South Indian Bank, 1Q FY 2014

1QFY2014 Result Update | Banking
July 12, 2013
South Indian Bank

Performance Highlights
NEUTRAL
CMP Target Price
% chg (qoq) (1.8) 22.1 (25.3) 1QFY13 297 207 123 % chg (yoy) 10.4 21.2 (6.7)
`23 -
Particulars (` cr) NII Pre-prov. profit PAT
1QFY14 328 252 115
4QFY13 334 206 154
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code
Source: Company, Angel Research
Banking 3,096 1.0 31/20 390,908 1 19,958 6,009 SIBK SIB@IN
South Indian Bank (SIB) reported a weak set of numbers for 1QFY2014; its bottom-line declined by 6.7% yoy, primarily on account of higher provisioning (as annualized slippages surged to 2.8% and the bank increased provisioning on its NAFED exposure of `150cr from 60% to 100%). Boosted by treasury gains, the non-interest income grew strongly by 57% yoy, aiding a healthy 21.2% yoy growth in pre-provisioning profits, even when the NII grew at a moderate pace of 10.4% yoy. NIMs and Asset quality witness pressures: During 1QFY2014, the banks advances grew at moderate pace of 14.3% yoy, while deposits grew at healthy rate of 17.3% yoy. Despite a healthy 16.1% yoy growth witnessed in current deposits, the growth in overall CASA deposits came in at a moderate 14.5% yoy, as savings deposits grew at 14.1% yoy. CASA ratio moderated 51bp yoy, but improved by 203bp sequentially to 20.6%. The reported NIM for the quarter came down to 2.9%. Treasury income came in higher at `52cr for the quarter, as against `20cr in 1QFY2013. The bank registered a healthy performance on the non-interest income (excl. treasury) front, with a growth of 20.0% yoy to `66cr. During the quarter, the bank continued to face asset quality pressures, as the annualized slippage ratio surged to 2.8%, as against 2.2% in 4QFY2013 and 1.3% in 1QFY2013. Recoveries/upgrades for the bank came in lower at `10cr as compared to `47cr in 4QFY2013. Of the slippages during the quarter, a sum of around `120-130cr came from four chunky accounts two in the Iron & Steel industry and one each in the Paper and Infra sectors. The Management expects recovery/upgradation of at least two of these accounts in 2QFY2014. There was no fresh restructuring during the quarter. The total restructured book for the bank stands at `1,540cr. On its gold loan book, the average LTV for the bank (including accrued interest and post the recent correction in gold prices) stands at ~83% (as compared to origination LTV of ~70-71%). As per the Management, none of its gold loan book has LTV more than 95%. Outlook and valuation: During the last two quarter, the asset quality for the bank has witnessed pressures. Aggressive yields on the non-gold loan portfolio (~78% of total portfolio) and significant gold price correction on gold loan book (~22% of total), could further increase provisioning expenses and hence provide downside risk to the banks RoA. The stock currently trades at 0.9x FY2015E ABV. We recommend a Neutral rating on the stock.
Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 12.3 46.2 41.5
Abs. (%) Sensex SIB
3m 9.4 1.5
1yr 15.8 (5.5)
3yr 11.3 24.2
Key financials (standalone)

Particulars (` cr) NII % chg Net profit % chg NIM (%) EPS (`) P/E (x) P/ABV (x) RoA (%) RoE (%)
FY2012 1,022 29.2 402 37.3 2.9 3.5 6.5 1.3 1.1 21.6
FY2013 1,281 25.4 502 25.1 2.9 3.8 6.2 1.1 1.1 20.5
FY2014E 1,430 11.6 497 (1.0) 2.7 3.7 6.2 1.0 0.9 16.2
FY2015E 1,649 15.4 561 12.9 2.7 4.2 5.5 0.9 0.9 16.2
Vaibhav Agrawal
022 3935 7800 Ext: 6808 vaibhav.agrawal@angelbroking.com
Sourabh Taparia
022 3935 7800 Ext: 6872 sourabh.taparia@angelbroking.com
Harshal Patkar
022 3935 7800 Ext: 6847 harshal.patkar@angelbroking.com
Please refer to important disclosures at the end of this report
South Indian Bank | 1QFY2014 Result Update
Exhibit 1: 1QFY2014 performance (standalone)

Particulars (` cr) Interest earned - on Advances / Bills - on investments - on balance with RBI & others Interest Expended Net Interest Income Other income - Other Income excl. treasury - Treasury Operating income Operating expenses - Employee expenses - Other Opex Pre-provision Profit Provisions & Contingencies - Provisions for NPAs - Provisions for Investments - Provisions for Standard Assets - Other Provisions PBT Provision for Tax PAT Effective Tax Rate (%)
1QFY14 1,225 966 219 39 898 328 118 66 52 445 194 117 77 252 105 110 (2) (3) 0 146 31 115 21.5
4QFY13 1,165 943 197 25 832 334 121 107 14 455 249 163 86 206 66 42 10 15 (1) 140 (14) 154 (9.7)
% chg (qoq) 5.1 2.4 11.3 56.8 7.9 (1.8) (2.7) (38.5) 276.9 (2.1) (22.1) (28.0) (10.8) 22.1 59.9 161.7 (120.6) (118.1) (103.6) 4.3 (330.3) (25.3) 3117bp
1QFY13 1,069 858 181 30 773 297 75 55 20 372 164 100 64 207 25 20 2 3 182 59 123 32.4
% chg (yoy) 14.6 12.6 21.0 31.4 16.2 10.4 57.0 20.0 159.0 19.8 17.9 17.0 19.5 21.2 314.9 461.4 NA (219.7) (98.5) (19.7) (46.9) (6.7) (1098)bp
FY2013 4,434 3,576 746 112 3,153 1,281 335 277 58 1,616 767 473 295 849 193 142 11 33 6 656 154 502 23.4
FY2012 3,583 2,868 621 94 2,562 1,022 247 206 41 1,269 617 374 243 652 79 25 14 40 0 572 171 402 29.8
% chg (yoy) 23.7 24.7 20.2 18.8 23.1 25.4 35.6 34.4 41.6 27.3 24.3 26.3 21.2 30.2 143.4 468.7 (20.2) (18.1) 1,928.1 14.6 (10.0) 25.1 (641)bp
Exhibit 2: 1QFY2014 Actual vs. Angel estimates

Particulars (` cr) Net interest income Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Actual 328 118 445 194 252 105 146 31 115
Estimates 349 70 419 197 222 39 183 55 128
% chg (6.2) 68.9 6.3 (1.6) 13.2 168.0 (20.0) (42.8) (10.3)
July 12, 2013
Exhibit 3: 1QFY2014 performance analysis (standalone)

Particulars Balance sheet Advances (` cr) Deposits (` cr) Credit-to-Deposit Ratio (%) Current deposits (` cr) Saving deposits (` cr) CASA deposits (` cr) CASA ratio (%) CAR (%) Tier 1 CAR (%) Profitability Ratios (%) Cost of deposits# Yield on advances# Reported NIM Asset quality Gross NPAs (` cr) Gross NPAs (%) Net NPAs (` cr) Net NPAs (%) Provision Coverage Ratio (%) Slippage ratio (%) Loan loss provision to avg. assets (%) 493 1.6 348 1.1 57.9 2.8 0.9 434 1.4 250 0.8 53.2 2.2 0.4 13.5 24bp 39.6 34bp 470bp 58bp 53bp 295 1.1 95 0.4 67.7 1.3 0.2 67.2 52bp 266.2 77bp (981)bp 142bp 70bp
#
1QFY14 31,203 43,584 71.6 1,678 7,290 8,968 20.6 13.7 11.9 8.2 12.4 2.9 43.5
4QFY13 31,816 44,262 71.9 1,526 6,685 8,211 18.6 13.9 12.1 8.3 12.7 3.2 54.7
% chg (qoq) (1.9) (1.5) (29)bp 10.0 9.1 9.2 203bp (25)bp (20)bp (10)bp (30)bp (27)bp (1116)bp
1QFY13 27,349 37,153 73.6 1,445 6,390 7,835 21.1 13.2 10.9 8.4 13.0 3.2 44.2
% chg (yoy) 14.1 17.3 (202)bp 16.1 14.1 14.5 (51)bp 50bp 95bp (21)bp (61)bp (22)bp (68)bp
Cost-to-income ratio
Source: Company, Angel Research; Note# : On a cumulative basis
Moderate business growth; NIMs decline on high slippages

During 1QFY2014, the banks advances grew at moderate pace of 14.3% yoy, while deposits grew at healthy rate of 17.3% yoy. Despite a healthy 16.1% yoy growth witnessed in current deposits, the growth in overall CASA deposits came in moderate at 14.5% yoy, due to a relatively lower 14.1% yoy growth on the savings deposits front. CASA ratio moderated 51bp yoy, but improved by 203bp sequentially to 20.6%. Going forward, the Management ambitiously plans to grow its loan book at 25% yoy. The NRE-SB deposits for the bank grew at a healthy pace of 15.0% yoy during 1QFY2014 (23.8% qoq). High cost NRE term deposit grew by 90.1% yoy and now comprises ~60% of the total NRI deposit portfolio. The reported NIMs for 1QFY2014 came down to 2.9%. The Management targets NIM of around 3% over the next few quarters. Cost of deposits for 1QFY2014 was down by 10bp to 8.2%, while the yield on advances for 1QFY2014 reduced by 30bp to 12.4%.
July 12, 2013
Exhibit 4: NRI Deposit breakup

Deposit type (` cr) NRE SB NRO SB FCNR (B) +RFC LOW COST TERM DEPOSIT LOW COST NRI DEPOSIT (SUB TOTAL) HIGH COST NRE TERM DEPOSIT NRO TERM DEPOSIT TOTAL NRI DEPOSIT
1QFY14 4QFY13 3QFY13 2QFY13 1,766 235 341 48 2,390 4,244 495 7,129 1,427 225 348 64 2,064 3,904 554 6,522 1,465 219 321 80 2,086 3,346 563 5,994 1,372 207 333 128 2,040 2,978 661 5,680
1QFY13 1,536 200 400 100 2,236 2,232 932 5,400
The banks overall priority sector lending stands at ~30.0%, which the Management targets to take it to ~36% by the year end. The banks gold loan portfolio accounts for ~22% of the overall loan book, of which non-PSL now stands at ~`6,100cr, whereas the Agri/PSL stands at ~`900cr. On its gold loan book, the average LTV (including accrued interest and post the recent correction in gold prices) stands at ~83% (as compared to origination LTV of ~70-71%). As per the Management, none of its gold loan book has a LTV of more than 95%.
Exhibit 5: Advances growth in line with industrys

25.0 20.0 15.0 10.0 Advances yoy growth (%,) Deposits yoy growth (%)
Exhibit 6: CASA ratio* improves sequentially

(%) 24.0 21.0 18.0 15.0 12.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 21.1 20.0 20.5 18.6 20.6
23.5
17.5
20.6
16.5
17.5
15.1
16.6
21.3
14.1
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14
17.3
5.0
Source: Company, Angel Research; Note* : Excluding FCNR, RFC
Exhibit 7: NIM trend*

(%) 3.3 3.1 2.9 2.7 2.5 1QFY13 1HFY13 9MFY13 4QFY13 1QFY14 3.2 3.1 2.9 3.2
Exhibit 8: Trend in yield on advances*

(%) 13.5 12.5 11.5 10.5 9.5 8.5 1QFY13 1HFY13 9MFY13 4QFY13 1QFY14 13.0
3.2
12.8
12.8
12.7
12.4
Source: Company, Angel Research; Note* On cumulative basis
Source: Company, Angel Research; Note* On cumulative basis
July 12, 2013
Healthy performance on non-interest income (excl. treasury)

During 1QFY2014, the bank registered a healthy performance on the non-interest income (excl. treasury) front, with a growth of 20.0% yoy to `66cr. The treasury income for the bank came in higher at `52cr in 1QFY2014, as against `20cr in 1QFY2013. Overall, the non-interest income grew strongly by 57.0% yoy to `118cr.
Asset quality pressures prevail

During the quarter, the bank continued to face asset quality pressures, as slippages came in at `219cr (annualized slippage ratio of 2.8%), as against `148cr in 4QFY2013 (annualized slippage ratio of 2.2%) and `91cr in 1QFY2013 (annualized slippage ratio of 1.3%). Recoveries/upgrades for the bank came in lower at `10cr as compared to `47cr in 4QFY2013. Of the slippages during the quarter, around `120-130cr came from four chunky accounts two in the Iron & Steel industry and one each in the Paper and Infra sectors. The Management expects recovery/upgradation of at least two of these accounts in 2QFY2014. Overall, Gross NPA levels increased sequentially by 13.5%. The PCR (incl. technical write-offs) for the bank increased sharply by 470bp qoq to 57.9%. The Net NPA levels jumped up by 39.6% qoq. On the NAFED exposure, the bank had provided for 60% in FY2013 and chose to increase it to upto 100% in 1QFY2014 itself (as against guidance of increasing it to 100% proportionately over the entire FY2014). There was no fresh restructuring during the quarter. The banks total restructured book as of 1QFY2014 stands at `1,540cr.
Exhibit 9: Asset quality under pressure

Gross NPAs (` cr) Net NPA (` cr) PCR (%, RHS)
Exhibit 10: ...as Slippages rise

(%) 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 Slippage ratio (%) 3.4 2.8 2.2 1.3 0.8
525 450 375 300
67.7
74.0
496
475
493
69.0 64.0 59.0 54.0 49.0 44.0 39.0
434
58.6
242
295
1QFY13
95
75
2QFY13
3QFY13
197
150
4QFY13
250
225
1QFY14
348
51.2
53.2
57.9
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
July 12, 2013
Exhibit 11: Opex. to average asset trends

(%)
Exhibit 12: Cost to income ratio trends

(%) 54.7
2.5 2.0 1.5 1.0 0.5 1QFY13 2QFY13 3QFY13 1.6 1.6 1.7
2.1 1.6
54.0 48.0 42.0 36.0 30.0 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 44.2 46.1 43.8 43.5
4QFY13
1QFY14
Exhibit 13: Capital adequacy ratio trends

(%) 16.0 13.2 12.0 2.3 Tier-I CAR 14.4 2.1 Tier-II CAR 13.9 2.1 13.9 1.9 13.7 1.8
8.0 10.9 4.0 12.3 11.8 12.1 11.9
1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

July 12, 2013
Investment arguments
Moderating business growth
The bank grew its advances and deposits at a moderate rate of 14.1% and 17.3% yoy, respectively, in 1QFY2014. The gold loan portfolio of the bank has increased at a CAGR of 50.3% over FY200913 and now constitutes 22% of the overall loan book. The Management indicated that future loan book growth would be from the retail segment. The banks tier-1 ratio, post the capital raising (`440cr via QIP during 2QFY2013) stands at a healthy 11.9%, thereby giving enough headroom for the bank to grow at a moderate pace going ahead.
NIMs start declining

Until 1QFY2014, SIBs NIMs have been consistently healthy at above 3%, despite its relatively lower CASA deposits (20.6% as of 1QFY2014), primarily due to high share of gold loans (22% as of 1QFY2014) and also due to aggressive yields on the non-gold portfolio. However, increasing competition in the gold loan space and entry of several players is likely to reduce the so-far above-average profitability of this segment going forward. And on its non-gold portfolio, the bank has witnessed asset quality pressures over the last few quarters and hence the yields in this portfolio (on a risk adjusted basis) have also started trending downwards. Overall, the bank has till now managed the NIM impact by increasing its yield on advances; however continuing to rely on this strategy going forward would likely have further asset quality implications. Eventually, either on account of decline in NIM or increase in asset quality pressures, we expect downside risks to banks RoA.
Outlook and valuation

During the last two quarter, the asset quality for the bank has witnessed pressures. Aggressive yields on the non-gold loan portfolio (~78% of total portfolio) and significant gold price correction on gold loan book (~22% of total), could further increase provisioning expenses and hence provide downside risk to the banks RoA. The stock currently trades at 0.9x FY2015E ABV. We recommend a Neutral rating on the stock.
July 12, 2013
Exhibit 14: Key assumptions

Particulars (%) Credit growth Deposit growth CASA ratio NIMs Other income growth Growth in staff expenses Growth in other expenses Slippages Coverage ratio
Earlier estimates FY2014E 20.0 16.0 17.7 2.8 (3.2) 15.0 12.5 1.5 54.5 FY2015E 20.0 16.0 17.3 2.8 14.1 14.0 12.5 1.4 57.9
Revised estimates FY2014E 18.0 15.0 17.9 2.7 10.4 15.0 12.5 2.0 58.0 FY2015E 20.0 16.0 17.4 2.7 1.1 12.5 12.5 1.6 58.4
Exhibit 15: Change in estimates

FY2014 Particulars (` cr) NII Non-interest income Operating income Operating expenses Pre-prov. profit Provisions & cont. PBT Prov. for taxes PAT
Source: Angel Research
Earlier estimates 1,471 324 1,795 875 920 164 756 227 530
Revised estimates 1,430 370 1,800 875 925 214 710 213 497
Var. (%) (2.8) 14.0 0.2 0.5 30.9 (6.1) (6.1) (6.1)
Earlier estimates 1,684 370 2,054 992 1,061 186 875 297 578
FY2015 Revised estimates 1,649 374 2,023 984 1,039 189 851 289 561
Var. (%) (2.0) 1.1 (1.5) (0.8) (2.1) 1.3 (2.8) (2.8) (2.8)
Exhibit 16: P/ABV band

Price (`) 45 40 35 30 25 20 15 10 5 0 Oct-08 Feb-07 May-08 Nov-10 Feb-12 Sep-06 Sep-11 May-13 Dec-07 Mar-09 Aug-09 Dec-12 Oct-13 Apr-06 Jan-10 Jun-10 Apr-11 Jul-07 Jul-12 0.5x 0.8x 1.1x 1.4x 1.7x
July 12, 2013
Exhibit 17: Recommendation summary

Company Reco. AxisBk FedBk HDFCBk ICICIBk* SIB YesBk AllBk AndhBk BOB BOI BOM CanBk CentBk CorpBk DenaBk IDBI# IndBk IOB J&KBk OBC PNB SBI* SynBk UcoBk UnionBk UtdBk VijBk Buy Accumulate Accumulate Buy Neutral Neutral Buy Accumulate Buy Buy Buy Buy Accumulate Buy Accumulate Accumulate Buy Accumulate Accumulate Buy Buy Buy Buy Reduce Buy Buy Accumulate CMP (`) 1,290 397 694 1,062 23 490 90 81 569 227 50 354 63 345 69 73 107 49 1,239 197 633 1,893 115 67 175 47 46 Tgt. price (`) 1,778 455 752 1,454 123 85 761 270 61 423 69 436 79 80 141 53 1,315 239 883 2,518 136 63 243 58 49 Upside (%) 38 15 8 37 36 5 34 19 22 19 8 27 15 10 32 8 6 22 40 33 18 (6) 39 23 7 FY2015E P/ABV (x) 1.4 0.9 3.2 1.5 0.9 2.1 0.4 0.5 0.6 0.5 0.6 0.6 0.6 0.4 0.4 0.4 0.4 0.3 0.9 0.4 0.6 1.1 0.6 0.7 0.5 0.3 0.5 FY2015E Tgt. P/ABV (x) 1.9 1.0 3.5 2.1 0.6 0.5 0.8 0.6 0.7 0.7 0.6 0.6 0.5 0.5 0.5 0.4 1.0 0.5 0.8 1.4 0.7 0.7 0.8 0.4 0.5
#
FY2015E FY2013-15E FY2015E P/E (x) EPS CAGR (%) RoA (%) 8.0 7.0 15.4 10.7 5.5 9.8 2.7 3.5 3.9 3.3 3.9 4.1 3.4 3.3 2.8 3.2 2.6 2.5 5.9 3.2 3.6 6.6 4.1 4.3 3.7 2.3 4.3 20.8 7.5 26.3 17.4 5.7 17.1 18.3 1.0 16.8 21.6 10.0 15.4 52.3 5.7 3.7 27.1 7.0 78.9 (1.7) 17.0 14.5 17.5 (8.5) 67.5 14.7 54.6 9.5 1.6 1.1 1.9 1.6 0.9 1.3 0.7 0.7 0.9 0.7 0.6 0.8 0.6 0.7 0.7 0.8 0.9 0.6 1.2 0.8 1.1 1.0 0.6 0.6 0.7 0.6 0.4
FY2015E RoE (%) 18.5 13.1 22.8 16.2 16.2 22.8 13.6 13.3 16.0 15.1 15.3 14.2 14.3 14.2 14.7 13.5 14.7 13.0 16.8 12.9 16.5 17.0 14.6 13.6 15.2 14.7 11.5
Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), Without adjusting for SASF
Company Background
South Indian Bank (SIB) is a small old generation private sector bank with ~85% of its branches in southern India (large base in Kerala). Like Federal Bank, SIB also has a large NRI customer base (approx. 16% of total deposits). Of late, the bank has aggressively started focusing on the gold loan portfolio - a highly profitable and secured loan segment. Gold loans accounted for ~22% of the bank's loan book as of 1QFY2014.
July 12, 2013
Income statement (standalone)

Y/E March (` cr) Net Interest Income - YoY Growth (%) Other Income - YoY Growth (%) Operating Income - YoY Growth (%) Operating Expenses - YoY Growth (%) Pre - Provision Profit - YoY Growth (%) Prov. and Cont. - YoY Growth (%) Profit Before Tax - YoY Growth (%) Prov. for Taxation - as a % of PBT PAT - YoY Growth (%) FY09 523 32.7 164 15.2 687 28.0 328 32.4 359 24.3 57 0.7 301 30.0 107 35.4 195 28.4 FY10 568 8.7 208 26.9 777 13.0 366 11.5 411 14.5 43 (24.5) 367 21.9 134 36.4 234 20.0 FY11 791 39.2 197 (5.6) 988 27.2 463 26.3 525 27.9 80 84.4 446 21.3 153 34.3 293 25.1 FY12 1,022 29.2 247 25.6 1,269 28.4 617 33.5 652 24.0 79 (0.7) 572 28.5 171 29.8 402 37.3 FY13E 1,281 25.4 335 35.5 1,616 27.3 767 24.3 849 30.2 193 143.3 656 14.6 154 23.4 502 25.1 FY14E 1,430 11.6 370 10.4 1,800 11.4 875 14.0 925 9.0 214 11.3 710 8.3 213 30.0 497 (1.0) FY15E 1,649 15.4 374 1.1 2,023 12.4 984 12.5 1,039 12.4 189 (12.1) 851 19.8 289 34.0 561 12.9
Balance sheet (standalone)

Y/E March (` cr) Share Capital Reserve & Surplus Deposits - Growth (%) Borrowings Tier 2 Capital Other Liab. & Prov. Total Liabilities Cash balances Bank balances Investments Advances - Growth (%) Fixed Assets Other Assets Total Assets - Growth (%) FY09 113 1,191 19.4 257 155 571 998 1,038 6,075 13.3 136 284 19.2 FY10 113 1,372 27.2 1 330 706 1,391 597 7,156 33.6 153 415 25.3 FY11 113 1,734 29.2 25 265 962 1,828 638 8,924 29.5 357 585 28.5 FY12 113 2,057 22.8 323 265 1,111 1,572 1,069 FY13E 134 2,873 21.3 1,020 265 1,242 1,697 2,639 FY14E 134 3,261 50,902 15.0 1,170 258 1,404 57,129 2,291 3,028 12,983 37,542 18.0 454 831 57,129 14.7 FY15E 134 3,698 59,046 16.0 1,354 252 1,638 66,121 2,657 3,504 13,421 45,051 20.0 526 962 66,121 15.7
18,092 23,012 29,721 36,501 44,262
20,379 25,534 32,820 40,370 49,795
9,400 12,524 33.1 378 671 23.0 16.6 396 724 23.3
11,848 15,823 20,489 27,281 31,816
20,379 25,534 32,820 40,370 49,795
July 12, 2013
10
Ratio Analysis (standalone)

Y/E March Profitability ratios (%) NIMs Cost to Income ratio RoA RoE B/S ratios (%) CASA ratio Credit/Deposit ratio Net worth/ Assets CAR - Tier I Asset Quality (%) Gross NPAs Net NPAs Slippages NPA prov / avg. assets Provision Coverage Per Share Data (`) EPS ABVPS (75% cover) DPS Valuation Ratios PER (x) P/ABVPS (x) Dividend Yield DuPont Analysis NII (-) Prov. Exp. Adj NII Treasury Int. Sens. Inc. Other Inc. Op. Inc. Opex PBT Taxes RoA Leverage RoE 2.8 0.3 2.5 0.2 2.7 0.7 3.4 1.8 1.6 0.6 1.0 15.4 16.0 2.5 0.2 2.3 0.3 2.6 0.6 3.2 1.6 1.6 0.6 1.0 16.7 17.0 2.7 0.3 2.4 0.1 2.6 0.5 3.1 1.6 1.5 0.5 1.0 18.4 18.5 2.8 0.2 2.6 0.1 2.7 0.6 3.3 1.7 1.6 0.5 1.1 19.7 21.6 2.8 0.4 2.4 0.1 2.5 0.6 3.2 1.7 1.5 0.3 1.1 18.4 20.5 2.7 0.4 2.3 0.1 2.4 0.6 3.0 1.6 1.3 0.4 0.9 17.5 16.2 2.7 0.3 2.4 0.0 2.4 0.6 3.0 1.6 1.4 0.5 0.9 17.7 16.2 13.4 2.1 1.3 11.2 1.8 1.7 8.9 1.5 2.2 6.5 1.3 2.6 6.2 1.1 3.0 6.2 1.0 3.0 5.5 0.9 3.5 1.7 10.8 0.3 2.1 12.9 0.4 2.6 15.0 0.5 3.5 17.8 0.6 3.8 20.4 0.7 3.7 23.7 0.7 4.2 26.8 0.8 2.2 1.1 1.6 0.1 48.4 1.3 0.4 1.5 0.2 70.8 1.1 0.3 0.7 0.1 73.9 1.0 0.3 0.8 0.1 71.4 1.4 0.8 1.9 0.3 42.5 1.3 0.5 2.0 0.3 58.0 1.4 0.6 1.6 0.2 58.4 23.8 65.5 15.4 14.8 13.2 23.1 68.8 16.7 15.4 12.4 21.5 68.9 18.4 14.0 11.3 19.7 74.7 19.7 14.0 11.5 18.6 71.9 18.4 11.5 9.9 17.9 73.8 17.5 11.3 9.9 17.4 76.3 17.7 11.0 9.7 2.9 47.8 1.0 16.0 2.5 47.1 1.0 17.0 2.8 46.8 1.0 18.5 2.9 48.7 1.1 21.6 2.9 47.5 1.1 20.5 2.7 48.6 0.9 16.2 2.7 48.6 0.9 16.2 FY09 FY10 FY11 FY12 FY13E FY14E FY15E
July 12, 2013
11
Research Team Tel: 022 - 39357800
E-mail: research@angelbroking.com
Website: www.angelbroking.com
DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered
South Indian Bank No No No No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Returns):
Buy (> 15%) Reduce (-5% to -15%)
Accumulate (5% to 15%) Sell (< -15%)
Neutral (-5 to 5%)
July 12, 2013
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South Indian Bank, 1Q FY 2014

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South Indian Bank, 1Q FY 2014

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1QFY2014 Result Update | Banking

July 12, 2013