South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q2 FY2023 Earnings Presentation
39 slides from South Indian Bank's earnings presentation, Oct 20, 2022
Slide 1: Exchange filing cover letter
DEPT: SECRETARIAL REF No. SEC/ST EX.STT/ 103 /2022-23 October 20, 2022 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), Rotunda Building, P J T
Slide 2: Investor Presentation Q2-FY2023
PHOTO Investor Presentation Q2-FY2023
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: Transformation Journey
Transformation Journey Oct 2020 - Sep 2022 Added Rs. 7,570 crore of CASA from Rs. 22,978 crore to reach Rs. 30,548 crore CASA Deposits CASA ratio improved from 27.81% to 34.53% (+672 bps) Advances (New Book) New book of Rs. 33,768 Cr with NIM of 3.60%, GNPA of 0.03%* & SMA2 of 0.32% Capital adequacy
Slide 5: Consolidation of Advances
Consolidation of Advances Churned around 50% of overall loan book since October 1, 2020 Rs. in crore Old Book New Book Total Book Achieved disbursements of Rs. 26,089 Cr during 1st HY23 vs Rs. 8,809 Cr during 1st HY22 led by Corporate - Rs. 15,384 Cr (Rs. 3,353 Cr), Gold - Rs. 5,746 Cr Loan book 3
Slide 6: Key highlights for Q2-2023
Key highlights for Q2-2023 Reported Profit after Tax (PAT) of Rs. 223 crore as against a loss of Rs. 187 crore on Y-o-Y basis Highest ever NII of Rs. 726 crore for the Q2 FY 2023 compared to Rs. 527 crore on Y-o-Y basis Recorded highest half yearly disbursement of Rs. 26,089 crore in the last
Slide 7: Key highlights for Q2-2023
Key highlights for Q2-2023 Capital adequacy position continued to be robust with CRAR of 16.04% and Tier I ratio of 13.42% Significant improvement in ROA (Annualized) at 0.65% against (0.36%) Y-o-Y Significant improvement in ROE (Annualized) at 10.81% against (6.26%) Y-o-Y Reduction in Gross
Slide 8: Key highlights of the Transformation Journey - Business Parameters
Key highlights of the Transformation Journey - Oct 2020 - Sep 2022 Business Parameters CASA CASA to Deposit % Total Business Rs. in Crore +672 bps Rs. in Crore 1,56,440 +33% 30,548 35% +6 % 26,773 31% 28% 22,978 1,47,969 1,45,148 Sep-20 Sep-21 Sep-22 Sep-20 Sep-21 Sep-22 Sep-20 Sep-21 Sep-22 Disburs
Slide 9: Key highlights of the Transformation Journey - Asset Quality Parameters
Key highlights of the Transformation Journey - Oct 2020 - Sep 2022 Asset Quality Parameters PCR Incl. W/off PCR Excl. W/off +1859 bps 72.79 +2323 bps 57.29 65.02 43.84 54.20 34.06 Mar-20 Sep-21 Sep-22 Mar-20 Sep-21 Sep-22 PCR base figure is as on March 2020 due to Covid moratorium till September 202
Slide 10: Key highlights of the Transformation Journey - Profitability Parameters
Key highlights of the Transformation Journey - Oct 2020 - Sep 2022 Profitability Parameters RoE (Annualised) RoA (Annualised) NII (Quarterly) 10.80 Rs. in Crore 726 +562 bps +10% 0.65 663 +117% 527 5.18 0.30 Sep-20 Sep-21 Sep-22 Sep-20 Sep-21 Sep-22 -0.36 Sep-20 Sep-21 Sep-22 -6.26 NIM (Quarterly) C
Slide 11: Concentrated efforts in recoveries and collections
Concentrated efforts in recoveries and collections Recoveries & Upgrades continue to be on focus…. SMA2 book has reduced by 58% YoY Rs. in crore 1464 Rs. in crore 1840 1330 690 1102 662 892 530 765 FY 2020 FY 2021 FY 2022 H1 2023 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Significant improvement in PCR Net
Slide 12: Operating Performance
Operating Performance Deposits Retail Deposits CASA Advances Q2 FY23: Rs. 88,477 Cr Q2 FY23: Rs. 87,111 Cr Q2 FY23: Rs.30,548 Cr Q2 FY23: Rs.67,963 Cr + 2% + 6% +14% +17% Q2 FY22: Rs.86,840 Cr Q2 FY22: Rs. 82,402 Cr Q2 FY22: Rs.26,773 Cr Q2 FY22: Rs.58,309 Cr NII Profit After Tax Provisions PCR Q2 F
Slide 13: Profit & Loss Overview (Standalone)
Profit & Loss Overview (Standalone) Rs. in Crore Q2-FY23 Q2-FY22 Y-o-Y (%) Q1-FY23 Q-o-Q (%) FY22 Net Interest Income 726 527 38% 603 20% 2,240 Non Interest Income 255 157 62% 246 4% 1,034 - Core Fee Income 142 116 22% 128 12% 477 - Treasury & Forex 25 (115) - 4 525% 126 - Other 89 156 (43%) 114 (22
Slide 14: Net Interest Income
Net Interest Income Quarterly (Rs.in Crore) Net Interest Income NIM 3.21% 800 726 2.80% 2.74% 700 598 603 2.49% 2.64% 600 527 573 500 400 300 200 100 0 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Cost Of Funds Yield on Funds Cost Of Deposits Yield on Advances 8.78
Slide 15: Non-Interest Income
Non-Interest Income Core Fee Income Treasury & Forex Income1 (Rs. in Crore) (Rs. in Crore) 142 142 61 127 128 117 53 64 70 53 60 46 47 36 37 30 26 17 10 17 71 74 78 72 68 16 16 19 14 13 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Transaction Technology Forex Profi
Slide 16: Operating Efficiency
Operating Efficiency Employee Additions Cost-to-Income Ratio 805 113 345 82.1 64.8 64.1 155 62.7 75 56.6 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Business per Employee Business per Branch (Rs. in Crore) (Rs. in Crore) 162 163 16.2 15.9 154 154 155 16.0 16.1 16.
Slide 17: Provisions
Provisions (Rs. in Crore) Particulars Q2FY23 Q1 FY23 Q2FY22 For NPA & NPI 166 181 327 For Standard Assets 5 (28) 55 For Restructured Advances/Sacrifices & FITL 0 2 52 For Unhedged Forex Exposure (2) 1 -1 Others 11 (16) -13 Taxes 23 62 -63 Total Provisions 203 202 357 16 Bank on Us
Slide 18: Balance Sheet Overview (standalone)
Balance Sheet Overview (standalone) (Rs. in Crore) Particulars Sep 2022 Sep 2021 Y-o-Y (%) Jun 2022 Q-o-Q (%) Capital & Liabilities 1,05,761 98,624 7% 1,00,632 5% Capital 209 209 0% 209 0% Reserves and Surplus 6,037 5,421 11% 5,813 4% Deposits 88,477 86,840 2% 88,196 0% Borrowings 8,538 4,381 95% 4,
Slide 19: Key Metrics – Quarterly
Key Metrics – Quarterly FY23 FY22 Particulars Q1 Q1 Q1 Q2 Q3 Q4 Net Interest Margin (NIM) 3.21% 2.74% 2.55% 2.49% 2.64% 2.80% CRAR Basel III 16.04% 16.25% 15.44% 15.75% 15.68% 15.86% RoAA (Annualized) 0.65% 0.46% 0.04% - - 1.10% Provision Coverage 72.79% 70.11% 60.11% 65.02% 68.08% 69.55% CASA 34.53
Slide 20: Deposits
Deposits Deposits Rs. in Crore Sep 2022 Sep 2022 Sep 2022 88,477 1,366 87,111 -69% -2% 2% -2% 6% 86,840 4,437 82,402 Sep 2021 Sep 2021 Sep 2021 Retail Deposit Bulk Deposit Total Deposits CASA Deposits Rs. in Crore Sep 2022 Sep 2022 Sep 2022 5,010 25,538 30,548 15% 14% 14% 4,370 22,403 26,773 Sep 202
Slide 21: Well Distributed Deposit Base
Well Distributed Deposit Base Breakup of Deposits Break Up of Non-Resident Deposits Rs. in Crore Rs. in Crore 88,348 89,142 88,196 88,477 86,840 Sep Dec Mar Jun Sep Deposit Type 2021 2021 2022 2022 2022 NR SB 6,535 6,824 6,980 7,198 7,101 55,922 55,719 56,125 56,563 55,630 NR CD 45 49 50 53 53 FCNR
Slide 22: Digital Banking
Digital Banking Digital vs Branch Transactions (no of transactions) (000)’s 2500.0 95.0% 94.1% 1825.2 94.4% 1563.9 2021.6 94.5% 2000.0 94.0% 93.3% 93.5% 1500.0 1146.7 92.9% 1363.7 93.0% 92.5% 1000.0 92.1% 92.0% 500.0 91.5% 99.0 103.6 113.1 113.4 119.4 91.0% 0.0 90.5% Sep-21 Dec-21 Mar-22 Jun-22 Sep-
Slide 23: Composition of Loan Book
Composition of Loan Book Segment wise Break Up of Total Loan Book Loan Book (Excluding Corporate) Rs. in Crore 20% 43,787 44,144 44,891 46,101 47,330 30% Corporate Personal Segment Business Loans 27% Agriculture 23% Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Break up of Loan book Loan Book Across Regions Se
Slide 24: Gold loans
Gold loans Consistent traction in Gold loans… (Rs. in Crore) 11,961 12,913 +36% 10,766 9,862 9,471 9,804 9,064 8,151 6,722 7,146 2,749 2,716 2,897 3,107 2,615 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Agri Retail 23 Bank on Us
Slide 25: Personal Segment
Personal Segment Personal Segment Loans Rs. in Crore 15,540 14,928 14,380 14,736 14,612 1,392 2,648 1,236 1,761 2,088 1,111 1,150 1,151 1,168 1,240 856 1,309 1,247 1,181 1,122 3,240 3,094 2,884 2,740 2,619 2,748 2,716 2,897 3,107 2,615 5,189 5,075 4,954 4,854 4,805 Sep-21 Dec-21 Mar-22 Jun-22 Sep 22
Slide 26: Business loans
Business loans Business Loans (Less than Rs. 25 Crore exposure) MSME Loan Book by Geography Rest of Rs. in Crore Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 India 20% Kerala MSME/SME 14,008 13,576 13,391 13,093 13,126 45% Others 4,746 4,789 4,958 5,278 5,298 South (Ex- Kerala) Total 18,754 18,365 18,349 18,3
Slide 27: Corporate lending
Corporate lending Corporate Loan Book Standard Large Corporate Advances (Rs.100 Cr and above ) (Rs. in Crore) (Rs. in Crore) 18,603 20,632 10,146 9,997 10,963 16,925 9,437 14,522 15,082 6,516 22 6,867 18 3,177 15 16 10 11 5 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21
Slide 28: Slippages & collection efficiency
Slippages & collection efficiency Segment wise NPA slippages Collection efficiency Rs. in Crore Q2-2023 102.2% Agriculture 67 100.6% 100.9% 97.5% Business Loans 174 95.1% Personal Segment 42 Corporate 67 Total 350 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Segment wise GNPA Rs. in Crore Q2-2022 Q3-2022
Slide 29: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA In % In % 6.65 6.56 5.90 5.87 5.67 3.85 3.52 2.97 2.87 2.51 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Gross NPA Movement Net NPA Movement Rs. Cr. Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Rs. Cr. Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Opening
Slide 30: Stressed Assets
Stressed Assets Restructured Standard Advance Sector Break up (Rs. in Crore) 2,567 2,417 On Account of MSME 2,310 Restructuring 2,198 14% 21% 1,997 General - DCCO Extention 4% OTR COVID Personal Segment 15% OTR COVID MSME 46% OTR COVID Corporate Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Covid One Time Rest
Slide 31: Capital Composition
Capital Composition Risk Weighted Assets BASEL III 16.25 16.04 Rs. in Crore Sep 30, 2022 Jun 30, 2022 15.47 15.75 15.68 Total Capital 7,300.9 16.04% 7,261.6 16.25% - Tier I 6,107.6 13.42% 6,087.4 13.62% - Of which CET1 5,607.6 12.33% 5,587.4 12.51% 13.62 12.78 12.72 13.22 13.42 - Tier II 1,193.2 2.6
Slide 32: Investments
Investments Investment Book Sep 21 Mar 22 Sep 22 Details Rs. in Modified Modified Modified Rs. in Crore Rs. in Crore Crore Duration Duration Duration HTM 17,302 3.55 19,365 3.04 19,308 2.79 AFS 5,681 0.41 3,036 0.97 6,439 0.87 HFT 74 2.00 132 1.67 405 4.59 Total 23,056 2.98 22,534 2.91 26,152 2.44 S
Slide 33: Wide network and young work force
Wide network and young work force Total Employees 01 Q2 FY23: 9,608 01 Q1 FY23: 9,553 04 01 01 Experienced Work Force 05 26 11 01 02 01 13% 02 02 01 34% 11% 02 01 04 19 01 20 03 13% 03 39 29% 42 5 < 1 Year 1-2 Years 2-5 Years 5-10 Years > 10 Years 22 No of 58 Classification Branches 04 Metropolitan
Slide 34: Awards & Recognitions
Awards & Recognitions Our Mirror+ App won the BFSI Leadership Awards 2022 in We won an award for 'Best HR Practice in Finance sector' Mr. Vinod G Head – Data Science Department felicitated with the "Best App Modernization Project of The Year" category at the National Awards for BFSI by ET Ascent. Ms
Slide 35: Onnichirikam Oonjaladam - The Largest Oonjal Gathering
Onnichirikam Oonjaladam - The Largest Oonjal Gathering to spread the message of Unity and Prosperity The South Indian Bank Limited uniquely celebrates the festive spirit of ‘Swinging together, in unity and prosperity’ with the event Onnichirikam Oonjaladam and creates a record in ‘The World Book Of
Slide 36: 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 37: Strong Management Team (2/2)
Strong Management Team (2/2) Ms. Chithra H, GM & Chief Financial Officer • Fellow member of the Institute of Chartered Accountants of India & Certified Associate of the Indian Institute of Banking & Finance. • Associated with SIB for over 26 years. Rich experience in the field of Finance, Compliance
Slide 38: 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. Prashanth George Tharakan, Head IR prashanthgt@sib.co.in www.southindianbank.com 37 Bank on Us
Slide 39: Thank You
38 THANK YOU TH DIAN Bank Bank on Us wm
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