Conference Call with South Indian Bank Management and Analysts on Q4FY23 Performance and Outlook. Listen to the full earnings transcript.
South Indian Bank announced Q4FY23 & FY23 results: Q4FY23: Net profit for Q4FY23 is up by 22.74% from Rs 272.04 crore in FY22 to Rs 333.89 crore in FY23 Operating profit of Q4FY23 increased by 95.02% from Rs 287.94 crore in FY22 to Rs 561.55 crore in FY23 Return on Equity improved by 1,387 bps from 6.42% to 20.29% QoQ basis Return on Assets increased by 87 bps from 0.39% to 1.26% QoQ basis NIM improved by 15 bps from 3.52% to 3.67% on QoQ basis Net interest income went up from Rs 825.15 crore to Rs 857.18 crore registering a growth of 3.88% on a QoQ basis Focus on quality asset book as well as collection efficiency brought down the provisions from Rs 41 crore in FY22 to Rs 39 crore on a QoQ basis CASA grew by 2% on a YoY basis with growth in SA by 2% and CD by 3% respectively Retail Deposit grew by 5% YoY NRI Deposits grew by 3% YoY Gross advances grew by 17% YoY Corporate Segment went up by 39% YoY, in well-rated borrower accounts Share of A and above rated accounts in large corporate segments improved from 89% to 95% on YoY basis Personal Loan book grew by 116% YoY - Gold Loan portfolio up by 28.26 % YoY More than 2,05,000 credit cards were issued with outstanding book of Rs 796 crore FY23: Operating profit increased by 20.82% from Rs 1,248.57 crore in FY22 to Rs 1,507.33 crore in FY23 Recovery and upgradation in NPA accounts increased from Rs 1,464 crore in FY22 to Rs 1,814 crore in FY23 GNPA came down by 76 bps from 5.90% to 5.14% on a YoY basis NNPA dropped by 111 bps from 2.97% to 1.86% on a YoY basis The Board of directors had recommended a 30% dividend subject to the approval of the shareholders Murali Ramakrishnan, MD & CEO of the Bank, while announcing the results, said, "The strategy of the Business by the bank had contributed to the above performance. During the period, the bank could register growth in all the desired segments with a focus on building quality assets across all verticals like Corporate, SME, Auto Loan, Credit Card, Personal Loan Gold Loan, etc.." He also stated that "in line with the strategic intent of the bank viz, 'Profitability through quality credit growth', the bank could churn around 58% of its advances portfolio since October 2020 amounting to Rs 41,566 crore with a GNPA of only 0.09%." Result PDF
South Indian Bank announced Q3FY23 results: Q3FY23: Reported profit after tax (PAT) of Rs 103 crore as against a loss of Rs 50 crore on YoY basis. Highest ever NII of Rs 825 crore for the Q3FY23 compared to Rs 573 crore on YoY basis. Recorded highest nine months disbursement of Rs 36,957 crore in the last 5 years. Advances touched Rs 70,117 crore vs Rs 59,226 crore YoY, registering a growth of more than 18%. Total business of Rs 1,60,789 crore as of Q3FY23 against Rs 1,47,574 crore as of Q3FY22. Net interest margin improved by 88 bps YoY to 3.52% in Q3FY23 vs 2.64% in Q3FY22. CASA amount increased by 9% YoY to Rs 30,660 crore vs Rs 28,229 crore. CASA ratio improved by 186 bps YoY to 33.81% from 31.95%. Provision coverage ratio (PCR) improved by 643 bps YoY to reach 74.51% in Q3FY23 against 68.08%. Capital adequacy position continued to be robust with CRAR of 16.25%and Tier I ratio of 13.71%. Significant improvement in RoA (Annualized) at 0.56% against (-0.31%) YoY. Significant improvement in RoE (Annualized) at 9.22% against (-5.40 %) YoY. Reduction in Gross NPA ratio by 108 bps YoY to 5.48% from 6.56%. Reduction in Net NPA ratio by 126 bps YoY to 2.26% from 3.52%. Gold loan continue to grow consistently registering a growth of 32% YoY to Rs 13,053 crore against Rs 9,862 crore. Share of A & above rated large corporates improved from 82% in Dec 2021 to 95% in Q3FY23. Remittance business grew by 14% YoY. Core fee income grew by 10% YoY to Rs 140 crore vs Rs 127 crore. Mobile banking transactions volume increased by 74% YoY to 99 million transactions. Result PDF
South Indian Bank announced Q2FY23 results: Reported Profit after Tax (PAT) of Rs. 223 crore as against a loss of Rs. 187 crore on YoY basis Highest ever NII of Rs. 726 crore for the Q2 FY 2023 compared to Rs. 527 crore on YoY basis The highest half-yearly disbursement was Rs. 26,089 crore in the last 20 quarters. Advances touched Rs. 67,963 crore vs Rs. 58,309 crore YoY, registering a growth of 17% . Total Business crossed Rs. 1,56,440 crore as on Q2FY23 against Rs. 1,45,148 crore as on Q2FY22. Net Interest Margin improved by 72 bps YoY to 3.21% in Q2-2023 vs 2.49% in Q1FY22 CASA amount increased by 14% YoYto Rs. 30,548 crore vs Rs. 26,773 crore CASA ratio improved by 370 bps YoY to 34.53% from 30.83% CARE Ratings & India Ratings & Research had revised the rating outlook upward to STABLE from negative Provision coverage ratio (PCR) improved by 777 bps YoY to reach 72.79% in Q2-2023 against 65.02% Capital adequacy position continued to be robust with CRAR of 16.04% and Tier I ratio of 13.42% Significant improvement in ROA (Annualized) at 0.65% against (0.36%) YoY Significant improvement in ROE (Annualized) at 10.81% against (6.26%) YoY Reduction in Gross NPA ratio by 98 bps YoY to 5.67% from 6.65% Reduction in Net NPA ratio by 134 bps YoY to 2.51% from 3.85% Gold loans continue to grow consistently registering a growth of 36% YoY to Rs. 12,913 crore against Rs. 9,470 crore Share of A & above rated large corporates improved from 75% in Sep 2021 to 93% in Q2FY23 The remittance business grew by 18% YoY Core fee income grew by 22% YoY to Rs. 142 crore vs Rs. 116 crore Mobile banking transactions volume increased by 87% YoY to 85 million transactions Result PDF
South Indian Bank Announced Q1FY23 Result : Reported 1018% growth in profit after tax on YoY basis to touch Rs.115 crores in Q1-2023 Net Interest Margin improved by 19 bps YoY to 2.74% in Q1-2023 Provision coverage ratio improved by 1000 bps YoY to reach 70.11% GNPA ratio improved by 215 bps YoY to 5.87% and Net NPA ratio improved by 218 bps YoY to 2.87% Gold loan continue to grow consistently and rose 27% YoY to Rs. 11,961 crores Share of A & above rated large corporates improved from 56% in Jun 2021 to 88% in Jun 2022 CASA amount increased by 18% YoY to Rs. 30,335 crores; CASA ratio improved by 399 bps YoY to 34.39% NRI deposits has grown consistently to Rs. 27,598 crores Remittance business grew by 22% YoY Core fee income grew by 41% YoY to Rs. 128 crores About 94% of banking transactions are done digitally Mobile banking transactions volume increased by 119% YoY to 73 million transactions Capital adequacy position continued to be robust with CRAR of 16.25% from 15.47% and Tier I ratio of 13.62% from 12.73% Result PDF