South Indian Bank Limited · NSE:SOUTHBANK

South Indian Bank — The South Indian Bank — Q3 FY20 Earnings Presentation

49 slides from South Indian Bank's earnings presentation, Jan 16, 2020

  1. Slide 1: Presentation to Investors and Analysts (NSE cover letter)

    ~ ~SOUTH ~INDIAN Bank DEPT: SECRETAJUAL REF No. SEC/ST EX.STT/ /11 /2019-20 January 16, 2020 National Stock Exchange ofindia 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 and A

  2. Slide 2: Investor Presentation - Q3 FY20

    Bank On Us Investor Presentation - Q3 FY20

  3. Slide 3: Contents

    Contents Q3 FY20 Highlights Business Strategy Performance Matrix Next Generation Bank About Us 2

  4. Slide 4: Q3 FY20 Highlights

    F Q3 FY20 Highlights © \\

  5. Slide 5: Key Quarterly Highlights - Q3 FY20

    Key Quarterly Highlights - Q3 FY20 Rs. Cr. CASA Deposits* Advances Dec 2019 21,422 Dec 2019 80,451 Dec 2019 65,334 Dec 2018 18,905 Dec 2018 72,509 Dec 2018 60,064 13% 11% 9% Net Interest Income Other Income PPOP Q3 FY20 602 Q3 FY20 220 Q3 FY20 383 Q3 FY19 520 Q3 FY19 Q3 FY19 187 332 16% 18% 15% 4 *D

  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 Rs. 19,834 Cr INCREASE 18% YoY Expand Agriculture & MSME base Rs. 25,787 Cr INCREASE 17% YoY Improve CASA Rs. 21,422 Cr INCREASE 13% YoY 7

  9. Slide 9: 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 MSME Relationships Relationships 06 Sustainable… 05 Increase… 04 Improve Asset Quality Fee Income NIM 8

  10. Slide 10: Increase Retail & MSME Business

    ...Increase Retail & MSME Business 01 02 03 Retail Hub Cluster Centralized Branches Marketing & • Home Loan Processing • Auto Loan • 17 Clusters • MSME Loan • Specific Cluster Centre (Kochi) • LAP for Forex Loan Processing Retail Business Branch Profitability • Entire Loan underwriting • Penetrate f

  11. Slide 11: Focus on Housing Loans in Retail

    …by focus on Housing Loans in Retail Retail Breakup Housing: Key Initiatives Rs. Cr. • Retail hub in Kochi to increase focus 19,834 19,070 19,284 on retail loans 18,458 16,857 5,249 • Dedicated Officers for marketing 4,864 5,075 Retail Loans 4,633 4,318 • Marketing initiative through TVCs 2,199 2,23

  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 Rest of 53.2 53.8 53.8 54.2 India 49.9 22% Kerala 45% South (Ex- Kerala) 33% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 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 Wide Network +2% 876 900 909 923 923 847 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Dec-19 Total ATM Network 3% Locations* No. 1,320 1,382 1,406 1,401 1,200 1,287 Kerala 474 South India (Ex-Kerala) 253 Rest of India 143 Total Branches 870 Extension Counters 53 Mar-15 Mar-1

  14. Slide 14: Our Experienced Employees

    … and our Experienced Employees Employee Addition Total Employees: 7,694* 7,855 7,694 105 80 57 33 14% 29% 15% 42% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Closing < 2 Year 2-5 Years 5-10 Years > 10 Years *Full-time officers and clerks 13

  15. Slide 15: Performance Matrix

    ayy Performance Matrix 14

  16. Slide 16: Strong Deposit Franchise

    Strong Deposit Franchise Deposits (excl. CDs) Rs. Cr. Dec 2019 Dec 2019 Dec 2019 70.703 9,748 80,451 -3% 13% 11% 62,508 10,001 72,509 Dec 2018 Dec 2018 Dec 2018 Retail Deposit Bulk Deposit Total Deposits CASA Deposits Dec 2019 Dec 2019 Dec 2019 Rs. Cr. 3,904 17,518 21,422 12% 14% 13% 3,485 15,421 18

  17. Slide 17: Retail Deposits Growing

    Retail Deposits Growing... Breakup of Deposits 82,947 84,874 Rs. Cr. 80,420 81,723 77,666 Term (Retail) 45,011 46,372 48,279 49,281 43,603 Term (Bulk) Savings Current 10,001 9,119 10,454 10,536 9,748 CD 16,135 15,421 16,269 17,075 17,518 3,485 3,332 3,449 3,904 5,156 6,823 5,179 3,539 3,517 4,423 De

  18. Slide 18: Break Up of Non-Resident Deposits

    Break Up of Non-Resident Deposits NRI Deposits Dec Mar Jun Sep Dec Rs. Cr. Deposit Type 2018 2019 2019 2019 2019 NRE SB 3,768 3,660 3,729 3,826 3,958 23,105 NRO SB 712 737 720 750 796 22,640 FCNR (B), RFC & 1,697 1,859 1,909 1,950 1,969 Others Low-Cost NRI 21,877 Deposit 6,177 6,257 6,358 6,526 6,72

  19. Slide 19: Composition of Loan Book

    Composition of Loan Book Corporate Advances (Above Rs. 25 Cr) Advances (Excl. Corporates) (Below Rs. 25 Cr) Rs. Cr. Rs. Cr. -7% +17% 45,621 21,436 21,111 44,223 43,057 20,595 42,200 19,697 19,713 38,953 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Segment wise Break Up of To

  20. Slide 20: Composition of Loan Book

    Composition of Loan Book Break up of Loan book Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Advances (Rs. Cr) Number Value Number Value Number Value Number Value Number Value Less than 5 Cr 352,613 27,477 358,679 30,480 364,352 30,967 370,095 31,725 3,69,517 32,822 5 - 25 Cr 1,092 9,853 1,155 10,431 1,166 10,

  21. Slide 21: Rating Profile of Corporate Loan Book

    Rating Profile of Corporate Loan Book Standard Advances above Rs. 100 Cr. External Rating 22.8% 18.1% 19.1% 20.0% 25.4% 39.3% 36.0% 35.7% 31.4% 37.7% 13.8% 15.0% 15.8% 14.8% 16.8% 26.2% 14.4% 19.5% 23.9% 26.5% 3.2% 8.4% 8.2% 5.2% 3.0% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 AAA AA A BBB <BBB 20

  22. Slide 22: Key Focus: Retail, MSME & Agriculture

    Key Focus: Retail, MSME & Agriculture Retail (Incl. Gold) Rs. Cr. 19,834 19,284 Retail Loans and 19,070 18,458 Agriculture rose by 19% and 21% resp., while 16,857 MSME grew by 14% Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Agriculture (Incl. Agri Gold) MSME (Incl. MSME Gold) Rs. Cr. Rs. Cr. 9,746 16,041 9,4

  23. Slide 23: Advances growing Across Regions

    Advances growing Across Regions Rs. Cr. 65,334 63,636 63,652 63,920 60,064 17,293 18,574 18,353 17,579 17,932 20,683 19,325 19,570 19,898 17,924 25,737 25,729 26,443 27,359 24,208 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Rest of India South Ex- Kerala Kerala 22

  24. Slide 24: 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 602 584 9.64 9.51 9.69 9.78 9.82 520 536 499 6.16 6.30 6.32 6.24 6.14 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Net Interest Mar

  25. Slide 25: Net Interest Income - Cumulative

    Net Interest Income - Cumulative Net Interest Income Cost of Deposits & Yield on Advances Rs. Cr. In % 2,020 Cost of Deposits Yield on Advances 1,722 1,520 9.55 9.54 9.69 9.73 9.76 1,120 536 6.10 6.15 6.32 6.28 6.23 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec -18 Mar -19 Jun -19 Sep -19 Dec -19 Net Inter

  26. Slide 26: Improving Operating Efficiency

    Improving Operating Efficiency Employee Additions Cost-to-Income Ratio In % 55.4 55.7 53.0 53.4 137 50.6 57 -33 -105 -80 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Business per Employee Business per Branch Rs. Cr. Rs. Cr. 17.9 17.9 17.6 164 165 163 150 149 15.9 1

  27. Slide 27: Strong Other Income

    Strong Other Income Core Fee Income Treasury & Forex Income Rs. Cr. Rs. Cr. 157 156 178 150 93 78 10 52 49 120 63 79 14 61 33 34 37 13 42 29 36 42 36 83 11 10 65 62 75 57 49 57 57 27 32 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Transaction Fees Technology Others

  28. Slide 28: Break Up of Provisions

    Break Up of Provisions Particulars (Rs. Cr.) Q3 FY19 Q2 FY20 Q3 FY20 For NPA & NPI 189 285 203 For Depreciation on Investments -7 -1 23 For Standard Assets 10 3 16 For Restructured Advances/Sacrifices & FITL - 9 8 For Unhedged Forex Exposure - - - Others 11 11 12 Taxes 45 21 32 Total Provisions 248

  29. Slide 29: Non-Performing Assets

    Non-Performing Assets Gross NPA Net NPA 4.96 4.96 4.92 4.92 4.88 3.54 3.45 3.48 3.44 3.41 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Gross NPA Movement Net NPA Movement Rs. Cr. Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Rs. Cr. Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Opening 2,646 2,93

  30. Slide 30: Stressed Assets - QoQ

    Stressed Assets - QoQ Gross Basis Net Basis Rs. Cr.` Q2 FY20 Q3 FY20 Q2 FY20 Q3 FY20 NPA 3,145 3,244 2,193 2,212 Restructured Standard Advance 516 742 489 703 Other Stressed Advances - - - - Total Stressed Assets 3,661 3,986 2,682 2,915 Advances 63,920 65,335 62,993 64,329 Stressed Assets 5.7% 6.1%

  31. Slide 31: Restructured Advances Breakup

    Restructured Advances Breakup Restructured Standard Advance Rs. Cr. 742 516 292 200 214 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Rs. Cr. Sector Breakup Security Receipts Outstanding as on Dec 31, 2019 Book Value Provision NAV 26.0% 1,324 287 1,037 74.0% On Account of Kerala Floods 30 On Account of MSME Re

  32. Slide 32: 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 351 195 6 - - 552 Restructuring Under Kerala 165

  33. Slide 33: Fresh Slippages / Advance Ratios

    Fresh Slippages / Advance Ratios Retail Slippage Agriculture Slippage 1.15% 0.39% 0.30% 0.20% 0.20% 0.19% 0.11% 0.17% 0.04% 0.08% Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 MSME Slippage Corporate Slippage 0.80% 0.75% 0.88% 2.38% 0.63% 1.36% 1.26% 0.26% 0.53% 0.1

  34. Slide 34: Capital Composition

    Capital Composition BASEL III In % 12.6 11.8 12.2 12.1 12.0 2.6 2.1 2.5 2.5 2.4 9.7 10.0 9.7 9.6 9.6 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Tier 2 Tier 1 33

  35. Slide 35: Profit & Loss Overview

    Profit & Loss Overview Rs. Cr. Q3 FY20 Q3 FY19 Y-o-Y (%) Q2 FY20 Q-o-Q (%) Net Interest Income 602 520 16% 584 3% Other Income 220 187 18% 249 -12% - Core Fee Income 178 150 19% 156 14% - Treasury & Forex 42 36 16% 93 -55% Total Income 822 706 16% 833 -1% Operating Expenses 439 374 17% 422 4% Operat

  36. Slide 36: Balance Sheet Overview

    Balance Sheet Overview Rs. Cr. Dec 2019 Dec 2018 Y-o-Y (%) Sep 2019 Q-o-Q (%) Capital & Liabilities 96,530 88,249 9% 94,955 2% Capital 181 181 0.0% 181 0% Reserves and Surplus 5,468 5,153 6% 5,366 2% Deposits 84,874 77,665 9% 82,947 2% Borrowings 4,311 3,688 17% 4,773 -10% Other Liabilities & Provis

  37. Slide 37: Key Metrics - Quarterly

    Key Metrics - Quarterly FY18 FY19 FY20 Particulars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 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% 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% RoAA (Annualized) 0.6% 0.02% 0.6% 0.6% 0.1%

  38. Slide 38: Next Generation Bank

    ayy Next Generation Bank © 37

  39. Slide 39: Present across Customer Touch Points

    Present across Customer Touch Points Traditional & Alternate Channels SIB Mirror + Mobile Banking ATMs Branches ~1,400 ATMs across India 870 Branches & 53 Extension Counters Internet Banking Point of Sale 38

  40. Slide 40: 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

  41. Slide 41: 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 9,638 451 1,125 8,783 425 1,027 1,060 7,961 8,330 390 403 929 6,989 354 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 FY19 FY19 FY20 FY20

  42. Slide 42: Personal Banking: Debit Cards

    Personal Banking: Debit Cards No. of Active Debit Cards Debit Card Transaction Volumes In Millions In Millions 4.3 3.8 29.5 28.7 2.9 28.1 2.7 2.8 27.5 26.5 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Q3 Q4 Q1 Q2 Q3 FY19 FY19 FY20 FY20 FY20 Debit Card Transaction Value Rs. Cr. 8,292 7,838 7,877 7,507 7,193 Q3

  43. Slide 43: About Us

    @ About Us 42

  44. Slide 44: 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 

  45. Slide 45: 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

  46. Slide 46: 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

  47. Slide 47: Management Team

    Management Team Mr. Anto George T, General Manager (Head of Inspection & Vigilance Department and Chief of Internal Vigilance) • Bachelors Degree in Arts & Post Graduate Diploma in Computer Application and MBA in HR Management • Certification in RDBMS & Oracle 8i and JAIIB Mr. Reddy N J, General Man

  48. Slide 48: 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

  49. Slide 49: 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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