term strategy through focusing on 6Cs
Medium Term strategy through focusing on 6Cs PROFITABILITY through QUALITY CREDIT GROWTH Augment the Fair to Leverage strong Compliance to talent of young Customer, Fair Focused drive on distribution be core for our resources to Bank Beefing up building strong network to entire banking capital to lo
Slide 32: For further information, please contact
For further information, please contact: Company The South Indian Bank Ltd. CIN - L65191KL1929PLC001017 Ms. Chithra H, CFO chithra@sib.co.in Mr. Vijith S, Jt. General Manager vijiths@sib.co.in Mr. Chetan Parmar, Head IR chetanparmar@sib.co.in www.southindianbank.com Investor Relations Advisors Strat
Slide 33: Thank You
32 THANK YOU SOUTH INDIAN Bank Bank on US som
The South Indian Bank — Q3 FY2021 Earnings Presentation on 6ix