South Indian Bank Limited · NSE:SOUTHBANK

South Indian Bank — The South Indian Bank — Q1 FY20 Earnings Presentation

48 slides from South Indian Bank's earnings presentation, Jul 25, 2019

  1. Slide 1: Cover letter to National Stock Exchange

    ~ ~SOUTH ~INDIAN Bank - DEPT: SECRETARlAL REF No. SEC/STEX.STT/75 /2019-20 July 25,2019 National Stock Exchange ofindia Ltd., Exchange Plaza, 5th Floor, Plot No.C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051. SCRJP CODE: SOUTHBANK Dear Sirs, Sub: Presentation to Investors and Analy

  2. Slide 2: Bank On Us - Investor Presentation July 2019

    Bank On Us Investor Presentation - July 2019

  3. Slide 3: Contents

    Contents Q1 FY20 Highlights Business Strategy Performance Matrix Next Generation Bank About Us 2

  4. Slide 4: Q1 FY20 Highlights

    J Q1 FY20 Highlights © \\

  5. Slide 5: Key Quarterly Highlights - Q1 FY20

    Key Quarterly Highlights - Q1 FY20 Rs Cr CASA Deposits Advances Q1 FY20 19,719 Q1 FY20 81,723 Q1 FY20 63,652 Q1 FY19 17,883 Q1 FY19 72,488 Q1 FY19 56,164 10% 13% 13% Net Interest Income Other Income PPOP Q1 FY20 536 Q1 FY20 182 Q1 FY20 318 Q1 FY19 494 Q1 FY19 146 Q1 FY19 270 8% 25% 18% 4

  6. Slide 6: Business Strategy

    ayy Business Strategy aI:

  7. 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

  8. Slide 8: Performance in Line with Strategy

    …Performance in Line with Strategy Strengthen Retail base Rs. 19,070 Cr INCREASE 25% YoY Expand Agriculture & SME Base Rs. 23,987 Cr INCREASE 14% YoY Improve CASA Rs. 19,719 Cr INCREASE 10% YoY 7

  9. 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 SME Relationships Relationships 06 Sustainable… 05 Increase… 04 Improve Asset Quality Fee Income NIM 8

  10. Slide 10: Increase Retail & SME Business

    ...Increase Retail & SME Business 01 02 03 Retail Banking Mid Corporate Trade Finance Credit Credit Credit Processing Processing Processing Centre (RBCPC) Centre Centre (TFCPC) (MCCPC) Loan Processing Loan Processing Loan Processing • Home Loans, LAP, Business Loans, • MSME, Agri and loans upto Rs •

  11. 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 18,458 on housing finance 16,857 • Dedicated Officers for marketing 16,061 4,864 4,633 15,200 Retail Loans 4,318 4,049 • Marketing initiative through TVCs 3,793 2,199 2,2

  12. Slide 12: Becoming a Banker of Choice to MSMEs

    …becoming a Banker of Choice to MSMEs Average MSME Loan / Account SME Loan Book by Geography - Q1 FY20 Rs. Lakhs 52.4 53.2 53.8 49.9 Rest of 47.7 India 23% Kerala 45% South (Ex- Kerala) 32% Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 SME Highlights • Dedicated executive to ensure focus and better coordinatio

  13. Slide 13: Branch Network and ATM Network

    …with the help of our Branch Network Total Branch Network +6% 822 834 850 854 870 870 FY15 FY16 FY17 FY18 FY19 Q1FY20 Total ATM Network +17% No of 1,382 1,406 1,400 Branch Location* 1,287 1,320 Branches 1,200 Kerala 474 South India (Ex-Kerala) 253 Rest of India 143 Total 870 FY15 FY16 FY17 FY18 FY19

  14. Slide 14: Experienced Employees

    … and our Experienced Employees Employee Addition Total Employees: 7,717* 33 105 7,717 7,619 99 137 7% 9% 27% 18% 39% < 1 Year 1-2 Years 2-5 Years Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Closing 5-10 Years > 10 Years *Full-time officers and clerks 13

  15. Slide 15: Performance Matrix

    ayy Performance Matrix 14

  16. Slide 16: Strong Deposit Franchise

    Strong Deposit Franchise Deposits Rs Cr Q1 FY20 Q1 FY20 Q1 FY20 66,090 15,632 81,723 11% 19% 13% 59,306 13,182 72,488 Q1 FY19 Q1 FY19 Q1 FY19 Retail Deposit Bulk Deposit & CD Total Deposit CASA Deposits Q1 FY20 Q1 FY20 Q1 FY20 Rs Cr 3,449 16,269 19,719 17% 9% 10% 2,946 14,937 17,883 Q1 FY19 Q1 FY19

  17. Slide 17: Core Deposits Growing

    Core Deposits Growing... Breakup of Deposits Rs Cr 80,420 81,723 74,911 77,665 72,488 Term 43,426 45,011 46,372 41,561 42,498 Savings Current Others* 15,420 16,135 16,269 14,937 15,357 2,946 3,031 3,485 3,332 3,449 13,044 14,025 15,334 15,942 15,632 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 CASA Term Depos

  18. Slide 18: Break Up of Non-Resident Deposits

    Break Up of Non-Resident Deposits NRI Deposits Deposit Type Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Rs Cr 21,877 21,436 20,981 20,425 NRE SB 3,628 3,741 3,768 3,660 3,729 19,631 NRO SB 623 657 712 737 720 FCNR (B), RFC & 1,638 1,652 1,697 1,859 2,155 Others Low Cost NRI 5,889 6,050 6,177 6,257 6,604

  19. 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 +3% -4% +19% 21,111 21,436 20,595 42,200 43,057 19,976 20,149 38,953 36,188 37,264 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Segment wise Break Up of Tota

  20. Slide 20: Composition of Loan Book

    Composition of Loan Book Break up of Loan book Jun-18 Sept-18 Dec-18 Mar-19 Jun-19 Advances (Rs Cr) Number Value Number Value Number Value Number Value Number Value Less than 5 Cr 347,484 25,536 349,064 26,507 352,613 27,477 358,679 30,480 364,352 30,967 5 - 25 Cr 1,034 9,316 1,034 9,214 1,092 9,853

  21. 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 Rs Cr Rs Cr 0.0% 2.9% 2.7% 0.0% 0.0% 19.3% 18.1% 25.8% 25.4% 22.8% 32.8% 38.4% 40.2% 43.0% 45.2% 24.6% 21.7% 39.3% 31.4% 37.7% 32.2% 21.5% 33.5% 30.1% 21.1%

  22. Slide 22: Key Focus: Retail, MSME & Agriculture

    Key Focus : Retail, MSME & Agriculture Retail (including Gold) Rs Cr +25% 18,458 19,070 16,061 16,857 Retail Loans, Agriculture 15,200 & MSME loans have grown by 19% (Y-o-Y) Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Agriculture (Incl. Agri Gold) MSME (Incl. MSME Gold) Rs Cr Rs Cr +14% +14% 8,673 8,987 15,0

  23. Slide 23: Advances growing Across Regions

    Advances growing Across Regions +13% Rs Cr 63,636 63,652 60,064 57,413 56,164 18,574 18,353 17,932 16,646 17,049 19,325 19,570 17,924 16,771 16,996 23,368 24,208 25,737 25,729 22,747 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Rest of India South Ex- Kerala Kerala 22

  24. 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 506 520 499 536 494 9.50 9.50 9.64 9.51 9.69 6.06 6.08 6.16 6.30 6.32 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Jun-18 Sept-18 Dec-18 Mar-19 Jun-19 Net Interest Margin Cost of

  25. Slide 25: Improving Operating Efficiency

    Improving Operating Efficiency Employee Additions C/I Ratio In % 332 99 57.9 137 55.6 54.7 54.9 55.7 -33 -105 Jun -18 Sept -18 Dec -18 Mar -19 Jun -19 Jun -18 Sept -18 Dec -18 Mar -19 Jun -19 Business per Employee Business per Branch Rs Cr Rs Cr 17.6 163 15.7 15.7 15.5 15.9 147 148 149 150 Jun-18 Se

  26. Slide 26: Sustainable Other Income

    Sustainable Other Income Total Other Income led by …. …Sustainable: Transaction Fees + Technology Rs Cr Rs Cr 236 120 108 187 182 91 95 94 146 158 71 86 59 60 65 32 35 37 33 29 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Transaction Fees Technology Profit on Sale of Investm

  27. Slide 27: Break Up of Provisions

    Break Up of Provisions Particulars (Rs Cr) Q1 FY19 Q4 FY19 Q1 FY20 For NPA & NPI 174 191 184 For Depreciation on Investments 67 40 -1 For Standard Assets -4 14 6 For Restructured Advances/Sacrifices & FITL -1 3 5 For Unhedged Forex Exposure 1 1 - Others -6 -30 11 Taxes 15 38 39 Total Provisions 246

  28. Slide 28: Non-Performing Assets

    Non-Performing Assets Gross NPA Net NPA 4.61 4.88 4.92 4.96 3.16 3.54 3.45 3.41 4.54 3.27 Jun-18 Sept-18 Dec-18 Mar-19 Jun-19 Jun-18 Sept-18 Dec-18 Mar-19 Jun-19 Gross NPA Movement Net NPA Movement Rs Cr Jun-18 Sept-18 Dec-18 Mar-19 Jun-19 Rs Cr Jun-18 Sept-18 Dec-18 Mar-19 Jun-19 Opening 1,980 2,55

  29. Slide 29: Stressed Assets - QoQ

    Stressed Assets - QoQ Gross Basis Net Basis Rs Cr Q4 FY19 Q1 FY20 Q4 FY19 Q1 FY20 NPA 3,132 3,154 2,164 2,135 Restructured Advances 214 292 214 292 Total Stressed Assets 3,346 3,446 2,378 2,427 Advances 63,636 63,652 62,664 62,658 Stressed Assets as % of Advances 5.3% 5.4% 3.8% 3.9% 28

  30. Slide 30: Restructured Advances Breakup

    Restructured Advances Breakup Restructured Advances Rs Cr 292 214 200 20 22 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Rs Cr Sector Breakup - June 2019 Security Receipts Outstanding as on June 2019 Book Value Provision NAV 7.2% Construction EPC 1,285 279 1,006 Others (on Account of Kerala Floods and MSME Re

  31. Slide 31: Restructured Asset Book

    Restructured Asset Book Rs Cr Restructured Advances Increase in Fresh Decrease in Slippages to Closing Opening Existing Addition Balance NPA Balance Balance Infra Roads - - - - - - Construction 21 - - - - 21 EPC Others- under MSME 32 74 1 - - 107 GST Scheme Others - Under Kerala 161 - 3 - - 164 Floo

  32. Slide 32: Fresh Slippages/Advance Ratios

    Fresh Slippages/Advance Ratios Retail Slippage Agriculture Slippage 0.42% 1.15% 0.40% 0.39% 0.20% 0.20% 0.14% 0.22% 0.04% 0.11% Jun-18 Sept-18 Dec-18 Mar-19 Jun-19 Jun-18 Sept-18 Dec-18 Mar-19 Jun-19 MSME Slippage Corporate Slippage 1.72% 2.38% 0.80% 1.54% 0.76% 0.75% 0.88% 0.53% 0.09% 0.12% Jun-18

  33. Slide 33: Capital Composition

    Capital Composition BASEL III In % 12.6 12.2 12.1 12.2 11.8 2.1 2.1 2.6 2.1 2.5 10.1 10.0 9.7 10.0 9.7 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Tier 2 Tier 1 32

  34. Slide 34: Profit & Loss Overview - Q1 FY20

    Profit & Loss Overview - Q1 FY20 Rs Cr Q1 FY20 Q1 FY19 Y-o-Y (%) Q4 FY19 Q-o-Q (%) Net Interest Income 536 494 8% 499 7% Other Income 182 146 25% 236 -23% Total Income 718 640 12% 735 -2% Operating Expenses 400 371 8% 407 -2% Operating Profit 318 270 18% 328 -3% Provisions (Ex-Tax) & 205 232 -11% 21

  35. Slide 35: Balance Sheet Overview - Q1 FY20

    Balance Sheet Overview - Q1 FY20 Rs Cr Q1 FY 20 Q1 FY 19 Y-o-Y (%) Q4 FY 19 Q-o-Q (%) Capital & Liabilities 93,804 83,328 12.6% 92,279 1.7% Capital 181 181 0.0% 181 0.0% Reserves and Surplus 5,325 5,085 4.7% 5,154 3.3% Deposits 81,723 72,488 12.7% 80,420 1.6% Borrowings 5,003 4,277 17.0% 4,903 2.0%

  36. Slide 36: Key Metrics - Quarterly

    Key Metrics - Quarterly FY18 FY19 FY20 Particulars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Net Interest Margin (NIM) 2.80% 2.95% 2.88% 2.73% 2.60% 2.61% 2.66% 2.46% 2.53% CRAR Basel III 12.1% 11.7% 12.5% 12.7% 12.2% 12.1% 11.8% 12.6% 12.2% RoAA (Annualized) 0.6% 0.02% 0.6% 0.6% 0.1% 0.3% 0.4% 0.3% 0.3% Provision

  37. Slide 37: Next Generation Bank

    ayy Next Generation Bank © 36

  38. Slide 38: 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 & 53 Extension Counters Internet Banking Point of Sale 37

  39. Slide 39: 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

  40. Slide 40: Personal Banking: Technology Banking

    Personal Banking: Technology Banking Active Internet Users Internet Transaction Volume Internet Transaction Value (000s) (000s) Rs Cr 1,027 1,060 7,961 8,330 948 962 929 6,989 6,185 6,451 390 403 313 332 354 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Jun-18 Sep-18 Dec-18 M

  41. Slide 41: Personal Banking: Debit Cards

    Personal Banking: Debit Cards No of Active Debit Cards Debit Card Transaction Volumes In Millions In Millions 36.8 37.6 38.1 38.3 34.7 3.9 4.0 4.3 3.8 2.7 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Debit Card Transaction Value Rs Cr 7,512 7,573 7,761 7,508 7,321 Jun-18 Sep

  42. Slide 42: About Us

    About Us 41

  43. Slide 43: Leadership Team

    Leadership Team Mr. V G Mathew, MD & CEO  Post Graduate in Physics and CALLB 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 

  44. Slide 44: 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

  45. Slide 45: 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

  46. Slide 46: 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

  47. Slide 47: Safe Harbor

    Safe Harbor 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. Certa

  48. Slide 48: 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 Mrs. Chithra H, CFO Mr. Shogun Jain / Mr. Sagar Shroff Mr. Vijith S, Dy. General Manager shogun.jain@sga

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