South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q4 FY2023 Earnings Presentation
44 slides from South Indian Bank's earnings presentation, May 11, 2023
Slide 1: Cover letter to stock exchanges
DEPT : SECRETARIAL REF. No. : SEC/ST.EX.STT/ 32 /2023-24 DATE : May 11 , 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 Q4-FY 2023
Investor Presentation Q4-FY 2023 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 FY23: Rs. 91,651 Cr FY23: Rs. 89,615 Cr FY23: Rs.30,227 Cr FY23: Rs.72,092 Cr FY23: 3.30% + 3% + 5% +2% +17% +68 bps FY22: Rs.89,142 Cr FY22: Rs. 85,320 Cr FY22: Rs.29,601 Cr FY22: Rs.61,816 Cr FY22: 2.62% NII Profit After Tax Provisio
Slide 5: Key highlights for FY-2023
Key highlights for FY-2023 Profit / Income Highest Ever in the history of the bank PBT of Rs. 1,108 crore. PAT of Rs. 775 crore. Net Interest Income of Rs. 3,012 crore. Highest Net Interest Margin of 3.30% in the last 17 years. Highest ROA of 0.73% in the last 9 years. Highest ROE of
Slide 6: Key highlights for FY-2023
Key highlights for FY-2023 Business Highest ever Business of Rs. 1,63,743 crore for FY 2023 against Rs. 1,50,957 crore for FY 2022. Highest ever Advances of Rs. 72,092 crore for FY 2023 vs Rs. 61,816 crore on Y-o-Y, with a growth of more than 16%. Recorded highest disbursement of Rs. 54,801
Slide 7: Key highlights for Q4-2023
Key highlights for Q4-2023 Reported quarterly Profit after Tax (PAT) of Rs. 334 crore as against Rs. 272 crore on Y-o-Y Highest ever NII of Rs. 857 crore for the Q4 FY 2023 compared to Rs. 598 crore on Y-o-Y basis Net Interest Margin (Quarterly) improved by 87 bps Y-o-Y to 3.67% in Q4-2023 vs
Slide 8: Highlights of initiatives by Mr. Murali Ramakrishnan
Highlights of initiatives by Mr. Murali Ramakrishnan Mr. Murali Ramakrishnan took charge as the MD & CEO of the bank on 01st October 2020 and as part of the strategic intent formulated the Vision 2024 document focusing on `Profitable growth through quality credit’ and the methodology adopted was the
Slide 9: Highlights of initiatives by Mr. Murali Ramakrishnan
Highlights of initiatives by Mr. Murali Ramakrishnan Verticalisation of Asset businesses - To prevent the conflict of interest, the Sales team of various businesses were organized as a vertical with a Business head to carry the P&L Responsibility. Introducing New products - like adding High yielding
Slide 10: Transformation Journey
Transformation Journey Oct 2020 - Mar 2023 Added Rs. 7,249 crore of CASA from Rs. 22,978 crore to reach Rs. 30,227 crore CASA Deposits CASA ratio improved from 27.81% to 32.98% (+517 bps) Advances (New Book) New book of Rs. 41,566 Cr with GNPA of 0.09%* & SMA2 of 0.12% RWA to Total Asset Risk Densit
Slide 11: Consolidation of Advances
Consolidation of Advances Churned around 58% of overall loan book since October 1, 2020 Rs. in crore New Book Old Book Total Book Achieved disbursements of Rs. 54,801 Cr during the FY23 vs Rs. 24,533 Cr during the FY22 led by Corporate Loan book - Rs. 31,344 Cr (Rs. 10,247 Cr), Gold - Rs. 11,378 C
Slide 12: Update on Vision 2025
Update on Vision 2025 3.30% 65.12% CRAR -17.25% Tier I – 14.74% 32.98% Rs. 72,092 Crores (excl w/off) RoE RoA NIM Q4 – 20.29% Q4 – 1.26% Q4 – 3.67% FY23 - 11.61% FY23 - 0.73% 11
Slide 13: Key highlights of the Transformation Journey - Business Parameters
Key highlights of the Transformation Journey - Oct 2020 - Mar 2023 Business Parameters CASA CASA to Deposit % Total Business Rs. in Crore Rs. in Crore +32% 30,548 +517 bps +11% 1,63,743 29,601 30,227 34.53% 33.21% 32.98% 26,773 29.73% 30.82% 24,590 27.81% 1,56,440 22,978 1,50,957 1,47,970 1,45,148 1
Slide 14: Key highlights of the Transformation Journey - Asset Quality Parameters
Key highlights of the Transformation Journey - Oct 2020 – Mar 2023 Asset Quality Parameters PCR Incl. W/off PCR Excl. W/off GNPA +1805 bps +3113 bps 65.12% 57.30% -183 bps 6.97% 6.65% 76.78% 51.26% 69.55% 72.79% 5.90% 65.02% 43.84% 5.67% 58.73% 5.14% 33.99% Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Mar-21
Slide 15: Key highlights of the Transformation Journey - Profitability Parameters
Key highlights of the Transformation Journey - Oct 2020 - Mar 2023 Profitability Parameters NII (Quarterly) NIM (Quarterly) Rs. in Crore 857 +73 bps 3.67% +29% 3.21% 726 2.94% 663 2.80% 2.61% 2.49% 598 561 527 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Core F
Slide 16: Concentrated efforts in recoveries and collections
Concentrated efforts in recoveries and collections Recoveries & Upgrades continue to be on focus…. SMA2 book has reduced by 37% YoY Rs. in crore 1814 Rs. in crore 1102 1464 892 765 697 559 690 530 FY 2020 FY 2021 FY 2022 FY 2023 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Significant improvement in PCR Net N
Slide 17: Profit & Loss Overview (Standalone)
Profit & Loss Overview (Standalone) Rs. in Crore Q4-FY23 Q4-FY22 Y-o-Y (%) Q3-FY23 Q-o-Q (%) FY23 FY22 Y-o-Y (%) Net Interest Income 857 598 43% 825 4% 3,012 2,240 34% Non Interest Income 345 204 69% (34) - 813 1,034 (21%) - Core Fee Income 158 142 11% 140 13% 569 477 19% - Treasury & Forex (50) (52
Slide 18: Net Interest Income
Net Interest Income Quarterly (Rs.in Crore) Net Interest Income NIM 3.52% 3.67% 900 825 857 3.21% 800 726 2.80% 2.74% 700 598 600 603 500 400 300 200 100 0 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Cost Of Deposits Yield on Advances Cost Of Funds Yield on Funds
Slide 19: Non-Interest Income
Non-Interest Income Core Fee Income Treasury & Forex Income1 (Rs. in Crore) (Rs. in Crore) 158 36 142 142 140 128 30 30 29 26 17 80 64 70 75 13 60 10 19 21 78 78 19 72 16 17 68 65 10 9 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Transaction Technology Forex Profit
Slide 20: Operating Efficiency
Operating Efficiency Employee Additions Cost-to-Income Ratio 74.3 345 64.1 62.7 56.6 53.3 157 129 75 -47 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q3 FY23 includes SR provision of Rs.312 Crore Business per Employee Business per Branch (Rs. in Crore) (Rs. in Cror
Slide 21: Provisions
Provisions (Rs. in Crore) Particulars Q4FY23 Q3FY23 Q4FY22 For NPA & NPI 78 62 118 For Standard Assets (18) (17) 25 For Restructured Advances/Sacrifices & FITL (16) (8) (19) For Unhedged Forex Exposure 2 0 (1) Others (6) 5 (46) Taxes 189 59 (62) Total Provisions 229 101 15 20
Slide 22: Balance Sheet Overview (standalone)
Balance Sheet Overview (standalone) (Rs. in Crore) Particulars Mar 2023 Mar 2022 Y-o-Y (%) Dec 2022 Q-o-Q (%) Capital & Liabilities 1,07,698 1,00,052 8% 1,03,833 4% Capital 209 209 0% 209 0% Reserves and Surplus 6,465 5,644 15% 6,140 5% Deposits 91,651 89,142 3% 90,672 1% Borrowings 6,994 3,294 112%
Slide 23: Key Metrics – Quarterly
Key Metrics – Quarterly FY23 FY22 Particulars Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net Interest Margin (NIM) 3.67% 3.52% 3.21% 2.74% 2.80% 2.64% 2.49% 2.55% CRAR Basel III 17.25% 16.25% 16.04% 16.25% 15.86% 15.68% 15.75% 15.44% RoAA (Annualized) 1.26% 0.56% 0.65% 0.46% 1.10% - - 0.04% Provision Coverage 76.78% 7
Slide 24: Well Distributed Deposit Base
Well Distributed Deposit Base Breakup of Deposits Rs. in Crore Break Up of Non-Resident Deposits 90,672 91,651 Rs. in Crore 89,142 88,196 88,477 Mar Jun Sep Dec Mar Deposit Type 2022 2022 2022 2022 2023 NR SB 6,980 7,198 7,101 7,054 6,916 55,719 56,125 56,563 58,000 59,387 NR CD 50 53 53 57 55 FCNR
Slide 25: Digital Banking
Digital Banking Digital vs Branch Transactions (no of transactions) (000)’s 3000.0 95.1% 2459.1 95.5% 2021.6 2258.9 2500.0 94.8% 95.0% 94.4% 2000.0 94.1% 1825.2 94.5% 1563.9 94.0% 1500.0 93.5% 1000.0 93.3% 93.0% 500.0 113.1 113.4 119.4 124.3 127.5 92.5% 0.0 92.0% Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 T
Slide 26: Composition of Loan Book
Composition of Loan Book Segment wise Break Up of Total Loan Book Loan Book (Excluding Corporate) Rs. in Crore 20% 44,891 47,330 47,942 48,570 46,101 33% Corporate Personal Segment Business Loans 25% Agriculture 22% Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Break up of Loan book Loan Book Across Regions Ma
Slide 27: Gold loans
Gold loans Consistent traction in Gold loans… (Rs. in Crore) +28% 13,808 12,913 13,053 11,961 10,766 10,743 9,804 10,189 9,064 8,151 2,615 2,897 3,107 2,864 3,065 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Agri Retail 26
Slide 28: Personal Segment
Personal Segment Personal Segment Loans Rs. in Crore 16,153 15,540 15,725 14,928 657 14,612 753 706 796 753 472 670 764 330 153 1,423 1,609 1,820 844 1,005 1,151 1,168 1,240 1,219 1,227 1,247 1,181 1,122 1,230 1,353 2,884 2,740 2,619 2,445 2,311 2,615 2,897 3,106 2,864 3,065 4,954 4,854 4,805 4,982
Slide 29: Business loans
Business loans Business Loans (Less than Rs. 25 Crore exposure) MSME Loan Book by Geography Rest of Rs. in Crore Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 India 19% Kerala MSME/SME 13,391 13,093 13,126 11,832 11,595 44% Others 4,958 5,278 5,298 6,725 6,755 South (Ex- Kerala) Total 18,349 18,371 18,424 18,5
Slide 30: Corporate lending
Corporate lending Corporate Loan Book Standard Large Corporate Advances (Rs.100 Cr (Rs. in Crore) 23,523 & above ) (Rs. in Crore) 22,174 20,632 13,705 18,603 10,146 16,925 9,997 9,437 6,516 22 6,867 18 3,177 19 15 10 11 5 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-22 Jun-22 Sep-22 Dec-22 M
Slide 31: Slippages & collection efficiency
Slippages & collection efficiency Segment wise NPA slippages Collection efficiency Rs. in Crore Q4-2023 102.2% Agriculture 54 100.9% 101.1% 99.8% Business Loans 152 97.5% Personal Segment 50 Corporate 87 Total 343 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023 Segment wise GNPA Slippages Rs. in Crore Q4-20
Slide 32: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA 5.9 5.87 In % In % 2.97 2.87 5.67 2.51 5.48 2.26 1.86 5.14 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Gross NPA Movement Net NPA Movement Rs. Cr. Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Rs. Cr. Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Opening 3
Slide 33: Stressed Assets
Stressed Assets Restructured Standard Advance Sector Break up (Rs. in Crore) On Account of MSME 2,417 2,198 Restructuring 1,997 19% 11% 1,781 4% General - DCCO Extention 1,516 18% OTR COVID Personal Segment OTR COVID MSME 48% OTR COVID Corporate Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Covid One Time Rest
Slide 34: Capital Composition
Capital Composition Risk Weighted Assets BASEL III 17.25 15.68 16.25 16.04 16.25 Rs. in Crore Mar 31, 2023 Dec 31, 2022 Total Capital 7,977.0 17.25% 7,244.9 16.25% - Tier I 6,815.6 14.74% 6,111.7 13.71% 14.74 13.22 13.62 13.42 13.71 - Of which CET1 6,315.6 13.66% 5,611.7 12.59% - Tier II 1,161.4 2.5
Slide 35: Investments
Investments Investment Book Mar 22 Dec 22 Mar 23 Details Rs. in Modified Modified Modified Rs. in Crore Rs. in Crore Crore Duration Duration Duration HTM 19,365 3.04 18,916 2.69 19,688 2.79 AFS 3,036 0.97 5,263 1.17 6,071 0.95 HFT 132 1.67 109 7.69 255 5.14 Total 22,534 2.91 24,287 2.47 26,014 2.48
Slide 36: Wide network and young work force
Wide network and young work force 01 Total Employees Q4 FY23: 9,677 01 Q3 FY23: 9,733 04 01 01 Experienced Work Force 05 26 11 01 02 01 11% 03 02 01 35% 14% 03 02 04 19 01 23 03 13% 03 40 27% 44 5 < 1 Year 1-2 Years 2-5 Years 5-10 Years > 10 Years 23 No of 60 Classification Branches 04 Metropolitan
Slide 37: Awards & Recognitions
Awards & Recognitions Our MD & CEO, Mr. Murali Ramakrishnan has been honoured as the BUSINESS LEADER OF THE YEAR by ET Ascent. SIB won the Wealth Creator of the Year 2022 Award (Kerala BFSI Segment) in the glittering Dhanam BFSI Summit & Award Nite 2023. EVP Mr. Thomas Joseph received the award. Mr.
Slide 38: Awards & Recognitions
Awards & Recognitions SIB is honoured with ASSOCHAM Best Pvt Sector Our CIO Mr. Sony is awarded with Best CDO/CTO/CIO award. The Bank Award during the 9th MSME Awards & Fintech & Digital Excellence Award was declared at the Bharat Fintech Excellence Summit held at Delhi. Summit 2023 held at Mumbai.
Slide 39: 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 40: 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 41: Strong Management Team
Strong Management Team Mr. Harikumar L GM & Head Liabilities & TPP, 22 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 42: 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 43: 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 42
Slide 44: Thank You
OUTH INDIAN Bank 43
The South Indian Bank — Q4 FY2023 Earnings Presentation on 6ix