South Indian Bank Limited · NSE:SOUTHBANK

South Indian Bank — The South Indian Bank — Q3 FY2018 Earnings Presentation

59 slides from South Indian Bank's earnings presentation, January 2018

  1. Slide 1: Investor Presentation January 2018

    Investor Presentation January - 2018

  2. Slide 2: 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

  3. Slide 3: Contents

    Contents Q3 FY18 Highlights Business Strategy Performance Matrix Next Generation Bank An Inflection Point About Us 3

  4. Slide 4: Q3 FY18 Highlights

    Z Q3 FY18 Highlights © \

  5. Slide 5: Award Wins

    Award Wins Won Digital India Excellence Award 2017 Digital India Excellence Award 2017 for its innovation in mobile app ‘Digital e-lock’ in the 5th PAN-IIM World Management Awards 2017 5

  6. Slide 6: Key Performance Highlights- Q3 FY18

    Key Performance Highlights- Q3 FY18 CASA Rs Crs Deposits Advances Q3 FY18 16,929 Q3 FY18 68,109 Q3 FY18 52,449 Q3 FY17 16,486 Q3 FY17 63,595 Q3 FY17 45,234 3% 7% 16% Net Interest Income Other Income* Q3 FY18 509 Q3 FY18 159 Q3 FY17 418 Q3 FY17 259 22% 39% PPOP* PAT Q3 FY18 Q3 FY18 115 330 Q3 FY17 37

  7. Slide 7: Business Strategy

    ayy Business Strategy aI:

  8. Slide 8: Our Strategy…

    Our Strategy… • Focus on retail loan products Expand • Efficient branches for faster processing of loans Retail • Continuous training of work force Business • Advanced technology for ease of customers • Invest in Brand Building • Cluster based approach in industry hubs Strengthen SME Base • Sole Ban

  9. Slide 9: …Performance in Line with Strategy

    …Performance in Line with Strategy Expand Retail, SME & Strengthen SME Base Improve CASA Agriculture Business Rs. 32,523 Crs Rs. 13,255 Crs Rs. 16,929 Crs INCREASE INCREASE INCREASE 25% YoY 25% YoY 3% YoY Enhance Asset Quality Improve share of other (Restructured Book) Income Rs. 509 Crs Rs. 148* Cr

  10. 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 10

  11. 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 • Enhanced risk management • Penetrate further in the • Focus on particular existing

  12. Slide 12: …by focus on Housing Loans in Retail

    …by focus on Housing Loans in Retail Retail Breakup Housing: Key Initiatives Rs Crs 13,027 • Retail hub in Kochi to increase focus on 12,234 housing finance 12,002 1,422 11,566 1,436 • Two more hubs to be set up – one in 1,369 1,008 10,409 1,329 South India and one in North India 986 1,047 1,154 801

  13. 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 FY18 Rs Lakhs Rest of India 23.50 26% Kerala 42% 21.25 19.69 17.66 South (Ex- Kerala) 16.10 32% SME Highlights • Dedicated JGM appointed to ensure focus and better coordination with regions • Focused ‘Gre

  14. Slide 14: …with the help of our Branch Network

    …with the help of our Branch Network Total Branch Network +3.6% 822 834 850 851 738 794 FY13 FY14 FY15 FY16 FY17 9M FY18 Total ATM Network +13.3% No of 1,320 1,370 Branch Location* 1,287 Branches 1,200 1,000 Kerala 463 800 South India (Ex-Kerala) 246 Rest of India 142 Total 851 FY13 FY14 FY15 FY16 F

  15. Slide 15: … and our Experienced Employees

    … and our Experienced Employees Employee Addition Total Employees: 7,364* 83 7,364 191 279 10% 6,983 3% 6 24% 30% 33% Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Closing < 1 Year 1-2 Years 2-5 Years 5-10 Years > 10 Years *Full-time officers and clerks. 15

  16. Slide 16: Performance Matrix

    ayy Performance Matrix 16

  17. Slide 17: Strong Deposit Franchise

    Strong Deposit Franchise Core & Non-Core Deposits Rs Crs Dec-17 Dec-17 Dec-17 56,640 11,469 68,109 5% 17% 7% 53,823 9,772 63,595 Dec-16 Dec-16 Dec-16 Core Deposit Non-Core Deposit Total Deposit CASA Deposits Dec-17 Dec-17 Dec-17 Rs Crs 3,129 13,799 16,929 6% 2% 3% 2,946 13,540 16,486 Dec-16 Dec-16 D

  18. Slide 18: Core Deposits Growing...

    Core Deposits Growing... Breakup of Deposits CASA Deposit Rs Crs Rs Crs 67,142 68,109 +3% 66,117 65,791 63,595 16,929 16,486 2,946 3,129 13,540 13,799 38,498 39,618 39,746 37,415 39,162 Dec-16 Dec-17 Current Savings Term Deposits 12,994 13,799 Rs Crs 13,540 13,522 13,526 +6% 37,415 39,746 2,753 2,95

  19. Slide 19: NRI Deposits Growing…

    NRI Deposits Growing… NRI Deposits CASA Rs Crs In (%) 18,375 17,850 17,389 16,317 16,821 25.9 25.2 24.6 24.9 23.8 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 19

  20. Slide 20: Break Up of Non Resident Deposits

    Break Up of Non Resident Deposits Deposit Type (Rs Crs) Q3-FY 17 Q4-FY 17 Q1-FY 18 Q2-FY 18 Q3-FY 18 NRE SB 2,888 2,908 3,089 3,106 3,212 NRO SB 482 508 520 539 603 FCNR (B), RFC & Others 1,287 1,446 1,508 1,568 1,598 Low Cost NRI Deposit (Sub 4,657 4,862 5,117 5,213 5,413 Total) NRE Term Deposit 11

  21. Slide 21: Composition of Loan Book

    Composition of Loan Book Corporate Advances (Above Rs 25 Crs) Retail Advances Rs Crs Rs Crs 17,982 17,901 17,536 17,872 18,598 31,845 33,851 29,183 29,728 27,252 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Segment wise Break Up of Total Loan Book Rs Crs 7,569 , 18,598 , 14.

  22. Slide 22: Composition of Corporate Loan Book

    Composition of Corporate Loan Book 74% of Corporate Loan Book is Investment Grade Segment wise Break Up of Corporate Loan Rs Crs Book > Rs.25 crore Rs Crs Sept - 17 Dec - 17 100.0% 100.0% 100.0% 100.0% 100% 0.8% 0.5% 0.2% 0.2% 0.1% Financial Intermediarias 4,062 4,208 13.7% 18.3% Infrastructure 3,09

  23. Slide 23: Key Focus : Retail, SME & Agriculture

    Key Focus : Retail, SME & Agriculture Retail excluding Gold Gold ( Average LTV – 65%) Rs Crs Rs Crs 11,699 1,290 1,321 1,361 1,320 1,328 10,245 10,641 10,914 Retail Loans (Excl. 9,119 Gold), Agriculture & SME has grown by 25% Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Agri

  24. Slide 24: Advances growing Across Regions

    Advances growing Across Regions Rs Crs 52,449 49,717 47,084 47,264 45,234 14,898 14,515 14,170 13,541 13,632 15,975 15,440 14,693 15,034 14,054 19,762 21,576 17,548 18,221 18,689 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Rest of India South Ex- Kerala Kerala 24

  25. Slide 25: Net Interest Income - Quarter

    Net Interest Income - Quarter Net Interest Income Cost of Deposits & Yield on Advances Rs Crs In % Cost Of Deposit Yeild on Advances 503 509 439 461 418 10.32 9.97 10.06 10.03 9.88 6.53 6.33 6.24 6.05 6.01 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Net Interest Margin Cos

  26. Slide 26: 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 1,675 1,473 10.59 1,236 10.43 10.06 10.05 964 9.99 461 6.75 6.64 6.24 6.14 6.10 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec -16 Mar -17 Jun -17 Sept -17 Dec -17 Net Int

  27. Slide 27: Improving Operating Efficiency

    Improving Operating Efficiency Employee Additions C/I Ratio In % 279 191 48.53 49.20 44.19 45.12 42.63 5 -6 -83 Dec -16 Mar -17 Jun -17 Sept -17 Dec -17 Dec -16 Mar -17 Jun -17 Sept -17 Dec -17 Business per Employee Business per Branch Rs Crs Rs Crs 13.8 14.3 14.1 14.5 129 130 132 13.5 119 120 Dec-1

  28. Slide 28: Sustainable Other Income

    Sustainable Other Income Total Other Income led by …. …Sustainable : Transaction Fees + Technology Rs Crs Rs Crs 280 94 98 259 86 84 219 67 159 64 67 138 59 54 45 22 27 30 29 31 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Transaction Fees Technology Profit on Sale of Invest

  29. Slide 29: Break Up of Provisions

    Break Up of Provisions Rs Crs Q3-FY 18 Q3-FY 17 Q2-FY 18 For NPA & NPI 229.8 167.0 120.5 For Depreciation on Investments 4.5 12.8 277.1* For Standard Assets 6.5 1.9 13.9 For Restructured Advances/Sacrifices & FITL -0.3 -16.9 -0.2 For Unhedged Forex Exposure 0.5 -0.9 1.3 Others -86.7 42.7 41.1 Taxes

  30. Slide 30: Non Performing Assets

    Non Performing Assets Gross NPA Net NPA 3.98% 2.52% 2.54% 2.57% 2.35% 3.61% 3.57% 3.40% 2.45% 1.45% Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Gross NPA Movement Net NPA Movement Rs Crs Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Rs Crs Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Openin

  31. Slide 31: Stressed Assets - QoQ

    Stressed Assets - QoQ Gross Basis Net Basis Rs Crs Q2-FY 18 Q3-FY 18 Q2-FY 18 Q3-FY 18 NPA 1,766 1,755 1,256 1,211 Restructured Standard Advance 252 248 252 248 Other Stressed Advances 0 0 0 0 Total Stressed Assets 2,018 2,023 1,508 1,459 Advances 49,446 52,184 48,931 51,615 Stressed Assets as % of

  32. Slide 32: Restructured Advances Breakup

    Restructured Advances Breakup Restructured Assets Break-up Sector Standard Restructure – Q3FY18 Rs Crs 1,295 14% 653 9% 571 501 513 509 262 261 261 261 77% 642 309 240 252 248 Infra Roads Construction EPC Others Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Restructured NPA Restructured Standard Advance 32

  33. Slide 33: Restructured Standard Asset Book

    Restructured Standard Asset Book Rs Crs Restructured Standard Advance Increase in Fresh Uday – SDL Decrease in Slippages to Closing Opening Existing Addition Investments Balance NPA Balance Balance Infra Roads 193 - - - 3 - 190 Construction 22 - - - - - 22 EPC Others 37 - 1 - 2 - 36 Total 252 - 1 -

  34. Slide 34: Movement in Restructured Accounts

    Movement in Restructured Accounts Movement in Restructured Accounts Rs Crs Shift of focus from 0 0 Large Corporate 1 to 0 SMEs 5 Defocusing from 513 Power & Infra Sectors 509 Special Recovery Cell & Opening Fresh Increase Upgradation Closure Dec in Closing Asset Monitoring Cell Addition in Balance i

  35. Slide 35: Adequate Provisioning

    Adequate Provisioning NPA Provisioning Rs Crs 176.0 229.3 540.3 487.0 Provision Coverage Ratio – 49.35% Opening Additions Deductions Closing 35

  36. Slide 36: Fresh Slippages/Advance Ratios

    Fresh Slippages/Advance Ratios Retail Slippage Agriculture Slippage 0.86% 0.90% 0.61% 0.49% 0.44% 0.34% 0.38% 0.27% 0.18% 0.11% Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 SME Slippage Corporate Slippage 0.85% 0.78% 3.51% 0.64% 2.37% 0.39% 0.18% 0.65% 0.53% 0.00% Dec-16 M

  37. Slide 37: Well Capitalized to support Growth

    Well Capitalized to support Growth BASEL III 12.4 12.5 In % 12.1 11.7 11.1 1.5 1.4 2.4 1.4 1.7 10.9 10.8 10.4 10.1 9.4 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Tier 2 Tier 1 • Bank has issued Non-Convertible, Redeemable, Unsecured, Basel III Compliant Tier 2 Bonds for inclusion of Tier 2 capital aggregati

  38. Slide 38: Balance Sheet Overview- Q3 FY18

    Balance Sheet Overview- Q3 FY18 Rs Crs Q3-FY 18 Q3-FY 17 Y-o-Y (%) Q2-FY 18 Q-o-Q (%) Capital & Liabilities 79,314 71,446 11.01% 75,837 4.59% Capital 181 135 33.59% 180 0.08% Reserves and Surplus 4,940 4,141 19.28% 4,797 2.98% Deposits 68,109 63,595 7.10% 67,142 1.44% Borrowings 4,678 2,205 112.13%

  39. Slide 39: Profit & Loss Overview- Q3 FY18

    Profit & Loss Overview- Q3 FY18 Rs Crs Q3-FY18 Q3-FY 17 Y-o-Y (%) Q2-FY18 Q-o-Q (%) Net Interest Income 509 418 22.00% 503 1.23% Other Income 159 259 -38.57% 280 -43.37% Total Income 668 676 -1.16% 784 -14.74% Operating Expenses 338 299 13.04% 323 4.52% Operating Profit 330 377 -12.42% 460 -28.27% P

  40. Slide 40: Key Metrics- Quarterly

    Key Metrics- Quarterly FY15 FY16 FY17 FY18 Particulars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Interest Margin 2.7% 2.9% 2.5% 2.7% 2.5% 2.8% 2.9% 2.6% 2.7% 2.8% 2.7% 2.7% 2.8% 2.9% 2.9% (NIM) CRAR Basel III 12.2% 12.1% 11.4% 12.1% 11.4% 11.9% 11.7% 11.8% 11.7% 11.1% 11.1% 12.4% 12.1% 11.7%

  41. Slide 41: Next Generation Bank

    ayy Next Generation Bank © 41

  42. Slide 42: Present across Customer Touch Points

    Present across Customer Touch Points Traditional & Alternate Channels SIB Mirror + Mobile Banking ATMs Branches 1,370 ATMs across India 851 Branches & 53 Extension Counters Internet Banking Point of Sale 42

  43. Slide 43: Technology Initiatives

    Technology Initiatives SIB Mirror is a mobile-led platform with instant account access, balance retrieval, immediate fund transfers, all account intimations, and much more SIB-er Net is a suite of comprehensive internet banking services positioning SIB as a technology-driven bank offering superior s

  44. Slide 44: Personal Banking: Technology Banking

    Personal Banking: Technology Banking Active Internet Users Internet Transaction Volume Internet Transaction Value (000)’s (000)’s Rs Crs 899 5,594 839 865 885 4,906 785 4,489 4,700 260 205 223 3,293 175 192 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Se

  45. Slide 45: Personal Banking: Debit Cards

    Personal Banking: Debit Cards No of Active Debit Cards Debit Card Transaction Volumes In Millions In Millions 36.7 33.7 33.6 33.8 3.6 27.1 3.5 3.3 3.3 3.2 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Debit Card Transaction Value Rs Crs 6,685 6,949 6,655 5,480 4,028 Dec-16 Ma

  46. Slide 46: An Inflection Point

    An Inflection Point 4) 46

  47. Slide 47: Moving Towards Vision 2020…

    Moving Towards Vision 2020… Appointed Entered Opened International Memorandum Centralized Finance of Understanding Marketing & Corporation with Processing NSIC Centre ▪ Provides advisory ▪ Facilitates loans to ▪ Houses the Bank’s support to bank on the MSE and promotes Marketing Dept, Retail medium

  48. Slide 48: About Us

    @ yy About Us 48

  49. Slide 49: 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

  50. Slide 50: Expansion since FY07

    Expansion since FY07 Branch Network ATM Network ~2X ~8X 850 1,320 463 724 465 277 246 394 122 174 141 84 202 66 39 51 FY07 FY17 FY07 FY17 Kerala South Ex-Kerala Others (Rest of India) 50

  51. Slide 51: Performance since FY07

    Performance since FY07 Net Interest Income Profit After Tax CAGR : 16% Rs Crs Rs Crs CAGR : 14% 1,675 393 368 104 FY07 FY17 FY07 FY17 Business (Advances + Deposits) Gross NPA CAGR : 19% Rs Crs In % 149bps 112,507 3.94 2.45 20,158 FY07 FY17 FY07 FY17 51

  52. Slide 52: 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

  53. Slide 53: 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

  54. Slide 54: Management Team

    Management Team Mr. John Thomas, Senior General Manager Mr. Benoy Varghese, Senior General Manager (Business Development Department) (Country Head – Wholesale Banking) • Bachelors Degree in Science, MBA and CAIIB • Bachelors Degree in Arts & Masters Degree in Business Administration and CAIIB Mr. An

  55. Slide 55: Management Team

    Management Team Mr. C.P. Gireesh, Chief Financial Officer • Bachelors Degree in Mathematics • Fellow member of the Institute of Chartered Accountants of India and Certified Associate of the Indian Institute of Banking & Finance Mr. Jacob EA, Chief Compliance Officer Mr. Jimmy Mathew, Company Secreta

  56. Slide 56: Awards & Recognition

    Awards & Recognition Awarded with ISO 27001:2013 Certification The certification process involved an extensive audit, conducted by British Standards Institution against the criteria set out by the ISO 27001:2013 standards on various domains of IT functions 56

  57. Slide 57: Awards & Recognition

    Awards & Recognition Won “IBA Banking Technology Awards” Won National Payments Excellence Awards - Won Finnoviti Award - 2017 2016 57

  58. Slide 58: Awards & Recognition

    Awards & Recognition Won Two IDRBT Best Bank Awards Bagged “Dun & Bradstreet, India’s Top Banks & Banking Awards 2017” 58

  59. Slide 59: 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 Mr. C. P. Gireesh, CFO/ Mr. Shogun Jain/ Ms. Sanghamitra Karak Mr. Vijith S, Dy. General Manager shogun.

The South Indian Bank — Q3 FY2018 Earnings Presentation on 6ix