South Indian Bank Limited · NSE:SOUTHBANK
South Indian Bank — The South Indian Bank — Q1 FY2025 Earnings Presentation
42 slides from South Indian Bank's earnings presentation, Jul 18, 2024
Slide 1: Exchange filing cover letter: Presentation to Investors and Analysts
DEPT.: SECRETARIAL REF. No. : SEC/ST.EX.STT/ 105 /2024-25 DATE : July 18, 2024 National Stock Exchange of India Ltd., BSE Ltd. Exchange Plaza, 5th Floor, Department of Corporate Services (Listing), Plot No.C/1, G Block, First Floor, New Trading Wing, Bandra-Kurla Complex, Bandra (E), Rotunda Buildin
Slide 2: Investor Presentation – Q1-FY 2025
Investor Presentation – Q1-FY 2025 1
Slide 3: 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 4: 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 5: Brief Snapshot
Brief Snapshot Transformation Journey of the Bank About South Indian Bank – Key Highlights Annexure 4
Slide 6: Brief Snapshot (Jun'24)
Brief Snapshot (Jun’24) Multi-pronged Maintaining healthy Consistently delivering Large Scale distribution strategy asset quality robust shareholder returns 4.50% INR 82,580 Cr 955 / 9,728 GNPA INR 294 Cr Total Advances Branches/ Employees PAT 1.44% NNPA INR 33,482 Cr 26 / 4 3.26% Disbursement (3M’2
Slide 7: Transformation Journey of the Bank
Brief Snapshot Transformation Journey of the Bank About South Indian Bank – Key Highlights Annexure 6
Slide 8: Significant transformation of business since September 2020
Significant transformation of business since September 2020 Churned around 73% of overall loan book since October 1, 2020 As of Key Considerations in Current Book ( As of Jun’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 9: Leading to improvement in various key metrics- Jun 2023 vs Jun 2024
Leading to improvement in various key metrics- Jun 2023 vs Jun 2024 Total Business Gross Advances Retail Deposits CASA Rs. in Crore Rs. in Crore Rs. in Crore Rs. in Crore +10% +11% +8% 82,580 32.64 % 32.06% 1,86,112 99,745 33,195 74,102 92,043 31,166 +7% 1,69,601 Jun'23 Jun'24 Jun'23 Jun'24 Jun'23 J
Slide 10: About South Indian Bank – Key Highlights
Brief Snapshot Transformation Journey of the Bank About South Indian Bank – Key Highlights Annexure 9
Slide 11: 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 12: #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 Break up of Loan book Jun-23 Mar-24 Jun-24 Rs. in Crore Number Value Number Value Number Value 20% Less than 5 Cr 5,40,984 39,713 5,94,178 42,362 6,09,038 41,755 41% Corporate 5 - 25 Cr 1
Slide 13: #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 ) 33,984 (Rs. in Crore) 19,808 32,084 13,705 18,539 29,892 27,522 27,491 6,516 6,867 23 24 3,177 19 10 11 5 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-24 Jun-23 Sep-2
Slide 14: #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 Rs. in Crore Rest of India Others 22% Kerala 26% 42% Jun’24 Jun’24 Rs. Rs. 13,078 Crs 13,078 Crs South (Ex-Kerala) MSME/SME 36% 74% MSME strategic initiatives …while creating a granular an
Slide 15: #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 India Kerala 05 01 Kerala India 01 28% 34% 37% 33% Rs. 07 26 Rs. 74,102 Cr 82,580 Cr 12 01 04 02 01 South (Ex- South (Ex- 02 01 Kerala) Kerala) 02 35% 33% 04 03 20 01 Jun-23 24 Jun-24 03
Slide 16: #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 4.50 3.45 3.34 2.97 1.86 1.46 1.44 690 309 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Jun-24 Gross
Slide 17: #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 Yield on funds and Cost of funds 99,155 101,920 103,532 95,499 97,085 Cost Of Funds Yield on Funds 7.49 7.53 7.78 7.85 7.34 65,050 66,550 4.57 4.71 4.79 4.91 63,558 4.41 60,876 62,348 Q1FY24 Q2FY24 Q3FY24 Q4
Slide 18: #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 3035.5 3143.4 Customer Experience/Business Digital Onboarding 3500.0 3133.4898.0% Enhancements/Internal Controls 3000.0 2828.2 97.8% 2627.7 2500.0 97.8% 97.6%
Slide 19: …creating operational efficiency
…creating operational efficiency Employee Additions Cost-to-Income Ratio (Quarterly) 64.48% 77 61.98% 227 61.19% 60.57% -14 -91 58.07% -78 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Improving productivity metrics (Rs. in Crore) Business per Employee (Rs. in Crore
Slide 20: …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) 33,482 29,233 2.10 22,106 22,342 21,349 1.40 17,835 1.00 0.90 0.90 12,535 13,534 10,863 Growth of 15% 0.80 0.70 Q1FY2023 Q2FY2023 Q3FY2023 Q4FY2023 Q1FY2024 Q2
Slide 21: ….momentum in retail advances continues
….momentum in retail advances continues Home Loans* Auto Loans* 292 210 261 196 236 177 204 139 100 100 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Agriculture Loans* Personal Loans* 225 124 208 109 176 100 98 87 144 100 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Jun-23 Sep-23 Dec-
Slide 22: #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 1,82,346 1,86,112 33,482 80,426 82,580 1,63,743 1,50,957 72,092 22,108 1,42,128 59,418 61,816 12,548 FY21 FY22 FY23 FY24 Q1 FY25 FY21 FY22 FY23 FY24 Q1 FY25 Jun-22 Jan-
Slide 23: 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 22
Slide 24: The Way Forward
The Way Forward • Building ‘Frictionless’ processes • Build out of new automated digital channels continue: • Systems Delivered • Automation of renewal of small ticket working capital limits • Working Capital Granular Loans – GST Based - (Application to Approval) automated • Systems being worked on
Slide 25: The Way Forward
The Way Forward • Tooth to Tail Ratio – 79:21 – Further progress expected during the quarter • Training / Re-skilling of staff gathering pace • 1095 Staff Trained in Various Programs against 695 in Q1, ’24 • Expenses being tracked closely • Expense growth sequentially muted • Overall Head-count cont
Slide 26: Profit & Loss Overview (Standalone)
Profit & Loss Overview (Standalone) (Rs. in Crore) Rs. in Crore Q1-FY25 Q1-FY24 Y-o-Y (%) Q4-FY24 Q-o-Q (%) FY24 Net Interest Income 866 808 7% 875 -1% 3332 Non Interest Income 422 361 17% 346 22% 1515 - Core Fee Income 187 150 25% 191 -2% 701 - Treasury & Forex 27 77 -65% 80 -66% 352 - Other 208 13
Slide 27: Balance Sheet Overview (Standalone)
Balance Sheet Overview (Standalone) (Rs. in Crore) Particulars Q1 FY25 Q1 FY24 Y-o-Y (%) Q4 FY24 Q-o-Q (%) Capital & Liabilities 1,17,988 1,10,541 7% 1,17,413 0% Capital 262 209 25% 262 0% Reserves and Surplus 8,892 6,668 33% 8,562 4% Deposits 103,532 95,499 8% 101,920 2% Borrowings 2,957 5,645 (48%
Slide 28: Key Metrics – Quarterly
Key Metrics – Quarterly FY25 FY24 Particulars Q1 Q4 Q3 Q2 Q1 Net Interest Margin (NIM) 3.26% 3.38% 3.19% 3.31% 3.34% CRAR Basel III 18.11% 19.91% 15.60% 16.69% 16.49% RoAA (Annualized) 1.00% 0.98% 1.07% 0.97% 0.73% Provision Coverage 79.22% 79.10% 77.97% 77.82% 76.54% CASA 32.06% 32.08% 31.80% 32.03
Slide 29: Provisions
Provisions (Rs. in Crore) Particulars Q1FY25 Q4FY24 Q1FY24 For NPA & NPI 120 41 247 For Standard Assets (2) 7 (14) For Restructured Advances/Sacrifices & FITL (11) (9) (27) For Unhedged Forex Exposure 1 1 (2) Others 5 1 (5) Taxes 101 105 89 Total Provisions 214 146 288 28
Slide 30: Stressed Assets
Stressed Assets Restructured Standard Advance Sector Break up (Rs. in Crore) 1,297 1,159 On Account of MSME 9% Restructuring 894 0% General - DCCO Extention 772 32% 21% 664 OTR COVID Personal Segment OTR COVID MSME 38% OTR COVID Corporate Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Covid One Time Restructuri
Slide 31: Slippages & collection efficiency
Slippages & collection efficiency Segment wise NPA slippages Segment wise GNPA Rs. in Crore Q1-2025 Rs. in Crore Q1-2024 Q2-2024 Q3-2024 Q4-2024 Q1-2025 Agriculture 70 Agriculture 513 490 490 464 530 Business Loans 172 Business Loans 2,243 2,188 2,152 2,120 2283 Personal Segment 99 Personal Segment
Slide 32: Non-Performing Assets
Non-Performing Assets Gross NPA Net NPA 5.13 In % In % 4.96 1.85 1.70 1.61 1.46 1.44 4.74 4.50 4.50 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Gross NPA Movement Net NPA Movement Rs. Cr. Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Rs. Cr. Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Opening
Slide 33: Investments
Investments Investment Book Jun 23 Mar 24 Jun 24 Details Rs. in Modified Modified Modified Rs. in Crore Rs. in Crore Crore Duration Duration Duration HTM 20,882 3.07 21,242 4.82 21,118 4.78 AFS 5,938 2.20 3,318 2.24 895 1.62 HFT 461 1.47 719 0.10 - - FVTPL HFT - - - - 724 2.03 FVTPL Non HFT - - - -
Slide 34: Capital Composition
Capital Composition Risk Weighted Assets BASEL III 19.91 Rs. in Crore Jun 30, 2024 Mar 31, 2024 18.11 16.49 16.69 Total Capital 9,668.5 18.11% 9,984.5 19.91% 15.60 - Tier I 8,920.6 16.71% 8,852.9 17.65% 17.65 - Of which CET1 8,420.6 15.77% 8,352.9 16.66% 14.04 14.22 16.71 13.37 - Tier II 747.9 1.40%
Slide 35: Awards & Recognitions
Awards & Recognitions Our SGM & CIO Mr. Sony A has been recognised by IDC as game changer in the dynamic digital world of financial services SIB bagged four awards in the Infosys Finacle Innovation Awards 2024 in the following categories: • Business Model Innovation – Platinum Winner - SIB eDirect •
Slide 36: Awards & Recognitions
Awards & Recognitions Our CISO Mr. Shibu SIB CISO Mr. Shibu K Thomas SIB won the Banking Frontier, Finnoviti Award for the SME K Thomas won the received as award under the LOS at The DIGITAL CONTINUUm: Fintech Resurgence award under the category Smart CISO in the 2.0 conference at Mumbai category Sm
Slide 37: #6. Strong Management Team
#6. Strong Management Team Mr. P R Seshadri MD & CEO, 30 years Mr. Dolphy Jose Executive Director, 25 years Bachelor’s degree in Engineering from the Delhi College of Engineering More than 30 years of experience , MBA in General Management and a Post Graduate Diploma in Management from IIM Bangalore
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 28 years of experience in banking technology. Instrumental in setting up key systems like Business Process. Management tools, CRM systems, Treasury & Risk Management. Leads M
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 28 years. Head of Inspection and Vigilance. Vast experience across business functions like Branch/RO management, Retail Banking including Bancassurance and Marketing. Headed thre
Slide 40: #6. Strong Management Team
#6. Strong Management Team Mr. Shibu K Thomas Mr. Jimmy Mathew GM - IT, 23 years GM & Company Secretary, 18 years B. Com, ACS, ACMA, Certified CSR Professional, ICSI Post Membership Bachelors Degree in Engineering with certification in cyber security. Qualification in Corporate Governance and Certif
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 40
Slide 42: THANK YOU
THANK YOU 41
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