~ ~ . ~SOUTH ~INDIAN Bani< DEPT: SECRETARIAL REF No. SEC/ST EX.STT/ <V3 /2019-20 May9, 2019 National Stock Exchange of India Ltd., Exchange Plaza, 5th Floor, Plot No.C/1, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai- 400 051. SCRIP CODE: SOUTHBANK Dear Sirs, Sub: Presentation to Investors and Analysts Pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015, please find enclosed the Investor Presentation to Investors and Analysts in respect of financial results of The South Indian Bank Limited for the quarter/year ended 31st March, 2019. The aforesaid information is also being hosted on the website of the Bank www.southindianbank.com. Kindly take the same in your records. Encl: a.a. The South Indian Bank Ltd., Regd. Office: Thrissur, Kerala · h · 680 001 Kerala (Tel) 0487-2420 020 (Fax) 91 487-244 2021. Heade-matl: Office: stbcorpora S.I.B.tH@ouseb, e Sl .co. T.B,n. ,RColaNd, . ~~; ~1oKE~gJg~~~~0-1 017, T~ll free (india) 1800-1 02-9408,' 1800-425-1809 (BSNL) .. www.southindianbank.com Investor Presentation May - 2019 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 Q4 FY19 Highlights Business Strategy Performance Matrix Next Generation Bank About Us 3 Q4 FY19 Highlights 4 Key Quarterly Highlights- Q4 FY19 Rs Cr CASA Deposits Advances Q4 FY19 19,467 Q4 FY19 80,420 Q4 FY19 63,636 Q4 FY18 17,142 Q4 FY18 72,030 Q4 FY18 55,109 14% 12% 15.5% Net Interest Income Other Income PPOP Q4 FY19 499 Q4 FY19 236 Q4 FY19 328 492 Q4 FY18 Q4 FY18 179 Q4 FY18 311 1% 32% 5% 5 Business Strategy 6 Our Strategy… • Retail Banking Department to focus on retail loan & liability/investment products • Efficient branches & processing centers for faster processing of loans Expand Retail • Outbound Sales team Business • Continuous training of work force • Advanced technology for ease of customers • Invest in Brand Building • Cluster based approach in industry hubs Strengthen • SME Base Sole Banker to SMEs for all banking needs • Dedicated vertical to penetrate SME banking • Strategy & Road map in place to increase CASA funds Improve • Alternate channels for mobilising CASA CASA • Centralized processes allowing branches to focus on garnering low cost funds • Continuous improvement/review of products Enhance • Granulize loan portfolio to spread out risk Asset Quality • Cautious approach on large corporate lending • Special cell for monitoring non performing and restructured assets Improve • Focus on increasing banking services for SME, Retail, NRI share of other • Enhance treasury capabilities & increase branch strength Income • Expand POS/ATM Network and all digital channels • Leveraging technology to introduce modern & new-age banking products • Focus on 3rd Party/Investment products to generate more other income 7 …Performance in Line with Strategy Strengthen Retail base Rs. 18,458 Cr INCREASE 33.9% YoY Expand Agriculture & SME Base Rs. 23,742 Cr INCREASE 13.7% YoY Improve CASA Rs. 19,467 Cr INCREASE 13.6% YoY 8 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 9 ...Increase Retail & SME Business 01 02 03 Cluster Centralized Retail Hub Branches Marketing & • Home Loan Processing • Auto Loan • 17 Clusters Centre (Kochi) • MSME Loan • Specific Cluster • LAP for Forex Loan Processing Retail Business Branch Profitability • Entire Loan underwriting • Penetrate further in the • Focus on particular centralised existing set of Customers geographies and open • Enhanced risk management additional branches • KYC compliance and fraud • Faster Sanctions prevention tools • Improve Branch Profitability 10 …by focus on Housing Loans in Retail Retail Breakup Housing: Key Initiatives Rs Cr +34% • Retail hub in Kochi to increase focus 18,458 on housing finance 16,857 2,667 16,061 • Dedicated Officers for marketing 15,200 1,780 1,706 1,289 Retail Loans 13,787 1,668 1,200 1,159 1,543 1,096 • Marketing initiative through TVCs 4,660 1,045 4,816 • Tailor made products for different 4,660 4,394 segments 3,826 2,993 2,903 2,809 2,993 2,446 2,216 1,840 January to March 2019 1,494 1,357 1,440 • Mortgage Loans Sanctioned : 3,428 Nos. 4,633 3,571 3,793 4,049 4,318 • Amount of Mortgage Loans Sanctioned: Rs. 1,346 Cr Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Others Service & Traders Gold LAD* Manufacturing Housing *LAD = Loan against deposits 11 …becoming a Banker of Choice to SMEs Average SME Loan / Account SME Loan Book by Geography – Q4 FY19 Rs. Lakh 37.98 Rest of India 30.30 31.33 29.30 24% 26.50 Kerala 44% South (Ex- Kerala) 32% Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 SME Highlights • Dedicated executive 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. • Underwriting of loans through customized software called LOS (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 12 …with the help of our Branch Network Total Branch Network +1.8% 854 870 794 822 834 850 FY14 FY15 FY16 FY17 FY18 FY19 Total ATM Network +7.1% No of Branch Location* 1,320 1,382 1,406 Branches 1,200 1,287 1,000 Kerala 474 South India (Ex-Kerala) 253 Rest of India 143 Total 870 FY14 FY15 FY16 FY17 FY18 FY19 *Map for illustration purpose only 13 … and our Experienced Employees Employee Addition Total Employees: 7,822* 137 33 7,822 7,287 99 332 12% 26% 7% 17% 38% < 1 Year 1-2 Years 2-5 Years Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Closing 5-10 Years > 10 Years *Full-time officers and clerks. 14 Performance Matrix 15 Strong Deposit Franchise Core & Non-Core Deposits Mar-19 Mar-19 Mar-19 Rs Cr 64,478 15,942 80,420 11.7% 11.4% 11.7% 57,712 14,317 72,030 Mar-18 Mar-18 Mar-18 Core Deposit Non-Core Deposit Total Deposit CASA Deposits Dec-18 Mar-19 Mar-19 Rs Cr 3,332 16,135 19,467 9.0% 14.6% 13.6% 3,058 14,084 17,142 Mar-18 Mar-18 Mar-18 Current Deposit Savings Deposit Total CASA 16 Core Deposits Growing... Breakup of Deposits CASA Deposit +12% Rs Cr Rs Cr 80,420 +14% 77,665 74,911 19,467 72,030 72,488 17,142 3,332 3,058 14,084 16,135 45,011 43,426 42,498 40,408 41,561 Mar-18 Mar-19 Current Savings Term Deposits 15,420 16,135 Rs Cr 14,084 14,937 15,357 +11% 3,485 3,332 45,011 3,058 2,946 3,031 40,408 14,480 13,044 14,025 15,334 15,942 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Mar-19 Term Savings Current Others* *Others includes: Bulk, Certificates of Deposits 17 NRI Deposits Growing… NRI Deposits CASA Rs Cr In (%) +14% 20,981 21,436 20,425 19,631 18,855 23.8 24.7 24.6 24.3 24.2 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 18 Break Up of Non Resident Deposits Deposit Type (Rs Cr) Q4-FY 18 Q1-FY 19 Q2-FY 19 Q3-FY 19 Q4-FY 19 NRE SB 3,335 3,628 3,741 3,768 3,660 NRO SB 618 623 657 712 737 FCNR (B), RFC & Others 1,634 1,638 1,652 1,697 1,859 Low Cost NRI Deposit (Sub 5,587 5,889 6,050 6,177 6,257 Total) NRE Term Deposit 12,704 13,180 13,789 14,199 14,533 NRO Term Deposit 564 562 586 605 647 Total NRI Deposit 18,855 19,631 20,425 20,981 21,436 19 Composition of Loan Book Corporate Advances (Above Rs 25 Cr) Retail Advances Rs Cr Rs Cr +5% +22% 20,438 21,111 21,436 42,200 19,976 20,149 37,264 38,953 34,671 36,188 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Segment wise Break Up of Total Loan Book Rs Cr 8,673 , 21,436 , 13.63% 33.69% Corporate 15,069 , Retail Ex Gold 23.68% Gold SME Agriculture 2,216 , 16,242 , 20 3.48% 25.52% Composition of Loan Book Break up of Loan book Mar-18 Jun-18 Sept-18 Dec-18 Mar-19 Advances (Rs.