South Indian Bank Limited · NSE:SOUTHBANK

South Indian Bank — The South Indian Bank — Investor Presentation (July 2020)

55 slides from South Indian Bank's investor presentation, July 2020

  1. Slide 1: Bank On Us

    Bank On Us Investor Presentation - July 2020

  2. Slide 2: Contents

    Contents Q1 & FY21 Highlights Business Strategy Performance Matrix Next Generation Bank About Us 2

  3. Slide 3: Q1 FY21 Highlights

    Z QI FY21 Highlights © \

  4. Slide 4: Key Quarterly Highlights – Q1 FY21

    Key Quarterly Highlights – Q1 FY21 Customer Deposits Advances CASA +8% +3% +12% 82,469 63,652 65,819 22,179 76,544 19,719 Jun-19 Jun-20 Jun-19 Jun-20 Jun-19 Jun-20 Net Interest Income Other Income CASA (%) +10% +57% 280 bps 587 285 26.9% 536 24.1% 182 Jun-19 Jun-20 Jun-19 Jun-20 Jun-19 Jun-20 4

  5. Slide 5: Key Quarterly Highlights – Q1 FY21

    Key Quarterly Highlights – Q1 FY21 PPOP Net Profit +27% +11% 404 82 73 318 Jun-19 Jun-20 Jun-19 Jun-20 Provisions PCR (%) +43% 1370 bps 293 58.8% 45.1% 205 5 Jun-19 Jun-20 Jun-19 Jun-20

  6. Slide 6: Business Strategy

    ayy Business Strategy aI:

  7. Slide 7: Our Strategy…

    Our Strategy… • Retail Banking Department to 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 • In

  8. Slide 8: …Performance in Line with Strategy

    …Performance in Line with Strategy Strengthen Retail base Improve CASA Rs. 20,927 Cr Rs. 22,179 Cr INCREASE INCREASE 12% YoY 10% YoY Expand Agriculture & Reduction of MSME base Corporate Exposure Rs. 26,636 Cr Rs. 18,256 Cr INCREASE DECREASE 11% YoY 11% YoY 8

  9. Slide 9: Shall continue to focus on…

    Shall continue to focus on 01 Increase … 02 Retail Business … 03 SME Business … CASA More Products Sole Banker Retail MSME Relationships Relationships 06 Sustainable… 05 Increase… 04 Improve Asset Quality Fee Income NIM 9

  10. Slide 10: ...Increase Retail & MSME Business

    ...Increase Retail & MSME Business 01 02 03 Centralized Retail Hub Marketing & • Home Loan Processing • Auto Loan • MSME Loan Centre (Kochi) • Mortgage Loan Processing Retail Business • Entire Loan underwriting • Penetrate further in the existing centralised set of Customers • Enhanced risk manageme

  11. Slide 11: …by focus on Housing Loans in Retail

    …by focus on Housing Loans in Retail Retail Breakup Housing: Key Initiatives Rs. Cr. 21,173 • Retail centre in Kochi to increase 20,927 19,070 19,284 19,834 focus on retail loans 5,352 5,463 • Dedicated Officers for marketing 4,864 5,075 5,249 Retail Loans 2,757 • Tailor made products for different

  12. Slide 12: …becoming a Banker of Choice to SMEs

    …becoming a Banker of Choice to SMEs Average MSME Loan / Account MSME Loan Book by Geography Rs. Lakhs 65.0 Rest of India 53.8 53.8 54.2 54.9 21% Kerala 47% South (Ex- Kerala) 32% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 SME Highlights • Dedicated executive to ensure focus and better coordination with reg

  13. Slide 13: …with the help of our Wide Network

    …with the help of our Wide Network Customer Touch Points +2% 900 909 923 929 929 876 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 Total ATM Network 3% 1,382 1,406 1,424 1,426 1,287 1,320 Locations* No. Kerala 508 South India (Ex-Kerala) 272 Rest of India 149 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 To

  14. Slide 14: … and our Experienced Employees

    … and our Experienced Employees Employee Addition Total Employees: 7,869* 304 129 7,869 7,717 57 80 7% 6% 29% 15% 43% < 1 Year 1-2 Years 2-5 Years Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Closing 5-10 Years > 10 Years *Full-time officers and clerks 14

  15. Slide 15: Performance Matrix

    ayy Performance Matrix 15

  16. Slide 16: Strong Deposit Franchise

    Strong Deposit Franchise Deposits (excl. CDs) Rs. Cr. June 2020 June 2020 June 2020 72,891 9,578 82,469 8% 10% 8% 66,090 10,454 76,544 June 2019 June 2019 June 2019 Retail Deposit Bulk Deposit Total Deposits CASA Deposits June 2020 June 2020 June 2020 Rs. Cr. 3,848 18,331 22,179 12% 13% 12% 3,449 16

  17. Slide 17: Deposits across Regions

    Deposits across Regions Deposits (Excl CD) as on 30.06.2019 30.06.2020 States Growth Amount % Break Up Amount % Break Up Kerala 43,969.00 57.4% 49,583.00 60.1% 12.8% Tamil Nadu 7,272.00 9.5% 8,019.00 9.7% 10.3% Karnataka 5,948.00 7.8% 5,644.00 6.8% (5.1%) Maharashtra 6,263.00 8.2% 5,606.00 6.8% (10.

  18. Slide 18: Retail Deposits Growing...

    Retail Deposits Growing... Breakup of Deposits 81,723 82,946 84,874 83,034 82,469 Rs. Cr. Term 46,372 48,279 49,281 49,066 50,712 Savings Current Bulk 16,269 17,075 17,518 17,552 CD 18,331 3,449 3,539 3,904 3,208 10,454 10,536 9,748 3,848 10,874 9,578 5,179 3,517 4,423 2,334 0 Jun-19 Sep-19 Dec-19 M

  19. Slide 19: Break Up of Non-Resident Deposits

    Break Up of Non-Resident Deposits NRI Deposits Jun Sep Dec Mar Jun Deposit Type Rs. Cr. 2019 2019 2019 2020 2020 24,661 23,710 NR SB 4,449 4,576 4,754 5,068 5,609 22,640 23,105 21,877 NR CD 23 25 27 26 30 FCNR (B), RFC & 1,886 1,925 1,942 1,907 1,850 Others Low-Cost NRI Deposit 6,358 6,526 6,723 7,0

  20. Slide 20: Composition of Loan Book

    Composition of Loan Book Corporate Advances (Rs. 25 Cr and above ) Advances (Excl. Corporate) (Below Rs. 25 Cr) Rs. Cr. Rs. Cr. +10% -11% 20,595 45,621 46,865 47,563 19,697 19,713 18,659 43,057 44,223 18,256 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Segment wise Break Up

  21. Slide 21: Large Corporate Loan Book

    Large Corporate Loan Book Standard Large Corporate Advances (Rs.100 Cr and above ) -42% 10,121 10,592 10,146 9,997 9,437 6,516 5,920 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Jun-20 21

  22. Slide 22: Advance across Regions

    Advance across Regions Advance as on 30.06.2019 30.06.2020 States Growth Amount % Break Up Amount % Break Up Kerala 25,729.00 40.4% 28,178.00 42.8% 9.5% Tamil Nadu 11,932.00 18.7% 12,495.00 19.0% 4.7% Maharashtra 8,701.00 13.7% 7,570.00 11.5% (13.0%) Karnataka 3,683.00 5.8% 4,197.00 6.4% 14.0% Nct O

  23. Slide 23: Composition of Loan Book

    Composition of Loan Book Break up of Loan book Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Advances (Rs. Cr) Number Value Number Value Number Value Number Value Number Value Less than 5 Cr 364,352 30,967 370,095 31,725 369,517 32,821 374,069 33,462 367,238 33,195 5 - 25 Cr 1,166 10,789 1,183 11,246 1,369 11,

  24. Slide 24: Rating Profile of Large Corporate Loan Book

    Rating Profile of Large Corporate Loan Book Standard Advances above Rs. 100 Cr. External Rating 18.1% 19.1% 20.0% 18.7% 21.0% 39.3% 36.0% 34.5% 35.7% 37.2% 15.8% 16.0% 14.8% 12.5% 15.0% 21.1% 20.3% 19.5% 23.9% 26.5% 8.2% 9.7% 9.0% 5.2% 3.0% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 AAA AA A BBB <BBB 24

  25. Slide 25: Key Focus: Retail, MSME & Agriculture

    Key Focus: Retail, MSME & Agriculture Retail (Incl. Gold) Rs. Cr. 20,927 Retail Loans and 19,284 19,834 21,173 19,070 Agriculture rose by 10% and 15% resp., while MSME grew by 9% Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Agriculture (Incl. Agri Gold) MSME (Incl. MSME Gold) Rs. Cr. Rs. Cr. Over 50% of the 9

  26. Slide 26: Advances Across Regions

    Advances Across Regions Rs. Cr. 63,652 65,334 65,524 65,819 63,920 17,293 16,977 16,884 18,353 17,579 20,683 20,715 20,757 19,570 19,898 25,729 26,443 27,358 27,832 28,178 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Rest of India South Ex- Kerala Kerala 26

  27. Slide 27: Net Interest Income - Quarter

    Net Interest Income - Quarter Net Interest Income Cost of Deposits & Yield on Advances Rs. Cr. In % Cost Of Deposit Yield on Advances 584 602 596 587 9.78 9.82 536 9.69 9.59 9.35 6.32 6.24 6.14 6.00 5.78 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Net Interest Margin C

  28. Slide 28: Improving Operating Efficiency

    Improving Operating Efficiency Employee Additions Cost-to-Income Ratio In % 304 57 55.7 53.4 53.7 -80 50.6 51.1 -105 -129 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Business per Employee Business per Branch Rs. Cr. Rs. Cr. 17.9 17.9 17.3 17.9 165 166 168 17.6 163 164

  29. Slide 29: Non Interest Income

    Non Interest Income Core Fee Income Treasury & Forex Income Rs. Cr. Rs. Cr. 79 63 57 34 60 36 42 33 29 226 29 140 57 57 57 65 83 49 49 32 13 10 11 12 7 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Transaction Fees Technology Other Profit on Sale of Investments Forex Investme

  30. Slide 30: Break Up of Provisions

    Break Up of Provisions Particulars (Rs. Cr.) Q1 FY21 Q4 FY20 Q1 FY20 For NPA & NPI 326 360 184 For Depreciation on Investments (58) 263 (1) For Standard Assets 30 89 6 For Restructured Advances/Sacrifices & FITL (1) 15 5 For Unhedged Forex Exposure 0 - 0 Others (3) (3) 11 Taxes 29 (47) 39 Total Prov

  31. Slide 31: Non-Performing Assets

    Non-Performing Assets Gross NPA Net NPA 4.96 4.96 4.98 4.92 4.93 3.48 3.41 3.44 3.34 3.09 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Gross NPA Movement Net NPA Movement Rs. Cr. Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Rs. Cr. Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Opening 3,132 3,15

  32. Slide 32: Stressed Assets - QoQ

    Stressed Assets - QoQ Gross Basis Net Basis Rs. Cr. Q4 FY20 Q1 FY21 Q4 FY20 Q1 FY21 NPA 3,262 3,245 2,151 1,993 Restructured Standard Advance 848 1,065 803 1,010 Other Stressed Advances - - - - Total Stressed Assets 4,109 4,310 2953 3,003 Advances 65,524 65,819 64,439 64,593 Stressed Assets 6.27% 6.

  33. Slide 33: Restructured Advances Breakup

    Restructured Advances Breakup Restructured Standard Advance Rs. Cr. 1,065 848 742 516 292 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Rs. Cr. Sector Breakup Security Receipts Outstanding as on Jun 30, 2020 Book Value Provision NAV 3.0% 16.0% 1310.89* 546.30 764.59 *of which Rs.993 Crore pertains to a single

  34. Slide 34: Restructured Standard Asset Book

    Restructured Standard Asset Book Rs. Cr. Restructured Standard Advances Inc/(Dec) in Upgradation Fresh Slippages to Closing Opening Existing from NPA to Addition NPA Balance Balance Std. Infra Roads - - - - - - Construction - - - - - - EPC Under MSME 650 188 43 - 23 858 Restructuring Under Kerala 19

  35. Slide 35: Fresh Slippages / Advance Ratios

    Fresh Slippages / Advance Ratios Retail Slippage Agriculture Slippage 0.17% 0.39% 0.41% 0.12% 0.30% 0.11% 0.08% 0.10% 0.19% 0.17% Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 MSME Slippage Corporate Slippage 0.88% 0.78% 1.36% 1.26% 0.63% 0.67% 0.59% 0.26% 0.12% 0.0

  36. Slide 36: Capital Composition

    Capital Composition BASEL III In % 13.4 13.5 12.2 12.1 12.0 2.6 2.7 2.5 2.5 2.4 10.8 10.8 9.7 9.6 9.6 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Tier 2 Tier 1 36

  37. Slide 37: Profit & Loss Overview

    Profit & Loss Overview Rs. Cr. Q1 FY21 Q1 FY20 Y-o-Y (%) Q4 FY20 Q-o-Q (%) Net Interest Income 587 536 10% 596 (2%) Other Income 285 182 57% 394 (28%) - Core Fee Income 139 120 15% 156 (11%) -Treasury & Forex 146 61 138% 238 (39%) Total Income 872 718 22% 990 (12%) Operating Expenses 468 400 17% 457

  38. Slide 38: Balance Sheet Overview

    Balance Sheet Overview Rs. Cr. Jun 2020 Jun 2019 Y-o-Y (%) Mar 2020 Q-o-Q (%) Capital & Liabilities 96,322 93,804 3% 97,032 (1%) Capital 181 181 0% 181 0% Reserves and Surplus 5,391 5,325 1% 5,294 2% Deposits 82,469 81,723 1% 83,034 (1%) Borrowings 6,248 5,003 25% 6,893 (9%) Other Liabilities & Prov

  39. Slide 39: Key Metrics - Quarterly

    Key Metrics - Quarterly FY18 FY19 FY20 FY21 Particulars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net Interest Margin (NIM) 2.80% 2.95% 2.88% 2.73% 2.60% 2.61% 2.66% 2.46% 2.53% 2.69% 2.72% 2.67% 2.62% CRAR Basel III 12.1% 11.7% 12.5% 12.7% 12.2% 12.1% 11.8% 12.6% 12.2% 12.1% 12.0% 13.4% 13.5% RoAA (An

  40. Slide 40: COVID 19: Operational Impact

    COVID 19: Operational Impact  Quick Response Team is taking proactive steps to ensure business continuity. This is being reviewed periodically.  Appropriate measures are taken as part of Business Continuity Plan, in order to ensure that no interruptions occur in any of the business activities.  E

  41. Slide 41: COVID 19: Moratorium

    COVID 19: Moratorium Assessment of Loan Portfolio under Covid impact Rs. Cr. Current balance of SMA 0/1/2 as on Feb 29, 2020 Total Moratorium As a under moratorium and % of C to % of C to Sector Portfolio extended percentage to standstill benefit taken as B A (A) (B) total portfolio on 30.06.20 (C)

  42. Slide 42: Next Generation Bank

    ayy Next Generation Bank © 42

  43. Slide 43: Present across Customer Touch Points

    Present across Customer Touch Points Traditional & Alternate Channels SIB Mirror + Mobile Banking ATMs Branches 1,426 ATMs across India 875 Branches & 54 Extension Counters Internet Banking Point of Sale 43

  44. Slide 44: 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

  45. Slide 45: Digital Initiatives

    Digital Initiatives Channel Enhancements Digital Onboarding of new to bank customers, has Paperless instant account opening using augmented our customer base. Further, our Mobile & Aadhar and PAN. No forms to fill. No Internet Banking channels have been enhanced to facilitate queue. branch processes

  46. Slide 46: Personal Banking: Technology Banking

    Personal Banking: Technology Banking Active Internet Users Internet Transaction Volume Internet Transaction Value (000)’s (000)’s Rs. Cr. 1,178 1,181 9,638 10,102 1,060 1,125 949 8,330 8,783 7,373 425.00 451.00 472.00 487.00 403.00 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-2

  47. Slide 47: Personal Banking: Debit Cards

    Personal Banking: Debit Cards No. of Active Debit Cards Debit Card Transaction Volumes In Millions In Millions 3.1 26.5 28.1 29.5 27.8 3.0 2.9 18.9 2.8 2.7 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20 Debit Card Transaction Value Rs. Cr. 8,292 7,948 7,508 7,766 5,462 Jun-19

  48. Slide 48: Increasing Third-Party Tie Ups

    Increasing Third-Party Tie Ups • Kotak Mahindra Life Insurance • Max Bupa Health Insurance • SBI Life Insurance • Manipal Cigna Health Insurance • LIC of India • Reliance Asset Management • TATA Asset Management • HDFC Mutual Fund • DSP Blackrock Mutual Funds • Aditya Birla Sun Life Asset Management

  49. Slide 49: About Us

    @ About Us 49

  50. Slide 50: Leadership Team

    Leadership Team Mr. V. G. Mathew, MD & CEO  Post Graduate in Physics and CAIIB with over 40 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 

  51. Slide 51: 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

  52. Slide 52: Management Team

    Management Team Mr. Benoy Varghese (Country Head - Wholesale Banking) • Bachelors Degree in Arts & Masters Degree in Business Administration and CAIIB Mr. Raphael T.J., Chief General Manager (Chief Information Officer) • Bachelors Degree in Commerce, Masters in EXIM, Diploma in Financial Management

  53. Slide 53: Management Team

    Management Team Mr. Sanchay Kumar Sinha (Country Head - Retail Banking) • Bachelor’s degree in Arts, Post Graduate Certificate in Business Management (XLRI) Mrs. Chithra H, Chief Financial Officer • Bachelors Degree in Commerce • Fellow member of the Institute of Chartered Accountants of India • Cer

  54. Slide 54: 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

  55. Slide 55: 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 chithra@sib.co.in shogun.jain@sgapl.net / sagar.sh

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