South Indian Bank Limited · NSE:SOUTHBANK

South Indian Bank — The South Indian Bank — Q4 FY19 Earnings Presentation

60 slides from South Indian Bank's earnings presentation, May 9, 2019

  1. Slide 1: Cover letter to National Stock Exchange

    ~ ~ . ~SOUTH ~INDIAN Bani< DEPT: SECRETARIAL REF No. SEC/ST EX.STT/ <V3 /2019-20 May9, 2019 National Stock Exchange of India 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 May 2019

    Investor Presentation May - 2019

  3. 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

  4. Slide 4: Contents

    Contents Q4 FY19 Highlights Business Strategy Performance Matrix Next Generation Bank About Us 3

  5. Slide 5: Q4 FY19 Highlights

    Z 04 FY19 Highlights © \

  6. Slide 6: Key Quarterly Highlights - Q4 FY19

    Key Quarterly Highlights- Q4 FY19 Rs Cr CASA Deposits Advances Q4 FY19 19,467 Q4 FY19 80,420 Q4 FY19 63,636 Q4 FY18 17,142 Q4 FY18 72,030 Q4 FY18 55,109 14% 12% 15.5% Net Interest Income Other Income PPOP Q4 FY19 499 Q4 FY19 236 Q4 FY19 328 Q4 FY18 492 Q4 FY18 311 179 Q4 FY18 1% 32% 5% 5

  7. Slide 7: Business Strategy

    ayy Business Strategy aI:

  8. Slide 8: 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

  9. Slide 9: Performance in Line with Strategy

    …Performance in Line with Strategy Strengthen Retail base Rs. 18,458 Cr INCREASE 33.9% YoY Expand Agriculture & SME Base Rs. 23,742 Cr INCREASE 13.7% YoY Improve CASA Rs. 19,467 Cr INCREASE 13.6% YoY 8

  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 9

  11. Slide 11: Increase Retail & SME Business

    ...Increase Retail & SME 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 fu

  12. Slide 12: Focus on Housing Loans in Retail

    …by focus on Housing Loans in Retail Retail Breakup Housing: Key Initiatives Rs Cr +34% • Retail hub in Kochi to increase focus 18,458 on housing finance 16,857 2,667 16,061 • Dedicated Officers for marketing 15,200 1,780 1,706 1,289 Retail Loans 13,787 1,668 1,200 1,159 • Marketing initiative throu

  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 – Q4 FY19 Rs. Lakh 37.98 Rest of 31.33 India 29.30 30.30 24% Kerala 26.50 44% South (Ex- Kerala) 32% Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 SME Highlights • Dedicated executive to ensure focus and better coordinat

  14. Slide 14: Branch Network

    …with the help of our Branch Network Total Branch Network +1.8% 822 834 850 854 870 794 FY14 FY15 FY16 FY17 FY18 FY19 Total ATM Network +7.1% No of 1,382 1,406 Branch Location* 1,287 1,320 Branches 1,200 1,000 Kerala 474 South India (Ex-Kerala) 253 Rest of India 143 Total 870 FY14 FY15 FY16 FY17 FY1

  15. Slide 15: Our Experienced Employees

    … and our Experienced Employees Employee Addition Total Employees: 7,822* 137 33 7,822 7,287 99 332 12% 26% 7% 17% 38% < 1 Year 1-2 Years 2-5 Years Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Closing 5-10 Years > 10 Years *Full-time officers and clerks. 14

  16. Slide 16: Performance Matrix

    ayy Performance Matrix 15

  17. Slide 17: Strong Deposit Franchise

    Strong Deposit Franchise Core & Non-Core Deposits Rs Cr Mar-19 Mar-19 Mar-19 64,478 15,942 80,420 11.7% 11.4% 11.7% 57,712 14,317 72,030 Mar-18 Mar-18 Mar-18 Core Deposit Non-Core Deposit Total Deposit CASA Deposits Dec-18 Mar-19 Mar-19 Rs Cr 3,332 16,135 19,467 9.0% 14.6% 13.6% 3,058 14,084 17,142

  18. Slide 18: Core Deposits Growing

    Core Deposits Growing... Breakup of Deposits CASA Deposit +12% Rs Cr Rs Cr 80,420 +14% 77,665 74,911 19,467 72,030 72,488 17,142 3,332 3,058 14,084 16,135 45,011 43,426 42,498 40,408 41,561 Mar-18 Mar-19 Current Savings Term Deposits 15,420 16,135 Rs Cr 14,084 14,937 15,357 +11% 3,485 3,332 45,011 3

  19. Slide 19: NRI Deposits Growing

    NRI Deposits Growing… NRI Deposits CASA Rs Cr In (%) +14% 20,981 21,436 20,425 19,631 18,855 23.8 24.7 24.6 24.3 24.2 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 18

  20. Slide 20: Break Up of Non Resident Deposits

    Break Up of Non Resident Deposits Deposit Type (Rs Cr) Q4-FY 18 Q1-FY 19 Q2-FY 19 Q3-FY 19 Q4-FY 19 NRE SB 3,335 3,628 3,741 3,768 3,660 NRO SB 618 623 657 712 737 FCNR (B), RFC & Others 1,634 1,638 1,652 1,697 1,859 Low Cost NRI Deposit (Sub 5,587 5,889 6,050 6,177 6,257 Total) NRE Term Deposit 12,

  21. Slide 21: Composition of Loan Book

    Composition of Loan Book Corporate Advances (Above Rs 25 Cr) Retail Advances Rs Cr Rs Cr +5% +22% 20,438 21,111 21,436 42,200 19,976 20,149 38,953 36,188 37,264 34,671 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Segment wise Break Up of Total Loan Book Rs Cr 8,673 , 21,436

  22. Slide 22: Composition of Loan Book

    Composition of Loan Book Break up of Loan book Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 Advances (Rs. Cr) Number Value Number Value Number Value Number Value Number Value Less than 5 Cr 7,15,160 21,816 7,15,520 22,529 7,17,750 23,331 723,279 25,576 738,786 27,802 5 - 25 Cr 3,753 10,147 3,798 10,564 3,898

  23. Slide 23: Rating Profile of Corporate Loan Book

    Rating Profile of Corporate Loan Book Standard Advances above Rs. 100 Cr Standard Advances above Rs. 25 Cr External Rating SIB Internal Rating Rs Cr Rs Cr 0.0% 0.0% 2.0% 2.1% 0.6% 16.9% 19.3% 20.9% 25.8% 25.4% 26.4% 27.5% 26.7% 25.4% 32.1% 24.7% 24.6% 21.7% 31.4% 37.4% 24.6% 22.9% 26.7% 27.1% 24.1%

  24. Slide 24: Key Focus: Retail, SME & Agriculture

    Key Focus : Retail, SME & Agriculture Retail excluding Gold Retail Gold ( Average LTV – 65%) Rs Cr Rs Cr +31% +63% 16,242 2,216 15,017 Retail Loans (Excl. 13,760 14,567 1,840 12,430 1,440 1,494 Gold), Agriculture & 1,357 SME has grown by 20% (Y-o-Y) Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 S

  25. Slide 25: Advances Growing Across Regions

    Advances growing Across Regions +15% Rs Cr 63,636 60,064 56,164 57,413 55,109 18,574 17,932 16,646 17,049 15,983 19,325 17,924 16,624 16,771 16,996 23,368 24,208 25,737 22,502 22,747 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Rest of India South Ex- Kerala Kerala 24

  26. Slide 26: 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 492 494 506 520 499 9.61 9.50 9.50 9.64 9.51 6.04 6.06 6.08 6.16 6.30 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 Net Interest Margin Cost of

  27. Slide 27: Net Interest Income - Cumulative

    Net Interest Income - Cumulative Net Interest Income Cost of Deposits & Yield on Advances Rs Cr In % 1,966 2,020 Cost of Deposits Yield on Advances 1,473 1,520 9.89 964 1,001 9.50 9.50 9.55 9.54 461 494 6.08 6.06 6.07 6.10 6.15 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar -18 Jun -18

  28. Slide 28: Improving Operating Efficiency

    Improving Operating Efficiency Employee Additions C/I Ratio In % 332 137 57.88 55.58 54.68 54.88 99 47.17 -33 -77 Mar -18 Jun -18 Sept -18 Dec -18 Mar -19 Mar -18 Jun -18 Sept -18 Dec -18 Mar -19 Business per Employee Business per Branch Rs Cr Rs Cr 15.7 15.7 15.5 15.9 147 148 149 150 14.9 134 Mar-1

  29. Slide 29: Sustainable Other Income

    Sustainable Other Income Total Other Income led by …. …Sustainable : Transaction Fees + Technology Rs Cr Rs Cr 236 120 108 187 100 95 179 91 146 158 71 86 69 59 60 31 32 35 37 33 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Transaction Fees Technology Profit on Sale of Inves

  30. Slide 30: Break Up of Provisions

    Break Up of Provisions Particulars (Rs Cr) Q4-FY 19 Q4-FY 18 Q3-FY 19 For NPA & NPI 191.0 151.7 189.4 For Depreciation on Investments 39.7 8.5 -7.3 For Standard Assets 14.4 -6.2 10.1 For Restructured Advances/Sacrifices & FITL 3.0 -10.1 0.0 For Unhedged Forex Exposure 0.5 -0.1 -0.1 Others -29.5 4.8

  31. Slide 31: Non Performing Assets

    Non Performing Assets Gross NPA Net NPA 4.54% 4.61% 4.88% 4.92% 3.27% 3.16% 3.45% 2.60% 3.59% 3.54% Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 Gross NPA Movement Net NPA Movement Rs Cr Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 Rs Cr Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 Opening

  32. Slide 32: Stressed Assets - QoQ

    Stressed Assets - QoQ Gross Basis Net Basis Rs Cr Q3-FY 19 Q4-FY 19 Q3-FY 19 Q4-FY 19 NPA 2,930 3,132 2,100 2,164 Restructured Standard Advance 200 214 200 214 Other Stressed Advances 0 0 0 0 Total Stressed Assets 3,130 3,346 2,300 2,378 Advances 60,064 63,636 59,256 62,664 Stressed Assets as % of A

  33. Slide 33: Restructured Advances Breakup

    Restructured Advances Breakup Restructured Assets Sector Standard Restructure – Q4FY19 Rs Cr 214 9.8% 200 57 90.2% Construction EPC 22 Others (on Account of Kerala Floods and MSME 20 Restructuring) Rs Cr Security Receipts Outstanding as on 31.3.2019 Book Value Provision NAV Mar-18 Jun-18 Sep-18 Dec-

  34. Slide 34: Restructured Standard Asset Book

    Restructured Standard Asset Book Rs Cr Restructured Standard Advance Upgradation Fresh Decrease in Slippages to Closing Opening from NPA to Addition Balance NPA Balance Std. Rest. Infra Roads - - - - - - Construction 21 - - - - 21 EPC Others 179 32 - 18 - 193 Total 200 32 - 18 - 214 33

  35. Slide 35: Movement in Restructured Assets

    Movement in Restructured Assets Movement in Restructured Accounts (Including Restructured NPA) Shift of focus from Rs Cr Large Corporate 0 to 0 SMEs 32 41 0 Defocusing from Stressed Sectors 447 438 Special Cell & Asset Monitoring Cell Opening Fresh Increase Upgradation Closure Dec in Closing Additio

  36. Slide 36: Credit Provisioning

    Credit Provisioning NPA Provisioning Rs Cr 938 209 76 805 Provision Coverage Ratio : 42.46% Opening Additions Deductions Closing 35

  37. Slide 37: Fresh Slippages/Advance Ratios

    Fresh Slippages/Advance Ratios Retail Slippage Agriculture Slippage 0.40% 0.42% 1.15% 0.71% 0.18% 0.20% 0.20% 0.22% 0.14% 0.04% Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 SME Slippage Corporate Slippage 1.72% 2.36% 2.38% 1.54% 0.76% 0.80% 0.75% 0.09% 0.53% 0.30% Mar-18 J

  38. Slide 38: Capital Composition

    Capital Composition BASEL III In % 12.7 12.6 12.2 12.1 11.8 2.3 2.6 2.1 2.1 2.1 10.4 10.1 10.0 10.0 9.7 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Tier 2 Tier 1 37

  39. Slide 39: Profit & Loss Overview - Q4 FY19

    Profit & Loss Overview- Q4 FY19 Rs Cr Q4-FY19 Q4-FY 18 Y-o-Y (%) Q3-FY19 Q-o-Q (%) Net Interest Income 499 492 2% 520 -4% Other Income 236 179 32% 187 26% Total Income 735 671 10% 706 4% Operating Expenses 407 360 13% 374 9% Operating Profit 328 311 5% 332 -1% Provisions (Ex-Tax) & 219 149 47% 203 8

  40. Slide 40: Balance Sheet Overview - Q4 FY19

    Balance Sheet Overview- Q4 FY19 Rs Cr Q4-FY 19 Q4-FY 18 Y-o-Y (%) Q3-FY 19 Q-o-Q (%) Capital & Liabilities 92,279 82,686 11.6% 88,249 4.6% Capital 181 181 0.0% 181 0.0% Reserves and Surplus 5,154 5,060 1.9% 5,153 0.0% Deposits 80,420 72,030 11.6% 77,665 3.5% Borrowings 4,903 4,043 21.3% 3,688 32.9%

  41. Slide 41: Key Metrics - Quarterly

    Key Metrics- Quarterly FY17 FY18 FY19 Particulars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Interest Margin (NIM) 2.7% 2.8% 2.7% 2.7% 2.8% 2.9% 2.9% 2.7% 2.6% 2.6% 2.7% 2.46% CRAR Basel III 11.7% 11.1% 11.1% 12.4% 12.1% 11.7% 12.5% 12.7% 12.2% 12.1% 11.8% 12.6% RoAA (Annualized) 0.6% 0.7% 0.6% 0.4% 0.

  42. Slide 42: Next Generation Bank

    ayy Next Generation Bank © 41

  43. Slide 43: Present across Customer Touch Points

    Present across Customer Touch Points Traditional & Alternate Channels SIB Mirror + Mobile Banking ATMs Branches 1,406 ATMs across India 870 Branches & 53 Extension Counters Internet Banking Point of Sale 42

  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: Personal Banking: Technology Banking

    Personal Banking: Technology Banking Active Internet Users Internet Transaction Volume Internet Transaction Value (000)’s (000)’s Rs Cr 1,027 7,961 954 948 962 929 6,989 6,075 6,185 6,451 390 303 313 332 354 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sep-18 D

  46. Slide 46: Personal Banking: Debit Cards

    Personal Banking: Debit Cards No of Active Debit Cards Debit Card Transaction Volumes In Millions In Millions 37.2 36.8 37.6 38.1 38.3 4.3 4.0 3.9 3.8 3.8 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Debit Card Transaction Value Rs Cr 7,512 7,573 7,761 7,090 7,321 Mar-18 Jun

  47. Slide 47: About Us

    @ yy About Us 46

  48. Slide 48: 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

  49. Slide 49: Expansion since FY08

    Expansion since FY08 Branch Network ATM Network +78% +530% 870 1,406 474 802 490 286 253 401 223 133 115 143 50 203 71 58 FY08 FY19 FY08 FY19 Kerala South Ex-Kerala Others (Rest of India) 48

  50. Slide 50: Performance since FY08

    Performance since FY08 Net Interest Income Profit After Tax Rs Cr Rs Cr CAGR: +17% CAGR: +5% 2,020 248 152 376 FY08 FY19 FY08 FY19 Business (Advances + Deposits) Gross NPA Rs Cr 314bps In % CAGR: +17% 144,056 4.92 1.78 25,610 FY08 FY19 FY08 FY19 49

  51. Slide 51: Leadership Team

    Leadership Team Mr. V. G Mathew , MD & CEO ▪ Post Graduate in Physics and CALLB 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

  52. Slide 52: 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

  53. Slide 53: 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. Raph

  54. Slide 54: 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

  55. Slide 55: Award Wins during FY19

    Award Wins during FY19 HUDCO Award South Indian Bank has received the award for Best Performing PLI of HUDCO’ under CLSS Photo Caption- Mr. Sanchay Kumar Sinha, Country Head (Retail Banking) receiving award for ‘ Best Performing PLI of HUDCO’ under CLSS from Mr. Hardeep S Puri, Union Minister of Sta

  56. Slide 56: Award Wins during FY19

    Award Wins during FY19 National Payments Excellence Award South Indian Bank receiving National Payments Excellence Award for RuPay instituted by NPCI Photo Caption- Shri. Reghunathan K N, EVP (Treasury), South Indian Bank receiving National Payments Excellence Award for RuPay instituted by NPCI from

  57. Slide 57: Award Wins during FY19

    Award Wins during FY19 MSME Banking Excellence Award South Indian Bank receiving Best MSME Bank-Runner Up award Photo Caption- Mr. John Thomas, Country Head (Business Development) receiving Best MSME Bank-Runner Up award, on behalf of South Indian Bank from Shri. Giriraj Singh, Minister of State in

  58. Slide 58: Award Wins during FY19

    Award Wins during FY19 Banking Technology Awards by IBA South Indian Bank receiving Banking Technology 2019 awards instituted by IBA Photo Caption- Mr. Raphael T J, CGM and CIO of the South Indian Bank and Mr. Sony A, JGM receiving the Banking Technology 2019 awards instituted by IBA from Prof. N. B

  59. Slide 59: Award Wins during FY19

    Award Wins during FY19 KMA Award 2018 South Indian Bank receiving CSR Award for Banks & NBFCs under Education Sector instituted by Kerala Management Association Photo Caption- Shri. Raphael T.J (Senior General Manager & CIO, South Indian Bank) receiving CSR Award for Banks & NBFCs under Education Se

  60. Slide 60: 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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