South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q2 FY2022 Earnings Presentation
34 slides from South Indian Bank's earnings presentation, Oct 22, 2021
Slide 1: Exchange filing cover letter: Presentation to Investors and Analysts
DEPT: SECRETARIAL REF No. SEC/ST EX.SIT/ 89 /2021-22 October 21, 2021 National Stock Exchange of India Ltd., BSE Ltd. Exchange Plaza, 5th Floor, Department of Corporate Services (Listing), Plot No.C/l, G Block, First Floor, New Trading Wing, Bandra-Kurla Complex, Bandra (E), Rotunda Building, P J To
Slide 2: Investor Presentation Q2-FY2022
PHOTO Investor Presentation Q2-FY2022
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: Recap: Profitability through quality credit growth
RECAP PROFITABILITY through QUALITY CREDIT GROWTH Augment the Fair to Leverage strong Compliance to talent of young Customer, Fair Focused drive on distribution be core for our resources to Bank Beefing up building strong network to entire banking capital to low cost CASA increase total activities R
Slide 5: Major shifts in last one year
Major shifts in last one year… Strides in digital banking- 08 • More than 92% of transactions are done digitally 01 – Asset structure • Mobile transaction volume increased by 118% Set up vertical asset structures with YoY to 46 million transactions domain experts to bring focus on 08 02 business gen
Slide 6: Business transformation
Business transformation Robust review mechanism led an Launched high yielding retail products – Pre-approved Personal Loan and Credit Card improvement in CASA ratio from 25% to 30% Built network of DSA / DSTs Calibrated Bulk deposits by 40% YoY Calibrated lumpy exposures. Churning corporate portfoli
Slide 7: Strengthening digital capabilities
Strengthening digital capabilities Loan Integrated Credit Collection origination Treasury CRM Next SIB Mirror+ underwriting system system system • Tie up with Experian • Tie up with M/s • Can handle our new to developed credit NSEIT-Sumeru Vertical structure, underwriting models Encollect solutions
Slide 8: Key highlights for Q2-2022
Key highlights for Q2-2022 Provision coverage ratio improved by 491 bps QoQ to reach 65.0% GNPA ratio improved by 137 bps to 6.65% and Net NPA ratio improved by 120 bps to 3.85% CASA ratio continue to increase and stands at 30.8% compared to 27.8% same period last year NRI deposits has grown
Slide 9: Operating Performance
Operating Performance Deposits Retail Deposits CASA Advances Q2 FY22: Rs.86,840Cr Q2 FY22: Rs. 82,402.Cr Q2 FY22: Rs.26,773 Cr Q2 FY22: Rs.58,309 Cr + 5% + 10% +17% -11% Q2 FY21: Rs.82,621Cr Q2 FY21: Rs.74,976 Cr Q2 FY21: Rs.22,978 Cr Q2 FY21: Rs.65,349 Cr NII Operating Profit Provisions PCR Q2 FY22
Slide 10: Profit & Loss Overview (Standalone)
Profit & Loss Overview (Standalone) Rs. in Crore Q2-FY22 Q2-FY21 Y-o-Y (%) Q1-FY22 Q-o-Q (%) Net Interest Income 527 663 (21%) 542 (3%) Non Interest Income 99 217 (54%) 448 (78%) - Core Fee Income 117 92 27% 91 29% - Treasury & Forex1 (115) 33 - 249 - - Other 98 92 7% 108 (9%) Total Income 627 880 (
Slide 11: Net Interest Income
Net Interest Income Quarterly (Rs. in Crore) 800 3.50% NII NIM Cost Of Deposits Yield on Advances Cost Of Funds Yield on Funds 2.94% 2.64% 3.00% 600 2.61% 2.55% 2.49% 9.25 2.50% 8.78 8.76 8.77 8.78 400 7.73 7.24 663 7.12 6.82 597 2.00% 6.47 561 542 527 200 5.03 4.85 1.50% 5.44 5.28 5.22 4.96 4.84 4.
Slide 12: Non-Interest Income
Non-Interest Income Core Fee Income Treasury & Forex Income1 (Rs. in Crore) (Rs. in Crore) 251 124 117 104 92 49 92 46 167 46 38 35 237 108 151 75 61 71 96 58 57 46 54 47 33 13 12 16 14 14 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Technology Transaction Fees Profit on sal
Slide 13: Operating Efficiency
Operating Efficiency Employee Additions Cost-to-Income Ratio1 805 82.1 56 -59 -133 60.2 55.6 55.5 48.8 -51 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 1. Ratio restated to give effect to new RBI directions on treatment of Depreciation on Investments and recoveries
Slide 14: Provisions
Provisions (Rs. in Crore) Particulars Q2 FY22 Q1 FY22 Q2 FY21 For NPA & NPI 269 427 275 For Standard Assets 55 56 21 For Restructured Advances/Sacrifices & FITL 52 9 7 For Unhedged Forex Exposure (1) 1 1 Others (13) - (1) Taxes (63) 4 23 Total Provisions 299 497 326 13 Bank on Us
Slide 15: Balance Sheet Overview (standalone)
Balance Sheet Overview (standalone) (Rs. in Crore) Particulars Sep 2021 Sep 2020 Y-o-Y (%) Jun 2021 Q-o-Q (%) Capital & Liabilities 98,624 96,646 2% 94,397 4% Capital 209 181 16% 209 0% Reserves and Surplus 5,421 5,471 -1% 5,608 -3% Deposits 86,840 82,621 5% 84,611 3% Borrowings 4,381 6,463 -32% 2,5
Slide 16: Key Metrics – Quarterly
Key Metrics – Quarterly FY21 FY22 Particulars Q1 Q2 Q3 Q4 Q1 Q2 Net Interest Margin (NIM) 2.62% 2.94% 2.64% 2.61% 2.55% 2.49% CRAR Basel III 13.49% 13.94% 14.47% 15.42% 15.47% 15.74% RoAA (Annualized) 0.33% 0.27% - 0.03% 0.04% - Provision Coverage 58.76% 65.21% 72.03% 58.73% 60.11% 65.02% CASA 26.89
Slide 17: Deposits
Deposits Deposits (excl. CDs) Rs. in Crore Sep 2021 Sep 2021 Sep 2021 82,402 4,437 86,840 -41% -2% 10% -2% 5% 74,976 7,465 82,621 Sep 2020 Sep 2020 Sep 2020 Retail Deposit Bulk Deposit Total Deposits CASA Deposits Rs. in Crore Sep 2021 Sep 2021 Sep 2021 4,370 22,403 26,773 10% 18% 17% 3,965 19,013 2
Slide 18: Well Distributed Deposit Base
Well Distributed Deposit Base Breakup of Deposits Break Up of Non-Resident Deposits Rs. in Crore Rs. in Crore 84,611 86,840 82,621 83,537 82,711 Sep Dec Mar Jun Sep Deposit Type 2020 2020 2021 2021 2021 NR SB 5,873 6,048 6,065 6,566 6,535 54,250 55,630 51,997 53,241 53,268 NR CD 33 36 38 41 45 FCNR
Slide 19: Digital Banking
Digital Banking Digital vs Branch Transactions (no of transactions in Lakhs) 1400 93.0% 92.1% 92.1% 1146.7 92.0% 1200 929.8 91.0% 1000 828.4 841.0 89.8% 90.0% 800 660.6 89.1% 89.0% 600 88.0% 87.2% 87.0% 400 86.0% 200 97.1 101.2 105.7 72.1 99.0 85.0% 0 84.0% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Transac
Slide 20: Composition of Loan Book
Composition of Loan Book Segment wise Break Up of Total Loan Book Loan Book (Excluding Corporate) Rs. in Crore 18% 48,947 25% 48,126 44,697 44,092 43,787 Corporate Personal Segment Business Loans 32% Agriculture 25% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Break up of Loan book Loan Book Across Regions Se
Slide 21: Gold loans
Gold loans Gaining traction in Gold loans… (Rs. in Crore) +11% 9,364 9,471 8,823 8,999 8,500 6,411 6,669 6,722 5,785 6,221 2,715 2,602 2,588 2,695 2,749 Jun-20 Dec-20 Mar-21 Jun-21 Sep-21 Agri Retail LTV of 76% Launched new product, loan against Sovereign Gold Bond given strong demand among reta
Slide 22: Personal Segment
Personal Segment Personal Segment Loans Rs. in Crore 15,647 15,214 14,818 14,675 1,442 1,311 14,380 1,225 1,265 1,067 1,236 1,120 1,115 1,103 1,064 1,111 1,014 961 902 856 3,856 3,701 3,541 3,414 3,240 2,715 2,602 2,588 2,695 2,748 5,503 5,466 5,388 5,296 5,189 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Hou
Slide 23: Business loans
Business loans Business Loans (Less than Rs. 25 Crore exposure) MSME Loan Book by Geography Rest of Rs. in Crore Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 India 20% Kerala MSME/SME 15,840 15,812 15,084 14,509 14,008 45% Others 4,929 4,809 4,372 4,401 4,746 South (Ex- Kerala) Total 20,769 20,621 19,456 18,9
Slide 24: Corporate lending
Corporate lending Corporate Loan Book Standard Large Corporate Advances (Rs.100 Cr and above ) (Rs. in Crores) (Rs. in Crores) 10,592 19,154 10,146 9,997 17,368 9,437 14,721 14,227 14,522 25 6,516 22 22 3,177 15 4,340 10 7 5 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-2
Slide 25: Slippages & collection efficiency
Slippages & collection efficiency Segment wise NPA slippages Rs. in Crore Q2-2022 Agriculture 132 Business Loans 196 Personal Segment 104 Corporate 99 Total 531 Collection efficiency 108% 88% 91% Jul-21 Aug-21 Sep-21 24 Bank on Us
Slide 26: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA In % 8.02 In % 5.05 7.27 6.97 4.71 6.65 5 4.21 3.85 4.87 4.90 3.5 2.59 2.12 2 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Gross NPA Movement Net NPA Movement Rs. Cr. Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Rs. Cr. Sep-20 Dec-20 Mar-21 Jun-
Slide 27: Stressed Assets
Stressed Assets Restructured Standard Advance Sector Break up (Rs. in Crores) On Account of MSME Restructuring 23% General - DCCO Extention 29% OTR COVID Personal Segment 2,310 6% 1,899 OTR COVID MSME 1,205 1,277 10% 1,104 32% OTR COVID Corporate Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Covid One Time Res
Slide 28: Capital Composition
Capital Composition Risk Weighted Assets BASEL III Rs. in Crore Sep 30, 2021 Jun 30, 2021 15.47 15.74 15.42 14.48 13.94 Total Capital 7,214.2 15.74% 7,335.7 15.47% - Tier I 5,853.4 12.77% 6,035.1 12.73% - Of which CET1 5,353.4 11.69% 5,535.1 11.68% 12.79 12.73 12.77 11.16 11.55 - Tier II 1,360.8 2.9
Slide 29: Investments
Investments Investment Book as on Sep-21 Details Rs. in Crore Modified Duration HTM 17,302 3.55 AFS 5,681 0.41 HFT 74 2.00 Total 23,056 2.98 SLR & NON-SLR Rs. in Crore Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 SLR 19,828 20,821 18,951 18,944 20,567 NON-SLR 2,187 2,146 2,230 2,388 2,489 Total 22,015 22,967
Slide 30: Wide network and young work force
Wide network and young work force Total Employees 01 Q2 FY22: 8,487 01 Q1 FY22: 7,682 04 01 01 Experienced Work Force 05 25 10 01 02 01 01 13% 02 01 5% 31% 02 01 04 01 19 01 19 18% 03 03 37 33% 42 5 No of < 1 Year 1-2 Years 2-5 Years 5-10 Years > 10 Years 21 58 Classification Branches1 04 Metropolit
Slide 31: 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 32: Strong Management Team (2/2)
Strong Management Team (2/2) Mr. Nandakumar G, Head SME Business • Associated with SIB for more than 25 years. • Vast experience across business functions like Branch/RO management, Retail Banking including Bancassurance and Marketing. Headed three large metro regions of the Bank. Ms. Chithra H, Chi
Slide 33: 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. Chetan Parmar, Head IR chetanparmar@sib.co.in www.southindianbank.com 32 Bank on Us
Slide 34: Thank You
33 THANK YOU SOUTH INDIAN Bank Bank on US som
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