South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — Q2 FY21 Earnings Presentation
57 slides from South Indian Bank's earnings presentation, October 2020
Slide 1: Bank On Us
Bank Investor Presentation – October 2020 On Us
Slide 2: Contents
Contents Q2 FY21 Highlights Business Strategy Performance Matrix Next Generation Bank About Us 2 Bank on Us
Slide 3: Q2 FY21 Highlights
Q2 FY21 Highlights 3 Bank on Us
Slide 4: Key Quarterly Highlights – Q2 FY21
Key Quarterly Highlights – Q2 FY21 Customer Deposits Advances CASA +9% +2% 296 bps 74,976 63,920 65,349 24.9% 27.8% 68,893 +11% 22,978 20,614 Sep-19 Sep-20 Sep-19 Sep-20 Sep-19 Sep-20 Net Interest Income Treasury & Forex Income Other Core Fee Income +13% +24% -51% 663 93 193 584 156 46 Sep-19 Sep-20
Slide 5: Key Quarterly Highlights – Q2 FY21
Key Quarterly Highlights – Q2 FY21 PPOP Net Profit +1% -23% 411 414 84 65 Sep-19 Sep-20 Sep-19 Sep-20 Provisions PCR (%) +7% 1714 bps 326 65.2% 306 48.1% Sep-19 Sep-20 Sep-19 Sep-20 5 Bank on Us
Slide 6: Business Strategy
Business Strategy 6 Bank on Us
Slide 7: Our Strategy…
Our Strategy… • Retail Banking Department to focus on retail loan & liability/investment products • Efficient branches & processing centers for faster processing of loans Expand Retail • Outbound Sales team Business • Continuous training of work force • Advanced technology for ease of customers • In
Slide 8: …Performance in Line with Strategy
…Performance in Line with Strategy Strengthen Personal Improve CASA Segment base Rs. 22,978 Cr Rs. 14,978 Cr INCREASE INCREASE 11% YoY 4% YoY Expand Agriculture & Reduction of Business Loans base Corporate Exposure Rs. 34,149 Cr Rs. 16,402 Cr INCREASE DECREASE 14% YoY 17% YoY 8 Bank on Us
Slide 9: Shall continue to focus on
Shall continue to focus on 01 Increase … 02 Retail Business … 03 SME Business … CASA More Products Sole Banker Retail MSME Relationships Relationships 06 Sustainable… 05 Increase… 04 Improve Asset Quality Fee Income NIM 9 Bank on Us
Slide 10: ...Increase Retail & MSME Business
...Increase Retail & MSME Business 01 02 03 Centralized Retail Hub Marketing & • Home Loan Processing • Auto Loan • MSME Loan Centre (Kochi) • Mortgage Loan Processing Retail Business • Entire Loan underwriting • Penetrate further in the existing centralised set of Customers • Enhanced risk manageme
Slide 11: …by focus on Housing Loans in Personal Segments
…by focus on Housing Loans in Personal Segments Personal Segment Loans Breakup Housing: Key Initiatives Rs. Cr. 15,025 14,972 15,131 14,245 14,798 • Retail centre in Kochi to increase focus on retail loans 5,249 5,352 5,463 • Dedicated Officers for marketing 5,503 5,075 Retail Loans • Tailor made pr
Slide 12: …becoming a Banker of Choice to SMEs
…becoming a Banker of Choice to SMEs Average MSME Loan / Account MSME Loan Book by Geography Rs. Lakhs Rest of 65.0 India 53.8 54.2 54.9 21% 49.8 Kerala 45% South (Ex- Kerala) 34% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 SME Highlights • Dedicated executive to ensure focus and better coordination with reg
Slide 13: …with the help of our Wide Network
…with the help of our Wide Network Customer Touch Points +2% 900 909 923 929 926 876 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Sep-20 Total ATM Network 3% 1,406 1,424 1,438 1,320 1,382 1,287 Locations* No. Kerala 505 South India (Ex-Kerala) 272 Rest of India 149 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Sep-20 To
Slide 14: … and our Experienced Employees
… and our Experienced Employees Employee Addition Total Employees: 7,818* 304 129 51 7,818 7,637 57 6% 4% 30% 17% 43% < 1 Year 1-2 Years 2-5 Years Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Closing 5-10 Years > 10 Years *Including Full-time officers and clerks 14 Bank on Us
Slide 15: Performance Matrix
Performance Matrix 15 Bank on Us
Slide 16: Strong Deposit Franchise
Strong Deposit Franchise Deposits (excl. CDs) Rs. Cr. Sep 2020 Sep 2020 Sep 2020 74,976 7,645 82,621 -27% 9% 4% 68,893 10,536 79,430 Sep 2019 Sep 2019 Sep 2019 Retail Deposit Bulk Deposit Total Deposits CASA Deposits Sep 2020 Sep 2020 Sep 2020 Rs. Cr. 3,965 19,013 22,978 12% 11% 12% 3,539 17,075 20,
Slide 17: Deposits across Regions
Deposits across Regions Deposits (Excl CD) as on 30.09.2019 30.09.2020 States Growth Amount % Break Up Amount % Break Up Kerala 45,406 57.2% 50,872 61.6% 12.0% Tamil Nadu 7,635 9.6% 7,964 9.6% 4.3% Karnataka 5,998 7.6% 5,593 6.8% -6.8% Maharashtra 6,809 8.6% 4,243 5.1% -37.7% Nct Of Delhi 3,635 4.6%
Slide 18: Retail Deposits Growing...
Retail Deposits Growing... Breakup of Deposits Rs. Cr. 82,946 84,874 83,034 82,469 82,621 Term 49,281 48,279 49,066 50,712 51,997 Savings Current Bulk CD 17,075 17,518 17,552 18,331 19,013 3,539 3,904 3,208 10,536 9,748 3,848 3,965 10,874 9,578 3,517 4,423 2,334 7,645 Sep-19 Dec-19 Mar-20 Jun-20 Sep
Slide 19: Break Up of Non-Resident Deposits
Break Up of Non-Resident Deposits NRI Deposits Sep Dec Mar Jun Sep Deposit Type Rs. Cr. 2019 2019 2020 2020 2020 25,287 24,661 NR SB 4,576 4,754 5,068 5,609 5,873 23,710 22,640 23,105 NR CD 25 27 26 30 33 FCNR (B), RFC & 1,925 1,942 1,907 1,850 1,847 Others Low-Cost NRI Deposit 6,526 6,723 7,001 7,4
Slide 20: Composition of Loan Book
Composition of Loan Book Corporate Advances (Rs. 25 Cr and above ) Advances (Excl. Corporate) (Below Rs. 25 Cr) Rs. Cr. Rs. Cr. +11% -17% 19,705 46,865 47,563 48,947 19,713 18,659 18,256 44,215 45,621 16,402 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Segment wise Break Up
Slide 21: Large Corporate Loan Book
Large Corporate Loan Book Standard Large Corporate Advances (Rs.100 Cr and above ) -53% 10,121 10,592 10,146 9,997 9,437 6,516 4,791 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Sep-20 21 Bank on Us
Slide 22: Advance across Regions
Advance across Regions Advance as on 30.09.2019 30.09.2020 States Growth Amount % Break Up Amount % Break Up Kerala 26,491.0 41.4% 28,157.6 43.1% 6.3% Tamil Nadu 12,173.0 19.0% 12,538.3 19.2% 3.0% Maharashtra 8,174.0 12.8% 7,182.0 11.0% -12.1% Karnataka 3,948.0 6.2% 4,265.3 6.5% 8.0% Telangana 3,385
Slide 23: Composition of Loan Book
Composition of Loan Book Break up of Loan book Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Advances (Rs. Cr) Number Value Number Value Number Value Number Value Number Value Less than 5 Cr 370,095 31,725 369,517 32,821 374,069 33,462 367,238 33,195 3,72,510 32,993 5 - 25 Cr 1,183 11,246 1,369 11,310 1,239 11
Slide 24: Rating Profile of Large Corporate Loan Book
Rating Profile of Large Corporate Loan Book Standard Advances above Rs. 100 Cr. External Rating 19.1% 20.0% 18.7% 21.0% 22.4% 36.0% 34.5% 35.7% 37.2% 37.4% 16.0% 6.2% 15.8% 14.8% 12.5% 20.1% 21.1% 20.3% 23.9% 26.5% 9.7% 14.0% 9.0% 5.2% 3.0% Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 AAA AA A BBB <BBB 24 Ban
Slide 25: Key Focus: Personal Segments, MSME & Agriculture
Key Focus: Personal Segments, MSME & Agriculture Personal Segment Loans (Incl. Gold) Rs. Cr. Personal segment loans 15,025 14,972 15,131 14,798 covers all loans given to 14,245 individuals Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Agriculture and Business Agriculture (Incl. Agri Gold) MSME (Incl. MSME Gold
Slide 26: Advances Across Regions
Advances Across Regions Rs. Cr. 63,920 65,334 65,524 65,349 63,652 17,293 16,977 16,884 16,229 17,579 20,683 20,715 20,757 20,962 19,898 26,443 27,358 27,832 28,178 28,158 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Rest of India South Ex- Kerala Kerala 26 Bank on Us
Slide 27: Net Interest Income - Quarter
Net Interest Income - Quarter Net Interest Income Cost of Deposits & Yield on Advances Rs. Cr. In % Cost Of Deposit Yield on Advances 663 584 602 596 587 9.78 9.82 9.59 9.35 9.25 6.24 6.14 6.00 5.78 5.44 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Net Interest Margin C
Slide 28: Net Interest Income - Cumulative
Net Interest Income - Cumulative Net Interest Income Cost of Deposits & Yield on Advances Rs. Cr. In % 2,317 Cost Of Deposit Yield on Advances 1,722 9.73 9.76 9.74 9.35 9.30 1,250 1,120 587 6.28 6.23 6.19 5.78 5.61 H1FY20 9MFY20 FY20 Q1FY21 H1FY21 H1 FY20 9M FY20 FY20 Q1 FY21 H1 FY21 Net Interest Ma
Slide 29: Improving Operating Efficiency
Improving Operating Efficiency Employee Additions Cost-to-Income Ratio In % 304 57 53.9 53.4 53.7 50.6 51.1 -129 -80 -51 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Business per Employee Business per Branch Rs. Cr. Rs. Cr. 17.9 17.9 17.3 17.9 18.1 166 168 168 164
Slide 30: Non Interest Income
Non Interest Income Core Fee Income Treasury & Forex Income Rs. Cr. Rs. Cr. 79 106 63 57 60 42 33 226 36 33 29 140 57 57 65 54 83 49 32 33 10 11 12 7 13 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Transaction Fees Technology Other Profit on Sale of Investments Forex Investm
Slide 31: Break Up of Provisions
Break Up of Provisions Particulars (Rs. Cr.) Q2 FY21 Q1 FY21 Q2 FY20 For NPA & NPI 286 326 284 For Depreciation on Investments 13 (58) (1) For Standard Assets 21 30 3 For Restructured Advances/Sacrifices & FITL 7 (1) 9 For Unhedged Forex Exposure 1 0 0 Others (1) (3) 12 Taxes 23 29 21 Total Provisio
Slide 32: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA 3.48 3.44 4.96 4.98 3.34 4.92 4.93 4.87 3.09 2.59 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Gross NPA Movement Net NPA Movement Rs. Cr. Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Rs. Cr. Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Opening 3,154 3,14
Slide 33: Stressed Assets - QoQ
Stressed Assets - QoQ Gross Basis Net Basis Rs. Cr. Q1 FY21 Q2 FY21 Q1 FY21 Q2 FY21 NPA 3,245 3,182 1,993 1,655 Restructured Standard Advance 1,065 1,104 1,010 1,045 Other Stressed Advances - - - - Total Stressed Assets 4,310 4,286 3,003 2,700 Advances 65,819 65,349 64,593 63,817 Stressed Assets 6.5
Slide 34: Restructured Advances Breakup
Restructured Advances Breakup Restructured Standard Advance Rs. Cr. 1,065 1,104 848 742 538 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Rs. Cr. Sector Breakup Security Receipts Outstanding as on Sep 30, 2020 Book Value Provision NAV 5.0% 15.0% 1310.89* 553.22 750.91 *of which Rs.993 Crore pertains to a singl
Slide 35: Restructured Standard Asset Book
Restructured Standard Asset Book Rs. Cr. Restructured Standard Advances Inc/(Dec) in Upgradation Fresh Slippages to Closing Opening Existing from NPA to Addition NPA Balance Balance Std. Infra Roads - - - - - - Construction - - - - - - EPC Under MSME 858 27 2 - - 887 Restructuring Under Kerala 173 -
Slide 36: Fresh Slippages / Advance Ratios
Fresh Slippages / Advance Ratios Personal Segment Slippage Agriculture Slippage 0.17% 0.41% 0.10% 0.12% 0.30% 0.08% 0.19% 0.17% 0.02% 0.01% Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Business Segment Slippage Corporate Slippage 0.78% 1.36% 1.26% 0.63% 0.67% 0.59%
Slide 37: Capital Composition
Capital Composition BASEL III In % 13.9 13.4 13.5 12.1 12.0 2.8 2.6 2.7 2.5 2.4 10.8 10.8 11.2 9.6 9.6 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Tier 2 Tier 1 37 Bank on Us
Slide 38: Profit & Loss Overview
Profit & Loss Overview Rs. Cr. Q2 FY21 Q2 FY20 Y-o-Y (%) Q1 FY21 Q-o-Q (%) Net Interest Income 663 584 13% 587 13% Other Income 240 249 -4% 285 -16% - Core Fee Income 194 156 24% 139 40% -Treasury & Forex 46 93 -51% 146 -69% Total Income 903 833 8% 872 4% Operating Expenses 489 422 16% 468 4% Operat
Slide 39: Balance Sheet Overview
Balance Sheet Overview Rs. Cr. Sep 2020 Sep 2019 Y-o-Y (%) Jun 2020 Q-o-Q (%) Capital & Liabilities 96,646 94,955 2% 96,322 0% Capital 181 181 0% 181 0% Reserves and Surplus 5,471 5366 2% 5,391 1% Deposits 82,621 82,947 0% 82,469 0% Borrowings 6,462 4773 35% 6,248 3% Other Liabilities & Provisions 1
Slide 40: Key Metrics - Quarterly
Key Metrics - Quarterly FY18 FY19 FY20 FY21 Particulars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Interest Margin 2.80% 2.95% 2.88% 2.73% 2.60% 2.61% 2.66% 2.46% 2.53% 2.69% 2.72% 2.67% 2.62% 2.94% (NIM) CRAR Basel III 12.1% 11.7% 12.5% 12.7% 12.2% 12.1% 11.8% 12.6% 12.2% 12.1% 12.0% 13.4% 13.5%
Slide 41: COVID 19: Operational Impact
COVID 19: Operational Impact Quick Response Team is taking proactive steps to ensure business continuity. This is being reviewed periodically. Appropriate measures are taken as part of Business Continuity Plan, in order to ensure that no interruptions occur in any of the business activities. E
Slide 42: COVID 19: Moratorium
COVID 19: Moratorium Assessment of Loan Portfolio under Covid impact Rs. Cr. June 30, 2020 August 31, 2020 Portfolio Moratorium Portfolio Moratorium Sector % % extended extended Agriculture 9,778 1,112 11.4% 9,999 1,107 11.1% Business Loans 22,654 9,015 39.8% 24,150 6,292 26.1% Personal Segments 15,
Slide 43: Next Generation Bank
Next Generation Bank 43 Bank on Us
Slide 44: Present across Customer Touch Points
Present across Customer Touch Points Traditional & Alternate Channels SIB Mirror + Mobile Banking ATMs Branches 1,438 ATMs across India 875 Branches & 51 Extension Counters Internet Banking Point of Sale 44 Bank on Us
Slide 45: Technology Initiatives
Technology Initiatives Mirror + is an all in one stop for your mobile banking needs, with additional features as IMPS (24/7) fund transfer, NEFT fund transfers, and full access to account information, and much more SIBerNet is a suite of comprehensive internet banking services positioning SIB as a t
Slide 46: SIB Mirror+ - New Age Banking
SIB Mirror+ - New Age Banking 100+ features • 100+ Banking and payment features with enhanced UI/UX Recent Capsules • Enables quick checkouts for frequent payments UNIQUE IN BANKING INDUSTRY Instant Account • Instant Online Account opening • Attractive fund transfer flow with iconography, receipt sh
Slide 47: Digital Initiatives
Digital Initiatives Channel Enhancements Digital Onboarding of new to bank customers, has Paperless instant account opening using augmented our customer base. Further, our Mobile & Aadhar and PAN. No forms to fill. No Internet Banking channels have been enhanced to facilitate queue. branch processes
Slide 48: Personal Banking: Technology Banking
Personal Banking: Technology Banking Active Internet Users Internet Transaction Volume Internet Transaction Value (000)’s (000)’s Rs. Cr. 1,314 12,201 1,125 1,178 1,181 9,638 10,102 949 8,783 7,373 451.00 472.00 487.00 477.00 425.00 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-19 Dec-19 Mar-20 Jun-20 Sep-
Slide 49: Personal Banking: Debit Cards
Personal Banking: Debit Cards No. of Active Debit Cards Debit Card Transaction Volumes In Millions In Millions 3.1 3.1 28.1 29.5 27.8 23.9 3.0 18.9 2.9 2.8 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Debit Card Transaction Value Rs. Cr. 8,292 7,948 7,766 7,448 5,462 Sep-19
Slide 50: Third-Party Tie Ups
Third-Party Tie Ups • Kotak Mahindra Life Insurance • Max Bupa Health Insurance • SBI Life Insurance • Manipal Cigna Health Insurance • LIC of India • Reliance Asset Management • TATA Asset Management • HDFC Mutual Fund • DSP Blackrock Mutual Funds • Aditya Birla Sun Life Asset Management • ICICI Pr
Slide 51: About Us
About Us 51 Bank on Us
Slide 52: Leadership Team
Leadership Team Mr. Murali Ramakrishnan, MD & CEO Post Graduate Diploma in Finance and Marketing from IIM – Bangalore with over 32 years of experience Significant experience in Retail & MSME Credit, Risk Management, Policy and Business Intelligence Unit Joined ICICI Bank as one of key team mem
Slide 53: Leadership Team
Leadership Team Mr. Thomas Joseph K, EVP (Operations) • Bachelors Degree in Engineering and Diploma in Management & CAIIB • He is associated with SIB since 1984 and heads Departments such as Risk Management, Technology, Marketing, Corporate Financial Management, Human Resource and Inspection & Vigil
Slide 54: Management Team
Management Team Mr. Raphael T.J., Chief General Manager (Chief Information Officer) • Bachelors Degree in Commerce, Masters in EXIM, Diploma in Financial Management and CAIIB Mr. Anto George T, Senior General Manager (Head of Inspection & Vigilance Department and Chief of Internal Vigilance) • Bache
Slide 55: Management Team
Management Team Mr. Sanchay Kumar Sinha (Country Head - Retail Banking) • Bachelor’s degree in Arts, Post Graduate Certificate in Business Management (XLRI) Mrs. Chithra H, Chief Financial Officer • Bachelors Degree in Commerce • Fellow member of the Institute of Chartered Accountants of India • Cer
Slide 56: 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 correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Cert
Slide 57: For further information, please contact:
For further information, please contact: Company Investor Relations Advisors The South Indian Bank Ltd. Strategic Growth Advisors Pvt. Ltd. CIN - L65191KL1929PLC001017 CIN - U74140MH2010PTC204285 Ms. Chithra H, CFO Mr. Shogun Jain / Mr. Sagar Shroff chithra@sib.co.in shogun.jain@sgapl.net / sagar.sh