South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — Q4 FY2024 Earnings Presentation
42 slides from South Indian Bank's earnings presentation, 2024
Slide 1: Investor Presentation - Q4-FY 2024
Investor Presentation - Q4-FY 2024 1
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: Table of contents
Table of contents A Brief Snapshot B Transformation Journey of the Bank C About South Indian Bank – Key Investment Highlights D Annexures 3
Slide 4: Brief Snapshot
Brief Snapshot Transformation Journey of the Bank About South Indian Bank – Key Highlights Annexure 4
Slide 5: Brief Snapshot (Mar'24)
Brief Snapshot (Mar’24) Multi-pronged Maintaining healthy Consistently delivering Large Scale distribution strategy asset quality robust shareholder returns 4.50% INR 80,426 Cr 955 / 9,836 GNPA INR 1,070.1 Cr Total Advances Branches/ Employees PAT 1.46% NNPA INR 95,040 Cr 26 / 4 3.31% Disbursement (
Slide 6: Transformation Journey of the Bank
Brief Snapshot Transformation Journey of the Bank About South Indian Bank – Key Highlights Annexure 6
Slide 7: Significant transformation of business since September 2020
Significant transformation of business since September 2020 Churned around 70% of overall loan book since October 1, 2020 As of Key Considerations in Current Book ( As of Mar’24) Sep’20 transformation Journey Overall Rs. in crore Old Book New Book Old Book Book Focus on A+ rated in large Loan book
Slide 8: Leading to improvement in various key metrics - Mar 2023 vs Mar 2024
Leading to improvement in various key metrics- Mar 2023 vs Mar 2024 Total Business Gross Advances Retail Deposits CASA Rs. in Crore Rs. in Crore Rs. in Crore Rs. in Crore +11% +12% +9% 1,82,346 80,426 32.98 % 32.08% 97,743 1,63,743 72,092 89,615 +8% 32,693 30,227 Mar'23 Mar'24 Mar'23 Mar'24 Mar'23 M
Slide 9: About South Indian Bank – Key Highlights
Brief Snapshot Transformation Journey of the Bank About South Indian Bank – Key Highlights Annexure 9
Slide 10: Key Highlights
Key Highlights 06 Diversified Loan Book with focus Strong Management team and on A-rated corporate loans 01 05 robust Financial Performance Pan India presence with focus on Focus on Digital channel to drive diversification operating efficiency 04 Strong focus on Asset Quality and Well Distributed De
Slide 11: #1. Diversified Loan Book with granularity and growth
#1. Diversified Loan Book with granularity and growth Well diversified loan book with ~60% other than corporates Focused on Granularity with reduction in ticket size* Rs. in Crore 68,384 74,004 76,806 19% 20% 25% 24% 12% 8% 9% 40% Corporate 15% 12% 12% Personal Segment 19% Business Loans 53% 55% 55%
Slide 12: #1. Increasing share of A rated corporate loans
#1. Increasing share of A rated corporate loans Corporate Loan Book * Standard Large Corporate Advances (Rs. in Crore) (Rs.100 Cr & above ) 32,084 29,892 (Rs. in Crore) 18,539 27,522 27,491 13,705 23,523 9,437 6,516 6,867 23 3,177 19 15 10 11 5 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Mar-23 Jun-23
Slide 13: #1. MSME Loans comprise mainly of High-Yield Portfolio
#1. MSME Loans comprise mainly of High-Yield Portfolio Focus on MSME segment in business loan… Geographic split Rest of India Rs. in Crore 19% Others Kerala 30% 45% Mar’24 Mar’24 Rs. Rs. 15,337 Cr 15,337 Cr South (Ex-Kerala) MSME/SME 36% 70% MSME strategic initiatives …while creating a granular and
Slide 14: #2. Pan India presence with focus on diversification
#2. Pan India presence with focus on diversification 01 Diversifying Loan Book outside Kerala… 01 Rest of Rest of 05 01 India India Kerala 01 25% Kerala 35% 31% 07 26 Rs. 40% Rs. 72,092 Cr 80,426 Cr 12 01 04 02 01 South (Ex- South (Ex- 02 01 Kerala) Kerala) 02 35% 34% 04 03 20 01 Mar-23 24 Mar-24 03
Slide 15: #3. 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 6.97 1814 5.90 Rs. in crore 1642 4.92 4.98 5.14 1464 4.71 4.50 3.45 3.34 2.97 1.86 1.46 690 530 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Gross NPA % Net NPA % F
Slide 16: #4. Well Distributed Deposit Base with stable Cost of Funds
#4. Well Distributed Deposit Base with stable Cost of Funds Breakup of Deposits Rs. in Crore 99,155 101,920 Yield on funds and Cost of funds 97,085 95,499 Cost Of Funds Yield on Funds 91,651 7.44 7.34 7.49 7.53 7.78 63,559 65,050 4.71 4.79 60,876 62,348 4.21 4.41 4.57 59,387 Q4FY23 Q1FY24 Q2FY24 Q3F
Slide 17: #5. Digital Banking has been rising
#5. Digital Banking has been rising… Taken various digital initiatives… …leading to a rise in transactions with a high digital share (000)’s 3500.0 2828.2 3035.5 Customer Experience Digital Onboarding 3143.498.0% 3000.0 97.0% 97.5% 2627.7 UPI Lite 2459.1 97.5% 97.0% 2500.0 97.5% Rupay Wearable 9
Slide 18: …creating operational efficiency
…creating operational efficiency Employee Additions Cost-to-Income Ratio (Quarterly) 227 61.19% 61.98% 64.48% 53.30% 58.07% 77 -14 -47 -91 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Improving productivity metrics (Rs. in Crore) Business per Employee (Rs. in Crore
Slide 19: …Focus on Retail advances and CASA
…Focus on Retail advances and CASA ….Improving Credit Quality ….Increased loan disbursals Ever 30 in 6 MOB* (Excl. corporate) (Rs. in Crore) 29,233 2.10 22,106 22,342 21,349 1.40 17,835 1.00 0.90 0.90 13,534 Growth of 31% 0.80 12,535 10,863 Q1FY2023 Q2FY2023 Q3FY2023 Q4FY2023 Q1FY2024 Q2FY2024 Q1FY2
Slide 20: #6. Robust Track Record of Financial Performance
#6. Robust Track Record of Financial Performance Total Business Gross Advances Disbursements Rs. in Crore Rs. in Crore Rs. in Crore 95,040 1,82,346 80,426 1,63,743 1,48,558 1,50,957 72,092 54,800 1,42,128 65,524 59,418 61,816 24,533 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Mar-22 Jan-22 Mar
Slide 21: Five Areas of Focus
Five Areas of Focus • Enhancing Portfolio Resilience • Improving Branch Productivity • Cost Optimisation • Growing Non-branch Distribution & Leveraging Partnerships • Enhancing Control / Compliance Architecture 21
Slide 22: Enhancing Portfolio Resilience
Enhancing Portfolio Resilience • Granularising the portfolio • Significant progress in building new ‘granular’ products • Launched Affordable Housing, Commercial Vehicle / Equipment and Relaunched LAP • Building ‘Frictionless’ processes • Modifying existing LOS systems to create ‘swim-lanes’ for tar
Slide 23: Improving Branch Productivity
Improving Branch Productivity • Improving “Tooth to Tail” ratio • From 75:25 to 85:15 over time – Improved to 79:21 (April 2024) • Launched ‘Sales Value Addition’* metric to track sales activities at Branch level. • Sales Value Addition Metric being reviewed / corrected basis experience during Q4, F
Slide 24: Improving Revenue : Expense Dynamic
Improving Revenue : Expense Dynamic • Controllable expenses are 1/3 of total • Need to grow revenues • Higher yielding products launched – Affordable Housing, Cost to Income Ratio (Y-o-Y) LAP, Commercial Vehicles / Equipment 61.89% 60.59% 61.47% 54.96% 51.07% • Concerted attempt to price assets righ
Slide 25: Growing Non-Branch Distribution & Leveraging Partnerships
Growing Non-Branch Distribution & Leveraging Partnerships • Aim to actively engage traditional and non-traditional counterparties • Significant progress in establishing relationships with traditional counterparties • Multiple conversations on-going with non-traditional counterparties • Ensuring comp
Slide 26: Profit & Loss Overview (Standalone)
Profit & Loss Overview (Standalone) (Rs. in Crore) Rs. in Crore Q4-FY24 Q4-FY23 Y-o-Y (%) Q3-FY24 Q-o-Q (%) FY24 Net Interest Income 875 857 2% 819 7% 3332 Non Interest Income 346 345 0% 452 (23%) 1515 - Core Fee Income 191 158 21% 179 7% 701 - Treasury & Forex 80 (50) 260% 158 (49%) 352 - Other 75
Slide 27: Balance Sheet Overview (Standalone)
Balance Sheet Overview (Standalone) (Rs. in Crore) Particulars Q4-FY24 Q4-FY23 Y-o-Y (%) Q3-FY24 Q-o-Q (%) Capital & Liabilities 1,17,413 1,07,698 9% 1,13,514 3% Capital 262 209 25% 209 25% Reserves and Surplus 8,562 6,465 32% 7,185 19% Deposits 101,920 91,651 11% 99,154 3% Borrowings 3,912 6,994 (4
Slide 28: Key Metrics – Quarterly
Key Metrics – Quarterly FY24 FY23 Particulars Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net Interest Margin (NIM) 3.38% 3.19% 3.31% 3.34% 3.67% 3.52% 3.21% 2.74% CRAR Basel III 19.91% 15.60% 16.69% 16.49% 17.25% 16.25% 16.04% 16.25% RoAA (Annualized) 0.98% 1.07% 0.97% 0.73% 1.26% 0.56% 0.65% 0.46% Provision Coverage
Slide 29: Provisions
Provisions (Rs. in Crore) Particulars Q4FY24 Q3FY24 Q4FY23 For NPA & NPI 41 46 78 For Standard Assets 7 (10) (18) For Restructured Advances/Sacrifices & FITL (9) (15) (16) For Unhedged Forex Exposure 1 - 2 Others 1 28 (7) Taxes 105 129 189 Total Provisions 146 178 228 29
Slide 30: Stressed Assets
Stressed Assets Restructured Standard Advance Sector Break up (Rs. in Crore) 1,516 1,297 On Account of MSME 1,159 9% Restructuring 0% 29% General - DCCO Extention 894 20% 772 OTR COVID Personal Segment OTR COVID MSME 42% OTR COVID Corporate Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Covid One Time Restructu
Slide 31: Slippages & collection efficiency
Slippages & collection efficiency Segment wise NPA slippages Segment wise GNPA Rs. in Crore Q4-2024 Rs. in Crore Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024 Agriculture 32 Agriculture 548 513 490 490 464 Business Loans 163 Business Loans 1,938 2,243 2,188 2,152 2,120 Personal Segment 88 Personal Segment
Slide 32: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA 5.14 5.13 In % In % 4.96 1.86 1.85 1.70 1.61 4.74 1.46 4.50 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Gross NPA Movement Net NPA Movement Rs. Cr. Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Rs. Cr. Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Opening
Slide 33: Investments
Investments Investment Book Mar 23 Dec 23 Mar 24 Details Rs. in Modified Modified Modified Rs. in Crore Rs. in Crore Crore Duration Duration Duration HTM 19,688 2.79 22,374 4.23 21,242 4.82 AFS 6,071 0.95 4,122 1.89 3,318 2.24 HFT 255 5.14 158 1.34 719 0.10 Total 26,014 2.48 26,654 3.97 25,279 4.48
Slide 34: Capital Composition
Capital Composition Risk Weighted Assets BASEL III Rs. in Crore Mar 31, 2024 Dec 31, 2023 19.91 17.25 16.49 16.69 Total Capital 9,984.5 19.91% 7,843.86 15.60% 15.60 - Tier I 8,852.9 17.65% 6,726.14 13.37% 17.65 - Of which CET1 8,352.9 16.66% 6,226.14 12.38% 14.74 14.04 14.22 13.37 - Tier II 1,131.6
Slide 35: Awards & Recognitions
Awards & Recognitions South Indian Bank received the PCI DSS certification which is an international benchmark for highest level of payment South Indian Bank has once again secured a security in Cards. remarkable six awards at the IBA Banking Technology Awards this year. The awards include: 1. Techn
Slide 36: Awards & Recognitions
Awards & Recognitions South Indian Bank won Ibex India 2024 BFSI Ms Azmat Habibulla, Chief Marketing Tech Awards in the category "Excellence in Officer, South Indian Bank was honored with Financial Inclusion Initiatives". The award the prestigious title Laqshya Pitch CMO was collected by Sanchay Sin
Slide 37: #6. Strong Management Team
#6. Strong Management Team Mr. P R Seshadri MD & CEO, 30 years Mr. Thomas Joseph K Bachelor’s degree in Engineering from the Delhi College of Engineering EVP & Chief Business Officer, 40 years and a Post Graduate Diploma in Management from IIM Bangalore. Bachelors Degree in Engineering and Diploma i
Slide 38: #6. Strong Management Team
#6. Strong Management Team Mr. Sony A SGM & CIO, 32 years Certified Information Systems Auditor from ISACA, USA and MBA. Over Ms. Biji S S 27 years of experience in banking technology. Instrumental in setting up key systems like Business Process. SGM & Group Business Head, 30 years Management tools,
Slide 39: #6. Strong Management Team
#6. Strong Management Team Mr. Nandakumar G SGM & Chief of Internal Vigilance, 32 years Associated with SIB for more than 27 years. Head of Inspection and Vigilance. Vast experience across business functions like Branch/RO management, Mr. Harikumar L Retail Banking including Bancassurance and Market
Slide 40: #6. Strong Management Team
#6. Strong Management Team Mr. Mohan T M GM & Head Legal Department , 35 years B.Com, LL.B Graduate. Also completed CAIIB and CS (Inter). More than 28 years of experience in Banking. Previous experience of more than 6 years with Income Tax Appellate Tribunal and Apollo Tyres Ltd. HeadingLegal Depart
Slide 41: For further information, please contact:
For further information, please contact: The South Indian Bank Ltd. CIN - L65191KL1929PLC001017 Mr. Vinod Francis, GM & CFO vinodfrancis@sib.co.in Mr. Prashanth George Tharakan, Head IR prashanthgt@sib.co.in www.southindianbank.com 41
Slide 42: THANK YOU
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