South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q4 FY2021 Earnings Presentation
35 slides from South Indian Bank's earnings presentation, May 21, 2021
Slide 1: Exchange filing cover letter: Presentation to Investors and Analysts
~ =SOUTH ~INDIAN Bani< DEPT: SECRETARIAL REF No. SEC/ST EX.STT/25/2021-22 May 21, 202 1 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), Rotu
Slide 2: Investor Presentation Q4-FY2021
PHOTO Investor Presentation Q4-FY2021
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 corr ectness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Cer
Slide 4: Operating Performance
Operating Performance Deposits Retail CASA Advances (excl. CD) Deposits FY21 Rs. 82,711 Cr FY21 Rs. 77,857 Cr FY21 Rs. 24,590 Cr FY21 Rs. 59,418 Cr + 2% + 12% + 18% - 9% FY20: Rs. 80,700 Cr FY20: Rs. 69,826 Cr FY20: Rs. 20,760 Cr FY20: Rs. 65,524 Cr NII Operating Profit Provisions PCR FY21 Rs. 2,407
Slide 5: Profit & Loss Overview
Profit & Loss Overview Rs. in Crore Q4-FY21 Q4-FY20 Y-o-Y (%) Q3-FY21 Q-o-Q (%) FY21 FY20 Y-o-Y (%) Net Interest Income 561 596 -6% 596 -7% 2,407 2,318 4% Non Interest Income 390 394 -1% 270 44% 1,185 1,046 13% - Core Fee Income 124 99 25% 104 20% 399 378 6% - Treasury & Forex 166 238 -30% 109 53% 4
Slide 6: Net Interest Income
Net Interest Income Quarterly (Rs. in Crore) 700 2.94% 3.00% NII NIM Cost Of Deposits Yield on Advances Cost Of Funds Yield on Funds 2.90% 650 2.80% 9.59 9.35 9.25 2.67% 2.64% 8.78 8.76 600 2.62% 2.70% 7.97 7.74 7.73 663 2.61% 7.24 7.12 2.60% 550 596 597 5.53 5.33 587 2.50% 6.00 5.78 5.03 4.85 561 5
Slide 7: Non-Interest Income
Non-Interest Income Core Fee Income Treasury & Forex Income (Rs. in Crore) (Rs. in Crore) 238 124 114 99 92 49 167 147 34 78 46 38 226 29 108 151 140 75 65 46 96 54 58 49 33 12 7 13 12 16 7 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Technology Transaction Fees Profit on sa
Slide 8: Operating Efficiency
Operating Efficiency Employee Additions Cost-to-Income Ratio 304 53.9 54.8 55.0 -51 53.7 -59 51.1 -129 56 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 FY20 Q1 FY21 H1 FY21 9M FY21 FY21 Business per Employee Business per Branch (Rs. in Crore) 17.3 17.9 18.1 18.2 18.0 (Rs. in Crore) 166 168 168 167 165 Q4F
Slide 9: Provisions
Provisions (Rs. in Crore) Particulars Q4 FY21 Q3 FY21 Q4 FY20 For NPA & NPI 719 284 360 For Depreciation on Investments -44 45 263 For Standard Assets -290 155 89 For Restructured Advances/Sacrifices & FITL 31 11 15 For Unhedged Forex Exposure -4 4 0 Others 1 (1) (3) Taxes 4 (30) (47) Total Provisio
Slide 10: Balance Sheet Overview
Balance Sheet Overview (Rs. in Crore) Rs Crs Mar 2021 Mar 2020 Y-o-Y (%) Dec 2020 Q-o-Q (%) Capital & Liabilities 94,149 97,032 -3% 95,554 -1% Capital 209 181 16% 181 16% Reserves and Surplus 5,598 5,294 6% 5,379 4% Deposits 82,711 83,034 0% 83,537 -1% Borrowings 4,108 6,893 -40% 4,438 -7% Other Lia
Slide 11: Key Metrics – Quarterly
Key Metrics – Quarterly FY20 FY21 Particulars Q4 Q1 Q2 Q3 Q4 Net Interest Margin (NIM) 2.67% 2.62% 2.94% 2.64% 2.61% CRAR Basel III 13.41% 13.49% 13.94% 14.47% 15.42% RoAA (Annualized) (0.59%) 0.33% 0.27% (0.37%) 0.03% Provision Coverage 54.20% 58.76% 65.21% 72.03% 58.73% CASA 25.00% 26.89% 27.81% 2
Slide 12: Highest CASA ratio in the history of the Bank
Highest CASA ratio in the history of the Bank 30,000 (Rs. in Crore) 29.7% 30.0% 25,000 25.0% 24,590 23.8% 23.8% 24.2% 25.0% 20,761 4,321 20,000 19,467 17,142 3,208 20.0% 15,747 3,332 15,000 3,058 2,753 15.0% 10,000 20,269 10.0% 16,135 17,552 12,994 14,084 5,000 5.0% - 0.0% FY17 FY18 FY19 FY20 FY21 S
Slide 13: Deposits
Deposits Deposits (excl. CDs) Rs. in Crore Mar 2021 Mar 2021 Mar 2021 77,857 4,853 82,711 -55% -2% 12% -2% 2% 69,826 10,874 80,700 Mar 2020 Mar 2020 Mar 2020 Core Deposit Bulk Deposit Customer Deposits CASA Deposits Rs. in Crore Mar 2021 Mar 2021 Mar 2021 4,321 20,269 24,590 35% 15% 18% 3,208 17,553
Slide 14: Well Distributed Deposit Base
Well Distributed Deposit Base Breakup of Deposits Break Up of Non-Resident Deposits Rs. in Crore Rs. in Crore 83,034 82,469 82,621 83,537 82,711 Mar Jun Sep Dec Mar Deposit Type 2020 2020 2020 2020 2021 NR SB 5,068 5,609 5,873 6,048 6,065 49,066 50,712 53,241 51,997 53,268 NR CD 26 30 33 36 38 FCNR
Slide 15: Composition of Loan Book
Composition of Loan Book Segment wise Break Up of Total Loan Book Loan Book (Excluding Corporate) Rs. in Crore 17% 25% 45,733 45,701 46,195 45,985 44,697 Corporate Personal Segment Business Loans 33% Agriculture 25% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Break up of Loan book Loan Book Across Regions Ma
Slide 16: Gold loans
Gold loans Gaining traction in Gold loans… (Rs. in Crore) +15% 8,999 Excluding buyout, the YoY growth is 8,823 8,125 8,500 30% 7,816 Launched two products to suit the market demand with better risk adjusted pricing 6,411 5,059 5,194 5,785 6,221 LTV of 77% Separate Vertical Head for Gold busi
Slide 17: Personal Segment
Personal Segment Personal Segment Loans Rs. in Crore 15,755 15,941 15,647 1,060 15,214 14,818 1,190 1,067 1,120 1,504 1,115 1,516 1,442 1,311 1,098 1,225 1,086 1,064 1,014 961 3,885 3,856 3,854 3,701 3,541 2,757 2,931 2,715 2,602 2,588 5,352 5,463 5,503 5,466 5,388 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21
Slide 18: Business loans
Business loans Business Loans (Less than Rs. 25 Crore exposure) MSME Loan Book by Geography Rest of Rs. in Crore Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 India 21% Kerala MSME 15,928 15,889 15,840 15,812 15,084 44% Non-MSME 5,102 4,526 4,929 4,809 4,372 South (Ex- Kerala) Total 21,030 20,415 20,769 20,621
Slide 19: Corporate lending
Corporate lending Corporate Loan Book Standard Large Corporate Advances (Rs.100 Cr and above ) (Rs. in Crores) (Rs. in Crores) 10,121 19,791 20,118 19,154 10,592 10,146 17,368 9,997 9,437 14,721 27 25 22 6,516 18 15 3,177 10 5 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar
Slide 20: Overall stress within guidance
Overall stress within guidance Rs. in Crore H2-2021 Guidance Q4-2021 Slippages 1,600 2,1221 Restructuring 900 351 Total 2,500 2,473 1. Includes Rs. 1,507 Cr which was declared as proforma NPA till Dec 2020. Includes two corporate accounts with exposure of Rs. 205 Crore which were earlier considered
Slide 21: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA In % In % 7.27 4.71 6.97 4.21 3.34 3.09 4.98 4.93 4.87 4.90 2.59 2.12 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Gross NPA Movement Net NPA Movement Rs. Cr. Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Rs. Cr. Mar-20 Jun-20 Sep-20 Dec-20 Mar-2
Slide 22: Stressed Assets
Stressed Assets Restructured Standard Advance Sector Break up (Rs. in Crores) On Account of Kerala Floods 6.0% 7.0% On Account of MSME 20.0% Restructuring General - DCCO Extention 1,205 1,277 OTR COVID Personal Segment 1,065 1,104 848 6.0% OTR COVID MSME 60.0% OTR COVID Others Mar-20 Jun-20 Sep-20 D
Slide 23: Strengthening the Balance Sheet
Strengthening the Balance Sheet Successfully raised Rs. 240 Cr of equity capital in March-2021 through Marquee Investors S. N. Shareholders % 1 HDFC Life Insurance Company Ltd 4.23% 2 Kotak Mahindra Life Insurance Company Ltd 4.23% 3 SBI Life Insurance Company Ltd 4.23% 4 ICICI Lombard General Insur
Slide 24: Capital Composition
Capital Composition Risk Weighted Assets BASEL III Rs. in Crore Mar 31, 2021 Dec 31, 2020 15.4 14.5 14.0 13.4 13.5 Total Capital 7,273.3 15.42% 7,182.7 14.47% - Tier I 6,030.53 12.79% 5,732.1 11.55% - Of which CET1 5,530.5 11.73% 5,232.1 10.54% 11.6 12.8 10.8 11.2 10.8 - Tier II 1,242.8 2.63% 1,450.
Slide 25: Investments
Investments Investment Book as on Mar-21 Details Rs. in Crore Modified Duration HTM 17,792 4.47 AFS 3,373 0.97 HFT 16 - Total 21,180 4.19 SLR NON SLR Rs. in Crore Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 SLR 18,956 18,326 19,828 20,821 18,951 NON-SLR 2,431 2,275 2,187 2,146 2,230 Total 21,387 20,601 22,01
Slide 26: Wide network and young work force
Wide network and young work force Total Employees 01 Q4 FY21: 7,815 Q4 FY20: 7,998 01 04 01 01 Experienced Work Force 05 25 09 01 3% 3% 02 01 01 01 01 19% 34% ~55% of workforce are 04 02 18 01 professionals 01 01 19 03 02 41% Average age of employees 36 40 is ~32 years < 1 Year 1-2 Years 2-5 Years 5
Slide 27: Digital Banking
Digital Banking Digital vs Branch Transactions (In Lakhs) Internet Transaction Volume Mobile Transaction Volume Debit Card Transaction Volumes (000)’s (000)’s In Millions 1,546 32,263 1,461 27.8 27.8 1,314 27,625 1,181 23.9 949 20,905 18.9 18.4 16,629 14,507 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Mar-20
Slide 28: Update on 6C Strategy
Update on 6C Strategy PROFITABILITY through QUALITY CREDIT GROWTH Dedicated asset ATM Product and products desk at Improved CASA rationalization domain experts branches Compliance Successfully from 25% in initiative on boarded culture has been raised Rs. 240 Cr FY2020 to including Credit
Slide 29: Strategic initiatives
Strategic initiatives Data science team set up to strengthen analytics in the area of assets, liability & collection SME underwriting model being developed in collaboration with foreign consultant Integrated treasury system with enhanced features Launching new CRM Next platform with customer 3600 vi
Slide 30: 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; Significant experience in Retail & MSME Credit, Risk Management Policy and Business Intelligence Unit • Previously, Head SME, Head Credit & Risk and Regional Head Inter
Slide 31: Strong Management Team (2/2)
Strong Management Team (2/2) Mr. Thallam Sreekumar, Head Unsecured Products • More than 25 years of experience spanning across various asset and liability business lines • Associated with ICICI Bank for more than 16 years and was Zonal Head of ICICI Bank for South India Region Mr. Nandakumar G, Head
Slide 32: Digital Awards
Digital Awards ASSOCHAM Indian Banking National E-Summit Association (IBA) & Awards Banking Banking & Financial Technology Lending Companies Awards 2021 2021 2021 Best Technology Bank of the Year Digital Deposit in Private Sector Bank Best Use of Data & Analytics for business outcome category.
Slide 33: CSR activities
CSR activities The bank spearheaded renovation work of the Vadakkechira Bus Stand at Installation of dialysis machine in M/s. Maria Theresa Hospital, Thrissur and transformed the same to a hub with all modern amenities Kuzhikkattussery Sponsoring Vehicle for the Palliative care unit of Thrikkakara M
Slide 34: For further information, please contact
For further information, please contact: Company The South Indian Bank Ltd. CIN - L65191KL1929PLC001017 Ms. Chithra H, CFO chithra@sib.co.in Mr. Vijith S, Jt. General Manager vijiths@sib.co.in Mr. Chetan Parmar, Head IR chetanparmar@sib.co.in www.southindianbank.com Investor Relations Advisors Strat
Slide 35: Thank You
34 THANK YOU SOUTH INDIAN Bank Bank on US som
The South Indian Bank — Q4 FY2021 Earnings Presentation on 6ix