South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q1 FY2024 Earnings Presentation
42 slides from South Indian Bank's earnings presentation, Jul 20, 2023
Slide 1: Exchange filing cover letter: Presentation to Investors and Analysts
DEPT : SECRETARIAL REF. No. : SEC/ST.EX.STT/ 74 /2023-24 DATE : July 20, 2023 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
Slide 2: Investor Presentation Q1-FY 2024
Investor Presentation Q1-FY 2024 Investor Presentation Q1-FY 2024 1
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 correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Cert
Slide 4: Operating Performance
Operating Performance Deposits Retail Deposits CASA Advances NIM Q1 FY24: Rs. 95,499 Cr Q1 FY24: Rs. 92,043 Cr Q1 FY24 : Rs.31,166 Cr Q1 FY24: Rs.74,102 Cr Q1 FY24: 3.34% + 8% + 6% +3% +15% +60 bps Q1 FY23: Rs.88,196 Cr Q1 FY23:Rs. 86,460 Cr Q1 FY23: Rs.30,335 Cr Q1 FY23: Rs.64,704 Cr Q1 FY23: 2.74%
Slide 5: Key highlights for Q1 FY-2024
Key highlights for Q1 FY-2024 Business Highest ever Business of Rs. 1,69,601 crore for Q1 FY24. Total Deposit increased by 8% Y-o-Y to Rs. 95,499 crore from Rs. 88,196 crore. Highest ever Advances of Rs. 74,102 crore for Q1 FY24 vs Rs. 64,704 crore on Y-o-Y, with a growth of 15%. Recorded
Slide 6: Key highlights for Q1 FY-2024
Key highlights for Q1 FY-2024 Reported quarterly Profit after Tax (PAT) of Rs. 202 crore as against Rs. 115 crore on Y-o-Y Reported NII of Rs. 808 crore for the Q1 FY 2024 compared to Rs. 603 crore on Y-o-Y basis Net Interest Margin (Quarterly) improved by 60 bps Y-o-Y to 3.34% in Q1-2024 vs 2
Slide 7: Transformation Journey
Transformation Journey Oct 2020 - Jun 2023 Added Rs. 8,188 crore of CASA from Rs. 22,978 crore to reach Rs. 31,166 crore CASA Deposits CASA ratio improved from 27.81% to 32.64% (+483 bps) Advances (New Book) New book of Rs. 45,268 Cr with GNPA of 0.16%* & SMA2 of 0.23% RWA to Total Asset Risk Densit
Slide 8: Consolidation of Advances
Consolidation of Advances Churned around 61% of overall loan book since October 1, 2020 Rs. in crore New Book Old Book Total Book Achieved disbursements of Rs. 22,108 Cr during the Q1FY24 vs Rs. 12,548 Cr during the Q1FY23 led by Loan book 45,268 28,834 74,102 Corporate - Rs. 17,200 Cr (Rs. 7,595
Slide 9: Update on Vision 2025
Update on Vision 2025 3.34% 65.15% RoA – 0.73% RoE -11.80% 32.64% Rs. 74,102 Crores (excl w/off) 8
Slide 10: Key highlights of the Transformation Journey - Business Parameters
Key highlights of the Transformation Journey - Oct 2020 - Jun 2023 Business Parameters CASA CASA to Deposit % Total Business Rs. in Crore +36% Rs. in Crore +485 bps +15% 1,69,601 31,166 29,601 30,548 30,227 33.21% 34.53% 32.98% 32.64% 1,63,743 26,773 29.73% 30.82% 24,590 27.81% 1,56,440 22,978 1,50,
Slide 11: Key highlights of the Transformation Journey - Asset Quality Parameters
Key highlights of the Transformation Journey - Oct 2020 – Jun 2023 Asset Quality Parameters PCR Incl. W/off PCR Excl. W/off GNPA +1781 bps +3116 bps -184 bps 6.97% 6.65% 76.78% 65.12% 65.15% 72.79% 76.54% 5.90% 69.55% 57.30% 5.67% 65.02% 51.26% 5.14% 5.13% 58.73% 43.84% 33.99% Mar-21 Sep-21 Mar-22 S
Slide 12: Key highlights of the Transformation Journey - Profitability Parameters
Key highlights of the Transformation Journey - Oct 2020 - Jun 2023 Profitability Parameters NII (Quarterly) NIM (Quarterly) Rs. in Crore 3.67% +22% 857 +40 bps 3.34% 808 3.21% 726 2.94% 2.80% 663 2.61% 2.49% 561 598 527 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Jun-23 Sep-20 Mar-21 Sep-21 Mar-22 Sep
Slide 13: Concentrated efforts in recoveries and collections
Concentrated efforts in recoveries and collections Recoveries & Upgrades continue to be on focus…. SMA2 book has reduced by 19% YoY Rs. in crore 1814 Rs. in crore 1102 1464 888 765 697 559 690 530 362 FY 2020 FY 2021 FY 2022 FY 2023 Q1 FY24 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Significant improvement
Slide 14: Profit & Loss Overview (Standalone)
Profit & Loss Overview (Standalone) Rs. in Crore Q1-FY24 Q1-FY23 Y-o-Y (%) Q4-FY23 Q-o-Q (%) FY23 Net Interest Income 808 603 34% 857 (6%) 3,012 Non Interest Income 361 246 47% 345 5% 813 - Core Fee Income 150 128 17% 158 (5%) 569 - Treasury & Forex 77 4 1825% (50) - (308) - Other 134 114 17% 237 (4
Slide 15: Net Interest Income
Net Interest Income Quarterly (Rs.in Crore) Net Interest Income NIM 857 3.67% 825 808 3.52% 3.34% 3.21% 726 2.74% 603 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Cost Of Deposits Yield on Advances Cost Of Funds Yield on Funds 9.31 9.17 8.48 8.84 8.05 7.09 7.44 7.3
Slide 16: Non-Interest Income
Non-Interest Income Core Fee Income Treasury & Forex Income1 (Rs. in Crore) (Rs. in Crore) 158 55 150 142 140 128 80 70 82 75 36 60 30 30 29 49 17 13 19 21 72 78 68 65 68 19 17 10 9 6 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Transaction Technology Forex Profit
Slide 17: Operating Efficiency
Operating Efficiency Employee Additions Cost-to-Income Ratio 74.3 62.7 56.6 58.0 53.3 345 75 129 -47 227 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q3 FY23 includes SR provision of Rs.312 Crore Business per Employee Business per Branch (Rs. in Crore) (Rs. in Cror
Slide 18: Provisions
Provisions (Rs. in Crore) Particulars Q1FY24 Q4FY23 Q1FY23 For NPA & NPI 247 78 181 For Standard Assets (14) (18) (28) For Restructured Advances/Sacrifices & FITL (27) (16) 2 For Unhedged Forex Exposure (2) 2 1 Others (5) (6) (16) Taxes 89 189 62 Total Provisions 288 229 201 17
Slide 19: Balance Sheet Overview (standalone)
Balance Sheet Overview (standalone) (Rs. in Crore) Particulars Jun 2023 Jun 2022 Y-o-Y (%) Mar 2023 Q-o-Q (%) Capital & Liabilities 1,10,541 1,00,632 10% 1,07,698 2% Capital 209 209 0% 209 0% Reserves and Surplus 6,668 5,813 15% 6,465 3% Deposits 95,499 88,196 8% 91,651 4% Borrowings 5,645 4,682 21%
Slide 20: Key Metrics – Quarterly
Key Metrics – Quarterly FY24 FY23 Particulars Q1 Q4 Q3 Q2 Q1 Net Interest Margin (NIM) 3.34% 3.67% 3.52% 3.21% 2.74% CRAR Basel III 16.49% 17.25% 16.25% 16.04% 16.25% RoAA (Annualized) 0.73% 1.26% 0.56% 0.65% 0.46% Provision Coverage 76.54% 76.78% 74.51% 72.79% 70.11% CASA 32.64% 32.98% 33.81% 34.53
Slide 21: Well Distributed Deposit Base
Well Distributed Deposit Base Breakup of Deposits Rs. in Crore Break Up of Non-Resident Deposits Rs. in Crore 95,499 90,672 91,651 Jun Sep Dec Mar Jun 88,196 88,477 Deposit Type 2022 2022 2022 2023 2023 NR SB 7,198 7,101 7,054 6,916 6,884 60,876 58,000 59,387 56,125 56,563 NR CD 53 53 57 55 55 FCNR
Slide 22: Digital Banking
Digital Banking Digital vs Branch Transactions (no of transactions) (000)’s 3000.0 2258.9 2459.1 98.0% 97.0% 2627.7 2500.0 97.0% 2021.6 2000.0 1825.2 96.0% 95.1% 1500.0 94.8% 95.0% 94.4% 1000.0 94.1% 94.0% 500.0 113.4 119.4 124.3 127.5 93.0% 81.0 0.0 92.0% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Transact
Slide 23: Composition of Loan Book
Composition of Loan Book Segment wise Break up of Total Loan Book Loan Book (Excluding Corporate) Rs. in Crore * 46,101 47,330 47,942 48,570 46,580 19% 37% Corporate Personal Segment Business Loans 21% Agriculture 23% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 * Figures after remapping as on 01-04-2023 Brea
Slide 24: Gold loans
Gold loans Consistent traction in Gold loans… (Rs. in Crore) +21% 14,478 13,808 12,913 13,053 11,961 11,282 10,743 9,804 10,189 9,064 2,897 3,107 2,864 3,065 3,196 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Retail Agri 23
Slide 25: Personal Segment
Personal Segment Personal Segment Loans Rs. in Crore 16,746 16,153 15,540 15,725 693 657 14,928 753 706 796 955 753 472 670 330 1,935 1,423 1,609 1,820 1,005 1,168 1,240 1,227 1,306 1,219 1,181 1,122 1,230 1,353 1,576 2,740 2,619 2,445 2,311 2,187 2,897 3,106 2,864 3,065 3,196 4,854 4,805 4,982 4,92
Slide 26: Business loans
Business loans Business Loans (Less than Rs. 25 Crore exposure) MSME Loan Book by Geography Rest of Rs. in Crore Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 India 20% Kerala MSME/SME 13,093 13,126 11,832 11,595 11,107 44% Others 5,278 5,298 6,725 6,755 4,587 South (Ex- Kerala) Total 18,371 18,424 18,557 18,3
Slide 27: Corporate lending
Corporate lending Corporate Loan Book Standard Large Corporate Advances (Rs.100 Cr (Rs. in Crore) 27,522* & above ) (Rs. in Crore) 23,523 13,705 15,648 22,174 10,146 20,632 9,997 18,603 9,437 6,516 6,867 22 21 18 3,177 19 15 10 11 5 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Jun-23 Jun-22 Sep-
Slide 28: Slippages & collection efficiency
Slippages & collection efficiency Segment wise NPA slippages Collection efficiency Rs. in Crore Q1-2024 100.9% 101.1% Agriculture 52 99.8% 100.1% Business Loans 266 97.5% Personal Segment 96 Corporate 53 Total 468 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Segment wise GNPA Slippages Rs. in Crore Q1-20
Slide 29: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA 5.87 In % In % 2.87 5.67 2.51 5.48 2.26 1.86 1.85 5.14 5.13 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Gross NPA Movement Net NPA Movement Rs. Cr. Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Rs. Cr. Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Opening
Slide 30: Stressed Assets
Stressed Assets Restructured Standard Advance Sector Break up (Rs. in Crore) 2,198 1,997 On Account of MSME 1,781 11% Restructuring 18% 1,516 4% General - DCCO Extention 1,297 17% OTR COVID Personal Segment OTR COVID MSME 50% OTR COVID Corporate Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Covid One Time Rest
Slide 31: Capital Composition
Capital Composition Risk Weighted Assets BASEL III 17.25 16.49 16.25 16.04 16.25 Rs. in Crore Jun 30, 2023 Mar 31, 2023 Total Capital 7894.4 16.49% 7,977.0 17.25% - Tier I 6724.0 14.04% 6,815.6 14.74% 14.74 13.62 13.42 13.71 14.04 - Of which CET1 6224.0 13.00% 6,315.6 13.66% - Tier II 1170.5 2.45% 1
Slide 32: Investments
Investments Investment Book Jun 22 Mar 23 Jun 23 Details Rs. in Modified Modified Modified Rs. in Crore Rs. in Crore Crore Duration Duration Duration HTM 19,122 2.83 19,688 2.79 20,882 3.07 AFS 4,353 0.68 6,071 0.95 5,938 2.20 HFT 14 9.14 255 5.14 461 1.47 Total 23,489 2.57 26,014 2.48 27,281 2.79 S
Slide 33: Wide network and young work force
Wide network and young work force 01 Total Employees Q1 FY24: 9,894 01 Q4 FY23: 9,677 04 01 01 Experienced Work Force 05 26 11 01 9% 03 02 01 02 01 36% 18% 03 02 04 19 01 23 03 10% 03 40 27% 44 5 No of < 1 Year 1-2 Years 2-5 Years 5-10 Years > 10 Years 23 60 Classification Branches 04 Metropolitan 1
Slide 34: Awards & Recognitions
Awards & Recognitions SIB’s GST based Instant Digital Business Loan has been awarded Outstanding Digital CX-SME Loans at the 6th Digital CX Awards powered by The Digital Banker, Singapore. SIB has won the Data Quality Award instituted by TransUnion CIBIL for Best Bank under the Emerging Private Bank
Slide 35: Awards & Recognitions
Awards & Recognitions South Indian Bank won the Digital Lending Bank of SIB’s digital/green initiatives have been recognised for the ESG Lead the Year award in the Indian Banking Summit innovation among the Indian Banks. SIB won Gold award under the Awards ceremony for the Pre Approved Personal cate
Slide 36: Awards & Recognitions
Awards & Recognitions South Indian Bank won “Best use of Experiential & Mr Harikumar L, GM receiving Award of excellence from PFRDA on Innovative Media” award for the event “Onnichirikham behalf of our MD, for our performance in PFRDA APY Campaign for Oonjaladam” in the 16th edition of Customer Fest
Slide 37: Strong Management Team
Strong Management Team Mr. Murali Ramakrishnan MD & CEO, 37 years Post Graduate Diploma in Finance and Marketing from IIM Bangalore; More than 37 years of experience in Retail & MSME Credit, Risk Management Policy and Business Intelligence Unit. Mr. Thomas Joseph K Previously, Head SME, Head Credit
Slide 38: Strong Management Team
Strong Management Team Ms. Biji S S SGM & Group Business Head, 29 years MBA in Human Resource Management. Associated with SIB for more than 27 years. Head of Corporate Business. Mr. Senthil Kumar Managed relationship with mid and large corporate clients in various regions of the Bank and vast experi
Slide 39: Strong Management Team
Strong Management Team Mr. Harikumar L GM & Head Liabilities & TPP, 25 years Post Graduate in Management with more than 25 years of experience in the banking industry. Mr. Abey Abraham Previously worked in Axis Bank for more than two decades handling leadership roles in Retail Banking at Circle,Zona
Slide 40: Strong Management Team
Strong Management Team Mr. Mohan T M Mr. Shibu K Thomas GM & Head Legal Department , 27 years GM - Chief Information Security Officer, 22 years B.Com, LL.B Graduate. Also completed CAIIB and CS (Inter). Bachelors Degree in Engineering with certification in cyber security. More than 27 years of exper
Slide 41: For further information, please contact:
For further information, please contact: The South Indian Bank Ltd. CIN - L65191KL1929PLC001017 Ms. Chithra H, CFO chithra@sib.co.in Mr. Vinod Francis, Joint General Manager vinodfrancis@sib.co.in Mr. Prashanth George Tharakan, Head IR prashanthgt@sib.co.in www.southindianbank.com 40
Slide 42: THANK YOU
THANK YOU 41
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