South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — Q3 FY2013 Earnings Presentation
20 slides from South Indian Bank's earnings presentation, December 2012
Slide 1: Investor Presentation Q3 FY2013
Investor Presentation Q3 FY2013
Slide 2: Important Notice
IMPORTANT NOTICE 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.
Slide 3: Table of Contents
Table of Contents • Overview • Snapshot • Transformation • Strategy • Business Performance • Financial Highlights • Results • Network • Shareholders • Accolades 3
Slide 4: Snapshot
Snapshot Track record 83 year old franchise; Leading position in Kerala; Expanding fast outside Growth and Last 5 year CAGR: 25% business; PAT of 25%; RoAA up from 0.5% to 1.1% Profitability Improving asset yield as bank builds fee income streams in addition to interest income Quality Steadily impro
Slide 5: Significant Transformation Since 2009
Significant Transformation Since 2009 NIM RoA 3.30 3.24 1.15 3.20 1.11 1.10 3.10 3.03 3.05 1.06 1.04 1.05 3.00 2.90 1.00 2.80 2.80 0.95 0.93 2.70 0.90 2.60 0.85 2.50 0.80 FY 10 FY 11 FY 12 FY 13 FY 10 FY 11 FY 12 FY 13 Cost to Income Net NPA 47.5 47.3 47.0 0.80 0.68 46.5 0.70 45.8 0.60 46.0 0.50 45.
Slide 6: Strategy
Strategy 30% from wholesale banking ; 30% from SME and 40% from retail by FY15 Credit growth rate of 25% till FY15; NIM to be maintained in 3% range Growth with quality Fee income to be 10% NNPA to be under 0.50% 50 addition to branches, 100 ATM additions per year Strong distribution Proportion of b
Slide 7: Business Performance
Business Performance
Slide 8: Financial Highlights – As on Dec 2012
Financial Highlights – As on Dec 2012 Balance Sheet Overview Rs. In Crore Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q (%) Capital & Liabilities Capital 136 116 17% 137 0% Reserves & Surplus 2,824 2,007 41% 2,696 5% Deposits 38,940 33,834 15% 38,490 1% Borrowings 971 491 98% 738 32% Other Liabs. &Provisions
Slide 9: Result Review
Result Review Profit and Loss Account Rs. In Crore (Cumulative) Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q (%) Net Interest Income 947 737 28% 595 59% Other Income 214 165 30% 148 45% Total Income 1,161 902 29% 743 56% Operating Expenses 519 413 26% 335 55% Operating Profit 642 489 32% 408 57% Provisions
Slide 10: Other Performance Highlights
Other Performance Highlights Performance Highlights Dec-11 June-12 Sep-12 Dec-12 CRAR Basel 2 (%) 12.0% 13.2% 14.4% 13.8% RoAA (Annualised) 1.1% 1.2% 1.1% 1.1% NIM (%) 3.0% 3.2% 3.1% 3.2% Gross NPA (%) 0.9% 1.1% 1.7% 1.6% Net NPA (%) 0.2% 0.4% 0.9% 0.7% Provision Coverage 75.2% 67.7% 51.2% 58.6% CAS
Slide 11: Composition of Other Income
Composition Composition of Other of Other Income Income Rs. In Crore Q3FY13 Q3FY12 Y-o-Y (%) Q2FY13 Q-o-Q (%) Commission & Exchange 31 25 24% 21 48% Processing Fees 13 12 8% 8 62% Profit on Sale of Investments 44 32 38% 31 42% Foreign Exchange Profit 16 19 -16% 12 33% Others 110 77 43% 76 45% Total
Slide 12: Trend in Cost & Yield (Annualized)
Trend in Cost & Yield (Annualized) Trend in Cost of Deposits Trend in Yield on Advances Cost of Deposit 9.00% 8.3% 13.00% Yield on Advances 12.8% 8.00% 12.50% 7.00% 7.8% 12.00% 6.00% 12.3% 5.00% 6.5% 11.50% 6.4% 4.00% 11.00% 3.00% 11.4% 10.50% 2.00% 1.00% 10.00% 10.7% 0.00% 9.50% ‐1.00% Dec 2009 Dec
Slide 13: Break-up of Provision (other than tax)
Break-up of Provision (other than tax) Rs. In Crore (Quarter alone) Particulars 3Q FY 13 3Q FY12 2Q FY13 For NPA advance 26.0 4.8 54.8 For Depreciation on Investments 1.5 9.6 -3.8 For standard assets 9.8 7.0 4.9 For Restructured advances 8.2 -1.6 0.0 Others 0.1 2.3 0.0 Total Provisions and Contingen
Slide 14: Composition of Loan Book
Composition of Loan Book 35000 Rs. In Crore 120% In % 30000 100% 25000 8049 27% 27% 35% 80% 20000 8668 4765 16% 60% 23% 5202 16% 15000 3899 4415 40% 10000 16736 57% 49% 50% 12322 20% 5000 9413 0 0% Dec'10 Dec'11 Dec'12 Dec'10 Dec'11 Dec'12 Retail Adv SME & Agri Corporate Retail Adv SME & Agri Corpor
Slide 15: Advances – Composition (Dec 2012)
Advances – Composition (Dec 2012) Rs. In Crore Sector Total % to total Agriculture 1,550.4 5.2 MSME 3,278.5 11.1 Large Scale Industries 5,699.3 19.3 Housing 1,538.6 5.2 Commercial Real Estate 150.9 0.5 Food Credit 613.1 2.1 Infrastructure 5,025.2 17.0 Gold Loan 6,538.2 22.1 FSLD 796.0 2.7 UBP/LC Bil
Slide 16: Strong Core Capital (Tier 1 & Tier 2 CRAR)
Strong Core Capital (Tier 1 & Tier 2 CRAR) 14% 12.32% 11.54% 11.78% 12% 10.80% 10.90% 10% 9.61% 8% 6% 4% 2.68% 2.42% 2.46% 2.26% 2.11% 2.07% 2% 0% Sep-11 Dec-11 Mar-12 Jun/12 Sep/12 Dec/12 Tier 1 CRAR Tier 2 CRAR Quarterly data for Tier I excludes profit for the period Strong Core Capital. Low Depen
Slide 17: Branch Network
Branch Network No. of Branches North 46 South 628 East 23 West 44 Total 741 Target 1:1 Outside Kerala 17
Slide 18: Strong Retail Franchise
Strong Retail Franchise Total ATM Network Total Branch Network 900 800 780 800 741 700 663 700 700 641 580 600 600 530 500 489 500 400 373 400 280 300 300 200 200 100 100 0 0 FY 09 FY 10 FY 11 FY 12 FY 13 FY 09 FY 10 FY 11 FY 12 FY 13 FY 13 denotes position as on 31st December 2012 (Q3FY13) ATM : Br
Slide 19: Marquee Investor List
Marquee Investor List Others, 2.7 Major Institutional Shareholders Corp & Banks, 9.4 Public, 31.9 Domestic, FII, 44.8 8.9 NRI, 2.3 Strong Institutional Ownership 19
Slide 20: Recognitions
Recognitions BUSINESSWORLD INDIA’s BEST TECHNOLOGY SOUTH INDIAN BANK BAGS BANK 2010 AWARD to SOUTH EXCELLENCE AWARD TWO PRESTIGIOUS D&B INDIAN BANK 2011-12 FROM IDRBT BANK AWARDS 20