Investor Presentation January - 2018 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.
2 Contents
Q3 FY18 Highlights
Business Strategy
Performance Matrix
Next Generation Bank
An Inflection Point
About Us
3 Q3 FY18 Highlights
4 Award Wins
Won Digital India Excellence Award 2017
Digital India Excellence Award 2017 for its innovation in mobile app ‘Digital e-lock’ in the 5th PAN-IIM World Management Awards 2017
5 Key Performance Highlights- Q3 FY18
CASA Deposits Advances Rs Crs
Q3 FY18 16,929 Q3 FY18 68,109 Q3 FY18 52,449 Q3 FY17 16,486 Q3 FY17 63,595 Q3 FY17 45,234 3% 7% 16% Net Interest Income Other Income* 509 Q3 FY18 Q3 FY18 159 418 Q3 FY17 Q3 FY17 259 22% 39% PPOP* PAT 115 Q3 FY18 330 Q3 FY18 Q3 FY17 377 Q3 FY17 111 12% 3%
Bank has also decided to augment the paid-up capital by issue of upto 20 cr equity shares of FV of Re.1 each through QIP
6 *De-growth is mainly due to declining treasury trading profit from Rs. 127 cr of Q3 FY17 to Rs. 11 cr of Q3 FY18 Business Strategy
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
Strengthen • Cluster based approach in industry hubs SME Base • Sole Banker to SMEs for all banking needs • Dedicated vertical to penetrate SME banking
Improve • Strategy & Road map in place to increase CASA funds CASA • Centralized processes allowing branches to focus on garnering low cost funds
Enhance • Granulize loan portfolio to spread out risk Asset • Cautious approach on large corporate lending Quality • Special recovery cell for monitoring non performing and restructured assets
Improve • Focus on increasing banking services for SME, Retail, NRI share of • Enhance treasury capabilities & increase branch strength other • Expand PoS & ATM Network Income • Leveraging technology to introduce modern & new-age banking products
8 …Performance in Line with Strategy
Expand Retail, SME & Strengthen SME Base Improve CASA Agriculture Business
Rs. 32,523 Crs Rs. 13,255 Crs Rs. 16,929 Crs
INCREASE INCREASE INCREASE 25% YoY 25% YoY 3% YoY
Enhance Asset Quality Improve share of other (Restructured Book) Income
Rs. 509 Crs Rs. 148* Crs
DECREASE INCREASE 61% YoY 12% YoY
9 *Other Income of Rs. 148 crore excludes profit on sale of investment Shall continue to focus on Core Strengths
01 Increase … 02 Retail Business … 03 SME Business … CASA More Products Sole Banker
Retail SME Relationships Relationships
06 Sustainable… 05 Increase… 04 Improve Asset Quality Fee Income NIM
10 ...Increase Retail & SME Business
01 02 03
Centralized Retail Hub Marketing & • Home Loan Cluster Processing • Auto Loan Branches Centre (Kochi) • MSME Loan • LAP
Loan Processing Retail Business Branch Profitability
• Enhanced risk management • Penetrate further in the • Focus on particular existing set of Customers geographies and open • KYC compliance and fraud additional branches prevention tools • Faster Sanctions • Improve Branch Profitability
11 …by focus on Housing Loans in Retail
Retail Breakup Housing: Key Initiatives
Rs Crs 13,027 • Retail hub in Kochi to increase focus on 12,234 housing finance 12,002 1,422 11,566 • Two more hubs to be set up – one in 1,369 1,436 10,409 1,329 1,008 South India and one in North India 986 1,047 1,154 801 • Branch staff being given specific training 909 3,671 to market mortgage loans 3,252 3,292 3,127 • Marketing initiative through TVCs 2,622 • Tailor made products for different 2,250 2,085 2,041 2,017 segments 1,606 1,328 1,321 1,361 1,320 1,290 Oct to Dec 2017
3,348 2,828 2,903 2,993 3,122 • Mortgage Loans Sanctioned : 2,820 Nos.
• Amount of Mortgage Loans Sanctioned – 950 Crs Dec-16 Mar-17 Jun-17 Sep-17 Dec-17
Others Service & Traders Gold LAD* Manufacturing Housing
*LAD = Loan against deposits 12 …becoming a Banker of Choice to SMEs
Average SME Loan / Account SME Loan Book by Geography – Q3 FY18
Rs Lakhs Rest of India 23.50 26% Kerala 42% 21.25 19.69 17.66 South (Ex- Kerala) 16.10 32%
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, etc. Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 • Ongoing training (in-house as well as external)
13 …with the help of our Branch Network
Total Branch Network
+3.6%
822 834 850 851 738 794
FY13 FY14 FY15 FY16 FY17 9M FY18
Total ATM Network
+13.3% No of Branch Location* 1,287 1,320 1,370 Branches 1,200 1,000 Kerala 463 800 South India (Ex-Kerala) 246 Rest of India 142 Total 851 FY13 FY14 FY15 FY16 FY17 9M FY18
*Map for illustration purpose only 14 … and our Experienced Employees
Employee Addition Total Employees: 7,364*
83 7,364 191
279 10% 6,983 6 24% 3%
30%
33%
Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Closing < 1 Year 1-2 Years 2-5 Years 5-10 Years > 10 Years
*Full-time officers and clerks. 15 Performance Matrix
16 Strong Deposit Franchise
Core & Non-Core Deposits
Dec-17 Dec-17 Dec-17 Rs Crs 56,640 11,469 68,109
5% 17% 7%
53,823 9,772 63,595 Dec-16 Dec-16 Dec-16
Core Deposit Non-Core Deposit Total Deposit
CASA Deposits Dec-17 Dec-17 Dec-17 Rs Crs 3,129 13,799 16,929
6% 2% 3%
2,946 13,540 16,486 Dec-16 Dec-16 Dec-16
Current Deposit Savings Deposit Total CASA
17 Core Deposits Growing...
Breakup of Deposits CASA Deposit
Rs Crs Rs Crs 68,109 +3% 66,117 65,791 67,142 63,595 16,486 16,929 2,946 3,129
13,540 13,799 38,498 39,618 39,746 37,415 39,162 Dec-16 Dec-17 Current Savings
Term Deposits
12,994 13,799 Rs Crs 13,540 13,522 13,526 +6% 39,746 2,753 3,129 37,415 2,946 3,064 2,959
9,693 11,874 10,043 11,039 11,435
Dec-16 Mar-17 Jun-17 Sep-17 Dec-17
Term Savings Current Others* Dec-16 Dec-17
*Others includes: Bulk, Certificates of Deposits 18 NRI Deposits Growing…
NRI Deposits CASA Rs Crs In (%)
18,375 17,850 17,389 16,317 16,821 25.9 25.2 24.9 23.8 24.6
Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17
19 Break Up of Non Resident Deposits
Deposit Type (Rs Crs) Q3-FY 17 Q4-FY 17 Q1-FY 18 Q2-FY 18 Q3-FY 18
NRE SB 2,888 2,908 3,089 3,106 3,212
NRO SB 482 508 520 539 603
FCNR (B), RFC & Others 1,287 1,446 1,508 1,568 1,598
Low Cost NRI Deposit (Sub 4,657 4,862 5,117 5,213 5,413 Total)
NRE Term Deposit 11,191 11,453 11,767 12,130 12,427
NRO Term Deposit 469 506 505 507 535
Total NRI Deposit 16,317 16,821 17,389 17,850 18,375
20 Composition of Loan Book
Corporate Advances (Above Rs 25 Crs) Retail Advances Rs Crs Rs Crs
17,982 17,901 17,536 17,872 18,598 31,845 33,851 29,183 29,728 27,252
Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17
Segment wise Break Up of Total Loan Book Rs Crs 7,569 , 18,598 , 14.43% 35.46%
Corporate 13,255 , Retail Ex Gold 25.27% Gold SME Agriculture
1,328 , 11,699 , 21 2.53% 22.31% Composition of Corporate Loan Book
74% of Corporate Loan Book is Investment Grade Segment wise Break Up of Corporate Loan Rs Crs Book > Rs.25 crore
Rs Crs Sept - 17 Dec - 17 100.0% 100.0% 100.0% 100.0% 100% 0.8% 0.5% 0.2% 0.2% 0.1% Financial Intermediarias 4,062 4,208 13.7% 18.9% 18.3% 19.2% Infrastructure 3,096 2,788 24.7% Cements & Products 1,057 951 15.1% Professional Services 960 710 15.9% 19.0% 18.6% 21.2% Basic Metal & Metal Products 911 1,133 Textiles 681 686 33.0% 32.8% Trade 498 434 38.3% 35.0% 28.1% Chemicals and Chemical Products 502 412 Food Processing and Agri Allied 488 450 16.3% Activities 14.6% Construction 392 351 9.4% 15.1% 15.6% All Engineering 338 303 19.0% 14.7% 12.0% 11.2% 10.3% All other Manufacturing Industries 3,690 4,308 2.1% 2.7% 3.0% 0.6% 0.0% All Other Service Sectors 1,197 1,864 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Total Corporate Portfolio 17,872 18,598 AAA A BB Unrated AA BBB Retail excluding Gold Gold ( Average LTV – 65%) Rs Crs Rs Crs 11,699 1,290 1,321 1,361 1,320 1,328 10,245 10,641 10,914 Retail Loans (Excl. 9,119 Gold), Agriculture & SME has grown by 25% Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Agriculture SME Rs Crs Rs Crs 7,569 6,876 7,185 12,425 13,255 ~16% of the 6,253 6,633 10,590 10,984 10,851 Agriculture & SME Loans are backed by Additional Security by way of GOLD Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 23 Advances growing Across Regions Rs Crs 52,449 49,717 47,084 47,264 45,234 14,898 14,515 14,170 13,541 13,632 15,975 15,440 15,034 14,054 14,693 19,762 21,576 17,548 18,221 18,689 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Rest of India South Ex- Kerala Kerala 24 Net Interest Income - Quarter Net Interest Income Cost of Deposits & Yield on Advances Rs Crs In % Cost Of Deposit Yeild on Advances 503 509 461 418 439 10.32 9.97 10.06 10.03 9.88 6.53 6.33 6.24 6.05 6.01 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Net Interest Margin Cost of Funds & Yield on Funds In % In % Cost of Funds Yield on Funds 2.95 2.88 2.66 2.74 2.80 8.32 8.16 8.14 8.06 7.97 5.97 5.72 5.62 5.42 5.40 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 25 Net Interest Income - Cumulative Net Interest Income Cost of Deposits & Yield on Advances Rs Crs In % Cost of Deposits Yield on Advances 1,675 1,473 10.59 1,236 10.43 10.06 10.05 964 9.99 6.75 6.64 461 6.24 6.14 6.10 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec -16 Mar -17 Jun -17 Sept -17 Dec -17 Net Interest Margin Cost of Funds & Yield on Funds In % In % Cost of Funds Yield on Funds 2.72 2.72 2.80 2.87 2.87 8.63 8.50 8.14 8.10 8.04 6.20 6.06 5.62 5.52 5.46 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar -17 Jun -17 Sept -17 Dec-17 26 Improving Operating Efficiency Employee Additions C/I Ratio In % 279 191 48.53 49.20 44.19 45.12 42.63 5 -6 -83 Dec -16 Mar -17 Jun -17 Sept -17 Dec -17 Dec -16 Mar -17 Jun -17 Sept -17 Dec -17 Business per Employee Business per Branch Rs Crs Rs Crs 14.3 14.1 14.5 129 130 132 13.5 13.8 119 120 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 27 Sustainable Other Income Total Other Income led by …. …Sustainable : Transaction Fees + Technology Rs Crs Rs Crs 280 98 259 94 86 84 219 67 159 67 138 59 54 64 45 22 27 30 29 31 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Transaction Fees Technology Profit on Sale of Investments, Forex & Others Investment Book as on Dec-17 Rs Crs 8 9 Details Rs. Crs M Duration 57 8 110 HTM 14,279 5.64 39 AFS 4,660 3.11 127 7 9 89 25 68 43 HFT 6 0.00 18 11 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Total 18,945 5.20 Forex Other Profit on Sale of Investments 28 Break Up of Provisions Rs Crs Q3-FY 18 Q3-FY 17 Q2-FY 18 For NPA & NPI 229.8 167.0 120.5 For Depreciation on Investments 4.5 12.8 277.1* For Standard Assets 6.5 1.9 13.9 For Restructured Advances/Sacrifices & FITL -0.3 -16.9 -0.2 For Unhedged Forex Exposure 0.5 -0.9 1.3 Others -86.7 42.7 41.1 Taxes 60.9 59.0 2.3 Total Provisions 215.2 265.6 455.9 Depreciation on Investments* moved up to Rs. 277 crore on account of the additional provision of Rs. 252 crore against the NPAs sold by the bank to an ARC during the previous year 29 Non Performing Assets Gross NPA Net NPA 3.98% 2.52% 2.54% 2.57% 2.35% 3.61% 3.57% 3.40% 2.45% 1.45% Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Gross NPA Movement Net NPA Movement Rs Crs Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Rs Crs Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Opening 1,745 1,787 1,149 1,696 1,766 Opening 1,206 1,116 675 1,183 1,256 Additions 197 1,150 686 252 258 Additions 125 991 580 209 89 Deductions 155 1,788 140 182 249 Deductions 216 1,432 72 136 134 Closing 1,787 1,149 1,696 1,766 1,775 Closing 1,116 675 1,183 1,256 1,211 30 Stressed Assets - QoQ Gross Basis Net Basis Rs Crs Q2-FY 18 Q3-FY 18 Q2-FY 18 Q3-FY 18 NPA 1,766 1,755 1,256 1,211 Restructured Standard Advance 252 248 252 248 Other Stressed Advances 0 0 0 0 Total Stressed Assets 2,018 2,023 1,508 1,459 Advances 49,446 52,184 48,931 51,615 Stressed Assets as % of Advances 4.08% 3.88% 3.08% 2.83% We have ‘ZERO’ accounts in our Watchlist of Large Corporate Book 31 Restructured Advances Breakup Restructured Assets Break-up Sector Standard Restructure – Q3FY18 Rs Crs 1,295 14% 653 9% 571 501 513 509 262 261 261 261 77% 642 309 240 252 248 Infra Roads Construction EPC Others Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Restructured NPA Restructured Standard Advance 32 Restructured Standard Asset Book Rs Crs Restructured Standard Advance Increase in Fresh Uday – SDL Decrease in Slippages to Closing Opening Existing Addition Investments Balance NPA Balance Balance Infra Roads 193 - - - 3 - 190 Construction - EPC 22 - - - - 22 Others 37 - 1 - 2 - 36 Total 252 - 1 - 5 - 248 33 Movement in Restructured Accounts Movement in Restructured Accounts Rs Crs Shift of focus from 0 0 Large Corporate 1 0 to SMEs 5 Defocusing from 513 Power & Infra Sectors 509 Special Recovery Cell & Opening Fresh Increase Upgradation Closure Dec in Closing Asset Monitoring Cell Addition in Balance in Standard Including Balance Category Write Off 34 Adequate Provisioning NPA Provisioning Rs Crs 176.0 229.3 540.3 487.0 Provision Coverage Ratio – 49.35% Opening Additions Deductions Closing 35 Fresh Slippages/Advance Ratios Retail Slippage Agriculture Slippage 0.86% 0.90% 0.61% 0.49% 0.44% 0.34% 0.38% 0.27% 0.18% 0.11% Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 SME Slippage Corporate Slippage 0.85% 0.78% 3.51% 0.64% 2.37% 0.39% 0.18% 0.65% 0.53% 0.00% Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 Dec-16 Mar-17 Jun-17 Sept-17 Dec-17 36 Well Capitalized to support Growth BASEL III 12.5 In % 12.4 12.1 11.7 1.5 11.1 1.4 2.4 1.4 1.7 10.9 10.8 10.4 10.1 9.4 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Tier 2 Tier 1 • Bank has issued Non-Convertible, Redeemable, Unsecured, Basel III Compliant Tier 2 Bonds for inclusion of Tier 2 capital aggregating Rs. 490 crore • Bank has also decided to augment the paid-up capital by issue of upto 20 cr equity shares of FV of Re.1 each through QIP 37 Balance Sheet Overview- Q3 FY18 Rs Crs Q3-FY 18 Q3-FY 17 Y-o-Y (%) Q2-FY 18 Q-o-Q (%) Capital & Liabilities 79,314 71,446 11.01% 75,837 4.59% Capital 181 135 33.59% 180 0.08% Reserves and Surplus 4,940 4,141 19.28% 4,797 2.98% Deposits 68,109 63,595 7.10% 67,142 1.44% Borrowings 4,678 2,205 112.13% 2,116 121.12% Other Liabilities & Provisions 1,406 1,369 2.70% 1,602 -12.19% Assets 79,314 71,446 11.01% 75,837 4.59% Cash & Balances with RBI 3,069 3,576 -14.18% 3,056 0.43% Balances with Banks 584 1,420 -58.89% 532 9.75% Investments 18,584 17,576 5.74% 18,208 2.07% Advances 51,638 44,256 16.68% 48,954 5.48% Fixed Assets 655 595 10.12% 651 0.56% Other Assets 4,784 4,023 18.90% 4,435 7.85% Business (Advances + Deposits) 1,19,747 1,07,850 11.03% 1,16,096 3.14% Current Accounts 3,129 2,946 6.22% 2,959 5.77% Savings Accounts 13,799 13,540 1.92% 13,526 2.02% CASA Ratio 24.86% 25.92% -4.12% 24.55% 1.23% 38 Profit & Loss Overview- Q3 FY18 Rs Crs Q3-FY18 Q3-FY 17 Y-o-Y (%) Q2-FY18 Q-o-Q (%) Net Interest Income 509 418 22.00% 503 1.23% Other Income 159 259 -38.57% 280 -43.37% Total Income 668 676 -1.16% 784 -14.74% Operating Expenses 338 299 13.04% 323 4.52% Operating Profit 330 377 -12.42% 460 -28.27% Provisions (Ex-Tax) & 154 207 -25.33% 454 -65.99% Contingencies Profit Before Tax 176 170 3.25% 7 2568.33% Provision for Tax 61 59 3.24% 2 2581.50% Profit After Tax 115 111 3.25% 4 2561.41% 39 Key Metrics- Quarterly FY15 FY16 FY17 FY18 Particulars Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 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% 2.9% 2.9% (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% 11.7% 12.5% 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% 0.02% 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% 44.1% 49.4% 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% 24.6% 24.9% 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% 3.6% 3.4% 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% 2.6% 2.4% Book Value per Share 25.9 26.5 27.1 26.6 27.1 27.8 28.5 28.5 30.0 30.8 31.6 26.9 27.7 27.6 28.4 (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 0.1 2.5 Branches - Kerala 439 440 441 444 447 447 447 449 453 454 455 463 463 463 463 - South India (Ex- 230 232 233 239 242 244 244 245 245 245 245 246 246 246 246 Kerala) - Rest of India 132 133 136 139 139 140 140 140 140 140 140 141 142 142 142 Total Branches 801 805 810 822 828 831 831 834 838 839 840 850 851 851 851 ATMs - Kerala 565 587 607 651 670 682 688 698 701 713 718 724 745 756 769 - South India (Ex- 297 313 325 365 378 380 384 387 388 391 393 394 396 393 396 Kerala) - Rest of India 156 163 176 184 196 198 200 202 202 202 202 202 203 205 205 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 1,354 1,370 40 Next Generation Bank 41 Present across Customer Touch Points Traditional & Alternate Channels SIB Mirror + Mobile Banking ATMs Branches 1,370 ATMs across India 851 Branches & 53 Extension Counters Internet Banking Point of Sale 42 Technology Initiatives 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 43 Personal Banking: Technology Banking Active Internet Users Internet Transaction Volume Internet Transaction Value (000)’s (000)’s Rs Crs 899 5,594 839 865 885 4,906 785 4,489 4,700 260 205 223 3,293 175 192 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mobile Transaction Volume Mobile Transaction Value (000)’s Rs Crs 1,961 1,548 1,258 1,412 1,482 1,328 1,026 1,175 1,008 599 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 44 Personal Banking: Debit Cards No of Active Debit Cards Debit Card Transaction Volumes In Millions In Millions 36.7 33.7 33.6 33.8 3.6 27.1 3.5 3.3 3.3 3.2 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Debit Card Transaction Value Rs Crs 6,655 6,685 6,949 5,480 4,028 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 45 An Inflection Point 46 Moving Towards Vision 2020… Appointed Entered Opened International Memorandum Centralized Finance of Understanding Marketing & Corporation with Processing NSIC Centre ▪ Provides advisory ▪ Facilitates loans to ▪ Houses the Bank’s support to bank on the MSE and promotes Marketing Dept, Retail medium and long term the MSME credit Loan Hub and strategy for significant portfolio of the Bank Transaction Banking growth in retail, Dept agriculture and SME sectors ....to become Retail Banking Power House 47 About Us 48 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 FIRST private sector bank to FIRST bank in the private sector open a NRI branch in to start Industrial Finance November 1992 Branch in March 1993 FIRST among the private sector FIRST bank in Kerala to develop an banks in Kerala to open an in-house, a fully integrated branch "Overseas Branch" to cater automation software in addition to exclusively to the export and the in-house partial automation import business in June 1993 solution operational since 1992 The FIRST Kerala based bank to implement Core Banking System 49 Expansion since FY07 Branch Network ATM Network ~2X ~8X 850 1,320 463 724 465 277 246 394 122 174 141 84 39 202 66 51 FY07 FY17 FY07 FY17 Kerala South Ex-Kerala Others (Rest of India) 50 Performance since FY07 Net Interest Income Profit After Tax Rs Crs Rs Crs CAGR : 16% CAGR : 14% 1,675 393 368 104 FY07 FY17 FY07 FY17 Business (Advances + Deposits) Gross NPA Rs Crs In % CAGR : 19% 149bps 112,507 3.94 2.45 20,158 FY07 FY17 FY07 FY17 51 Leadership Team Mr. V. G Mathew , MD & CEO ▪ 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 52 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 Mr. G Sivakumar, EVP (Credit) • 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 Mr. K N Reghunathan, EVP (Treasury) • 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 Bank’s 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 53 Management Team Mr. John Thomas, Senior General Manager Mr. Benoy Varghese, Senior General Manager (Business Development Department) (Country Head – Wholesale Banking) • Bachelors Degree in Science, MBA and CAIIB • Bachelors Degree in Arts & Masters Degree in Business Administration and CAIIB Mr. Anto George T, General Manager Mr. Raphael T.J., Senior General Manager (Head of Inspection & Vigilance Department and Chief (Chief Information Officer) of Internal Vigilance) • 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 Mr. Paul V.L., Senior General Manager Mr. Sanchay Sinha (Administration) (Country Head – Retail Banking) • Masters Degree in Arts and Post Graduate Diploma in • Bachelor’s degree in Arts, Post Graduate Certificate in Personnel Management & JAIIB Business Management (XLRI) 54 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 Commerce, Associate Member of • Bachelors Degree in Science & CAIIB - I 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 55 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 56 Awards & Recognition Won “IBA Banking Technology Awards” Won National Payments Excellence Awards - Won Finnoviti Award - 2017 2016 57 Awards & Recognition Won Two IDRBT Best Bank Awards Bagged “Dun & Bradstreet, India’s Top Banks & Banking Awards 2017” 58 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/ Mr. Shogun Jain/ Ms. Sanghamitra Karak Mr. Vijith S, Dy. General Manager [email protected] / [email protected] [email protected] [email protected] +91 77383 77756 / +91 9833692935 www.sgapl.net www.southindianbank.com 59