21 January 2019 Higher provisions dragged South Indian Banks (SIB) 3QFY19 PAT to INR838m (27% YoY decline) even as operating profit growth stood flat. Fresh slippages increased to INR6.59b led by downgrade of IL&FS; exposure (INR4b) and one EPC account (INR1.03b). But, slippages in retail and agri portfolio improved. Advances growth improved 15% YoY / 5% QoQ while margins improved 5bp QoQ to 2.66%. However, NII growth stood modest at 2% YoY / 2.6% QoQ. C/I ratio improved marginally to 53% mainly supported by other income (18% YoY growth). SIB is yet to provide for INR153m of unamortized MTM provision in the next quarter. Loan growth at 15% YoY was led by 29% YoY growth in pure retail loans while the corporate loan segment grew 14% YoY. The growth in agriculture/SME book stood relatively modest at 7%/6% YoY. Corporate book now comprises ~35% of the total advances.