South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q3 FY19 Earnings Presentation
54 slides from South Indian Bank's earnings presentation, Jan 19, 2019
Slide 1: Filing cover letter to National Stock Exchange
~ . ~ ~SOUTH ~INDIAN Bank DEPT: SECRETAJUAL REF No. SEC/ST EX.STT/ 13o/2018-19 January 19,2019 National Stock Exchange oflndia Ltd., Exchange Plaza, 5th Floor, Plot No.c/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051. SCRIP CODE: SOUTHBANK Dear Sirs, Sub: Presentation to Investors an
Slide 2: Investor Presentation January 2019
Investor Presentation January - 2019
Slide 3: Safe Harbor
Safe Harbor 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. Certa
Slide 4: Contents
Contents Q3 FY19 Highlights Business Strategy Performance Matrix Next Generation Bank About Us 3
Slide 5: Q3 FY19 Highlights
Z Q3 FY19 Highlights © \
Slide 6: Key Quarterly Highlights- Q3 FY19
Key Quarterly Highlights- Q3 FY19 Rs Crs CASA Deposits Advances Q3 FY19 18,905 Q3 FY19 77,665 Q3 FY19 60,064 Q3 FY18 16,929 Q3 FY18 68,109 Q3 FY18 52,449 12% 14% 15% Net Interest Income Other Income PPOP 520 Q3 FY19 Q3 FY19 187 Q3 FY19 332 Q3 FY18 509 Q3 FY18 330 159 Q3 FY18 2% 18% 1% 5
Slide 7: Business Strategy
ayy Business Strategy aI:
Slide 8: Our Strategy…
Our Strategy… • New Retail Banking Department Focus on retail loan & liability/investment products • Efficient branches & processing centers for faster processing of loans Expand Retail • Outbound Sales team Business • Continuous training of work force • Advanced technology for ease of customers • I
Slide 9: …Performance in Line with Strategy
…Performance in Line with Strategy Strengthen Retail base Rs. 16,857 Crs INCREASE 29.4% YoY Expand Agriculture & SME Base Rs. 22,095 Crs INCREASE 6.1% YoY Improve CASA Rs. 18,905 Crs INCREASE 11.7% YoY 8
Slide 10: Shall continue to focus on Core Strengths
Shall continue to focus on Core Strengths 01 Increase … 02 Retail Business … 03 SME Business … CASA More Products Sole Banker Retail SME Relationships Relationships 06 Sustainable… 05 Increase… 04 Improve Asset Quality Fee Income NIM 9
Slide 11: ...Increase Retail & SME Business
...Increase Retail & SME Business 01 02 03 Centralized Retail Hub Marketing & • Home Loan Cluster Processing • Auto Loan Branches • MSME Loan Centre (Kochi) • LAP Loan Processing Retail Business Branch Profitability • Entire Loan underwriting • Penetrate further in the • Focus on particular centrali
Slide 12: …by focus on Housing Loans in Retail
…by focus on Housing Loans in Retail Retail Breakup Housing: Key Initiatives Rs Crs +29% • Retail hub in Kochi to increase focus 16,857 16,061 on housing finance 15,200 1,780 1,706 • Dedicated Officers for marketing 13,787 1,668 1,200 13,027 1,159 Retail Loans 1,543 1,096 1,422 1,045 • Marketing ini
Slide 13: …becoming a Banker of Choice to SMEs
…becoming a Banker of Choice to SMEs Average SME Loan / Account SME Loan Book by Geography – Q3 FY19 Rs Lakhs 30.30 31.33 29.30 Rest of 26.50 India 23.50 25% Kerala 43% South (Ex- Kerala) 32% Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 SME Highlights • Dedicated JGM appointed to ensure focus and better coord
Slide 14: …with the help of our Branch Network
…with the help of our Branch Network Total Branch Network +1.5% 822 834 850 854 857 794 FY14 FY15 FY16 FY17 FY18 9M FY19 Total ATM Network +7.1% No of 1,382 1,407 Branch Location* 1,287 1,320 Branches 1,200 1,000 Kerala 465 South India (Ex-Kerala) 249 Rest of India 143 Total 857 FY14 FY15 FY16 FY17
Slide 15: … and our Experienced Employees
… and our Experienced Employees Employee Addition Total Employees: 7,855* 99 137 7,855 7,364 77 332 11% 27% 8% 18% 36% < 1 Year 1-2 Years 2-5 Years Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Closing 5-10 Years > 10 Years *Full-time officers and clerks. 14
Slide 16: Performance Matrix
ayy Performance Matrix 15
Slide 17: Strong Deposit Franchise
Strong Deposit Franchise Core & Non-Core Deposits Rs Crs Dec-18 Dec-18 Dec-18 62,331 15,334 77,665 10.1% 33.7% 14.0% 56,640 11,469 68,109 Dec-17 Dec-17 Dec-17 Core Deposit Non-Core Deposit Total Deposit CASA Deposits Dec-18 Dec-18 Dec-18 Rs Crs 3,485 15,421 18,905 11.4% 11.8% 11.7% 3,129 13,799 16,9
Slide 18: Core Deposits Growing...
Core Deposits Growing... Breakup of Deposits CASA Deposit +14% Rs Crs Rs Crs 77,665 +12% 74,911 72,030 72,488 18,905 68,109 16,928 3,485 3,129 13,799 15,420 43,426 42,498 40,408 41,561 39,746 Dec-17 Dec-18 Current Savings Term Deposits 15,420 Rs Crs 14,084 14,937 15,357 +9% 13,799 3,058 3,485 43,426
Slide 19: NRI Deposits Growing…
NRI Deposits Growing… NRI Deposits CASA Rs Crs In (%) +14% 20,981 20,425 19,631 18,375 18,855 24.9 24.7 23.8 24.6 24.3 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Dec-17 Mar-18 Jun-18 Sept-18 Dec-18 18
Slide 20: Break Up of Non Resident Deposits
Break Up of Non Resident Deposits Deposit Type (Rs Crs) Q3-FY 18 Q4-FY 18 Q1-FY 19 Q2-FY 19 Q3-FY 19 NRE SB 3,212 3,335 3,628 3,741 3,768 NRO SB 603 618 623 657 712 FCNR (B), RFC & Others 1,598 1,634 1,638 1,652 1,697 Low Cost NRI Deposit (Sub 5,413 5,587 5,889 6,050 6,177 Total) NRE Term Deposit 12
Slide 21: Composition of Loan Book
Composition of Loan Book Corporate Advances (Above Rs 25 Crs) Retail Advances Rs Crs Rs Crs +14% +15% 20,438 19,976 20,149 21,111 37,264 38,953 18,598 34,671 36,188 33,851 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Segment wise Break Up of Total Loan Book Rs Crs 8,068 , 21
Slide 22: Composition of Loan Book
Composition of Loan Book Break up of Loan book Dec-17 Mar-18 Jun-18 Sept-18 Dec-18 Advances (Rs. Crs) No. of Rs. No. of Rs. No. of Rs. No. of Rs. No. of Rs. A/C’s (in Crs) A/C’s (in Crs) A/C’s (in Crs) A/C’s (in Crs) A/C’s (in Crs) Less than 5 Crs 7,11,884 20,515 7,15,160 21,816 7,15,520 22,529 7,17
Slide 23: Composition of Corporate Loan Book
Composition of Corporate Loan Book 96.8% of our Large Corporate Standard Advances 82.7% of Total Corporate Loan Book is Investment above Rs. 100 Crs are under Investment Grade Grade (Rs. 25 Crs and above) External Rating SIB Internal Rating Rs Crs Rs Crs 0.1% 0.0% 0.0% 2.0% 2.1% 17.4% 16.9% 19.3% 25
Slide 24: Key Focus : Retail, SME & Agriculture
Key Focus : Retail, SME & Agriculture Retail excluding Gold Gold ( Average LTV – 65%) Rs Crs Rs Crs +28% +39% 15,017 1,840 13,760 14,567 Retail Loans (Excl. 11,699 12,430 1,440 1,494 1,328 1,357 Gold), Agriculture & SME has grown by 14.1% (Y-o-Y) Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Dec-17 Mar-18 Jun-
Slide 25: Advances growing Across Regions
Advances growing Across Regions +15% Rs Crs 60,064 57,413 55,109 56,164 52,449 17,932 16,646 17,049 15,983 14,898 17,924 16,624 16,771 16,996 15,975 22,502 22,747 23,368 24,208 21,576 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Rest of India South Ex- Kerala Kerala 24
Slide 26: Net Interest Income - Quarter
Net Interest Income - Quarter Net Interest Income Cost of Deposits & Yield on Advances Rs Crs In % Cost Of Deposit Yield on Advances 509 492 494 506 520 9.88 9.61 9.50 9.50 9.64 6.01 6.04 6.06 6.08 6.16 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Dec-17 Mar-18 Jun-18 Sept-18 Dec-18 Net Interest Margin Cost o
Slide 27: Net Interest Income - Cumulative
Net Interest Income - Cumulative Net Interest Income Cost of Deposits & Yield on Advances Rs Crs In % Cost of Deposits Yield on Advances 1,966 1,473 1,520 9.99 9.89 9.50 9.50 9.55 964 1,001 461 494 6.10 6.08 6.06 6.07 6.10 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Dec -17 Mar -18 Jun -18 Sept
Slide 28: Improving Operating Efficiency
Improving Operating Efficiency Employee Additions C/I Ratio In % 332 57.88 99 55.58 54.68 -77 137 47.17 45.12 -83 Dec -17 Mar -18 Jun -18 Sept -18 Dec -18 Dec -17 Mar -18 Jun -18 Sept -18 Dec -18 Business per Employee Business per Branch Rs Crs Rs Crs 14.9 15.7 15.7 15.5 147 148 149 14.5 132 134 Dec
Slide 29: Sustainable Other Income
Sustainable Other Income Total Other Income led by …. …Sustainable : Transaction Fees + Technology Rs Crs Rs Crs 179 187 108 98 100 95 159 158 91 146 71 67 69 59 60 31 31 32 35 37 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Transaction Fees Technology Profit on Sale of Inve
Slide 30: Break Up of Provisions
Break Up of Provisions Rs Crs Q3-FY 19 Q3-FY 18 Q2-FY 19 For NPA & NPI 189.4 229.78 133.2 For Depreciation on Investments -7.3 4.51 40.5 For Standard Assets 10.1 6.54 6.4 For Restructured Advances/Sacrifices & FITL 0.0 -0.30 -1.0 For Unhedged Forex Exposure -0.1 0.49 0.2 Others 11.1 -86.74 25.5 Taxe
Slide 31: Non Performing Assets
Non Performing Assets Gross NPA Net NPA 4.54% 4.61% 4.88% 3.27% 3.16% 3.54% 2.60% 3.40% 3.59% 2.35% Dec-17 Mar-18 Jun-18 Sept-18 Dec-18 Dec-17 Mar-18 Jun-18 Sept-18 Dec-18 Gross NPA Movement Net NPA Movement Rs Crs Dec-17 Mar-18 Jun-18 Sept-18 Dec-18 Rs Crs Dec-17 Mar-18 Jun-18 Sept-18 Dec-18 Openin
Slide 32: Stressed Assets - QoQ
Stressed Assets - QoQ Gross Basis Net Basis Rs Crs Q2-FY 19 Q3-FY 19 Q2-FY 19 Q3-FY 19 NPA 2,646 2,930 1,785 2,100 Restructured Standard Advance 22 200 22 200 Other Stressed Advances 104 0 94 0 Total Stressed Assets 2,772 3,130 1,901 2,300 Advances 57,413 60,064 56,572 59,256 Stressed Assets as % of
Slide 33: Restructured Advances Breakup
Restructured Advances Breakup Restructured Assets Break-up Sector Standard Restructure – Q3FY19 Rs Crs 248 10.5% 200 89.5% Construction EPC Others (on Account of Kerala Floods) Rs Crs Security Receipts Outstanding as on 31.12.2018 57 Book Value Provision NAV 20 22 1,286 267 1,019 Dec-17 Mar-18 Jun-1
Slide 34: Restructured Standard Asset Book
Restructured Standard Asset Book Rs Crs Restructured Standard Advance Upgradation Fresh Uday – SDL Decrease in Slippages to Closing Opening from NPA to Addition Investments Balance NPA Balance Std. Rest. Infra Roads - - - - - - - Construction 22 - - - 1 - 21 EPC Others - 179 - - - - 179 Total 22 179
Slide 35: Credit Provisioning
Credit Provisioning NPA Provisioning Rs Crs 159 836 804 191 Provision Coverage Ratio : 41.17% Opening Additions Deductions Closing 34
Slide 36: Fresh Slippages/Advance Ratios
Fresh Slippages/Advance Ratios Retail Slippage Agriculture Slippage 0.40% 0.42% 0.38% 0.71% 0.18% 0.20% 0.18% 0.14% 0.22% 0.04% Dec-17 Mar-18 Jun-18 Sept-18 Dec-18 Dec-17 Mar-18 Jun-18 Sept-18 Dec-18 SME Slippage Corporate Slippage 1.72% 2.36% 2.38% 1.54% 0.76% 0.80% 0.30% 0.18% 0.09% 0.00% Dec-17 M
Slide 37: Capital Composition
Capital Composition BASEL III 12.5 12.7 In % 12.2 12.1 11.8 2.4 2.3 2.1 2.1 2.1 10.1 10.4 10.1 10.0 9.7 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Tier 2 Tier 1 36
Slide 38: Profit & Loss Overview- Q3 FY19
Profit & Loss Overview- Q3 FY19 Rs Crs Q3-FY19 Q3-FY 18 Y-o-Y (%) Q2-FY 19 Q-o-Q (%0 Net Interest Income 520 509 2.0% 506 2.6% Other Income 187 159 17.6% 158 18.3% Total Income 706 668 5.7% 664 6.3% Operating Expenses 374 338 10.7% 355 5.6% Operating Profit 332 330 0.6% 310 7.2% Provisions (Ex-Tax)
Slide 39: Next Generation Bank
ayy Next Generation Bank © 38
Slide 40: Present across Customer Touch Points
Present across Customer Touch Points Traditional & Alternate Channels SIB Mirror + Mobile Banking ATMs Branches 1,407 ATMs across India 857 Branches & 53 Extension Counters Internet Banking Point of Sale 39
Slide 41: Technology Initiatives
Technology Initiatives Mirror + is an all in one stop for your mobile banking needs, with additional features as IMPS (24/7) fund transfer, NEFT fund transfers, and full access to account information, and much more SIBerNet is a suite of comprehensive internet banking services positioning SIB as a t
Slide 42: Personal Banking: Technology Banking
Personal Banking: Technology Banking Active Internet Users Internet Transaction Volume Internet Transaction Value (000)’s (000)’s Rs Crs 962 6,989 954 948 885 929 6,075 6,185 6,451 354 5,594 303 313 332 260 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Dec-17 Mar-18 Jun-18 Se
Slide 43: Personal Banking: Debit Cards
Personal Banking: Debit Cards No of Active Debit Cards Debit Card Transaction Volumes In Millions In Millions 36.7 37.2 36.8 37.6 38.1 4.3 4.0 3.8 3.9 3.6 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Debit Card Transaction Value Rs Crs 7,512 7,573 7,761 6,949 7,090 Dec-17 Ma
Slide 44: About Us
@ yy About Us 43
Slide 45: Milestones
Milestones FIRST among the private FIRST bank in the private sector banks in Kerala to sector in India to open a become a scheduled bank in Currency Chest on behalf of 1946 under the RBI Act the RBI in April 1992 FIRST private sector bank to FIRST bank in the private sector open a NRI branch in to s
Slide 46: Expansion since FY08
Expansion since FY08 Branch Network ATM Network +75% +531% 857 1,407 465 802 490 286 249 403 223 133 115 143 50 202 71 58 FY08 9MFY19 FY08 9MFY19 Kerala South Ex-Kerala Others (Rest of India) 45
Slide 47: Performance since FY08
Performance since FY08 Net Interest Income Profit After Tax CAGR: +18% Rs Crs Rs Crs CAGR: +8% 1,966 335 152 376 FY08 FY18 FY08 FY18 Business (Advances + Deposits) Gross NPA Rs Crs 181bps In % CAGR: +17% 127,139 3.59 1.78 25,610 FY08 FY18 FY08 FY18 46
Slide 48: Leadership Team
Leadership Team Mr. V. G Mathew , MD & CEO ▪ Post Graduate in Physics and CAIIB with over 37 years of experience ▪ Joined SIB in January, 2014 as Executive Vice President and appointed as MD & CEO in October, 2014 ▪ Significant experience in Retail & Corporate Credit, Technology and Risk Management
Slide 49: Leadership Team
Leadership Team Mr. Thomas Joseph K, EVP (Operations) • Bachelors Degree in Engineering and Diploma in Management & CAIIB • He is associated with SIB since 1984 and heads Departments such as Risk Management, Technology, Marketing, Corporate Financial Management, Human Resource and Inspection & Vigil
Slide 50: Management Team
Management Team Mr. Benoy Varghese Mr. Sanchay Kumar Sinha (Country Head – Wholesale Banking) (Country Head – Retail Banking) • Bachelors Degree in Arts & Masters Degree in Business • Bachelor’s degree in Arts, Post Graduate Certificate in Administration and CAIIB Business Management (XLRI) Mr. John
Slide 51: Management Team
Management Team Mr. Reddy N J, General Manager Mr. Sibi P M, Chief Compliance Officer • Bachelor of Technology • Masters Degree in Commerce & LLB • Certified Associate of Indian Institute of Banking & Finance • FRM and GARP Mrs. Chithra H, Chief Financial Officer Mr. Jimmy Mathew, Company Secretary
Slide 52: Award Wins during FY19
Award Wins during FY19 Best MSME Bank-Runner Up South Indian Bank has received the award for Best MSME Bank-Runner Up, instituted by Chamber of Indian Micro, Small & Medium Enterprises. Photo Caption- Mr. John Thomas, Country Head (Business Development) received the award on behalf of South Indian B
Slide 53: Award Wins during FY19
Award Wins during FY19 CSR Award for Banks & NBFCs South Indian Bank has received the CSR Award for Banks & NBFCs under Education Sector instituted by Kerala Management Association (KMA). South Indian Bank has won the CSR Award for the contribution to higher education sector through "SIB SCHOLAR", B
Slide 54: For further information, please contact:
For further information, please contact: Company Investor Relations Advisors The South Indian Bank Ltd. Strategic Growth Advisors Pvt. Ltd. CIN – L65191KL1929PLC001017 CIN - U74140MH2010PTC204285 Ms. Chithra H, CFO Mr. Shogun Jain / Mr. Sagar Shroff Mr. Vijith S, Dy. General Manager shogun.jain@sgap
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