South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q3 FY2023 Earnings Presentation
39 slides from South Indian Bank's earnings presentation, Jan 24, 2023
Slide 1: Exchange cover letter: Presentation to Investors and Analysts
DEPT: SECRETARIAL REF No. SEC/ST EX.STT/ 143 /2022-23 January 24, 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 Building, P J T
Slide 2: Investor Presentation Q3-FY 2023
Investor Presentation Q3-FY 2023 1 Bank on Us
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 CASA Advances NIM Retail Deposits Q3 FY23: Rs. 90,672 Cr Q3 FY23: 3.52% Q3 FY23: Rs. 88,660 Cr Q3 FY23: Rs.30,660 Cr Q3 FY23: Rs.70,117 Cr + 3% +88 bps + 5% +9% +18% Q3 FY22: Rs.88,348 Cr Q3 FY22: 2.64% Q3 FY22: Rs. 84,151 Cr Q3 FY22: Rs.28,229 Cr Q3 FY22: Rs.59,226 Cr
Slide 5: Regulatory update
Regulatory update • FAQ released on 5th Dec 2022,clarified that the ageing provision to be maintained by banks on all Security Receipts • The additional provision on account of the said FAQ amounted to Rs.312 Crore Particulars Without SR Depreciation With SR Depreciation Operating Profit (Cr) 515 Cr
Slide 6: Transformation Journey
Transformation Journey Oct 2020 - Dec 2022 Added Rs. 7,682 crore of CASA from Rs. 22,978 crore to reach Rs. 30,660 crore CASA Deposits CASA ratio improved from 27.81% to 33.81% (+600 bps) Advances (New Book) New book of Rs. 37,748 Cr with GNPA of 0.06%* & SMA2 of 0.22% RWA to Total Asset Risk Weight
Slide 7: Consolidation of Advances
Consolidation of Advances Churned around 54% of overall loan book since October 1, 2020 Rs. in crore New Book Old Book Total Book Achieved disbursements of Rs. 36,957 Cr during the 9M FY23 vs Rs. 16,861 Cr during the 9M FY22 led by Loan book 37,748 32,369 70,117 Corporate - Rs. 20,413 Cr (Rs. 7,61
Slide 8: Update on Vision 2025
Update on Vision 2025 RoA of 0.56% 3.52% RoE of 9.22% 60.20% CRAR - 16.25% 33.81% Rs. 70,117 Crores (excl w/off) Backed by Customer base of 72+ lakhs (100+ lakhs) 7 Bank on Us
Slide 9: Key highlights for Q3-2023
Key highlights for Q3-2023 Reported Profit after Tax (PAT) of Rs. 103 crore as against a loss of Rs. 50 crore on Y-o-Y basis Highest ever NII of Rs. 825 crore for the Q3 FY 2023 compared to Rs. 573 crore on Y-o-Y basis Recorded highest nine months disbursement of Rs. 36,957 crore in the last 5
Slide 10: Key highlights for Q3-2023
Key highlights for Q3-2023 Significant improvement in ROA (Annualized) at 0.56% against (-0.31%) Y-o-Y Significant improvement in ROE (Annualized) at 9.22% against (-5.40 %) Y-o-Y Reduction in Gross NPA ratio by 108 bps Y-o-Y to 5.48% from 6.56% Reduction in Net NPA ratio by 126 bps Y-oY to
Slide 11: Key highlights of the Transformation Journey - Business Parameters
Key highlights of the Transformation Journey - Oct 2020 - Dec 2022 Business Parameters CASA CASA to Deposit % Total Business Rs. in Crore Rs. in Crore +33% 30,548 30,660 +600 bps +9% 1,60,789 29,601 33.21% 34.53% 33.81% 26,773 30.82% 1,56,440 29.73% 24,590 27.81% 22,978 1,50,957 1,47,970 1,45,148 1,
Slide 12: Key highlights of the Transformation Journey - Asset Quality
Key highlights of the Transformation Journey - Oct 2020 - Dec 2022 Asset Quality Parameters PCR Incl. W/off PCR Excl. W/off GNPA +1578 bps +2621 bps 57.30% 60.20% -149 bps 72.79% 74.51% 6.97% 6.65% 69.55% 51.26% 65.02% 5.90% 58.73% 43.84% 5.67% 5.48% 33.99% Mar-21 Sep-21 Mar-22 Sep-22 Dec-22 Mar-21
Slide 13: Key highlights of the Transformation Journey - Profitability
Key highlights of the Transformation Journey - Oct 2020 - Dec 2022 Profitability Parameters NII (Quarterly) NIM (Quarterly) Rs. in Crore Rs. in Crore 825 +24% +58 bps 726 3.52% 663 3.21% 598 2.94% 2.80% 561 2.61% 527 2.49% Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Dec-22 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22
Slide 14: Concentrated efforts in recoveries and collections
Concentrated efforts in recoveries and collections Recoveries & Upgrades continue to be on focus…. SMA2 book has reduced by 48% YoY Rs. in crore 1464 Rs. in crore 1330 1089 1102 892 690 765 697 530 FY 2020 FY 2021 FY 2022 9M FY23 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Significant improvement in PCR Net
Slide 15: Profit & Loss Overview (Standalone)
Profit & Loss Overview (Standalone) Rs. in Crore Q3-FY23 Q3-FY22 Y-o-Y (%) Q2-FY23 Q-o-Q (%) FY22 Net Interest Income 825 573 44% 726 14% 2,240 Non Interest Income (34) 222 - 255 - 1,034 - Core Fee Income 140 127 10% 142 (1%) 477 - Treasury & Forex (288) 44 - 25 - 126 - Treasury & Forex (Without SR
Slide 16: Net Interest Income
Net Interest Income Quarterly (Rs.in Crore) Net Interest Income NIM 900 825 3.21% 3.52% 800 726 700 2.64% 2.80% 2.74% 573 598 603 600 500 400 300 200 100 0 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Cost Of Funds Yield on Funds Cost Of Deposits Yield on Advances
Slide 17: Non-Interest Income
Non-Interest Income Core Fee Income Treasury & Forex Income1 (Rs. in Crore) (Rs. in Crore) 142 142 140 53 127 128 64 70 75 36 53 60 37 30 29 26 17 13 10 19 74 78 72 68 65 19 17 16 16 10 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Transaction Technology Forex Profi
Slide 18: Operating Efficiency
Operating Efficiency Employee Additions Cost-to-Income Ratio 155 345 64.1 62.7 74.3 113 75 64.8 129 56.6 53.3* Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 *excluding SR provision of Rs.312 Crore Business per Employee Business per Branch (Rs. in Crore) (Rs. in Cror
Slide 19: Provisions
Provisions (Rs. in Crore) Particulars Q3FY23 Q2FY23 Q3FY22 For NPA & NPI 62 166 279 For Standard Assets (17) 5 40 For Restructured Advances/Sacrifices & FITL (8) 0 28 For Unhedged Forex Exposure 0 (2) - Others 5 11 (1) Taxes 59 23 (16) Total Provisions 101 203 330 18 Bank on Us
Slide 20: Balance Sheet Overview (standalone)
Balance Sheet Overview (standalone) (Rs. in Crore) Particulars Dec 2022 Dec 2021 Y-o-Y (%) Sep 2022 Q-o-Q (%) Capital & Liabilities 1,03,833 98,000 6% 1,05,761 (2%) Capital 209 209 0% 209 0% Reserves and Surplus 6,140 5,372 14% 6,037 2% Deposits 90,672 88,348 3% 88,477 2% Borrowings 4,773 2,298 108%
Slide 21: Key Metrics – Quarterly
Key Metrics – Quarterly FY23 FY22 Particulars Q3 Q2 Q1 Q1 Q2 Q3 Q4 Net Interest Margin (NIM) 3.52% 3.21% 2.74% 2.55% 2.49% 2.64% 2.80% CRAR Basel III 16.25% 16.04% 16.25% 15.44% 15.75% 15.68% 15.86% RoAA (Annualized) 0.56% 0.65% 0.46% 0.04% - - 1.10% Provision Coverage 74.51% 72.79% 70.11% 60.11% 65
Slide 22: Well Distributed Deposit Base
Well Distributed Deposit Base Breakup of Deposits Break Up of Non-Resident Deposits Rs. in Crore Rs. in Crore 89,142 88,196 88,477 90,672 88,348 Dec Mar Jun Sep Dec Deposit Type 2021 2022 2022 2022 2022 NR SB 6,824 6,980 7,198 7,101 7,054 55,922 56,125 56,563 58,000 55,719 NR CD 49 50 53 53 57 FCNR
Slide 23: Digital Banking
Digital Banking Digital vs Branch Transactions (no of transactions) (000)’s 2500.0 1825.2 2021.6 94.8% 2258.9 95.0% 94.4% 2000.0 94.5% 94.1% 1563.9 94.0% 1500.0 1363.7 93.3% 93.5% 1000.0 92.9% 93.0% 500.0 92.5% 103.6 113.1 113.4 119.4 124.3 0.0 92.0% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Transactions T
Slide 24: Composition of Loan Book
Composition of Loan Book Segment wise Break Up of Total Loan Book Loan Book (Excluding Corporate) Rs. in Crore 20% 44,144 47,330 47,942 44,891 46,101 32% Corporate Personal Segment Business Loans 26% Agriculture 22% Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Break up of Loan book Loan Book Across Regions De
Slide 25: Gold loans
Gold loans Consistent traction in Gold loans… (Rs. in Crore) 11,961 13,053 +32% 12,913 10,766 9,862 9,804 10,189 9,064 8,151 7,146 2,716 2,897 3,107 2,864 2,615 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Agri Retail 24 Bank on Us
Slide 26: Personal Segment
Personal Segment Personal Segment Loans Rs. in Crore 15,540 15,725 14,928 14,736 14,612 1,392 2,648 2,985 1,761 2,088 1,150 1,151 1,168 1,240 1,219 1,309 1,247 1,181 1,122 1,230 3,094 2,740 2,619 2,445 2,884 2,716 2,615 2,897 3,107 2,864 5,075 4,954 4,854 4,805 4,982 Dec-21 Mar-22 Jun-22 Sep 22 Dec-
Slide 27: Business loans
Business loans Business Loans (Less than Rs. 25 Crore exposure) MSME Loan Book by Geography Rest of Rs. in Crore Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 India 21% Kerala MSME/SME 13,576 13,391 13,093 13,126 11,832 43% Others 4,789 4,958 5,278 5,298 6,725 South (Ex- Kerala) Total 18,365 18,349 18,371 18,4
Slide 28: Corporate lending
Corporate lending Corporate Loan Book Standard Large Corporate Advances (Rs.100 Cr and above ) (Rs. in Crore) (Rs. in Crore) 20,632 22,174 11,596 18,603 10,146 9,997 9,437 15,082 16,925 6,516 22 6,867 18 3,177 17 15 10 11 5 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22
Slide 29: Slippages & collection efficiency
Slippages & collection efficiency Segment wise NPA slippages Collection efficiency Rs. in Crore Q3-2023 102.2% Agriculture 46 100.6% 100.9% 101.1% Business Loans 181 Personal Segment 97.5% 75 Corporate 17 Total 320 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Segment wise GNPA Slippages Rs. in Crore Q3-2
Slide 30: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA In % In % 6.56 5.90 5.87 5.67 5.48 3.52 2.97 2.87 2.51 2.26 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Gross NPA Movement Net NPA Movement Rs. Cr. Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Rs. Cr. Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Opening
Slide 31: Stressed Assets
Stressed Assets Restructured Standard Advance Sector Break up (Rs. in Crore) 2,567 On Account of MSME 2,417 2,198 Restructuring 12% 1,997 23% General - DCCO Extention 1,781 5% OTR COVID Personal Segment 16% OTR COVID MSME 44% OTR COVID Corporate Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Covid One Time Rest
Slide 32: Capital Composition
Capital Composition Risk Weighted Assets BASEL III 15.68 16.25 16.04 16.25 Rs. in Crore Dec 31, 2022 Sep 30, 2022 15.75 Total Capital 7,244.9 16.25% 7,300.9 16.04% - Tier I 6,111.7 13.71% 6,107.6 13.42% 12.72 13.22 13.62 13.42 13.71 - Of which CET1 5,611.7 12.59% 5,607.6 12.33% - Tier II 1,133.2 2.5
Slide 33: Investments
Investments Investment Book Dec 21 Mar 22 Dec 22 Details Rs. in Modified Modified Modified Rs. in Crore Rs. in Crore Crore Duration Duration Duration HTM 18,585 3.25 19,365 3.04 18,916 2.69 AFS 2,455 1.70 3,036 0.97 5,263 1.17 HFT 26 0.02 132 1.67 109 7.69 Total 21,066 3.20 22,534 2.91 24,287 2.47 S
Slide 34: Wide network and young work force
Wide network and young work force Total Employees 01 Q3 FY23: 9,733 01 Q2 FY23: 9,608 04 01 01 Experienced Work Force 05 26 11 01 02 01 13% 03 02 01 34% 13% 02 01 04 19 01 20 03 12% 03 39 28% 43 5 No of < 1 Year 1-2 Years 2-5 Years 5-10 Years > 10 Years 21 59 Classification Branches 04 Metropolitan
Slide 35: Awards & Recognitions
Awards & Recognitions South Indian Bank was recognised in the the ET Edge Best Brands in South Indian Bank won the "Best use of Social Publishing- Banking" Best Brand 2022 Conclave 5th Edition organized by The Economic award organised by Konnect Insights. The summit was to felicitate the Brands and
Slide 36: Strong Management Team (1/2)
Strong Management Team (1/2) Mr. Murali Ramakrishnan, MD & CEO • Post Graduate Diploma in Finance and Marketing from IIM Bangalore; More than 32 years of experience in Retail & MSME Credit, Risk Management Policy and Business Intelligence Unit. • Previously, Head SME, Head Credit & Risk and Regional
Slide 37: Strong Management Team (2/2)
Strong Management Team (2/2) Ms. Chithra H, GM & Chief Financial Officer • Fellow member of the Institute of Chartered Accountants of India & Certified Associate of the Indian Institute of Banking & Finance. • Associated with SIB for over 26 years. Rich experience in the field of Finance, Compliance
Slide 38: 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 37 Bank on Us
Slide 39: THANK YOU
38 THANK YOU SOUTH INDIAN Bank Bank on Us wm
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