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Please refer to important disclosures at the end of this report 1
Particulars(` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)NII 285 273 4.1 222 28.4Pre-prov. profit 163 179 (8.9) 153 6.4
PAT 122 102 19.3 82 49.1Source: Company, Angel Research
For 4QFY2012, South Indian Bank (SIB) reported healthy net profit growth of
49.1% yoy (up 19.3% qoq) to `122cr, which was higher than our estimates on
account of higher non interest income and lower provisioning expenses than
estimated by us. We remain Neutral on the stockStrong growth in loan book continues: For FY2012, the banks business growthremained above industry levels, with advances growing by 33.1% yoy (8.9% qoq
during 4QFY2012) and deposits growing by 22.8% yoy (7.9% qoq during
4QFY2012). Growth in gold loan portfolio for the bank continued to be healthy,
registering a 4.6% increase on a sequential basis. The banks low cost deposits as
a % of overall deposits dropped to 19.7% on account of NRE deposit rates de-
regulation. The cost of deposits consequently rose by 17bp qoq, however, the
yield on advances of the bank also rose by 20bp (aided by growth in high
yielding gold loans), leading to marginal expansion of 5bp qoq in NIMs to 3.1%.
The banks employee expenses jumped by 43.4% qoq on account of higher
pension provisioning due to actuarial valuations (impact of ~`22cr). The asset
quality of the bank deteriorated slightly during 4QFY2012, with slippagesincreasing to `66cr (annualised slippage ratio of 1.3%) from a quarterly run-rate
of ~`35cr. However, the rise in slippages during 4QFY2012 can be primarily
attributed to one chunky account (exposure of `50cr to Bharati shipyard).
Outlook and valuation: The banks foray into gold loans has yielded positiveresults and has led to sustainably higher NIMs. The banks asset quality has also
held up pretty well inspite of the macro headwinds which have led to higher
provisioning expenses for most banks. However, current valuations at 1.1x
FY2014E ABV have factored in the positives in our view and are considerably
above the valuations of small and mid-sized PSU banks which have similar
fundamentals, even after factoring in the robust growth witnessed due to the
sharp rise in gold loans. Also, we expect the banks cost of funds to increasegoing ahead on account of NRE rates de-regulation which could pull down the
NIMs for the bank. Hence we maintain our Neutral stance on the stock.Key financials
Particulars (` cr) FY2010 FY2011 FY2012E FY2013ENII 791 1,022 1,136 1,286% chg 39.2 29.2 11.2 13.2
Net profit 293 402 408 439% chg 25.1 37.3 1.6 7.5
NIM (%) 2.8 2.9 2.6 2.5
EPS (`) 2.6 3.5 3.5 3.8P/E (x) 8.8 6.6 6.5 6.1P/ABV (x) 1.5 1.3 1.1 1.0
RoA (%) 1.0 1.1 0.9 0.8
RoE (%) 18.5 21.6 18.7 17.5
Source: Company, Angel Research
NEUTRALCMP `23
Target Price -
Investment Period -
Stock Info
Sector Banking
Market Cap (` cr) 2,591
Beta 0.9
52 Week High / Low 28/20
Avg. Daily Volume 496,218
Face Value (`) 1
BSE Sensex 16,480
Nifty 4,975
Reuters Code SIBK.BO
Bloomberg Code SIB@IN
Shareholding Pattern (%)
Promoters -
MF / Banks / Indian Fls 7.6
FII / NRIs / OCBs 49.2
Indian Public / Others 43.2
Abs. (%) 3m 1yr 3yr
Sensex (7.6) (11.1) 38.8
SIB (14.4) 0.7 261.6
Vaibhav Agrawal022 3935 7800 Ext: 6808
Varun Varma022 3935 7800 Ext: 6847
Sourabh Taparia022 3935 7800 Ext: 6872
South Indian BankPerformance Highlights
4QFY2012 Result Update | Banking
May 9, 2012
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Exhibit 1:4QFY2012 performanceParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Interest earned 994 944 5.3 704 41.2- on Advances / Bills 803 753 6.7 557 44.3- on investments 164 161 2.0 132 24.2
- on balance with RBI & others 26 30 (11.2) 15 78.4
Interest Expended 709 670 5.8 482 47.1Net Interest Income 285 273 4.1 222 28.4Other income 83 60 37.8 60 36.4Other income excl. treasury 74 54 35.5 47 57.8
- Fee Income 67 47 44.8 41 62.4
- Treasury Income 9 6 60.1 14 (35.5)
- Others 6 8 (20.2) 5 20.4
Operating income 367 333 10.1 282 30.1Operating expenses 204 154 32.2 129 58.3- Employee expenses 128 89 43.4 76 68.7
- Other Opex 76 65 16.9 53 43.3
Pre-provision Profit 163 179 (8.9) 153 6.4Provisions & Contingencies 12 22 (44.4) 26 (53.3)- Provisions for NPAs 14 3 390.4 (4) (458.4)
- Provisions for Investments (10) 10 (208.2) 9 (215.7)
- Provisions for Standard Assets 12 7 64.3 6 94.1
- Other Provisions (3) 3 (221.8) 15 (120.6)
PBT 151 157 (3.9) 127 18.9Provision for Tax 29 55 (47.3) 45 (36.1)PAT 122 102 19.3 82 49.1Effective Tax Rate (%) 19.1 34.8 (1572)bp 35.5 (1642)bp
Source: Company, Angel Research
Exhibit 2:4QFY2012 Actual vs. Angel estimatesParticulars (` cr) Actual Estimates % chgNet interest income 285 281 1.3
Non-interest income 83 69 19.3
Operating income 367 350 4.9Operating expenses 204 168 21.7
Pre-prov. profit 163 182 (10.6)Provisions & cont. 12 26 (52.4)
PBT 151 156 (3.7)
Prov. for taxes 29 46 (37.0)
PAT 122 111 10.0Source: Company, Angel Research
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Exhibit 3:4QFY2012 performance analysisParticulars 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Balance sheetAdvances (`cr) 27,281 25,050 8.9 20,489 33.1Deposits (`cr) 36,501 33,834 7.9 29,721 22.8
Credit-to-Deposit Ratio (%) 74.7 74.0 70bp 68.9 580bp
Current deposits (`cr) 1,262 1,222 3.3 1,201 5.1
Saving deposits (`cr) 5,917 6,058 (2.3) 5,203 13.7
CASA deposits (` cr) 7,179 7,280 (1.4) 6,404 12.1
CASA ratio (%) 19.7 21.5 (185)bp 21.5 (188)bp
CAR (%) 14.0 12.0 197bp 14.0 (1)bp
Tier 1 CAR (%) 11.5 9.6 193bp 11.3 27bp
Profitability Ratios (%)Cost of deposits# 7.9 7.8 17bp 6.6 137bp
Yield on advances# 12.5 12.3 20bp 10.9 160bp
Reported NIM# 3.1 3.1 5bp 3.1 4bp
Cost-to-income ratio 55.6 46.3 929bp 45.7 989bp
Asset qualityGross NPAs (` cr) 267 234 14.1 230 16.0
Gross NPAs (%) 1.0 0.9 3bp 1.1 (14)bp
Net NPAs (`cr) 77 58 31.6 60 27.5
Net NPAs (%) 0.3 0.2 4bp 0.3 (1)bp
Provision Coverage Ratio (%) 71.4 75.2 (382)bp 73.9 (258)bp
Slippage ratio (%) 1.3 0.7 63bp 0.8 52bp
Loan loss provision to avg. assets (%) 0.1 0.0 11bp (0.1) 20bp
Source: Company, Angel Research; Note# : On a cumulative basis
Above industry growth during FY2012
For FY2012, the banks business growth remained above industry levels, with
advances growing by 33.1% yoy (8.9% qoq during 4QFY2012) and deposits
growing by 22.8% yoy (7.9% qoq during 4QFY2012).
The effect of de-regulation of NRE deposits (SIB increased its NRE term deposit
rates from ~3-4% to 9.5% effective January 01, 2012) was visible during the
quarter with `483cr of NRE term deposits re-pricing upwards and NRE saving bankdeposits declining by`355cr. The total high cost term deposits now currently stand
at `1,035cr, which is expected to increase the total cost of funds by 15bp of
average total assets during FY2013.
As of 4QFY2012, the banks low cost NRE term deposits (which will be re-priced in
the coming quarters) stands at `348cr, which after re-pricing is expected to
increase the cost of funds by 5bp of ATA in FY2013. Also, low cost NRE savings
deposits could see significant outflows going ahead as customers switchover to
higher yielding term deposits (cost of 20bp of ATA considering worst case
scenario).
Considering erosion of low-cost advantage of these NRE deposits, we have
factored in a margin compression of 25bp in FY2013 over FY2012.
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Exhibit 4:Movement in NRI deposit base sequentiallyDeposit type (` cr) 31-Mar-12 31-Dec-11NRE SB 1,358 1,693
NRO SB 188 173
FCNR (B) 411 459
RFC 1 1
LOW COST TERM DEPOSIT 348 831
LOW COST NRI DEPOSIT (SUB TOTAL) 2,306 3,158HIGH COST NRE TERM DEPOSIT 1,036 -
NRO TERM DEPOSIT 1,275 1,299
TOTAL NRI DEPOSIT 4,617 4,457
Source: Company, Angel Research
Growth in gold loan portfolio for the bank continued to be healthy, registering a
4.6% increase on a sequential basis.Share of gold loans in the overall loan book
as of 4QFY2012 stands at c.25%. The management indicated that they would like
to maintain the gold loan portfolio at 25-26% levels of the overall loan book and
hence would now increase focus on corporate segment as well to drive the banks
loan book growth (guidance of ~23-24% growth for FY2013)
The cost of deposits of the bank rose by 17bp qoq on back of higher costs due to
NRE deposit rates de-regulation. However, the yield on advances of the bank rose
by 20bp (aided by growth in high yielding gold loans), leading to NIMs rising by a
marginal 5bp qoq to 3.1%
Exhibit 5:Advances growth remains above system
Source: Company, Angel Research
Exhibit 6:CASA ratio drops further
Source: Company, Angel Research
6.8
8.1
5.4
7.3
8.9
10.1
6.4
4.5
2.4
7.9
-
2.0
4.0
6.0
8.0
10.0
12.0
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Advances qoq growth (%,) Deposits qoq growth (%)
21.5 21.5 21.3 21.5
19.7
12.0
15.0
18.0
21.0
24.0
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
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Exhibit 7:Reported NIM rises by 5bp qoq....
Source: Company, Angel Research; Note: Cumulative reported numbers
Exhibit 8:...due to rise in yield on advances
Source: Company, Angel Research; Note: Cumulative reported numbers
Non-interest income growth driven by higher fee income
The fee income of the bank reported a strong growth of 57.8% yoy during
4QFY2012. The management attributed the healthy performance on the fee
income front to successful launch of gold loan products, traction from ATM
business and pick up in insurance business during FY2012. We have accordingly
factored in a healthy fee income growth of 20% yoy each in FY2013 and FY2014.
Exhibit 9:Break-up of non-interest incomeParticulars (` cr) 4QFY12 3QFY12 % chg (qoq) 4QFY11 % chg (yoy)Fee income 67 47 44.8 41 62.4Treasury gains 9 6 60.1 14 (35.5)
Profit on exchange transactions 6 8 (20.5) 5 13.7
Non-interest income 83 60 37.8 60 36.4Excluding treasury 74 54 35.5 47 57.8
Source: Company, Angel Research
Asset quality remains healthy despite higher slippages
The asset quality of the bank deteriorated slightly during 4QFY2012, with
slippages increasing to `66cr (annualised slippage ratio of 1.3%) from a quarterly
run-rate of ~`35cr. However, the rise in slippages during 4QFY2012 can beprimarily attributed to one chunky account (exposure of `50cr to Bharti shipyard).
Consequently, the gross and net NPA levels of the bank increased by 14.1% and
31.6% qoq, respectively. The provision coverage ratio decreased by `380bp
during 4QFY2012 to 71.4% from 75.2% in 3QFY2012.
The bank restructured ~`400cr worth of accounts (mostly towards Jodhpur and
Jaipur discoms) during 4QFY2012, taking the total restructured book to `1,021cr.
The management indicated that the Bharti shipyard account would be reversed
from NPA book to restructured book in 1QFY2013 as it will be restructured
through the CDR route. The bank does not have any major restructuring n pipeline
currently.
3.1
2.8
3.03.1 3.1
2.5
2.7
2.9
3.1
3.3
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
10.9
11.812.1 12.3 12.5
8.5
9.5
10.5
11.5
12.5
13.5
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
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Exhibit 10:NPA coverage drops sequentially
Source: Company, Angel Research
Exhibit 11:Slippages up for 4QFY2012
Source: Company, Angel Research
Exhibit 12:Opex to average asset trends
Source: Company, Angel Research
Exhibit 13:Cost to income ratio trends
Source: Company, Angel Research
Healthy capital adequacy
The banks capital adequacy ratio (CAR) stood at 14.0% as of 4QFY2012, with
tier-I ratio at 11.5%. The banks risk weighted assets have come down due on a
qoq basis due to reduction in the risk weightings being assigned to gold loans (The
bank is assigning near zero risk weighting to its gold loans as compared to 25bp
before after prior approval from RBI).
Due to healthy growth in profit and benefits of near zero risk weightings on gold
loans, the bank is planning to now raise only`400cr during FY2013 (as against
the previously planned `1,000cr via QIP). The mode of capital raising will be
decided at a later date by the management.
230
236
231
234
267
60
63
58
58
77
73.9 73.1 74.775.2
71.4
55.0
60.0
65.0
70.0
75.0
80.0
-
75
150
225
300
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Gross NPAs (` cr) Net NPA ( cr) PCR (%, RHS)
0.8 0.8
0.50.7
1.3
-
0.3
0.6
0.9
1.2
1.5
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
1.6
1.3
1.6 1.6
2.1
-
0.5
1.0
1.5
2.0
2.5
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
45.744.2
46.7 46.3
55.6
30.0
34.0
38.0
42.0
46.0
50.0
54.0
58.0
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
(%)
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Exhibit 14:Trends in CAR
Source: Company, Angel Research
Investment arguments
Strong business growth
The bank grew its advances and deposits at a strong rate of 33.1% and 22.8%
yoy, respectively, in FY2012. Gold loan portfolio of the bank has increased at an
60% CAGR over FY200912. The gold loan portfolio (`6,800cr as of 4QFY2012)
now constitutes c.25% of the overall loan book. The management indicated that
they would like to maintain the gold loan portfolio at 25-26% levels of the overall
loan book and hence would now increase focus on corporate segment as well to
drive the banks loan book growth (guidance of ~23% growth for FY2013)
The banks tier-1 ratio stands at a healthy 11.5% (healthy profit growth and
benefits of near zero risk weighting on gold loans) as of 4QFY2012. The bank is
planning to raise ~`400cr of equity capital during FY2013, which would further
increase the banks tier-I ratio, enabling the bank to achieve its growth targets.
NIMs likely to have peaked out
SIBs NIMs have been healthy despite its relatively lower CASA deposits due toincreasing share of high-yielding gold loans. However, increasing competition in
the gold loan space and entry of several players is likely to reduce the so-far
above-average profitability of this segment going forward. Also, the RBIs recent
move of deregulating interest rates on NRE deposits has diminished the
competitive cost advantage of these deposits, in our view.
The costs of funds for the bank are expected to increase going ahead on account
of NRE deposit rates de-regulation. Already upwardly re-priced NRE term deposits
of `1,036cr (cost of 15bp), low cost NRE term deposits of `348cr which will be re-
priced in the coming few quarters (cost of 5bp) and outflow of NRE savings of
`
1,358cr into higher yielding term NRE deposits (cost of 20bp assuming worst casescenario) are expected to increase the total cost of funds by 40bp of ATA in
FY2013.
11.3 10.9 10.89.6
11.5
2.7 2.7 2.72.4
2.5
14.0
13.5 13.5 12.0
14.0
-
4.0
8.0
12.0
16.0
4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
Tier-I CAR Tier-II CAR (%)
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In this quarter the bank managed the NIM impact by increasing its yield on
advances, however continuing to rely on this strategy going forward is likely to
have asset quality implications. Eventually, either on account of decline in NIMs or
increase in asset quality pressures, we expect downside risks to the banks ROAs.
Outlook and valuation
The banks foray into gold loans has yielded positive results and has led to
sustainably higher NIMs. The banks asset quality has also held up pretty well
inspite of the macro headwinds which have led to higher provisioning expenses for
most banks. However, current valuations at 1.1x FY2014E ABV have factored in
the positives in our view and are considerably above the valuations of small and
mid-sized PSU banks which have similar fundamentals, even after factoring in the
robust growth witnessed due to the sharp rise in gold loans. Also, we expect the
banks cost of funds to increase going ahead on account of NRE rates de-
regulation which could pull down the NIMs for the bank. Hence we maintain ourNeutral stance on the stock.Exhibit 15:Key assumptionsParticulars (%) Earlier estimates Revised estimatesFY2013 FY2014 FY2013 FY2014Credit growth 18.0 18.0 20.0 20.0
Deposit growth 17.0 18.0 21.0 20.0
CASA ratio 21.3 20.4 18.7 17.6
NIMs 2.8 2.7 2.6 2.5
Other income growth 4.5 14.6 6.6 17.6
Growth in staff expenses 13.0 13.0 13.0 13.0
Growth in other expenses 13.0 13.0 13.0 13.0
Slippages 1.4 1.5 1.1 1.3
Coverage ratio 75.1 76.4 71.0 69.2
Source: Company, Angel Research
Exhibit 16:Change in estimatesParticulars (` cr) FY2013 FY2014Earlier
estimatesRevised
estimatesVar. (%) Earlier
estimatesRevised
estimatesVar. (%)
NII 1,124 1,136 1.1 1,277 1,286 0.7Non-interest income 244 263 7.9 280 310 10.7
Operating income 1,368 1,399 2.3 1,557 1,596 2.5Operating expenses 656 698 6.3 742 788 6.3
Pre-prov. profit 711 701 (1.4) 815 807 (0.9)Provisions & cont. 98 97 (1.2) 156 158 1.2
PBT 613 604 (1.4) 658 649 (1.4)
Prov. for taxes 199 196 (1.4) 214 211 (1.4)
PAT 414 408 (1.4) 445 439 (1.4)Source: Angel Research
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Exhibit 18:Recommendation summaryCompany Reco. CMP(`) Tgt. price(`) Upside(%) FY2014EP/ABV (x) FY2014ETgt P/ABV (x) FY2014EP/E (x) FY2012-14EEPS CAGR (%) FY2014ERoA (%) FY2014ERoE (%)AxisBk Buy 963 1,587 64.8 1.3 2.2 6.9 16.4 1.5 20.3
FedBk Neutral 406 - - 1.0 - 7.1 13.0 1.3 14.5
HDFCBk Accumulate 512 567 10.6 2.9 3.3 14.4 27.0 1.7 22.1
ICICIBk* Buy 822 1,201 46.2 1.3 1.9 10.1 20.4 1.5 16.0
SIB Neutral 23 - - 1.1 - 6.1 4.5 0.8 17.5YesBk Buy 320 470 46.7 1.6 2.4 7.7 22.5 1.4 23.3
AllBk Accumulate 150 166 10.8 0.6 0.7 3.6 6.2 0.9 17.6
AndhBk Accumulate 110 120 9.1 0.7 0.7 4.3 3.3 0.9 16.0
BOB Buy 641 969 51.1 0.7 1.1 4.3 11.1 1.1 18.2
BOI Buy 353 411 16.3 0.7 1.0 4.4 23.3 0.8 16.9
BOM Buy 48 60 24.0 0.6 0.7 3.6 26.8 0.9 17.5
CanBk Buy 407 532 30.7 0.7 0.9 4.3 10.9 0.9 16.7CentBk Neutral 78 - - 0.7 - 3.9 45.7 0.5 13.8
CorpBk Buy 400 504 25.9 0.5 0.7 3.6 5.3 0.8 16.5
DenaBk Buy 85 118 39.2 0.5 0.7 3.3 6.2 0.9 16.9
IDBI# Buy 92 117 27.3 0.5 0.7 3.8 22.7 0.9 14.8
IndBk Buy 194 240 23.7 0.7 0.8 4.0 5.4 1.2 18.2
IOB Buy 82 101 23.1 0.5 0.6 3.8 28.3 0.6 13.9
J&KBk Accumulate 856 932 8.9 0.8 0.8 4.4 8.8 1.4 18.6
OBC Buy 218 285 31.0 0.5 0.6 3.4 27.7 0.8 14.3
PNB Buy 768 1,138 48.1 0.7 1.1 4.3 8.8 1.1 18.5
SBI* Buy 1,888 2,593 37.4 1.2 1.6 7.0 23.6 1.0 19.1
SynBk Buy 92 128 40.3 0.5 0.8 3.3 8.7 0.8 17.1
UcoBk Neutral 67 - - 0.7 - 4.7 7.0 0.5 13.4
UnionBk Buy 203 266 31.2 0.7 0.9 4.1 27.2 0.8 17.4
UtdBk Buy 59 88 48.4 0.4 0.7 2.7 11.4 0.7 15.9
VijBk Neutral 54 - - 0.6 - 4.4 13.5 0.5 13.7
Source: Company, Angel Research; Note:*Target multiples=SOTP Target Price/ABV (including subsidiaries), #Without adjusting for SASF
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Income statement
Y/E March (` cr) FY08 FY09 FY10 FY11 FY12E FY13E FY14ENet Interest Income 394 523 568 791 1,022 1,136 1,286- YoY Growth (%) 7.2 32.7 8.7 39.2 29.2 11.2 13.2
Other Income 143 164 208 197 247 263 310- YoY Growth (%) 17.3 15.2 26.9 (5.6) 25.6 6.6 17.6
Operating Income 537 687 777 988 1,269 1,399 1,596- YoY Growth (%) 9.7 28.0 13.0 27.2 28.5 10.3 14.1
Operating Expenses 248 328 366 463 617 698 788- YoY Growth (%) 13.4 32.4 11.5 26.3 33.5 13.0 13.0
Pre - Provision Profit 289 359 411 525 652 701 807- YoY Growth (%) 6.8 24.3 14.5 27.9 24.0 7.7 15.1
Prov. and Cont. 57 57 43 80 79 97 158- YoY Growth (%) (54.0) 0.7 (24.5) 84.4 (0.7) 22.8 62.6
Profit Before Tax 232 301 367 446 572 604 649- YoY Growth (%) 58.3 30.0 21.9 21.3 28.5 5.6 7.5
Prov. for Taxation 80 107 134 153 171 196 211- as a % of PBT 34.6 35.4 36.4 34.3 29.8 32.4 32.4
PAT 152 195 234 293 402 408 439- YoY Growth (%) 45.6 28.4 20.0 25.1 37.3 1.6 7.5
Balance sheet
Y/E March (` cr) FY08 FY09 FY10 FY11 FY12E FY13E FY14EShare Capital 90 113 113 113 116 116 116
Reserve & Surplus 1,071 1,191 1,372 1,734 2,054 2,374 2,719
Deposits 15,156 18,092 23,012 29,721 36,501 44,166 52,999
- Growth (%) 23.8 19.4 27.2 29.2 22.8 21.0 20.0
Borrowings 28 257 1 25 31 38 45
Tier 2 Capital 155 155 330 265 557 674 809
Other Liab. & Prov. 590 571 706 962 1,111 1,318 1,608
Total Liabilities 17,090 20,379 25,534 32,820 40,370 48,686 58,295Cash balances 974 998 1,391 1,828 1,572 1,767 2,120
Bank balances 729 1,038 597 638 1,069 1,289 1,543
Investments 4,572 6,075 7,156 8,924 9,400 11,629 13,833
Advances 10,454 11,848 15,823 20,489 27,281 32,737 39,284
- Growth (%) 32.0 13.3 33.6 29.5 33.1 20.0 20.0
Fixed Assets 113 136 153 357 378 455 545
Other Assets 249 284 415 585 671 810 970
Total Assets 17,090 20,379 25,534 32,820 40,370 48,686 58,295- Growth (%) 25.2 19.2 25.3 28.5 23.0 20.6 19.7
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Ratio Analysis
Y/E March FY08 FY09 FY10 FY11 FY12E FY13E FY14EProfitability ratios (%)NIMs 2.6 2.9 2.5 2.8 2.9 2.6 2.5
Cost to Income ratio 46.2 47.8 47.1 46.8 48.6 49.9 49.4
RoA 1.0 1.0 1.0 1.0 1.1 0.9 0.8
RoE 16.4 16.0 17.0 18.5 21.6 18.7 17.5
B/S ratios (%)CASA ratio 24.1 23.8 23.1 21.5 19.7 18.7 17.6
Credit/Deposit ratio 69.0 65.5 68.8 68.9 74.7 74.1 74.1
Net worth/ Assets 16.6 15.4 16.7 18.4 19.7 20.4 21.3
CAR 13.8 14.8 15.4 14.0 13.0 12.5 12.0
- Tier I 12.1 13.2 12.4 11.3 10.1 9.7 9.3
Asset Quality (%)Gross NPAs 1.8 2.2 1.3 1.1 1.0 0.8 0.8
Net NPAs 0.3 1.1 0.4 0.3 0.3 0.2 0.3
Slippages 0.7 1.6 1.5 0.7 0.8 1.1 1.3
NPA prov / avg. assets 0.1 0.1 0.2 0.1 0.1 0.1 0.2
Provision Coverage 82.0 48.4 70.8 73.9 71.4 71.0 69.2
Per Share Data (`)EPS 1.7 1.7 2.1 2.6 3.5 3.5 3.8
ABVPS (75% cover) 12.6 10.8 12.9 15.0 17.3 20.0 21.5
DPS 0.3 0.3 0.4 0.5 0.6 0.7 0.7
Valuation RatiosPER (x) 13.9 13.5 11.3 9.0 6.8 6.7 6.2P/ABVPS (x) 1.8 2.2 1.8 1.6 1.4 1.2 1.1
Dividend Yield 1.3 1.3 1.7 2.1 2.6 2.8 3.0
DuPont AnalysisNII 2.6 2.8 2.5 2.7 2.8 2.6 2.4
(-) Prov. Exp. 0.4 0.3 0.2 0.3 0.2 0.2 0.3
Adj NII 2.2 2.5 2.3 2.4 2.6 2.3 2.1
Treasury 0.2 0.2 0.3 0.1 0.1 0.0 0.0
Int. Sens. Inc. 2.4 2.7 2.6 2.6 2.7 2.4 2.1
Other Inc. 0.7 0.7 0.6 0.5 0.6 0.6 0.6
Op. Inc. 3.1 3.4 3.2 3.1 3.3 2.9 2.7
Opex 1.6 1.8 1.6 1.6 1.7 1.6 1.5
PBT 1.5 1.6 1.6 1.5 1.6 1.4 1.2
Taxes 0.5 0.6 0.6 0.5 0.5 0.4 0.4
RoA 1.0 1.0 1.0 1.0 1.1 0.9 0.8Leverage 16.6 15.4 16.7 18.4 19.7 20.4 21.3
RoE 16.4 16.0 17.0 18.5 21.6 18.7 17.5
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7/31/2019 South Indian Bank Result Updated
13/13
South Indian Bank | 4QFY2012 Result Update
M 9 2012 13
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement South Indian Bank
1. Analyst ownership of the stock No
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