The South Indian Bank Limited = RESULTS = FOR Q3 FY 2012 = Q/E DEC,2011 = NPT UP 8% QOQ & 36% YOY = CONSISTENT PROGRESS

The South Indian Bank Limited

NSE Symbol        SOUTHBANK

The South Indian Bank Ltd has declared excellent results yet again.

Interest on Advances has gone up in current qtr (Q3 FY 12 ending Dec,2011) to Rs.752.96 cr – compared to Rs.701.88 cr (Up by 7.28%) in the previous qtr of Q2 FY 12 ending Sep,2011 -       and Rs.496.63 cr (UP by 51.61%) in the corresponding qtr of Q3 FY 11 ending Dec,2011.

Income on Investments stands at Rs.161.15 in current Qtr – compared to Rs.151.53 cr (Up by 6.35%) in previous Qtr and Rs.123,16 cr(Up by 30.85%) in corresponding Qtr.

Income on Balances With RBI etc – stands at Rs.29.50 cr  in current Qtr – compared to Rs.23.84 cr in previous qtr(Up by 23.74%) – and Rs.2.87 cr (Up by 927.87%) in corresponding Qtr.

Interest Earned has gone up to Rs.943.61 cr in current Qtr – from Rs.    877.25 cr (Up by 7.56%) in previous qtr and Rs. 622.66 cr (Up by 51.54%) in corresponding qtr.

Other Income has gone up to Rs.59.86 cr in current qtr – from Rs.53.08 cr (Up by 12.77%) in previous qtr and Rs.        49.70 cr (Up by 20.44%) in corresponding qtr.

Total Income has crossed Rs.1000 cr to reach Rs.1003.47 cr in current qtr – from Rs.930.33 cr (Up by 7.86%) in previous qtrn  - and Rs.672.36 cr (Up by 49.25%) in corresponding Qtr.

Interest Expended stands at Rs.   670.17 cr in current qtr – compared to Rs.618.48 cr (Up by 8.36%) in previous qtr and Rs.417.87 cr (Up by 60.38%) in corresponding qtr.

Net Interest Income (Earned – Expended) stands at Rs.273.44 cr in current qtr  - compared to Rs.258.77 cr(Up by 5.67%) in previous qtr  and Rs.204.79 cr (Up by 33.52%) in corresponding qtr.

Operating Profit         stands at Rs.179.00 cr in current qtr – from Rs.166.34 cr (Up by 7.61%) in previous qtr and Rs.142.86 cr (Up by 25.3%) in corresponding qtr.

Provisions stands at Rs.22.19 cr in current Qtr – compared to Rs.23.83 cr(Down by -6.88%) in previous qtr – and Rs.29.83 cr (down by -25.61%) in corresponding Qtr.

Profit before tax stands at Rs.156.81 cr in current Qtr – compared to Rs.142.51 cr (Up by 10.03%) in previous qtr – and Rs.113.03 cr (Up by 38.73%) in corresponding Qtr.

Tax Expense      stands at Rs.54.57 cr in current qtr –compared to Rs.47.56 cr (Up by 14.74%) in previous qtr and  Rs.37.67 cr (Up by 44.86%) in corresponding qtr.

Net Profit stands at Rs.102.24 cr in current Qtr – compared to Rs.94.95 cr (Up by 7.68%) in previous qtr and Rs.75.36 cr (Up by 35.67%) in corresponding qtr.

Capital Adequacy Ratio is adequate at 10.91 but down from 14.1% in corresponding qtr.

Basic EPS on a Face Value of Rs.1 stands at Rs.0.9 in Q3 FY 12; Rs.0.84 in Q2 FY 12; Rs.0.73 in Q1 FY 12; Rs.0.72 in Q4 FY 11; and Rs.0.69 in Q3 FY 11. The YOY increase is over 30%. It has been going up very steadily QOQ.

% of Gross/Net NPA stands comfortably at 0.24%. 

Return on Assets has gone up to 1.11 –from    1.09 in both previous and corresponding qtrs.

The cumulative EPS for 9 m/e Dec,11 is Rs.2.48 against Rs.1.87 in 9m/3 Dec,2010 – and Rs.2.55 in Y/E Mar,2011.

The annual EPS will be around Rs.3.4 on a FV of Rs.1.

Current Market Price is around Rs.22.85 with the 52 week high price  at Rs.26.10 and the 52 week low price at Rs.17.50.

The Price Earning Ratio comes to 6.72 is very LOW for a company like South Indian Bank, which has been growing very steadily quarter after quarter – indicating good potential for higher market valuations in future.

Note :There is a case regarding Income Tax dispute pending in Supreme court – but, company has taken legal advice and omitted any provision for the same.

OTHER DETAILS : 

(From Investor Presentation of SIB)

1. NUMBER OF BRANCHES : 674 (NO. OF ATMs: 614)-GOING UP TO 701 BY FY 12 END
2. BUSINESS AS ON DEC,11 : Rs.58884 Cr
3. BUSINESS GROWTH : YoY : 27%
4. LAST 5 YEARS BUSINESS CAGR : 25%
5. NPT FOR P/E DEC 2011 : Rs.280 Cr.
6. NPT FOR Q3 :Rs.102 Cr.
7. NET INTEREST MARGIN (DEC,11) : 3.05%
8. CAPITAL ADEQUACY RATIO (BASEL II-DEC 11) : 12.03%
8. NET NPAs (DEC,11)  :  0.24%
9. OVER 85% SECURED LOAN BOOK
10. 17.51% ROE; 1.06% ROAA
11. BUSINESS : 46186 CR TO 58884 CR (36%)
12. ADVANCES : 19188 CR TO 25050 CR (31%)
13. DEPOSITS : 26998 CR TO 33834 CR (25%)
14. Low Cost Deposits form 25% of total deposits

key Focus

1. Aims to increase total Business mix to Rs.1.25 lakh cr by March 2015

RESULTS TABLE

south ind Bnk	31-Dec-11	30-Sep-11	% dif 1	30-Jun-11	31-Mar-11	31-Dec-10	% dif 2
Interest on Advances	75296	70188	7.28	60998	55666	49663	51.61
Income on Investments	16115	15153	6.35	14404	13236	12316	30.85
Income on Balances With RBI	2950	2384	23.74	1470	1469	287	927.87
Interest Earned	94361	87725	7.56	76872	70371	62266	51.54
Other Income	5986	5308	12.77	5163	6048	4970	20.44
Total Income	100347	93033	7.86	82035	76419	67236	49.25
Interest Expended	67017	61848	8.36	56375	48208	41787	60.38
Employees Cost	8931	8771	1.82	6904	7589	6907	29.3
Other Oprting Expenses	6499	5780	12.44	4442	5303	4256	52.7
Oprting Expenses	15430	14551	6.04	11346	12892	11163	38.22
Total Expenditure excl provisions	82447	76399	7.92	67721	61100	52950	55.71
Operating Profit	17900	16634	7.61	14314	15319	14286	25.3
Provisions	2219	2383	-6.88	2084	2641	2983	-25.61
Profit before tax	15681	14251	10.03	12230	12678	11303	38.73
Tax Expense	5457	4756	14.74	3981	4501	3767	44.86
Net Profit	10224	9495	7.68	8249	8177	7536	35.67
Face Value of Share (in Rs.)	1	1	0	1	1	0	#DIV/0!
Paid-up Equity Share Capital	11301	11301	0	11301	11301	11301	0
Dividend (%)	-	-		-	50	-
Capital Adequacy Ratio	10.91	11.8	-7.54	12.36	13.17	14.1	-22.62
Basic EPS	0.9	0.84	7.14	0.73	0.72	0.69	30.43
Gross/Net NPA	5813	5831	-0.31	6349	6002	7433	-21.79
% of Gross/Net NPA	0.24	0.25	-4	0.29	0.29	o.24
Return on Assets	1.11	1.09	1.83	-	1.08	1.09	1.83

ANNOUNCEMENTS BY SIB

16-01-2012 The South Indian Bank Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-DEC-2011 as follows: Interest earned of Rs. 94361 lacs for the quarter ending on 31-DEC-2011 against Rs. 87725 lacs for the quarter ending on 30-SEP-2011. Interest expended of Rs. 67017 lacs for the quarter ending on 31-DEC-2011 against Rs. 61848 lacs for the quarter ending on 30-SEP-2011. Net Profit / (Loss) of Rs. 10224 lacs for the quarter ending on 31-DEC-2011 against Rs. 9495 lacs for the quarter ending on 30-SEP-2011.

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