South Indian Bank Ltd. share price target

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...

We attended analyst meet hosted by South Indian Bank (SIB) which showcased its vision for 2024. Management highlighted its strategies for near to long term with focus on 6Cs, launching new product; creating robust operational team supported by technology platform and revamping credit policy with focus on quality. Also, leveraging existing and new talent pool to improve underwriting through training and experts, build strong analytical tools for portfolio, and improve collection through analytics, managing NPA through focus on recoveries and rationalization of branches and ATMs. Bank lays its vision for 2024 with philosophy of Fair to customers, Fair to bank. In Q2FY21, NII grew by 13.5% YoY while PAT declined by 23.0% YoY led...

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...