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SGA - SIB Investor Presentation - Q1 FY17-18
SGA - SIB Investor Presentation - Q1 FY17-18
Investor Presentation
July - 2017
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. Certain statements made in this
presentation may not be based on historical information or facts and may be “forward
looking statements”, including those relating to the Company’s general business plans
and strategy, its future financial condition and growth prospects, and future
developments in its industry and its competitive and regulatory environment. Actual
results may differ materially from these forward-looking statements due to a number
of factors, including future changes or developments in the Company’s business, its
competitive environment and political, economic, legal and social conditions in India.
This communication is for general information purpose only, without regard to
specific objectives, financial situations and needs of any particular person. This
presentation does not constitute an offer or invitation to purchase or subscribe for
any shares in the Company and neither any part of it shall form the basis of or be
relied upon in connection with any contract or commitment whatsoever. The
Company may alter, modify or otherwise change in any manner the content of this
presentation, without obligation to notify any person of such revision or changes. This
presentation can not be copied and/or disseminated in any manner.
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Contents
Q1 FY18 Highlights
Business Strategy
Performance Matrix
An Inflection Point
About Us
3
Q1 FY18 Highlights
4
Key Performance Highlights- Q1 FY18
Rs Crs
CASA Deposits Advances
23% 14%
12%
Net Interest Income Other Income
PPOP PAT
Q1 FY18 379 Q1 FY18 101
Q1 FY17
Q1 FY17 259 Q1 FY17 95
46% 7%
• South Indian Bank has tied up with PFG Forex for remittance
facility for the benefit of Indian expatriates from Australia
• NRIs can visit the PFG Forex outlets across Australia for
remittances to India
• South Indian Bank has tied up with Kotak Life and SBI Life for
Life Insurance and Max Bupa for Health Insurance
distribution
7
Our Strategy…
• Focus on retail loan products
Expand • Efficient branches for faster processing of loans
Retail • Continuous training of work force
Business • Advanced technology for ease of customers
• Invest in Brand Building
8
…Performance in Line with Strategy
DECREASE INCREASE
64% YoY 26% YoY
9
Shall continue to focus on Core Strengths
01 Increase …
02 Retail Business … 03 SME Business …
Retail SME
Relationships Relationships
10
...Increase Retail & SME Business
01 02 03
11
…by focus on Housing Loans in Retail
Retail Breakup Housing: Key Initiatives
Rs Crs +20%
12,002 • Retail hub in Kochi to increase focus on
11,566 housing finance
1,369
10,358 10,409 1,329 • Two more hubs to be set up – one in
10,002
986 South India and one in North India
1,094 1,154 801
1,063
1,094 909 • Branch staff being given specific training
925
3,127 3,252 to market mortgage loans
2,677 2,756 2,828 2,903 2,993 • Mortgage Loans Sanctioned : 1,155 Nos.
15.76 16.10
15.56 South (Ex-
Kerala)
33%
SME Highlights
13
…with the help of our Branch Network
Total Branch Network
+2.9%
+10.9%
No of 1,287 1,320 1,344
Branch Location* 1,200
Branches
1,000
Kerala 463 800
South India (Ex-Kerala) 246
Rest of India 142
Total 851
FY13 FY14 FY15 FY16 FY17 Q1 FY18
7,256
279
6,975 5 6
3
7%
1%
26%
33%
33%
16
Strong Deposit Franchise
Core & Non-Core Deposits
Rs Crs
Jun-17 Jun-17 Jun-17
55,712 10,079 65,791
15% 9% 14%
CASA Deposits
Jun-17 Jun-17 Jun-17 Rs Crs
3,064 13,522 16,586
17
Core Deposits Growing...
Breakup of Deposits CASA Deposit
Rs Crs Rs Crs
66,117 65,791 +23%
63,595
60,192 16,586
57,889 13,454 3,064
2,187
11,267 13,522
38,498 39,162
37,415
36,279
35,230 Jun-16 Jun-17
Current Savings
Term Deposits
12,994 Rs Crs
13,540 13,522 +11%
11,267 11,299
2,753 39,162
2,399 2,946 3,064 35,230
2,187
10,215 9,693 11,874 10,043
9,205
17,389
16,821
16,317
15,476 25.9
15,025 25.2
23.2 23.8
22.8
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sept-16 Dec-16 Mar-17 Jun-17
19
Composition of Loan Book
Corporate Advances (Above Rs 25 Crs) Retail Advances
Rs Crs Rs Crs
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17
Corporate
10,851 , Retail Ex Gold
22.96%
Gold
SME
Agriculture
1,361 , 10,641 ,
2.88% 20
22.51%
Key Focus : Retail, SME & Agriculture
Retail excluding Gold Gold ( Average LTV – 65%)
Rs Crs Rs Crs
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17
Agriculture SME
Rs Crs Rs Crs
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17
21
Advances growing Across Regions
Rs Crs
47,084 47,264
44,428 45,234
42,024
14,170 13,541
13,413 13,632
12,715
14,693 15,034
13,923 14,054
13,315
22
Net Interest Income - Quarter
Net Interest Income Cost of Deposits & Yield on Advances
Rs Crs In %
+23%
Cost Of Deposit Yeild on Advances
445 439 461
418
374 10.89
10.59 10.32 9.97 10.06
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sept-16 Dec-16 Mar-17 Jun-17
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sept-16 Dec-16 Mar-17 Jun-17
23
Net Interest Income - Cumulative
Net Interest Income Cost of Deposits & Yield on Advances
Rs Crs In %
+23% Cost of Deposits Yield on Advances
1,675
10.89 10.73
1,236 10.59 10.43
10.06
819
6.98 6.86 6.75 6.64
374 461 6.24
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun -16 Sept -16 Dec -16 Mar -17 Jun -17
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun -16 Sept-16 Dec-16 Mar -17 Jun -17
24
Improving Operating Efficiency
Employee Additions C/I Ratio
In %
279
52.57
51.08
48.53 49.20
3 5 -6 44.19
-32
Jun -16 Sept -16 Dec -16 Mar -17 Jun -17 Jun -16 Sept -16 Dec -16 Mar -17 Jun -17
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17
25
Sustainable Other Income
Total Other Income led by …. …Sustainable : Transaction Fees + Technology
Rs Crs Rs Crs
259 86 84
79 74
219
67
173
146 138 54 59 54
48 45
25 26 22 27 30
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17
27
Non Performing Assets
Gross NPA Net NPA
3.96% 3.96% 3.98% 2.89% 2.77%
3.61% 2.52% 2.54%
2.45% 1.45%
Jun-16 Sept-16 Dec-16 Mar-17 Jun-17 Jun-16 Sept-16 Dec-16 Mar-17 Jun-17
Rs Crs Jun-16 Sept-16 Dec-16 Mar-17 Jun-17 Rs Crs Jun-16 Sept-16 Dec-16 Mar-17 Jun-17
Opening 1,562 1,651 1,745 1,787 1,149 Opening 1,185 1,192 1,206 1,116 675
Additions 125 226 197 1,150 686 Additions 105 135 125 991 580
Closing 1,651 1,745 1,787 1,149 1,696 Closing 1,192 1,206 1,116 675 1,183
28
Stressed Assets - QoQ
442
532 16%
653
9%
571
501
945 262 75%
761 261
642
309
240
Infra Roads Construction EPC Others
Restructured NPA
Restructured Standard Advance
30
Restructured Standard Asset Book
Rs Crs
Increase in
Fresh Uday – SDL Decrease in Slippages to Closing
Opening Existing
Addition Investments Balance NPA Balance
Balance
Construction
22 - - - - - 22
EPC
Others 110 - 2 73 - - 39
31
Movement in Restructured Accounts
Movement in Restructured Accounts
Rs Crs Shift of focus from
0 5 Large Corporate
73
to
SMEs
0 2
Defocusing from
571
Power & Infra Sectors
501
32
Adequate Provisioning
NPA Provisioning
Rs Crs
33
Fresh Slippages/Advance Ratios
Jun-16 Sept-16 Dec-16 Mar-17 Jun-17 Jun-16 Sept-16 Dec-16 Mar-17 Jun-17
Jun-16 Sept-16 Dec-16 Mar-17 Jun-17 Jun-16 Sept-16 Dec-16 Mar-17 Jun-17
34
Well Capitalized to support Growth
BASEL III
In %
12.4 12.1
11.7
11.1 11.1 1.5 1.4
1.8
1.7 1.7
10.9 10.8
9.9 9.5 9.4
Tier 2 Tier 1
35
Balance Sheet Overview- Q1 FY18
Rs Crs Q1-FY 18 Q1-FY 17 Y-o-Y (%) Q4-FY 17 Q-o-Q (%)
Capital & Liabilities 73,195 64,504 13.47% 74,312 -1.50%
Cash & Balances with RBI 3,206 2,602 23.23% 3,078 4.15%
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Key Metrics- Quarterly
FY15 FY16 FY17 FY18
Particulars
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Net Interest Margin
2.7% 2.9% 2.5% 2.7% 2.5% 2.8% 2.9% 2.6% 2.7% 2.8% 2.7% 2.7% 2.8%
(NIM)
CRAR Basel III 12.2% 12.1% 11.4% 12.1% 11.4% 11.9% 11.7% 11.8% 11.7% 11.1% 11.1% 12.4% 12.1%
RoAA (Annualized) 0.5% 0.6% 0.6% 0.1% 0.5% 0.6% 0.7% 0.5% 0.6% 0.7% 0.6% 0.4% 0.6%
Provision Coverage 62.5% 62.9% 60.4% 61.0% 56.1% 55.3% 50.3% 40.3% 42.6% 46.1% 50.2% 55.1% 44.6%
CASA 22.1% 22.1% 21.5% 20.6% 22.3% 22.8% 23.0% 22.4% 23.2% 22.8% 25.9% 23.8% 25.2%
Gross NPA 1.5% 1.6% 1.8% 1.7% 1.9% 2.2% 2.8% 3.8% 4.0% 4.0% 4.0% 2.5% 3.6%
Net NPA 0.9% 0.9% 1.0% 1.0% 1.2% 1.4% 1.8% 2.9% 2.9% 2.8% 2.5% 1.5% 2.5%
Book Value per Share 26.9 27.7
25.9 26.5 27.1 26.6 27.1 27.8 28.5 28.5 30.0 30.8 31.6
(Rs.)
EPS (Rs.) (Annualized) 3.8 3.0 2.9 2.3 1.9 2.3 2.6 2.5 2.8 3.0 3.1 2.6 2.3
Branches
- Kerala 439 440 441 444 447 447 447 449 453 454 455 463 463
- South India (Ex-Kerala) 230 232 233 239 242 244 244 245 245 245 245 246 246
- Rest of India 132 133 136 139 139 140 140 140 140 140 140 141 142
Total Branches 801 805 810 822 828 831 831 834 838 839 840 850 851
ATMs
- Kerala 565 587 607 651 670 682 688 698 701 713 718 724 745
- South India (Ex-Kerala) 297 313 325 365 378 380 384 387 388 391 393 394 396
- Rest of India 156 163 176 184 196 198 200 202 202 202 202 202 203
Total ATMs 1,018 1,063 1,108 1,200 1,244 1,260 1,272 1,287 1,291 1,306 1,313 1,320 1,344
38
Next Generation Bank
39
Present across Customer Touch Points
Traditional & Alternate Channels
ATMs Branches
1,344 ATMs across India 851 Branches & 51 Extension Counters
40
Technology Initiatives
SIB Mirror is a mobile-led platform with instant account
access, balance retrieval, immediate fund transfers, all
account intimations, and much more
41
Personal Banking: Technology Banking
Active Internet Users Internet Transaction Volume Internet Transaction Value
(000)’s (000)’s Rs Crs
899 4,489 4,700
785 839
192 205 611 663 3,054 3,293
157 175 2,551
141
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17
350
233
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17
42
Personal Banking: Debit Cards
No of Active Debit Cards Debit Card Transaction Volumes
In Millions In Millions
3.4 31.4 33.7 33.6
30.8
27.1
3.3 3.3
3.2 3.2
Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17
43
An Inflection Point
44
Moving Towards Vision 2020…
45
About Us
46
Milestones
FIRST among the private FIRST bank in the private
sector banks in Kerala to sector in India to open a
become a scheduled bank in Currency Chest on behalf of
1946 under the RBI Act the RBI in April 1992
~2X ~8X
850 1,320
463 724
465
277
246 394
122 174
141 84 202
66 39
51
FY07 FY17 FY07 FY17
48
Performance since FY07
Net Interest Income Profit After Tax
CAGR : 16% Rs Crs Rs Crs
CAGR : 14%
1,675 393
368 104
2.45
20,158
49
Leadership Team
▪ 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
▪ Joined SBI as a probationary officer in the Ahmadabad Circle in 1978 and was Chief General Manager before joining SIB
50
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 & Vigilance
• He was Head of Credit handling a portfolio of Rs.40,000 crores and was instrumental in the execution of the Retail
Strategy of the Bank which saw significant growth in the MSME & Agriculture Sectors
51
Management Team
Mr. John Thomas, Senior General Manager Mr. Benoy Varghese, Senior General Manager
(Business Development Department) (Credit Department)
• Bachelors Degree in Science, MBA and CAIIB • Bachelors Degree in Arts & Masters Degree in Business
Administration and CAIIB
Mr. Raphael T.J., Senior General Manager Mr. Anto George T, General Manager
(Marketing & Information Technology) (Retail Banking Division)
• Bachelors Degree in Commerce, Masters in EXIM, • Bachelors Degree in Arts & Post Graduate Diploma in
Diploma in Financial Management and CAIIB Computer Application, Certification in RDBMS & Oracle
8i and JAIIB
52
Management Team
Mr. C.P. Gireesh, Chief Financial Officer
• Bachelors Degree in Mathematics
• Fellow member of the Institute of Chartered Accountants of India and Certified Associate of the Indian Institute of
Banking & Finance
Mr. Jacob EA, Chief Compliance Officer Mr. Jimmy Mathew, Company Secretary
• Bachelors Degree in Science & CAIIB - I • Bachelors Degree in Commerce, Associate Member of
Institute of Company Secretary of India and Institute of
Cost & Management Accountants of India. Also a
Certified Associate of the Indian Institute of Banking &
Finance
53
Awards & Recognition
Awarded with ISO 27001:2013 Certification
The certification process involved an extensive audit, conducted by British Standards Institution
against the criteria set out by the ISO 27001:2013 standards on various domains of IT functions
54
Awards & Recognition
Won “IBA Banking Technology Awards”
55
For further information, please contact:
Company Investor Relations Advisors
The South Indian Bank Ltd. Strategic Growth Advisors Pvt. Ltd.
CIN – L65191KL1929PLC001017 CIN - U74140MH2010PTC204285
Mr. C. P. Gireesh, CFO Ms. Payal Dave / Mr. Shogun Jain
cpgireesh@sib.co.in shogun.jain@sgapl.net /
sanghamitra.karak@sgapl.net
www.southindianbank.com +91 77383 77756 / +91 9833692935
www.sgapl.net
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