The 5 reports from 2 analysts offering long term price targets
for South Indian Bank Ltd. have an average target of 10.50. The consensus estimate
represents a downside of -3.23%
from the last price of 10.85.
Outlook remains grim on MSME & Retail with likely further rise in stress face issue from asset quality with slippages of Rs8.8bn (6% annualized). Bank and on other outlook on asset quality remains grim. Profitability will continue to suffer going ahead with improvement depending on level of slippages. Positives have been (i) deposit franchise has held up with CASA at +30% (up...
Continue to remain cautious on asset quality South Indian Bank, is a private sector bank headquartered in Thrissur, Kerala. The bank has 1,315 ATMs and 884 branches, with around 84% of them in South India. Currently, the bank is having a loan book size of ~Rs59,400cr and a deposit base of ~Rs82,700cr. Management is redefining the business strategies and the initial progress was seen in the quarter. Deposit grew by 2% YoY supported by 12% YoY increase in retail...
South Indian Bank, is a private sector bank headquartered in Thrissur, Kerala. The bank has 1,443 ATMs and 928 branches, with around 84% of them in South India. Currently, the bank is having a loan book size of ~Rs61,602cr and a deposit base of ~Rs83,537cr. Net Interest Margin( NIM) declined to 2.64% in Q3FY21 compared to 2.74% in Q3FY20, fall in interest income due to decline in corporate advances negatively impacted NIM. Retail deposits continue to grow in single digits as a result cost of...
SIB reported a loss of Rs951mn (PLe: profit of Rs484mn) on higher provisioning on pro-forma NPAs & enhancing PCR which has been lower than peers. Operating performance was also on weaker side with interest reversals leading to flattish NII growth. Pro-forma slippages were on higher side at Rs13-14bn with slightly more likely to come in Q4 with overall stress guidance...
South Indian Bank is a private sector bank headquartered at Thrissur in Kerala having 1,426 ATMs and 875 branches, with around 84% of them in South India. Currently, the bank is having a loan book size of ~Rs65,819cr and deposit base of ~Rs82,469cr. Advances reported a growth of 3% on a YoY basis with annualized growth in retail gold loans, agriculture and MSME loans. Stable growth in deposit at 8% YoY due to 12% annualized improvement in CASA ratio. NRI deposits increased 13% YoY...
Lowe slippages helped asset quality, while continued provisions helped improve PCR levels to 38% (non-technical), although long way to go as yet Earnings of Rs817mn (PLe: Rs488mn) was better than expected on lower provisions and better treasury income. NII growth was muted at 10% YoY but was largely in-line with expectations, while other income was helped by better treasury income but fees were down 9% YoY/20% QoQ. Provisioning levels came off to trends levels but continued to help improvement in PCR with...
The bank reported steady business traction with credit & deposit growth stable at 9% & 11% to | 65334 crore & | 80451 crore, respectively. The bank's strategy of gaining higher share in retail & MSME advances coupled with retailisation of liability has been working well with credit growth within retail & MSME being higher than overall credit growth at 18% YoY & 17% YoY to | 19834 crore & | 25787 crore, respectively. In contrast, the corporate book has see de-growth of 7% YoY to | 19713 crore. Retail deposit & CASA...
South Indian Bank is a private sector bank headquartered at Thrissur in Kerala having 1,401 ATMs and 870 branches, with around 84% of them in South India. Currently, the bank is having a loan book size of ~Rs65,334cr and deposit base of ~Rs80,451cr. Advances reported a moderate growth of 9% on a YoY basis with sequential growth in retail ,agriculture and MSME loans. Stable growth in deposit at 11% YoY due to 13% YoY increase in retail deposits and improvement in CASA ratio....
SIB's loan book showed a sound growth of 13% YoY in 1QFY20 (down 0.1% QoQ). The growth was led by Retail (25% YoY, 3% QoQ) and Agriculture (14% YoY, 4% QoQ) segments. The share of retail segment as a proportion of total loan book is 30%, upward by 300 bps YoY driven by LAP (average ticket size of 38 lakhs) and gold loan portfolios. Management reiterated that their focus will continue to be on Retail, MSME and Agri...
which helped stable asset quality but marginally lift PCR to 32.3% (45.1% incl. Bank's operating metrics like NIMs & CASA profile remained stable (PLe: Rs890mn) as operating performance is improving only gradually. technical w.off). Bank is closely monitoring some of the dispensation related...
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.
Declining market share in its home state of Kerala has been a wake-up call for SIB. To recoup the recent loss in market share, SIB now aims to leverage its existing customer relationship by cross selling. The bank has constituted a separate 'business development channel' in addition to its existing branch network to speed up the sourcing of retail products.
Sector: Banking /Mid-Cap | Earnings Update 1QFY19 Background: South Indian Bank (SIB), among the mid-sized banks in the private sector space, operates a network of about 855 branches and about 1,386 ATMs. The bank's business is largely skewed towards the Southern state with half of its branches located in Kerala. SIB has established a strong brand recall among the Keralite-NRI Diaspora. With no identifiable promoters SIB is run by a team of professionals. As of 1QFY19 the bank had deposits of ~INR 725bn and a loan book of ~INR 562bn. The bank looks to add a...
Sector: Banking /Mid-Cap | Earnings Update 4QFY18 Background: South Indian Bank (SIB), among the mid-sized banks in the private sector space, operates a network of about 854 branches and about 1,382 ATMs. The bank's business is largely skewed towards the Southern state with half of its branches located in Kerala. SIB has established a strong brand recall among the Keralite-NRI Diaspora. With no identifiable promoters SIB is run by a team of professionals. As of 4QFY18 the bank had deposits of ~INR 720bn and a loan book of ~INR 551bn. The bank looks to add a...
SIB's reported PAT was flattish QoQ (-1%), but grew 51% YoY off a relatively low base. PPoP declined 6% QoQ, led by a 6% QoQ increase in opex with sequentially flat total income. Provisions of INR1.49b (1.1% annualized credit cost) came in below our estimate, leading to an 815bp QoQ decline in PCR to 41.2%. The bank utilized RBI's dispensation to spread MTM losses and provided INR129.6m, leaving INR344m to be provided over the next three quarters. NII declined 3% QoQ (+12% YoY), even as advances rose 5.7% QoQ (+17.6% YoY), as the NIM contracted 15bp QoQ to 2.73% due to a 14bp sequential decline in reported spreads. Opex grew 6% QoQ (+22% YoY; the bank utilized RBI's dispensation to spread out gratuity provisions, leaving INR204.5m to be further provided). CI ratio increased to 53.7% from 50.6% in 3QFY18.
