South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — Q3 FY2025 Earnings Presentation
44 slides from South Indian Bank's earnings presentation, January 2025
Slide 1: Experience Next-Gen Banking
EXPERIENCE NEXT-GEN BANKING ou, gro " ah voll Investing in Relationships since 1929
Slide 2: Disclaimer
Disclaimer 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. Certai
Slide 3: Agenda
1 Brief Snapshot 2 About South Indian Bank – Key Highlights 3 Transformation Journey of the Bank 4 Annexure
Slide 4: Brief Snapshot
BRIEF SNAPSHOT
Slide 5: Performance Highlights (1/2)
Performance Highlights (1/2) Q3FY25 Rs. 86,966 Cr Rs. 1,22,572 Cr Rs. 1,05,387 Cr Rs. 102,421 Cr 31.15% Gross Advances Disbursements Deposits Retail Deposits CASA % Q3FY24 Large Scale of Operations Rs. 77,686 Cr Rs. 65,805 Cr Rs. 99,155 Cr Rs. 95,088 Cr 31.80% Rs. 342 Cr 3.19% 1.12% 13.93% Net Inter
Slide 6: Performance Highlights (2/2)
Performance Highlights (2/2) Q3FY25 4.30% 1.25% 81.07% 71.73% 18.00% PCR PCR GNPA NNPA CRAR (incl. w/off) (excl. w/off) Q3FY24 1.61% 77.97% 67.08% 15.60% Healthy Asset Quality 4.74% 950 9,448 26 / 4 98% Digital Branches Employees States / UTs Transactions 948 9,939 26 / 4 97% Multi-pronged distribut
Slide 7: About South Indian Bank – Key Highlights
ABOUT SOUTH INDIAN BANK – KEY HIGHLIGHTS
Slide 8: Key Highlights
Key Highlights 1 Diversified loan book – focused on retail, MSME and high quality corporate 2 Pan India presence 3 Strong focus on Asset Quality and Collection Efficiency 4 Well distributed Deposit base with stable cost of funds 5 Focus on Digital channel to drive operating efficiency 6 Strong Manag
Slide 9: Diversified Loan Book with granularity and strong growth in disbursements
1 Diversified Loan Book with granularity and strong growth in disbursements Consistently growing loan book…. …and Disbursements Rs. Cr Rs. Cr Cumulative for the quarter 12% 84,714 86,966 122,572 80,426 82,580 77,686 95,040 76,872 65,805 33,482 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q3'FY25 Q3'FY24 Q4'FY24
Slide 10: Consistent growth momentum in retail advances continues
Consistent growth momentum in retail advances continues Mortgage Loans*# Home Loans* Personal Segment Rs. Cr Rs. Cr 79% 3,503 64% Rs. Cr 8,195 26% 21,353 22,143 19,188 17,515 17,639 1,953 5,000 Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 Dec'23 Dec'24 Dec'23 Dec'24 Mix of Personal Segment Auto Loans Credit C
Slide 11: Consistent growth momentum in advances continues
Consistent growth momentum in advances continues Gold Loan (Incl Agri) Healthy growth in Avg. Advances Rs. Cr 10% Rs. Cr 33% 16,966 82,197 83,495 78,449 80,387 74,693 71,016 72,379 15,369 67,353 69,235 62,625 63,877 Growth of 12% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25
Slide 12: Momentum in retail disbursals continues
….momentum in retail disbursals continues Home Loans*# Auto Loans* 426 393 376 366 292 261 236 210 196 204 177 139 100 100 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Agriculture Loans* Personal Loans* 225 124 208 109 176 100 98 95 87 144 75 126
Slide 13: Dominant share of A & above rated corporate loans
Dominant share of A & above rated corporate loans Corporate Loan Book Standard Large Corporate Advances (Rs. 100 Cr & Above) Rs. Cr Rs. Cr 21,638 34,956* Standard Large 33,984* 33,961* Corporate Advances, 18,143 25% 32,084 Others, 75% 29,892 Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 Dec'23 Dec'24 High shar
Slide 14: MSME Loans comprise mainly of High-Yield Portfolio
MSME Loans comprise mainly of High-Yield Portfolio Focus on ECG loans… MSME Strategic Initiatives Rs. In crores 01-Apr-24* Jun-24 Sep-24 Dec-24 Dedicated Vertical MSME customers relationship managed by dedicated team MSME/SME 13,464 13,078 12,914 13,042 Skill Building Significant investment in build
Slide 15: Pan India presence with focus on diversification
2 Pan India presence with focus on diversification Diversifying Loan Book Outside Kerala Continuously expanding network Q3’FY25 Q3’FY24 Loan Book Branches1 Rs. 77,686 Cr 950 Has a network of 950 Branches Kerala, Rest of 948 across India 36% India, 30% South (Ex- Q3FY24 Q3FY25 Kerala), 34% ATM / CRM
Slide 16: Strong focus on improving asset quality and collection efficiency
3 Strong focus on improving asset quality and collection efficiency Net NPA below pre- covid level …with focus on Recoveries and Upgrades Rs. Cr GNPA NNPA 1,814 1,642 6.97% 1,464 5.90% 5.14% 1,025 4.71% 4.50% 4.30% 2.97% 690 1.86% 1.46% 1.25% Mar-21 Mar-22 Mar-23 Mar-24 Dec-24 FY21 FY22 FY23 FY24 9M
Slide 17: Well Distributed Deposit Base with focus on low cost deposits
4 Well Distributed Deposit Base with focus on low cost deposits Breakup of Deposits CASA Ratio continues to hold… Rs. Cr % Deposits Rs. Cr 32.06% 31.80% 103,532 105,451 105,387 101,920 32.08% 31.15% 99,155 33,530 33,195 31.80% 32,693 32,830 31,529 66,550 68,120 69,590 65,050 63,558 Q3'FY24 Q4'FY24 Q
Slide 18: NRI Deposit continues to be a focus with stable Cost of Funds
NRI Deposit continues to be a focus with stable Cost of Funds Breakup of Non Resident Deposits Cost of Funds / Yield on Funds Cost Of Funds Yield on Funds Rs. Cr 7.53 7.78 7.85 7.68 7.64 4.71 4.79 4.91 4.80 4.84 Deposit Type Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 NR SB 7,039 7,042 7,120 7,178 7,424
Slide 19: Multitude of Digital Initiatives
5 Multitude of Digital Initiatives… Taken various digital initiatives… Digital portal to onboard NTB UPI T+1 credit - A feature extended Bank have successfully installed A UPI merchant integration kit deposit customers(Quick FD). Helps NCMC wallet recharge: Facility for to merchants to receive their
Slide 20: Leading to rising digital banking
….leading to rising digital banking….. ..leading to a rise in transactions with high digital share (000)’s Transactions through digital channel % total transactions 3,728 3,431 3,036 3,143 3,133 98.2% 98.0% 97.8% 97.5% 97.5% Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 Internet Transaction Volume Mobile Trans
Slide 21: Creating operational efficiency
….creating operational efficiency Employee Additions Cost-to-Income Ratio (Quarterly) 64.5% -14 62.0% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 60.6% -78 -91 -55 59.8% 58.7% -214 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Improving productivity metrics Rs. Cr Rs. Cr Business per Employee Business per Branch 196 20
Slide 22: Robust Track Record of Financial Performance
6 Robust Track Record of Financial Performance Total Business Gross Advances Disbursements Rs. Cr Rs. Cr Rs. Cr 192,352 86,966 122,572 182,346 80,426 163,743 95,040 150,957 72,092 142,128 59,418 61,816 54,800 24,533 FY21 FY22 FY23 FY24 Q3'FY25 FY21 FY22 FY23 FY24 Q3'FY25 FY22 FY23 FY24 9M 'FY25 Net
Slide 23: Key Areas of Focus
Key Areas of Focus Enhancing Portfolio Resilience Improving Branch Productivity Cost Optimization Growing non- branch Distribution & Leveraging Partnerships Enhancing Control / Compliance Architecture 23
Slide 24: The Way Forward – Building Frictionless Processes (1/4)
The Way Forward – Building ‘Frictionless Processes’ (1/4) Build out of new automated digital channels continue – Implemented Digital Initiatives Auto Renewal of AGRI Renewal of AGRI KCC proposals that can be easily facilitated at branches through simplified questionnaire. KCC loan upto 50L Impro
Slide 25: The Way Forward – Building Frictionless Processes (2/4)
The Way Forward – Building ‘Frictionless Processes’ (2/4) Build out of new automated digital channels continue – Ongoing Initiatives Composite Power- Multi Facility SME loans up to 2 Cr. Development phase of an STP enabled process flow for retail MSME proposals with multiple facilities. Aims to
Slide 26: Growing Non-branch Distribution & Leveraging Partnerships (3/4)
Way Forward – Growing Non- branch Distribution & Leveraging Partnerships (3/4) Growing Non – Branch Distribution and Leveraging Partnerships Asset Partnerships Co-lending Qualified lead referral programs for Mortgage Loans Partnerhip with Fintech for Personal Loans Gold Loans Co-lending partners
Slide 27: The Way Forward – Building Frictionless Processes (4/4)
The Way Forward – Building ‘Frictionless Processes’ (4/4) Improving Operating efficiency Significant momentum in Retail Segment 1 Home, Auto, Gold, Agriculture, CV/CE showing good traction 78:22 – Tooth to Tail Ratio 2 Further progress expected during the financial year Training/ Re-skilling of staf
Slide 28: Deep ESG focus – Promoting Sustainable & Environmentally friendly assets
Deep ESG focus – Promoting Sustainable & Environmentally friendly assets GREEN DEPOSIT POLICY & GREEN FINANCING FRAMEWORK Steps taken to promote usage of The Bank have installed 75 KW solar The Bank has commissioned 10 KLD EV by initiating the installation of 2 Green deposits are a unique financia
Slide 29: Transformation Journey of the Bank
TRANSFORMATION JOURNEY OF THE BANK
Slide 30: Significant transformation of business since Sep'2020
Significant transformation of business since Sep’2020 Churned around 78% of overall loan book since Oct’ 2020 (INR Cr) (INR Cr) Sep’20 65,349 Dec’24 19,391 91% of Current GNPA is from Old New Book book 67,574 Old Book New Book Old Book Current Book 9% Old Loan Current Current Old Book 91% Book Loan
Slide 31: Annexure
ANNEXURE
Slide 32: Profit & Loss Overview (Standalone)
Profit & Loss Overview (Standalone) Particulars (Rs. In Cr) Q3-FY25 Q3-FY24 Y-o-Y (%) Q2-FY25 Q-o-Q (%) Net Interest Income 869 819 6% 882 -1% Non-Interest Income 447 452 -1% 449 0% Core Fee Income 226 178 27% 229 -1% Treasury & Forex 57 158 -64% 106 -46% Other 164 116 41% 114 44% Total Income 1,316
Slide 33: Balance Sheet Overview (Standalone)
Balance Sheet Overview (Standalone) Particulars (Rs. In Cr) Q3 FY25 Q3 FY24 Y-o-Y (%) Q2 FY25 Q-o-Q (%) Capital & Liabilities 1,20,860 1,13,514 6% 1,20,364 0% Capital 262 209 25% 262 0% Reserves and Surplus 9,474 7,185 32% 9,133 4% Deposits 1,05,387 99,154 6% 1,05,451 0% Borrowings 2,956 4,213 -30%
Slide 34: Key Metrics
Key Metrics Particulars Q3FY25 Q2FY25 Q1FY25 Q4FY24 Q3FY24 Q2FY24 Q1FY24 Net Interest Margin (NIM) 3.19% 3.24% 3.26% 3.38% 3.19% 3.31% 3.34% CRAR Basel III 18.00% 18.04% 18.11% 19.91% 15.60% 16.69% 16.49% RoA* 1.12% 1.07% 1.00% 0.98% 1.07% 0.97% 0.73% RoE 13.93% 13.71% 12.90% 13.11% 16.38% 15.38% 11
Slide 35: Non-Performing Assets
Non-Performing Assets GNPA & NNPA Improving Credit Quality Ever 30+ at 6 MOB* (Excl. corporate) GNPA NNPA 4.74% 4.50% 4.50% 1.50% 4.40% 4.30% 1.20% 0.90% 0.80% 0.80% 0.70% 0.43% 0.90% 0.90% 1.61% 1.46% 1.44% 1.31% 1.25% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 * Ever 30 at 6 MO
Slide 36: Provisions
Provisions Rs. Cr Q3FY25 Q2FY25 Q1FY25 Q4FY24 Q3FY24 For NPA & NPI 71 148 120 41 46 For Standard Assets 2 (7) (2) 7 (10) For Restructured Advances/Sacrifices & (6) (30) (11) (9) (15) FITL For Unhedged Forex Exposure (2) (1) 1 1 - Others 1 - 5 1 28 Taxes 121 116 101 105 129 Total Provisions 187 226 2
Slide 37: Slippages & Collection Efficiency
Slippages & Collection Efficiency Slippage Ratio Collection Efficiency 0.41 100.8% 0.34 0.35 0.36 99.8% 100.1% 100.2% 0.33 99.1% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Segment wise GNPA Segment wise Slippages Rs. Cr Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Rs. Cr New Book Ol
Slide 38: Stressed Assets
Stressed Assets Restructured Standard Assets Sectoral Break-up Rs. Cr 894 On account of MSME 772 0% restructuring 10% 664 16% General - DCCO Extension 476 404 OTR COVID Personal Segment 31% OTR COVID MSME 43% OTR COVID Corporate Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 COVID One Time Restructuring Securit
Slide 39: Investment Book
Investment Book SLR & NON-SLR Treasury & Forex Income * Rs. in Cr Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 SLR 22,937 21,616 20,728 20,379 21,737 NON-SLR 3,718 3,663 2,177 1,483 1,785 Total 26,654 25,279 22,905 21,862 23,522 99 M Duration 89 74 4.69 4.81 4.48 4.60 3.97 52 60 14 10 13 14 7 Dec'23 Mar'24 Ju
Slide 40: Capital Composition
Capital Composition Risk Weighted Assets Basel III Total Capital Adequacy Ratio is well above minimum regulatory requirement of 11.50% CET 1 15.70% 15.75% Tier 1 Tier 2 18.04% Tier 1 Tier 2 18.00% 19.91 2.26% 18.11 18.04 18.00 1.41% 1.32% 1.40% 1.41% 1.32% 15.60 16.63% 16.68% 2.23% Sep'24 Dec'24 Tot
Slide 41: Strong Management Team
Strong Management Team Mr. P R Seshadri MD & CEO, 31 years Mr. Dolphy Jose ● Bachelor’s degree in Engineering from the Delhi College of Engineering and Executive Director, 30 years a Post Graduate Diploma in Management from IIM Bangalore. ● More than 30 years of experience , MBA in General Managemen
Slide 42: Strong Management Team
Strong Management Team Mr. Senthil Kumar Ms. Chithra H SGM & Head Credit, 29 years SGM & Chief Compliance Officer, 32 years ● Management graduate with 27 years of experience in banking and finance ● Fellow member of the Institute of Chartered Accountants of India & ● 21 years of experience with ICIC
Slide 43: Strong Management Team
Strong Management Team Mr. Nehru Singh B Mr. Mohan T M GM & Head – Credit Quality Assurance, 28 years GM & Head Legal Department, 35 years ● MBA &CAIIB qualified, Has 27+ years of experience in the Banking Industry, ● B.Com, LL.B Graduate. Also completed CAIIB and CS (Inter) extensively in non-retai
Slide 44: Thank You
THANK YOU