South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — Q2 FY25 Earnings Presentation
44 slides from South Indian Bank's earnings presentation, 2024
Slide 1: Corporate Presentation | Q2FY25
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: Brief Snapshot About South Indian Bank – Key Highlights Transformation Journey of the Bank
1 Brief Snapshot 2 About South Indian Bank – Key Highlights 3 Transformation Journey of the Bank 4 Annexure
Slide 4: Brief Snapshot
BRIEF SNAPSHOT
Slide 5: Performance Highlights (1/2)
Performance Highlights (1/2) Q2FY25 Q2FY24 Rs. 84,714 Cr Rs. 76,872 Cr Rs. 105,451 Cr Rs. 101,651 Cr 31.80% Gross Advances Disbursements Deposits Retail Deposits CASA % Rs. 74,947 Cr Rs. 43,461 Cr Rs. 97,085 Cr Rs. 93,448 Cr 32.03% Large Scale of Operations Rs. 325 Cr 3.24% 1.07% 13.71% Net Interest
Slide 6: Performance Highlights (2/2)
Performance Highlights (2/2) Q2FY25 Q2FY24 4.40% 1.31% 80.72% 71.24% 18.04% PCR PCR GNPA NNPA CRAR (incl. w/off) (excl. w/off) 4.96% 1.70% 77.82% 66.77% 16.69% Healthy Asset Quality 955 9,667 26 / 4 98% Digital Branches Employees States / UTs Transactions 944 9962 26 / 4 97% Multi-pronged distributi
Slide 7: About South Indian Bank – Key Highlights
ABOUT SOUTH INDIAN BANK – KEY HIGHLIGHTS
Slide 8: Key Highlights
Key Highlights 1 Diversified loan book – focused on retail, MSME and high quality corporate 2 Pan India presence 3 Strong focus on Asset Quality and Collection Efficiency 4 Well distributed Deposit base with stable cost of funds 5 Focus on Digital channel to drive operating efficiency 6 Strong Manag
Slide 9: Diversified Loan Book with granularity and strong growth in disbursements
1 Diversified Loan Book with granularity and strong growth in disbursements Consistently growing loan book…. …and Disbursements Rs. Cr Rs. Cr Cumulative for the quarter 13% 95,040 82,580 84,714 80,426 76,872 77,686 74,947 65,805 43,461 33,482 Q2'FY24 Q3'FY24 Q4'FY24 Q1'FY25 Q2'FY25 Q2'FY24 Q3'FY24 Q
Slide 10: Consistent growth momentum in retail advances continues
Consistent growth momentum in retail advances continues Mortgage Loans*# Home Loans* Personal Segment Rs. Cr 3,591 Rs. Cr 42% Rs. Cr 75% 7,072 24% 21,353 19,188 4,982 17,153 17,515 17,639 2,051 Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 Sep'23 Sep'24 Sep'23 Sep'24 Mix of Personal Segment Auto Loans Credit C
Slide 11: Consistent growth momentum in advances continues
Consistent growth momentum in advances continues Gold Loan (Incl Agri) Healthy growth in Avg. advances Rs. Cr 11% Rs. Cr 31% 16,609 80,387 82,197 78,449 74,693 14,998 71,016 72,379 67,353 69,235 62,625 63,877 Growth of 14% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Sep'23
Slide 12: Momentum in retail disbursals and advances continues
….momentum in retail disbursals continues ….momentum in retail advances continues Home Loans* Auto Loans* 366 426 # 292 261 236 204 210 196 177 139 100 100 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Agriculture Loans* Personal Loans* 225 208 176 124 144 109 1
Slide 13: Dominant share of A & above rated corporate loans
Dominant share of A & above rated corporate loans Corporate Loan Book Standard Large Corporate Advances (Rs. 100 Cr & Above) Rs. Cr Rs. Cr Sep’24 33,984* 33,961* Standard Large 32,084 21,163 29,892 Corporate Advances, 27,491 16,515 25% Others, 75% Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 Sep'24 Sep'23 Hig
Slide 14: MSME Loans comprise mainly of High-Yield Portfolio
MSME Loans comprise mainly of High-Yield Portfolio Focus on MSME segment in business loan… MSME Strategic Initiatives Dedicated Vertical MSME customers relationship managed by dedicated team Sep’24 – MSME/SME, Others, 73% 27% Skill Building Rs. 12,914 Cr Program Significant investment in building hi
Slide 15: Pan India presence with focus on diversification
2 Pan India presence with focus on diversification Diversifying Loan Book Outside Kerala Continuously expanding network Q2’FY25 Q2’FY24 Loan Book Branches1 Rs. 74,947 Cr 955 Has a network of 955 Branches Rest of 944 Kerala, across India 37% India, 28% South (Ex- Q2FY24 Q2FY25 Kerala), 35% ATM / CRM
Slide 16: 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 Rs. Cr GNPA NNPA 1,814 1,642 6.97% 1,464 5.90% 5.14% 4.71% 4.50% 4.40% 2.97% 690 660 1.86% 1.46% 1.31% Mar-21 Mar-22 Mar-23 Mar-24 Sep-24 FY21 FY22 FY23 FY24 HY F
Slide 17: Well Distributed Deposit Base with focus on low cost deposits
4 Well Distributed Deposit Base with focus on low cost deposits Breakup of Deposits CASA has been consistently growing Rs. Cr % Deposits 105,451 32.03% 31.80% 32.08% 32.06% 31.80% 103,532 101,920 99,155 33,530 97,085 33,195 32,693 Rs. in crore 31,529 31,100 66,550 68,120 65,050 62,348 63,558 Q2'FY24
Slide 18: NRI deposit continues to be a focus with stable Cost of Funds
NRI deposit continues to be a focus with stable Cost of Funds Breakup of Non Resident Deposits Cost of Funds / Yield on Funds Cost Of Funds Yield on Funds Rs. Cr 7.49 7.53 7.78 7.85 7.68 4.57 4.71 4.79 4.91 4.80 Deposit Type Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 NR SB 6,876 7,039 7,042 7,120 7,178
Slide 19: Multitude of digital Initiatives…
5 Multitude of digital Initiatives… Taken various digital initiatives… Significant digital process Integration with Telangana UPI transactions made more simple SIB PayTAG launched for improvements in Loan processing, Treasury to enable SIBerNet (South New Savings product for Doctors using Voice comm
Slide 20: ….leading to rising digital banking….
….leading to rising digital banking….. ..leading to a rise in transactions with high digital share (000)’s Transactions through digital channel % total transactions 3,431 3,036 3,143 3,133 2,828 98.0% 97.8% 97.5% 97.5% 97.2% Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 Internet Transaction Volume Mobile Trans
Slide 21: ….creating operational efficiency
….creating operational efficiency Employee Additions Cost-to-Income Ratio (Quarterly) 77 64.5% 62.0% 61.2% -14 60.6% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 58.7% -91 -55 -78 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Improving productivity metrics Rs. Cr Rs. Cr Business per Employee 19.4 Business per Branch 191
Slide 22: Robust Track Record of Financial Performance
6 Robust Track Record of Financial Performance Total Business Gross Advances Disbursements Rs. Cr Rs. Cr Rs. Cr 1,90,165 84,714 95,040 1,82,346 80,426 76,872 1,63,743 1,50,957 72,092 1,42,128 54,800 59,418 61,816 24,533 FY21 FY22 FY23 FY24 Q2'FY25 FY21 FY22 FY23 FY24 Q2'FY25 FY22 FY23 FY24 HY 'FY25
Slide 23: Key Areas of Focus
Key Areas of Focus Enhancing Portfolio Resilience Improving Branch Productivity Cost Optimization Growing non- branch Distribution & Leveraging Partnerships Enhancing Control / Compliance Architecture 23
Slide 24: The Way Forward – Building 'Frictionless Processes' (1/4)
The Way Forward – Building ‘Frictionless Processes’ (1/4) Build out of new automated digital channels continue – Implemented Digital Initiatives GST Power Business Entire process from login to disbursement is managed through Straight Through Process (STP) model. Loans Automated scorecard based d
Slide 25: The Way Forward – Building 'Frictionless Processes' (2/4)
The Way Forward – Building ‘Frictionless Processes’ (2/4) Build out of new automated digital channels continue – Ongoing Initiatives Composite Power (Funded and Non- Funded) Development phase of an STP enabled process flow for retail MSME proposals with multiple facilities. Aims to minimize manu
Slide 26: The Way Forward – Building 'Frictionless Processes' (3/4)
The Way Forward – Building ‘Frictionless Processes” (3/4) Growing Non – Branch Distribution and Leveraging Partnerships Asset Partnerships Co-lending Qualified lead referral programs for Mortgage Loans Partnership with Fintech for Personal Loans Co-lending partnership Gold Loans Co-lending / DA
Slide 27: The Way Forward – Building 'Frictionless Processes' (4/4)
The Way Forward – Building ‘Frictionless Processes’ (4/4) Improving Operating efficiency Significant momentum in Retail Segment 1 Home, Auto, Gold, Agriculture, CV/CE showing good traction 79:21 – Tooth to Tail Ratio 2 Further progress expected during the quarter Training/ Re-skilling of staff gathe
Slide 28: Deep ESG focus – Promoting Sustainable & Environmentally friendly assets
Deep ESG focus – Promoting Sustainable & Environmentally friendly assets GREEN DEPOSIT POLICY & GREEN FINANCING FRAMEWORK Steps taken to promote usage of The Bank have installed 75 KW solar The Bank has commissioned 10 KLD EV by initiating the installation of 2 Green deposits are a unique financia
Slide 29: Transformation Journey of the Bank
TRANSFORMATION JOURNEY OF THE BANK
Slide 30: Significant transformation of business since Sep'2020
Significant transformation of business since Sep’2020 Churned around 75% of overall loan book since Oct’ 2020 (INR Cr) (INR Cr) Sep’20 65,349 Sep’24 20,883 93% of Current GNPA is from Old New Book book 63,831 Old Book New Book Old Book Current Book 7% Old Loan Current Current Old Book Book Loan Book
Slide 31: Annexure
ANNEXURE
Slide 32: Profit & Loss Overview (Standalone)
Profit & Loss Overview (Standalone) Rs. Cr Q2FY25 Q2FY24 Y-o-Y (%) Q1FY25 Q-o-Q (%) Net Interest Income 882 830 6% 866 2% Non-Interest Income 449 356 26% 422 6% Core Fee Income 234 170 38% 187 25% Treasury & Forex 106 37 186% 27 293% Others 109 149 -27% 208 -48% Total Income 1,332 1,186 12% 1,288 3%
Slide 33: Balance Sheet Overview (Standalone)
Balance Sheet Overview (Standalone) Rs. Cr Q2FY25 Q2FY24 Y-o-Y (%) Q1FY25 Q-o-Q (%) Capital & Liabilities 1,20,364 1,12,743 7% 1,17,988 2% Capital 262 209 25% 262 0% Reserves and Surplus 9,133 6,880 33% 8,892 3% Deposits 1,05,451 97,085 9% 1,03,532 2% Borrowings 2,609 5,898 -56% 2,957 -12% Other Lia
Slide 34: Key Metrics
Key Metrics Particulars Q2FY25 Q1FY25 Q4FY24 Q3FY24 Q2FY24 Q1FY24 Net Interest Margin (NIM) 3.24% 3.26% 3.38% 3.19% 3.31% 3.34% CRAR Basel III 18.04% 18.11% 19.91% 15.60% 16.69% 16.49% RoA* 1.07% 1.00% 0.98% 1.07% 0.97% 0.73% RoE 13.71% 12.90% 13.11% 16.38% 15.38% 11.80% Provision Coverage 80.72% 79
Slide 35: Non-Performing Assets
Non-Performing Assets GNPA & NNPA Improving Credit Quality Ever 30+ at 6 MOB* (Excl. corporate) GNPA NNPA 1.50% 4.96% 4.74% 1.20% 4.50% 4.50% 4.40% 0.90% 0.80% 0.80% 0.70% 0.90% 0.90% 1.70% 1.61% 1.46% 1.44% 1.31% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 * Ever 30 at 6 MOB is defined
Slide 36: Provisions
Provisions Rs. Cr Q2FY25 Q1FY25 Q4FY24 Q3FY24 Q2FY24 For NPA & NPI 148 120 41 46 70 For Standard Assets (7) (2) 7 (10) (4) For Restructured Advances/Sacrifices & (30) (11) (9) (15) (13) FITL For Unhedged Forex Exposure (1) 1 1 - - Others - 5 1 28 (1) Taxes 116 101 105 129 134 Total Provisions 226 21
Slide 37: Slippages & Collection Efficiency
Slippages & Collection Efficiency Slippage Ratio Collection Efficiency 0.42 0.41 100.2% 100.2% 0.34 0.35 0.36 99.8% 100.1% 99.1% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Segment wise GNPA Segment wise Slippages Rs. Cr Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Rs. Cr New Book Ol
Slide 38: Stressed Assets
Stressed Assets Restructured Standard Assets Sectoral Break-up Rs. Cr 1,159 On account of MSME 0% restructuring 15% 11% 894 General - DCCO Extension 772 664 476 OTR COVID Personal Segment 28% OTR COVID MSME 46% OTR COVID Corporate Sep'23 Dec'23 Mar'24 Jun'24 Sep'24 COVID One Time Restructuring Secur
Slide 39: Investment Book
Investment Book SLR & NON-SLR Treasury & Forex Income * Rs. in Cr Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 SLR 23,295 22,937 21,616 20,728 20,379 NON-SLR 4,001 3,718 3,663 2,177 1,483 Total 27,296 26,654 25,279 22,905 21,862 99 M Duration 89 4.60 4.69 4.48 3.97 60 52 57 2.79 14 10 13 4 7 Sep'23 Dec'23 Mar
Slide 40: Capital Composition
Capital Composition Risk Weighted Assets Basel III Total Capital Adequacy Ratio is well above minimum regulatory requirement of 11.50% CET 1 15.77% 15.70% Tier 1 Tier 2 18.11% Tier 1 Tier 2 18.04% 19.91 2.26% 18.11 18.04 1.40% 1.41% 16.69 1.40% 1.41% 15.60 2.47% 2.23% 16.71% 16.63% Jun'24 Sep'24 Tot
Slide 41: Strong Management Team
Strong Management Team Mr. P R Seshadri MD & CEO, 30 years Mr. Dolphy Jose ● Bachelor’s degree in Engineering from the Delhi College of Engineering and Executive Director, 30 years a Post Graduate Diploma in Management from IIM Bangalore. ● More than 30 years of experience , MBA in General Managemen
Slide 42: Strong Management Team
Strong Management Team Mr. Senthil Kumar Ms. Chithra H SGM & Head Credit, 29 years SGM & Chief Compliance Officer, 32 years ● Management graduate with 27 years of experience in banking and finance ● Fellow member of the Institute of Chartered Accountants of India & ● 21 years of experience with ICIC
Slide 43: Strong Management Team
Strong Management Team Mr. Nehru Singh B Mr. Mohan T M GM & Head – Credit Quality Assurance, 28 years GM & Head Legal Department, 35 years ● MBA &CAIIB qualified, Has 27+ years of experience in the Banking Industry, ● B.Com, LL.B Graduate. Also completed CAIIB and CS (Inter) extensively in non-retai
Slide 44: Thank You
THANK YOU