SOUTH INDIAN BANK Q2 FY 18-19 - INVESTOR PRESENTATION - SUMMARY

SOUTH INDIAN BANK

Q2 FY 18-19

INVESTOR PRESENTATION

SUMMARY

·     MR.V.G. MATHEW MD % CEO

·     The FIRST Kerala based bank to implement Core Banking System

Branch Location	No of BrancheS
Kerala	465
South India (Ex-Kerala)	249
Rest of India	143
TOTAL	857

SOUTH IND BANK	Sep '18	Jun '18	Mar '18	Dec '17	Sep '17	YOY	QOQ
Operating Profit before Provisions and contingencies	309.78	269.64	310.88	330.15	460.27	-32.7	14.89
Provisions And Contingencies	204.68	231.53	148.63	154.28	453.68	-54.88	-11.6
PROFIT  Before Tax	105.1	38.11	162.25	175.87	6.59	1494.84	175.78
Tax	34.97	15.07	48.15	60.87	2.27	1440.53	132.05
Net Profit	70.13	23.04	114.1	115	4.32	1523.38	204.38
Equity Share Capital	180.97	180.95	180.88	180.58	180.44	0.29	0.01
EPS After Extra Ordinary
Diluted EPS	0.39	0.13	0.63	0.64	0.02	1850	200
NPA Ratios :
i) Gross NPA	2,646.15	2,552.18	1,980.30	1,774.59	1,766.32	49.81	3.68
ii) Net NPA	1,784.72	1,813.88	1,415.80	1,210.83	1,255.84	42.11	-1.61
i) % of Gross NPA	4.61	4.54	3.59	3.4	3.57	29.13	1.54
ii) % of Net NPA	3.16	3.27	2.6	2.35	2.57	22.96	-3.36
Return on Assets %	0.33	0.11	0.56	0.58	0.02	1550	200
MP	14.86
PE	9.53
VOLUMES	6857888
FV	1
52 W L H	12.45	34.75
TREND
18.10.18	1 week	2 week	1 month	3 month	6 month	9 month	1 year
Price	13.24	14.16	16.25	22.6	26.7	32.15	32.15
Gain / Loss	12.24%	4.94%	-8.55%	-34.25%	-44.34%	-53.78%	-53.78%

REVIEW OF Q2 FY 19 RESULTS

SOME IMPORTANT FEATURES :

·       CASA UP 11.5% YOY (16485 VS 18388)Rs Cr

·       DEPOSITS UP 11.6% (67142 VS 74911)

·       ADVANCES UP 15.5% (49717 VS 57413)

·       NET INTEREST INCOME UP 1% (503 VS 506)

·       PROVISIONS  DOWN 55% (454 VS 205)

·       PAT UP 1650% (4 VS 70)

·       OPENED A REP OFFICE IN DUBAI,UAE

·       TERM DEPOSITS UP 7% (39618 TO 42498)

·       NRI DEPOSITS GROWING UP 14% (17850 TO 20,425)

·       GROSS NPA  2552 TO 2646

·       NET NPA  1814 TO 1785

·       STRESSED ASSETS AS % OF ADVANCES 4.58% TO 4.83% ON GROSS BASIS

·       ,, ON NET BASIS : 3.31% TO 3.36%

·       PROVISION COVERAGE RATIO : 41.9%

·       CAPITAL COMPOSITION : TIER 1 10%; TIER 2 2.1% TOTAL 12.1%

BUSINESS STRATEGY

·       Expand Retail Business

·       New Retail Banking Department Focus on retail loan & liability/investment products

•Efficient branches & processing centers for faster processing of loans

•Outbound Sales team

•Continuous training of work force

•Advanced technology for ease of customers

•Invest in Brand Building

Strengthen SME Base

•Cluster based approach in industry hubs

•Sole Banker to SMEs for all banking needs

•Dedicated  vertical to penetrate SME banking

Improve CASA

• Strategy & Road  map in place to increase CASA funds

• Alternate channels for mobilising CASA

• Centralized processes allowing branches to focus on garnering low cost funds

• Continuous improvement/review of products

Enhance Asset Quality

• Granulize loan portfolio to spread out risk

• Cautious approach on large corporate lending

• Special cell for monitoring non performing and restructured assets

IMPROVE SHARE OF OTHER INCOME

• Focus on increasing banking services for SME, Retail, NRI

• Enhance treasury capabilities & increase branch strength

• Expand POS/ATM Network and all digital channels

• Leveraging technology to introduce modern & new-age banking products

• Focus on 3rdParty/Investment products to generate more other income

Loan Processing

·       ENTIRE LOAN UNDERWRITING CENTRALISED

·       ENHANCED RISK MANAGEMENT

·       KYC COMPLIANCE AND FRAUD PREVENTION TOOLS

Retail Business

•Penetrate further in the existing set of Customers

•Faster Sanctions

BRANCH PROFITABILITY

•Focus on  particular geographies and open additional branches

•Improve Branch Profitability

Housing: Key Initiatives

•Retail hub in Kochi to increase focus on housing finance

•Dedicated Officers for marketing Retail Loans

•Marketing initiative through TVCs

•Tailor made products for different segments

July to September 2018

•Mortgage Loans Sanctioned : 1,982 Nos.

•Amount of Mortgage Loans Sanctioned: Rs. 587 Crs

SME Highlights

·       Dedicated JGM appointed to ensure focus and better coordination with regions

•Focused ‘Green Channel’ branches to drive faster loan growth to SMEs

•Target to become banker of choice to SMEs thereby getting other business as well –liabilities, vehicle finance

•Ongoing training (in-house as well as external)

•Entire SME loan processing centralized at Kochi at two centers-Special focus on applications up to Rs. 2.00 Cr and standardized, uniform risk based approach on Rs. 2.00 Cr to Rs. 25.00 Cr SME Segment.

•Underwriting of SME loans through customized software called SME LOS (SME Loan Origination System ) to ensure speedy, paperless processing with capabilities to integrate with external sources like Finacle, CIBIL, Rating Agencies etc for seamless flow of data.

•Regional Offices freed from processing of loan applications so as to focus on new customer acquisition and marketing