South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q2 FY20 Earnings Presentation
49 slides from South Indian Bank's earnings presentation, Oct 17, 2019
Slide 1: Presentation to Investors and Analysts cover letter
~ ~SOUTH ~INDIAN Bank DEPT: SECRETAJUAL REF No. SEC/ST EX.STT/ 1/2> /2019-20 October 17,2019 National Stock Exchange oflndia Ltd., Exchange Plaza, 5th Floor, Plot No.C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai 400 051. SCRIP CODE: SOUTHBANK Dear. Sirs, Sub: Presentation to Investors and A
Slide 2: Bank On Us - Investor Presentation October 2019
Bank On Us Investor Presentation - October 2019
Slide 3: Contents
Contents Q2 FY20 Highlights Business Strategy Performance Matrix Next Generation Bank About Us 2
Slide 4: Q2 FY20 Highlights
Z Q2 FY20 Highlights © \\
Slide 5: Key Quarterly Highlights - Q2 FY20
Key Quarterly Highlights - Q2 FY20 Rs. Cr. CASA Deposits* Advances Q2 FY20 20,614 Q2 FY20 79,430 Q2 FY20 63,920 Q2 FY19 18,388 Q2 FY19 68,166 Q2 FY19 57,413 12% 17% 11% Net Interest Income Other Income PPOP Q2 FY20 584 Q2 FY20 249 Q2 FY20 411 Q2 FY19 506 Q2 FY19 Q2 FY19 310 158 15% 58% 33% 4 *Deposi
Slide 6: Business Strategy
ayy Business Strategy aI:
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 Retail base Rs. 19,284 Cr INCREASE 20% YoY Expand Agriculture & MSME base Rs. 24,939 Cr INCREASE 18% YoY Improve CASA Rs. 20,614 Cr INCREASE 12% YoY 7
Slide 9: Shall continue to focus on Core Strengths
Shall continue to focus on Core Strengths 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 8
Slide 10: Increase Retail & MSME Business
...Increase Retail & MSME Business 01 02 03 Retail Hub Cluster Centralized Branches Marketing & • Home Loan Processing • Auto Loan • 17 Clusters • MSME Loan • Specific Cluster Centre (Kochi) • LAP for Forex Loan Processing Retail Business Branch Profitability • Entire Loan underwriting • Penetrate f
Slide 11: Focus on Housing Loans in Retail
…by focus on Housing Loans in Retail Retail Breakup Housing: Key Initiatives Rs. Cr. • Retail hub in Kochi to increase focus 19,070 19,284 18,458 on retail loans 16,061 16,857 5,075 • Dedicated Officers for marketing 4,864 4,633 Retail Loans 4,318 4,049 • Marketing initiative through TVCs 2,216 2,19
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 53.2 53.8 53.8 India 52.4 23% Kerala 45% 49.9 South (Ex- Kerala) 32% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 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 Wide Network +2% 876 900 909 923 922 847 FY15 FY16 FY17 FY18 FY19 Q2FY20 Total ATM Network +3% Locations* No. 1,320 1,382 1,406 1,395 1,200 1,287 Kerala 474 South India (Ex-Kerala) 253 Rest of India 143 Total Branches 870 Extension Counters 52 FY15 FY16 FY17 FY18 F
Slide 14: Our Experienced Employees
… and our Experienced Employees Employee Addition Total Employees: 7,637* 7,718 33 105 80 7,637 137 4% 8% 29% 18% 41% < 1 Year 1-2 Years 2-5 Years Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Closing 5-10 Years > 10 Years *Full-time officers and clerks 13
Slide 15: Performance Matrix
ayy Performance Matrix 14
Slide 16: Strong Deposit Franchise
Strong Deposit Franchise Deposits (excl. CDs) Rs. Cr. Q2 FY20 Q2 FY20 Q2 FY20 68,893 10,536 79,430 13% 50% 17% 61,122 7,044 68,166 Q2 FY19 Q2 FY19 Q2 FY19 Retail Deposit Bulk Deposit Total Deposit CASA Deposits Q2 FY20 Q2 FY20 Q2 FY20 Rs. Cr. 3,539 17,075 20,614 17% 11% 12% 3,031 15,357 18,388 Q2 FY
Slide 17: Retail Deposits Growing
Retail Deposits Growing... Breakup of Deposits Rs. Cr. 81,723 82,947 77,665 80,420 74,911 Term 45,011 46,372 48,279 42,733 43,603 Savings Current Bulk 15,421 16,135 16,269 17,075 15,357 CD 3,485 3,332 3,449 3,031 3,539 7,044 10,001 9,119 10,454 10,536 6,745 5,156 6,823 5,179 3,517 Sep-18 Dec-18 Mar-
Slide 18: Break Up of Non-Resident Deposits
Break Up of Non-Resident Deposits NRI Deposits Sep Dec Mar Jun Sep Deposit Type Rs. Cr. 2018 2018 2019 2019 2019 22,640 NRE SB 3,741 3,768 3,660 3,729 3,826 21,877 NRO SB 657 712 737 720 750 21,436 FCNR (B), RFC & 1,652 1,697 1,859 1,909 1,950 Others 20,981 Low-Cost NRI 20,425 Deposit 6,050 6,177 6,
Slide 19: Composition of Loan Book
Composition of Loan Book Corporate Advances (Above Rs. 25 Cr) Advances (Excl. Corporates) (Below Rs. 25 Cr) Rs. Cr. Rs. Cr. -2% -4% +19% 21,111 21,436 44,223 20,595 43,057 20,149 42,200 19,697 38,953 37,264 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Segment wise Break Up o
Slide 20: Composition of Loan Book
Composition of Loan Book Break up of Loan book Sept-18 Dec-18 Mar-19 Jun-19 Sep-19 Advances (Rs. Cr) Number Value Number Value Number Value Number Value Number Value Less than 5 Cr 349,064 26,507 352,613 27,477 358,679 30,480 364,352 30,967 370,095 31,725 5 - 25 Cr 1,034 9,214 1,092 9,853 1,155 10,4
Slide 21: Rating Profile of Corporate Loan Book
Rating Profile of Corporate Loan Book Standard Advances above Rs. 100 Cr. Standard Advances above Rs. 100 Cr. External Rating SIB Internal Rating 2.9% 2.7% 0.0% 0.0% 3.3% 18.1% 19.1% 25.8% 25.4% 22.8% 38.4% 40.2% 43.0% 32.8% 45.2% 21.7% 39.3% 36.0% 31.4% 37.7% 21.5% 33.5% 21.1% 30.3% 33.1% 23.5% 13.
Slide 22: Key Focus: Retail, MSME & Agriculture
Key Focus: Retail, MSME & Agriculture Retail (Incl. Gold) Rs. Cr. 19,070 19,284 Retail Loans and 18,458 Agriculture rose by 20% 16,857 each, while MSME has 16,061 grown by 16% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Agriculture (Incl. Agri Gold) MSME (Incl. MSME Gold) Rs. Cr. Rs. Cr. 9,431 15,508 15,069
Slide 23: Advances growing Across Regions
Advances growing Across Regions Rs. Cr. 63,636 63,652 63,920 60,064 57,413 18,574 18,353 17,579 17,932 17,049 19,325 19,570 19,898 17,924 16,996 24,208 25,737 25,729 26,443 23,368 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Rest of India South Ex- Kerala Kerala 22
Slide 24: 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 584 9.50 9.64 9.51 9.69 9.78 536 506 520 499 6.08 6.16 6.30 6.32 6.24 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Sept-18 Dec-18 Mar-19 Jun-19 Sep-19 Net Interest Margin Cost
Slide 25: Net Interest Income - Cumulative
Net Interest Income - Cumulative Net Interest Income Cost of Deposits & Yield on Advances Rs. Cr. In % 2,020 Cost of Deposits Yield on Advances 1,520 9.50 9.55 9.54 9.69 9.73 1,120 1,001 536 6.07 6.10 6.15 6.32 6.28 Sep-17 Dec-17 Mar-18 Jun-18 Sep-19 Sept -18 Dec -18 Mar -19 Jun -19 Sep -19 Net Inte
Slide 26: Improving Operating Efficiency
Improving Operating Efficiency Employee Additions Cost-to-Income Ratio In % 137 55.6 54.9 55.7 54.7 53.0 99 -33 -105 -80 Sept -18 Dec -18 Mar -19 Jun -19 Sep -19 Sept -18 Dec -18 Mar -19 Jun -19 Sep -19 Business per Employee Business per Branch Rs. Cr. Rs. Cr. 163 164 17.9 17.6 150 148 149 15.7 15.9
Slide 27: Sustainable Other Income
Sustainable Other Income Total Other Income led by… …Sustainable: Transaction Fees + Technology Rs. Cr. Rs. Cr. 108 249 98 93 236 87 87 62 75 57 52 57 187 182 158 35 37 33 36 29 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Transaction Fees Technology Profit on Sale of Invest
Slide 28: Break Up of Provisions
Break Up of Provisions Particulars (Rs. Cr.) Q2 FY19 Q1 FY20 Q2 FY20 For NPA & NPI 133 184 285 For Depreciation on Investments 41 -1 -1 For Standard Assets 6 6 3 For Restructured Advances/Sacrifices & FITL -1 5 9 For Unhedged Forex Exposure - - - Others 26 11 11 Taxes 35 39 21 Total Provisions 240 2
Slide 29: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA 4.88 3.54 3.48 4.61 4.92 4.96 4.92 3.45 3.41 3.16 Sept-18 Dec-18 Mar-19 Jun-19 Sep-19 Sept-18 Dec-18 Mar-19 Jun-19 Sep-19 Gross NPA Movement Net NPA Movement Rs. Cr. Sept-18 Dec-18 Mar-19 Jun-19 Sep-19 Rs. Cr. Sept-18 Dec-18 Mar-19 Jun-19 Sep-19 Opening 2,552
Slide 30: Stressed Assets - QoQ
Stressed Assets - QoQ Gross Basis Net Basis Rs. Cr. Q1 FY20 Q2 FY20 Q1 FY20 Q2 FY20 NPA 3,154 3,145 2,135 2,193 Restructured Standard Advance 292 516 278 489 Other Stressed Advances - - - - Total Stressed Assets 3,446 3,661 2,413 2,682 Advances 63,652 63,920 62,658 62,993 Stressed Assets 5.4% 5.7% 3
Slide 31: Restructured Advances Breakup
Restructured Advances Breakup Restructured Standard Advance Rs. Cr. 516 292 214 200 22 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Rs. Cr. Sector Breakup Security Receipts Outstanding as on Sept 30, 2019 Book Value Provision NAV 32.0% 1,283 283 1,001 68.0% On Account of Kerala Floods 30 On Account of MSME Re
Slide 32: 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 21 - 1 (22) - - EPC Under MSME 107 242 2 - - 351 Restructuring Under Kerala
Slide 33: Fresh Slippages / Advance Ratios
Fresh Slippages / Advance Ratios Retail Slippage Agriculture Slippage 0.42% 1.15% 0.39% 0.20% 0.20% 0.19% 0.22% 0.11% 0.17% 0.04% Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 MSME Slippage Corporate Slippage 0.76% 0.80% 0.75% 0.88% 2.38% 0.63% 1.36% 0.53% 0.09% 0.12% Sep-18
Slide 34: Capital Composition
Capital Composition BASEL III (In %) 12.6 12.1 12.2 12.1 11.8 2.1 2.6 2.1 2.5 2.5 10.0 9.7 10.0 9.7 9.6 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Tier 2 Tier 1 33
Slide 35: Profit & Loss Overview
Profit & Loss Overview Rs. Cr. Q2 FY20 Q2 FY19 Y-o-Y (%) Q1 FY20 Q-o-Q (%) Net Interest Income 584 506 15% 536 9% Other Income 249 158 58% 182 37% Total Income 833 664 25% 718 16% Operating Expenses 422 355 19% 400 6% Operating Profit 411 310 33% 318 30% Provisions & 306 205 50% 205 49% Contingencie
Slide 36: Balance Sheet Overview
Balance Sheet Overview Rs. Cr. Sept 2019 Sept 2018 Y-o-Y (%) June 2019 Q-o-Q (%) Capital & Liabilities 94,955 84,981 12% 93,804 1% Capital 181 181 - 181 - Reserves and Surplus 5,366 5,068 6% 5,325 1% Deposits 82,947 74,911 11% 81,723 1% Borrowings 4,773 3,436 39% 5,003 -5% Other Liabilities & Provis
Slide 37: Key Metrics - Quarterly
Key Metrics - Quarterly FY18 FY19 FY20 Particulars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Interest Margin (NIM) 2.80% 2.95% 2.88% 2.73% 2.60% 2.61% 2.66% 2.46% 2.53% 2.69% CRAR Basel III 12.1% 11.7% 12.5% 12.7% 12.2% 12.1% 11.8% 12.6% 12.2% 12.1% RoAA (Annualized) 0.6% 0.02% 0.6% 0.6% 0.1% 0.3% 0.4% 0.3%
Slide 38: Next Generation Bank
ayy Next Generation Bank © 37
Slide 39: Present across Customer Touch Points
Present across Customer Touch Points Traditional & Alternate Channels SIB Mirror + Mobile Banking ATMs Branches ~1,400 ATMs across India 870 Branches & 52 Extension Counters Internet Banking Point of Sale 38
Slide 40: 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 41: Personal Banking: Technology Banking
Personal Banking: Technology Banking Active Internet Users Internet Transaction Volume Internet Transaction Value (000)’s (000)’s Rs. Cr. 8,783 8,330 425 1,125 7,961 403 1,060 390 1,027 6,989 962 6,451 354 929 332 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Sep-18 Dec-18 Ma
Slide 42: Personal Banking: Debit Cards
Personal Banking: Debit Cards No. of Active Debit Cards Debit Card Transaction Volumes In Millions In Millions 37.6 38.1 38.3 4.3 34.7 35.3 4.0 3.8 2.7 2.8 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Debit Card Transaction Value Rs. Cr. 7,761 7,766 7,573 7,508 7,321 Sep-18
Slide 43: About Us
@ About Us 42
Slide 44: Leadership Team
Leadership Team Mr. V. G. Mathew, MD & CEO Post Graduate in Physics and CAIIB with over 40 years of experience Joined SIB in January, 2014 as Executive Vice President and appointed as MD & CEO in October 2014 Significant experience in Retail & Corporate Credit, Technology and Risk Management
Slide 45: 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 46: Management Team
Management Team Mr. Benoy Varghese (Country Head - Wholesale Banking) • Bachelors Degree in Arts & Masters Degree in Business Administration and CAIIB Mr. Raphael T.J., Chief General Manager (Chief Information Officer) • Bachelors Degree in Commerce, Masters in EXIM, Diploma in Financial Management
Slide 47: Management Team
Management Team Mr. Anto George T, General Manager (Head of Inspection & Vigilance Department and Chief of Internal Vigilance) • Bachelors Degree in Arts & Post Graduate Diploma in Computer Application and MBA in HR Management • Certification in RDBMS & Oracle 8i and JAIIB Mr. Reddy N J, General Man
Slide 48: 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 49: 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 Mr. Vijith S, Dy. General Manager shogun.jain@sgap
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