South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q2 FY2024 Earnings Presentation
43 slides from South Indian Bank's earnings presentation, Oct 19, 2023
Slide 1: Exchange filing cover letter: Presentation to Investors and Analysts
DEPT.: SECRETARIAL REF. No. : SEC/ST.EX.STT/ 135/2023-24 DATE : October 19, 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 Build
Slide 2: Investor Presentation Q2-FY 2024
Investor Presentation Q2-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 Q2 FY24: Rs. 97,085 Cr Q2 FY24: Rs. 93,448 Cr Q2 FY24 : Rs.31,100 Cr Q2 FY24: Rs.74,947 Cr Q2 FY24: 3.31% + 10% + 7% +2% +10% +10 bps Q2 FY23: Rs.88,477 Cr Q2 FY23:Rs. 87,111 Cr Q2 FY23: Rs.30,548 Cr Q2 FY23: Rs.67,963 Cr Q2 FY23: 3.21
Slide 5: Key highlights for Q2 FY-2024
Key highlights for Q2 FY-2024 Business Highest ever Business of Rs. 1,72,032 crore for Q2 FY24. Total Deposit increased by 10% Y-o-Y to Rs. 97,085 crore from Rs. 88,477 crore. Highest ever Advances of Rs. 74,947 crore for Q2 FY24 vs Rs. 67,963 crore on Y-o-Y, with a growth of 10%. Recorded
Slide 6: Key highlights for Q2 FY-2024
Key highlights for Q2 FY-2024 Reported quarterly Profit after Tax (PAT) of Rs. 275 crore as against Rs. 223 crore on Y-o-Y Reported NII of Rs. 831 crore for the Q2 FY 2024 compared to Rs. 726 crore on Y-o-Y basis Net Interest Margin (Quarterly) improved by 10 bps Y-o-Y to 3.31% in Q2-2024 vs 3
Slide 7: Transformation Journey
Transformation Journey Oct 2020 - Sep 2023 Added Rs. 8,122 crore of CASA from Rs. 22,978 crore to reach Rs. 31,100 crore CASA Deposits CASA ratio improved from 27.81% to 32.03% (+422 bps) Advances (New Book) New book of Rs. 48,246 Cr with GNPA of 0.18%* & SMA2 of 0.25% RWA to Total Asset Risk Densit
Slide 8: Consolidation of Advances
Consolidation of Advances Churned around 64% of overall loan book since October 1, 2020 Rs. in crore New Book Old Book Total Book Achieved disbursements of Rs. 43,461 Cr during the 1st HY24 vs Rs. 26,089 Cr during the 1st HY23 led by Loan book 48,246 26,701 74,947 Corporate - Rs. 32,897 Cr (Rs. 15
Slide 9: Update on Vision 2025
Update on Vision 2025 3.33% 66.77% RoA – 0.85% RoE -13.43% 32.03% Rs. 74,947 Crores (excl w/off) NIM & Profitability ratios are for 6 months cumulative 8
Slide 10: Key highlights of the Transformation Journey - Business Parameters
Key highlights of the Transformation Journey - Oct 2020 - Sep 2023 Business Parameters CASA CASA to Deposit % Total Business Rs. in Crore +35% +422 bps Rs. in Crore +16% 1,69,601 1,72,032 1,63,743 30,548 31,166 31,100 1,47,970 1,42,128 1,45,148 1,50,957 1,56,440 29,601 30,227 33.21% 34.53% 32.98% 32
Slide 11: Key highlights of the Transformation Journey - Asset Quality Parameters
Key highlights of the Transformation Journey - Oct 2020 – Sep 2023 Asset Quality Parameters PCR Incl. W/off PCR Excl. W/off GNPA +1909 bps +3278 bps 65.12% 65.15% 66.77% 6.97% -201 bps 76.78% 76.54% 77.82% 6.65% 69.55% 72.79% 57.30% 51.26% 5.90% 5.67% 65.02% 58.73% 43.84% 5.14% 5.13% 4.96% 33.99% Ma
Slide 12: Key highlights of the Transformation Journey - Profitability Parameters
Key highlights of the Transformation Journey - Oct 2020 - Sep 2023 Profitability Parameters NII (Quarterly) NIM (Quarterly) Rs. in Crore +37 bps 3.67% 857 +25% 808 831 3.34% 3.31% 3.21% 726 2.94% 663 2.80% 2.61% 2.49% 598 561 527 NIM Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-23 Jun-23 Sep-23 Sep-20 Mar
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 9% Y-o-Y Rs. in crore 1814 Rs. in crore 888 1464 765 697 701 559 839 690 530 FY 2020 FY 2021 FY 2022 FY 2023 HY-FY24 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Significant improvement
Slide 14: Profit & Loss Overview (Standalone)
Profit & Loss Overview (Standalone) Rs. in Crore Q2-FY24 Q2-FY23 Y-o-Y (%) Q1-FY24 Q-o-Q (%) FY23 Net Interest Income 831 726 14% 808 3% 3,012 Non Interest Income 355 255 39% 361 (2%) 813 - Core Fee Income 170 150 13% 164 4% 569 - Treasury & Forex 37 25 48% 77 (52%) (308) - Other 148 80 85% 120 23%
Slide 15: Net Interest Income
Net Interest Income Quarterly (Rs.in Crore) Net Interest Income NIM 857 3.67% 831 3.52% 825 808 3.34% 3.31% 3.21% 726 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Cost Of Deposits Yield on Advances Cost Of Funds Yield on Funds 8.84 9.31 9.17 9.31 8.48 7.09 7.44 7.3
Slide 16: Non-Interest Income
Non-Interest Income Core Fee Income Treasury & Forex Income1 (Rs. in Crore) 170 (Rs. in Crore) 168 164 61 150 149 55 90 101 96 78 84 30 29 30 57 49 13 78 19 21 72 65 68 69 17 10 9 6 4 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Transaction Technology Forex Profit
Slide 17: Operating Efficiency
Operating Efficiency Employee Additions Cost-to-Income Ratio (Quarterly) 74.3 58.0 61.1 56.6 53.3 129 227 75 -47 77 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY23 includes SR provision of Rs.312 Crore Business per Employee Business per Branch (Rs. in Crore) (
Slide 18: Provisions
Provisions (Rs. in Crore) Particulars Q2FY24 Q1FY24 Q2FY23 For NPA & NPI 70 247 166 For Standard Assets (4) (14) 5 For Restructured Advances/Sacrifices & FITL (13) (27) 0 For Unhedged Forex Exposure - (2) (2) Others (1) (5) 11 Taxes 134 89 23 Total Provisions 186 288 203 17
Slide 19: Balance Sheet Overview (standalone)
Balance Sheet Overview (standalone) (Rs. in Crore) Particulars Sep 2023 Sep 2022 Y-o-Y (%) Jun 2023 Q-o-Q (%) Capital & Liabilities 1,12,743 1,05,761 7% 1,10,541 2% Capital 209 209 0% 209 0% Reserves and Surplus 6,880 6,037 14% 6,668 3% Deposits 97,085 88,477 10% 95,499 2% Borrowings 5,898 8,538 -31
Slide 20: Key Metrics – Quarterly
Key Metrics – Quarterly FY24 FY23 Particulars Q2 Q1 Q4 Q3 Q2 Q1 Net Interest Margin (NIM) 3.31% 3.34% 3.67% 3.52% 3.21% 2.74% CRAR Basel III 16.69% 16.49% 17.25% 16.25% 16.04% 16.25% RoAA (Annualized) 0.97% 0.73% 1.26% 0.56% 0.65% 0.46% Provision Coverage 77.82% 76.54% 76.78% 74.51% 72.79% 70.11% CA
Slide 21: Well Distributed Deposit Base
Well Distributed Deposit Base Breakup of Deposits Rs. in Crore Break Up of Non-Resident Deposits 95,499 97,085 90,672 91,651 Rs. in Crore 88,477 Q2 Q3 Q4 Q1 Q2 Deposit Type FY23 FY23 FY23 FY24 FY24 60,876 62,348 6,916 6,884 6,876 58,000 59,387 NR SB 7,101 7,054 56,563 NR CD 53 57 55 55 59 FCNR (B),
Slide 22: Digital Banking
Digital Banking Digital vs Branch Transactions (no of transactions) (000)’s 3000.0 2459.1 2627.7 2828.2 98.0% 97.0% 97.2% 2500.0 2258.9 97.0% 2021.6 2000.0 96.0% 1500.0 95.1% 94.8% 95.0% 1000.0 94.4% 500.0 119.4 94.0% 124.3 127.5 81.0 82.3 0.0 93.0% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Transactions Th
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 47,330 47,942 48,570 46,580 * 47,457 * 19% 37% Corporate Personal Segment Business Loans 21% Agriculture 23% Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 * Figures after remapping as on 01-04-2023 Br
Slide 24: Gold loans
Gold loans Consistent traction in Gold loans… (Rs. in Crore) +16% 14,998 14,478 13,808 12,911 13,053 11,282 11,825 10,743 9,804 10,189 3,107 2,864 3,065 3,196 3,173 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Retail Agri 23
Slide 25: Personal Segment
Personal Segment Personal Segment Loans Rs. in Crore 17,153 16,746 16,153 741 15,540 15,725 693 657 955 1164 753 706 796 472 670 1,935 2107 1,423 1,609 1,820 1,240 1,227 1,306 1387 1,219 1,122 1,230 1,353 1,576 1548 2,619 2,445 2,311 2,187 2051 3,106 2,864 3,065 3,196 3173 4,805 4,982 4,924 4,898 49
Slide 26: Business loans
Business loans Business Loans # MSME Loan Book by Geography Rest of Rs. in Crore Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 India 19% Kerala MSME/SME 13,126 11,832 11,595 11,107 10,785 45% Others 5,298 6,725 6,755 4,587 4,827 South (Ex- Kerala) Total 18,424 18,557 18,350 15,694 15,612 36% Average MSME Loan
Slide 27: Corporate lending
Corporate lending Corporate Loan Book Standard Large Corporate Advances (Rs.100 Cr (Rs. in Crore) 27,522 * 27,491* & above ) (Rs. in Crore) 23,523 13,705 16,515 22,174 10,146 20,632 9,997 9,437 6,516 6,867 22 22 18 3,177 19 15 10 11 5 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Sep-22 De
Slide 28: Slippages & collection efficiency
Slippages & collection efficiency Segment wise NPA slippages Collection efficiency Rs. in Crore Q2-2024 101.1% Agriculture 44 100.9% Business Loans 192 100.1% 100.2% Personal Segment 99.8% 75 Corporate 0 Total 312 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Segment wise GNPA Slippages Rs. in Crore Q2-20
Slide 29: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA 5.67 In % In % 2.51 5.48 2.26 1.86 1.85 1.70 5.14 5.13 4.96 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Gross NPA Movement Net NPA Movement Rs. Cr. Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Rs. Cr. Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Opening
Slide 30: Stressed Assets
Stressed Assets Restructured Standard Advance Sector Break up (Rs. in Crore) 1,997 On Account of MSME 1,781 Restructuring 1,516 9% 20% 4% 1,297 General - DCCO Extention 1,159 16% OTR COVID Personal Segment OTR COVID MSME 51% OTR COVID Corporate Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Covid One Time Restr
Slide 31: Capital Composition
Capital Composition Risk Weighted Assets BASEL III 17.25 16.25 16.49 16.69 Rs. in Crore Sep 30, 2023 June 30, 2023 16.04 Total Capital 7,888.1 16.69% 7,894.4 16.49% - Tier I 6,723.3 14.22% 6,724.0 14.04% 14.74 14.22 13.42 13.71 14.04 - Of which CET1 6,223.3 13.17% 6,224.0 13.00% - Tier II 1,164.8 2.
Slide 32: Investments
Investments Investment Book Sep 22 Mar 23 Sep 23 Details Rs. in Modified Modified Modified Rs. in Crore Rs. in Crore Crore Duration Duration Duration HTM 19,308 2.79 19,688 2.79 20,858 3.14 AFS 6,439 0.87 6,071 0.95 6,329 1.31 HFT 405 4.59 255 5.14 109 0.05 Total 26,152 2.44 26,014 2.48 27,296 2.79
Slide 33: Wide network and young work force
Wide network and young work force 01 Total Employees Q2 FY24: 9,962 01 Q1 FY24: 9,894 04 01 01 Experienced Work Force 05 27 11 01 9% 03 02 01 02 01 11% 37% 03 02 04 19 01 23 16% 03 03 40 27% 44 5 < 1 Year 1-2 Years 2-5 Years 5-10 Years > 10 Years 23 No of 61 Classification Branches 04 Metropolitan 2
Slide 34: Awards & Recognitions
Awards & Recognitions South Indian Bank was declared winner in the Hindustan Times- Mr. Shibu K Thomas CISO of Tech Circle, Annual Business Transformation conclave, held at South Indian Bank won the Security Mr. Sony A, SGM & CIO of South Indian Bank is listed by Jaipur. Sony A. SGM & CIO together w
Slide 35: Awards & Recognitions
Awards & Recognitions Mr. Shibu K Thomas, CISO of South Indian Bank was awarded South Indian Bank has been honoured as a 'Master of CX 2023- Ms. Azmat Habibulla, CMO of South the Excellence in Security Leadership award at the Security 24' at the CX Transformation Conclave 2023 held in Mumbai. Indian
Slide 36: Awards & Recognitions
Awards & Recognitions South Indian Bank won the following awards at the Governance Now 6th India BFSI Conclave & Awards:– 1. Mr. Shibu K Thomas won the Digital Security South Indian Bank won the award for Leader (CISO) award Mr. Shibu K Thomas, CISO of South Indian “Excellent Cyber Security System”
Slide 37: Strong Management Team lead by
Strong Management Team lead by 36
Slide 38: Strong Management Team
Strong Management Team Mr. P R Seshadri MD & CEO, 30 years Mr. Thomas Joseph K Bachelor’s degree in Engineering from the Delhi College of Engineering EVP & Chief Business Officer, 39 years and a Post Graduate Diploma in Management from IIM Bangalore. Bachelors Degree in Engineering and Diploma in Ma
Slide 39: Strong Management Team
Strong Management Team Mr. Sony A SGM & CIO, 31 years Certified Information Systems Auditor from ISACA, USA and MBA. Over Ms. Biji S S 27 years of experience in banking technology. Instrumental in setting up key systems like Business Process. SGM & Group Business Head, 29 years Management tools, CRM
Slide 40: Strong Management Team
Strong Management Team Mr. Nandakumar G GM & Chief of Internal Vigilance, 31 years Associated with SIB for more than 27 years. Head of Inspection and Vigilance. Vast experience across business functions like Branch/RO management, Mr. Harikumar L Retail Banking including Bancassurance and Marketing.
Slide 41: Strong Management Team
Strong Management Team Mr. Nehru Singh B GM & Head – Credit Policy and Monitoring, 27 years MBA &CAIIB qualified, Has 27+ years of experience in the Banking Industry, extensively in non-retail credit. Previously worked in Axis Bank and was steering the complete life cycle of non-retail credit relati
Slide 42: 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 41
Slide 43: Thank You
OUTH INDIAN Bank 42
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