Experience Next Generation Banking

Investor Presentation
January - 2016



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 Companys 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 Companys 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.
2















3






FIRST among the private

sector banks in Kerala to
become a scheduled bank in
1946 under the RBI Act
FIRST private sector bank to
open a NRI branch in
November 1992

FIRST among the private sector

banks in Kerala to open an
"Overseas Branch" to cater
exclusively to the export and
import business in June 1993

FIRST bank in the private

sector in India to open a
Currency Chest on behalf of
the RBI in April 1992
FIRST bank in the private sector
to start Industrial Finance
Branch in March 1993

FIRST bank in Kerala to develop an

in-house, a fully integrated branch
automation software in addition to
the in-house partial automation
solution operational since 1992

The FIRST Kerala based bank to implement

Core Banking System
5






~10x

~2X

822

1,200

444

651

239

365

419

251

119

121

139

49

FY05

58
28

FY15
Kerala

South Ex-Kerala

35

FY05

184

FY15

Others (Rest of India)



CAGR : 18%



Rs Crs

Rs Crs

CAGR : 43%

1,366

307

257
9
FY05

FY15

FY05


CAGR : 20%



Rs Crs

89,304

493bps

In %

6.64

1.71

13,858
FY05

FY15

FY15

FY05

FY15






Post Graduate in Physics and CAIIB with over 37 years of experience

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

The major assignments handled by Mr. Mathew in SBI are

Dy. General Manager (IT Networking Project)

Dy. General Manager and Branch Head, (Overseas Branch, Bangalore)

General Manager, (Corporate Accounts Group-Mumbai Branch)

Chief General Manager (Risk Management)

Chief General Manager (Corporate Accounts Group)

He has served on various committees at Corporate Center of SBI such as Wholesale Banking Credit Committee,
Investment Committee, Corporate Centre Credit Committee and was a Director on the Board of SBI Macquarie
Infrastructure Trustee (P) Limited



 

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




Postgraduate in Chemistry and holds Masters Degree in Business Administration & CAIIB
He heads Credit and Legal Departments
He has over 35 Years of Experience in Domestic and International Banking in India and Abroad
Before joining SIB, he was the General Manager and Head of Private Equity Vertical in State Bank of India where he was
responsible for Private Equity and Venture Capital Investments made by the Bank
He was also a nominee director on the Board of Directors of four companies and Investment Committee of more than
ten Alternative Investment Funds



Commerce Graduate & CAIIB

He is responsible for Treasury Operations of the Bank along with International Banking Division

Before joining SIB, he was associated with Union Bank of India and was General Manager of Treasury and International
Banking Division.

He was the Banks nominee on the Board of FIMMDA and SBI Global Factors and Member of the Advisory Committee
of Metropolitan Stock Exchange of India, IDFC Investment Fund, TATA Growth Fund, TATA Innovative Fund, India
Advantage Fund I & II



 







 





Bachelors Degree in Science, MBA and CAIIB



Bachelors Degree in Commerce, Masters in EXIM,

Diploma in Financial Management and CAIIB








Masters Degree in Arts and Post Graduate Diploma in

Personnel Management & JAIIB

Bachelors Degree in Arts & Masters Degree in Business

Administration and CAIIB



Masters Degree in Commerce and JAIIB






Bachelors Degree in Arts & Post Graduate Diploma in

Computer Application, Certification in RDBMS & Oracle
8i and JAIIB

 



Bachelors Degree in Commerce, C.A. (Inter) and JAIIB

10




 

Bachelors Degree in Mathematics

Fellow member of the Institute of Chartered Accountants of India and Certified Associate of the Indian Institute of
Banking & Finance



Bachelors Degree in Commerce, Associate Member of

Institute of Chartered Accountants of India and Certified
Associate of Indian Institute of Banking & Finance.

 

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

11



12

 

01

Increase

CASA

02

Retail Business

More Products




06

Sustainable

Asset Quality

03

SME Business

Sole Banker




05

Increase

Fee Income

04

Improve

NIM

13


01

02














03




Loan Processing

Retail Business

Branch Profitability

Enhanced risk management

Penetrate further in the

existing set of Customers

Focus on a Geography and

open additional branches

Faster Sanctions

Improve Branch Profitability

KYC compliance and fraud

prevention tools

14

by focus on Housing Loans in Retail



9,833

9,657

803

834

847

926

1,791

1,726

1,620

1,580

2,857

2,485

9,368

9,250

Rs Crs
9,382

910

1,008

1,057

941

858

872

1,733

1,801

1,998

1,540

1,559

1,501

2,003

1,655

1,455



Retail hub in Cochin to increase focus on

housing finance

Two more hubs to be set up one in

South India and one in North India

Branch staff being given specific training

to market mortgage loans

Marketing initiative through TVCs

Tailor made products for different

segments

Oct to Dec 2015

2,241

2,106

1,915

2,369

2,499

Housing Loans Sanctioned : 1,068 Nos.

Amount of Housing Loans Sanctioned Rs. 199 cr

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Others

Service & Traders

Gold

LAD*

Manufacturing

Housing

*LAD = Loan against deposits

15

becoming a Banker of Choice to SMEs


15.28


 

Rs Lakhs

Rest of
India
22%

15.26

Kerala
45%

13.70

South
(ExKerala)
33%

12.50
10.50

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15



Dedicated DGM 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, etc.

Ongoing training (in-house as well as external)

16

with the help of our Branch Network


+5.7%

631

FY11

794

822

831

688

738

FY12

FY13

FY14

FY15

Q3FY16


Branch Location*

+21.0%

No of
Branches

Kerala

447

South India (Ex-Kerala)

244

Rest of India

140

Total

831

490

FY11
*Map for illustration purpose only

663

FY12

800

FY13

1,000

FY14

1,200

FY15

1,272

Q3FY16

17

 and our Experienced Employees




14

128

75

7,048

5%
22%

14%

72

6,937
27%

Dec-14 Mar-15 Jun-15

32%

Sep-15 Dec-15 Closing

*Employees include full-time officers and clerks.

< 1 Year

1-2 Years

5-10 Years

> 10 Years

2-5 Years

18



19

 
Dec-15
45,503


Dec-15
7,938

Dec-15
53,441

38,888
Dec-14

9,571
Dec-14

48,459
Dec-14

Core Deposit

Non-Core Deposit

Total Deposit

Dec-15


Rs Crs


Dec-15

Dec-15

12,307

1,826
Dec-14

8,598
Dec-14

10,424
Dec-14

Current

Savings

Total CASA

Rs Crs

20



Rs Crs



51,912

52,324

53,036

53,441

48,459

28,456


+18%

12,307
2,130

10,424
1,826

29,968

31,517

32,334

8,598

10,177

Dec-14

Dec-15

33,204

Current

8,598

1,826

8,868

9,622

1,818

9,579

11,258

Dec-14

Mar-15
Term

9,915

10,177

2,034

2,157

2,130

9,151

8,630

7,930

Jun-15

Sep-15

Dec-15

Savings

Current

*Others includes: Bulk, Certificates of Deposits

Rs Crs

Others*

Savings


+17%

28,456

Dec-14

Rs Crs

33,204

Dec-15

21

NRI Deposits Growing





Rs Crs

+26%

10,745

11,393

12,193

12,904

In (%)

13,566

22.8
23.0
22.3
21.5

20.6

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Dec-14

Mar-15

Jun-15

Sept-15

Dec-15

As on March 2015 : 71% of Liabilities will be re-priced within 1 year

22



+10%

36,998

15,052

37,978

15,433

38,820

16,317

40,215



Rs Crs

40,601

5,549
13.67%

+10%

16,857

Rs Crs

16,584.
40.85%

9,086
22.38%

16,584

+9%

21,946

22,545

22,503

23,358

24,017

1,455
3.58%
7,927
19.53%

Dec-14

Mar-15

Corporate (Above Rs 25 Crs)

Jun-15

Sep-15

Dec-15

Retail & SMEs (Below Rs. 25 Crs)








23

 



Rs Crs

+14%

6,976 7,172

7,365 7,595 7,927



Rs Crs

2,857

2,485

2,003

1,655

1,455

Dec-14 Mar-15 Jun-15 Sep-15 Dec-15

Dec-14 Mar-15 Jun-15 Sep-15 Dec-15

Agriculture



Rs Crs

+48%

3,739

4,077

4,917

5,352

5,549

Dec-14 Mar-15 Jun-15 Sep-15 Dec-15







Rs Crs

+9%

8,374

8,811

8,218

8,756

9,086








Dec-14 Mar-15 Jun-15 Sep-15 Dec-15

24








9%

19%
10%

37%
8%

81%

Investment Grade

High Yield

36%

SIB-AAA/AA

SIB-A

SIBB<BBB

Unrated

SIB-BBB

25


36,971

10,549

37,954

11,444

38,851

11,899

40,215

12,289

Rs Crs
40,601
+18%
12,440

-3%

13,542

12,769

12,682

13,187

13,178

+16%

12,880

13,741

14,270

14,739

14,983

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Rest of India

South Ex- Kerala

Kerala

26



+27%

320

Dec-14

347

Mar-15

340

Jun-15

388

Sep-15


+42 bps

2.50

Dec-14

2.70

Mar-15

2.54

Jun-15

2.81

Sep-15

Rs Crs



In %

Cost Of Deposit

407

Dec-15

In %

Yeild on Advances

11.46

11.61

11.49

11.38

8.00

8.05

7.85

7.53

Dec-14

Mar-15

Jun-15

Sept-15

11.21

7.38
Dec-15

  

In %
Yield on Funds

Cost of Funds

2.92

Dec-15

9.32

9.38

9.39

9.28

7.04

6.92

7.07

6.71

Dec-14

Mar-15

Jun-15

Sept-15

9.21
6.55
Dec-15

27




1,366

Rs Crs

+11%

1,135

1,019



In %
Yield on Advances

Cost of Deposits

11.79

11.74

11.49

11.43

7.97

7.99

7.85

7.69

11.36

729
340

Dec-14

Mar-15

Jun-15

Sep-15



Dec-15

In %

+6 bps

2.70

Dec-14

2.70

Mar-15

2.54

Jun-15

2.67

Sep-15

Dec-14

Mar-15

Jun-15

Sept-15

7.58
Dec-15

  

In %
Yield on Funds

Cost of Funds

2.76

Dec-15

9.63

9.55

9.41

9.33

7.16

7.08

7.08

6.89

Dec-14

Mar-15

Jun-15

Sept-15

9.29
6.77
Dec-15

28







In %

59.28
147

58.70
56.60

128
53.29

72

52.66

-14

Dec-14

Mar-15

Jun-15

Sept-15

-75
Dec-15



Dec-14

10.9

10.8

11.5

11.7

11.9

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Jun-15

Sept-15



Rs Crs

+9%

Mar-15

+8%

100

99

Dec-14

Mar-15

Dec-15

Rs Crs

107

107

108

Jun-15

Sep-15

Dec-15

29


Total Other Income led by .

160

153

122

104

Sustainable : Transaction Fees + Technology

Rs Crs

72

65

121

Mar-15

Jun-15

Sep-15

Dec-15

50

52

22

22

21

21

23

Dec-14

Mar-15

Jun-15

Sep-15

Dec-15

Transaction Fees

 
9

Rs Crs

79

Dec-14
Forex

22
12

15
10

28

9
14

42

Mar-15

Jun-15

Sep-15

Other

14
50

Dec-15

67

60

43

Dec-14

Rs Crs

72

Details

44

39

Technology


Rs. Crs

M Duration

HTM

11,367

5.28

AFS

1,859

4.10

HFT

173

6.07

Total

13,399

5.15

Profit on Sale of Investments

30



Rs Crs

Q3- FY 16

Q3- FY 15

Q2-FY16

For NPA & NPI

83.85

51.35

89.13

For Depreciation on Investments

12.21

(3.46)

(3.23)

For Standard Assets

10.85

3.69

16.3

For Restructured Advances/Sacrifices & FITL

(1.69)

30.39

(37.89)

For Unhedged Forex Exposure

(1.23)

3.54

(2.05)

Others

2.39

0.45

5.21

Taxes

55.05

45.53

52.18

Total Provisions

161.43

131.49

119.65

31







2.75%

2.24%
1.80%

1.71%

Dec-14

Mar-15

1.85%

June-15

Sept-15

Dec-15

 

0.96%

Dec-14

Mar-15

892

Opening

Additions

June-15

Sept-15

 

Rs Crs

145

151

1,108

367

1.39%

1.21%

1.04%

1.80%

Dec-15

Rs Crs
716

311
550

Deductions

Closing

Opening

Additions

Deductions

Closing

32




Rs Crs

2,313

1,938
175

2,068
186

2,170
195

313

 

2,236
306

UDAY Scheme
to Benefit

21%

1,763

1,882

1,975

2,000

1,930

46%

33%

Dec-14 Mar-15 Jun-15

Sep-15 Dec-15

Restructured NPA

Power Discoms
Construction EPC
Others

Governments












Restructured Standard Advance

*Other includes IT, Bullion, etc.

33




Rs Crs

53

Shift of focus from

Large Corporate
to
SMEs

103

17

Defocusing from
Power & Infra Sectors

10

2,313

2,236

Opening

Fresh
Additions

Inc. in Upgradation Closure

Balance to Standard including
write off

Dec. in
Balance

Closing

Special Recovery Cell

&
Asset Monitoring Cell

34



39.3
90.1

Rs Crs
368.8

Provisioning
Coverage Ratio

318.0

50.29%

Advances in the Initial

quarters as NPAs :
Requiring
Less Provisioning
Opening

Additions

Deductions

Closing

35

 

0.19%

0.14%

0.12%

0.12%



0.15%

0.26%

0.21%

0.23%

0.04%
Dec-14

Mar-15

Jun-15

Sept-15


0.55%

0.38%

Dec-15

Dec-14

Jun-15

Sept-15

0.61%

Dec-15

1.80%

0.44%

0.43%

Mar-15

Mar-15


0.77%

Dec-14

0.02%

Jun-15

Sept-15

Dec-15

Dec-14

0.59%

Mar-15

0.60%

0.95%

Jun-15

Sept-15

Dec-15

Fresh Slippage / Advances ratio is extremely low across Retail, SME & Agriculture
36





12.1
11.4
1.4

10.0

Dec-14

11.9

11.7

1.4

2.3

2.3

10.0

9.6

9.4

Jun-15

Sep-15

Dec-15

11.4

1.6

10.5

Mar-15
CRAR Tier II

In %

CRAR Tier I

37

 


 

 
319.91

27.14%

Other Income

153.32

160.34

-4.38%

Profit After Tax

101.63

87.93

15.58%

Advances

40,601

3,6998

9.74%

Deposits

53,441

4,8459

10.28%

GNPA

1,108.01

661.27

67.56%

NNPA

715.98

379.56

88.63%

NIM

2.92%

2.50%

42bps

CASA

23.03%

21.51%

152bps

Net Interest Income

406.72



38

 



 
60,269

 
55,577



60,127



Capital

135

135

0.00%

135

0.01%

Reserves and Surplus

3,715

3,524

5.41%

3,613

2.82%

Deposits

53,441

48,459

10.28%

53,036

0.76%

Borrowings

1,665

2,209

-24.61%

2,171

-23.30%

Other Liabilities & Provisions

1,312

1,251

4.93%

1,172

11.98%

Assets

60,269

55,577

8.44%

60,127

0.24%

Cash & Balances with RBI

2,367

2,102

12.60%

2,365

0.08%

249

1037

-76.03%

667

-62.72%

Investments

13,259

12,337

7.47%

13,174

0.65%

Advances

39,909

36,394

9.66%

39,556

0.89%

Fixed Assets

485

465

4.42%

481

0.92%

Other Assets

4,000

3,242

23.36%

3,884

2.98%

Business (Advances + Deposits)

93,350

84,853

10.01%

92,592

0.82%

Current Accounts

2,130

1,826

16.65%

2,157

-1.25%

Savings Accounts

10,177

8,598

18.36%

9,915

2.64%

CASA Ratio

23.03%

21.51%

152bps

22.76%

(27bps)

Capital & Liabilities

Balances with Banks

8.44%

 

0.24%

39

 



 
406.72

 
319.92



388



Other Income

153.32

160.34

-4.38%

121

26.71%

Total Income

560.04

480.26

16.61%

509

10.03%

Operating Expenses

296.97

260.84

13.85%

297

-0.01%

Operating Profit

263.07

219.42

19.89%

213

23.51%

Provisions (Ex-Tax) &

Contingencies

106.39

85.97

23.75%

67

58.79%

Profit Before Tax

156.68

133.45

17.41%

145

8.06%

Provision for Tax

55.05

45.52

20.94%

52

5.87%

Exceptional Items

101.63

87.93

15.58%

93

9.28%

Net Interest Income

Profit After Tax

27.13%

 

4.82%

40


Net Interest Margin (NIM)

2.7%

2.9%

2.5%

2.7%

2.5%

CRAR Basel III

12.2%

12.1%

11.4%

12.1%

11.4%



11.9%

11.7%

RoAA (Annualized)

0.5%

0.6%

0.6%

0.1%

0.5%

0.6%

0.7%

Provision Coverage

62.5%

62.9%

60.4%

61.0%

56.1%

55.3%

50.3%

CASA

22.1%

22.1%

21.5%

20.6%

22.3%

22.8%

23.0%

Gross NPA

1.5%

1.6%

1.8%

1.7%

1.9%

2.2%

2.8%

Net NPA

0.9%

0.9%

1.0%

1.0%

1.2%

1.4%

1.8%

Book Value per Share (Rs.)

25.88

26.47

27.10

26.59

27.07

27.76

28.51

Earnings per Share (Rs.) (Annualized)

3.78

3.01

2.87

2.28

1.93

2.34

2.56

- Kerala

439

440

441

444

447

447

447

- South India (Ex-Kerala)

230

232

233

239

242

244

244

- Rest of India

132

133

136

139

139

140

140

Total Branches

801

805

810

822

828

831

831

- Kerala

565

587

607

651

670

682

688

- South India (Ex-Kerala)

297

313

325

365

378

380

384

- Rest of India

156

163

176

184

196

198

200

1,018

1,063

1,108

1,200

1,244

1,260

1,272















2.8%

2.9%

Branches

ATMs

Total ATMs

41





42




Mobile Banking

ATMs


Internet Banking

Mobile Banking

Branches


Point of Sale
43



SIB Mirror is a mobile-led platform with instant account

access, balance retrieval, immediate fund transfers, all
account intimations, and much more

SIB-er Net is a suite of comprehensive internet banking

services positioning SIB as a technology-driven bank
offering superior services to retail customers

Retail branches now interconnected with single-window

service and providing real-time online, real-time
transactions to customers

SIB offers Visa, MasterCard, and RuPay debit cards with

online access to users for secure domestic and
international transactions

Centralized Processing Center allows enhanced risk

management and customer creation with complete KYC
compliance and fraud prevention tools

44


(000)s


138



(000)s

133

Mar-15

(000)s

Jun-15

Sep-15

481

556

437

507

536

Rs Crs

Dec-14 Mar-15 Jun-15 Sep-15 Dec-15



Dec-14

74

265
35

Mar-15

Jun-15

124

104

342
210

1,887

1,467

Dec-15 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15



2,385

2,356

1,887

866

74

Dec-14

Rs Crs

1,254

162

135



Sep-15

Dec-15

Dec-14

50

Mar-15

Jun-15

Sep-15

Dec-15

45



In Millions
2.5

Dec-14



2.8

2.7



In Millions

3.0

23.6

26.2

26.8

Mar-15

Jun-15

29.2

28.9

Sep-15

Dec-15

2.5

Mar-15

Jun-15

Sep-15

Rs Crs
4,081

Dec-14

Dec-15

Dec-14


4,518

4,806

Mar-15

Jun-15

5,047

5,164

Sep-15

Dec-15

46



47

 





Focus on retail loan products

Efficient branches for faster processing of loans
Continuous training of work force
Invest in Brand Building

 Cluster based approach in industry hubs

 Sole Banker to SMEs for all banking needs

Dedicated vertical to penetrate SME banking




Strategy & Road map in place to increase CASA funds

Centralized processes allowing branches to focus on
garnering low cost funds





Granulize loan portfolio to spread out risk

Cautious approach on large corporate lending
Special recovery cell for monitoring non performing and
restructured assets






Focus on increasing banking services for SME, Retail & NRI

clients
Enhance treasury capabilities & increase bench strength
Expand PoS & ATM Network

48



49



Private Sector Bank in the ABP News BFSI Awards 2015

SIB wins 'Best IT Team Award



 


50

Company



The South Indian Bank Ltd.

CIN L65191KL1929PLC001017
Mr. C. P. Gireesh, CFO
cpgireesh@sib.co.in

www.southindianbank.com

Investor Relations Advisors

Strategic Growth Advisors Pvt. Ltd.

CIN - U74140MH2010PTC204285
Ms. Payal Dave / Mr. Shogun Jain
dpayal@sgapl.net / jshogun@sgapl.net
+91 98199 16314 / +91 77383 77756
www.sgapl.net

51