South Indian Bank Ltd. share price target

Sector: Banking /Mid-Cap | Earnings Update 2QFY18 Background: South Indian Bank (SIB), among the mid-sized banks in the private sector space, operates a network of about 851 branches and about 1,354 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 2QFY18 the bank had deposits of ~INR 671bn and a loan book of ~INR 497bn. The bank looks to add a...

NII grew to Rs. 460.71 Cr in Q1FY18 compared to Rs. 439.1 Cr in Q4FY17 NII grew to Rs. 460.71 Cr in Q1FY18 compared to Rs. 439.1 Cr in Q4FY17

South Indian Bank (SIB) reported strong numbers for Q1FY18 with NII growing significantly by 23.3% YoY and 4.9% QoQ driven by the low interest expenses which declined by (-)4.1% YoY. However, net profit of the bank grew by 6.7% YoY on the back of elevated provisioning against the NPA. NIM improved by 10...

Background: South Indian Bank (SIB), among the mid-sized banks in the private sector space, operates a network of about 851 branches and about 1,344 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 1QFY18 the bank had deposits of ~INR 658bn and...

South Indian Bank Ltd. (SIB), established in 1928, is one of the oldest bank in India which came into the existence during the swadeshi movements and was the first among the private sector banks in Kerala to become a scheduled bank in 1946 under the RBI Act. With a branch network of 850, 50 extensive counters and 1,320 ATMs, SIB has enhanced its presence across India. The business of SBI is growing at a good pace attaining a balance sheet size of Rs743 bn in FY17 with a five year CAGR of 10.5% in total assets, 10.3% in business size. We initiate coverage on SIB with a BUY' rating at a...

Low cost deposits or CASA share in total deposits stood at 23.8% by FY17 (22.4% in FY16). Bulk and certificate of deposits also constituted a significant portion of bank deposits at 18% by the end of last fiscal. Segment wise break up of loan book by FY17 include corporate 38%, retail 22%, SME 23%, agriculture 14% and others represented 14%. NIM of the SIB increased to 2.74% in FY17 as compared to 2.63% in FY16 on the back of declining cost of funds amidst the declining interest rate scenario. Cost of funds declined to 6.1% by FY17 as compared to 6.7% in year ago period....

Background: South Indian Bank (SIB), among the mid-sized banks in the private sector space, operates a network of about 850 branches and about 1,320 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 4QFY17 the bank had deposits of ~INR 661bn and...

South Indian Bank reported PAT of Rs 1.1 bn (+10% YoY) aided by large treasury gains (~Rs 1.3 bn). Loan growth remained muted at ~11.4% YoY, in line with average run-rate and notably unaffected by demonetization. GNPA ratio was stable at ~4% but largely due to ARC sales and write-offs. Deposits got ..

South Indian Bank reported PAT of Rs 1.1 bn (+10% YoY) aided by large treasury gains (~Rs 1.3 bn). Loan growth remained muted at ~11.4% YoY, in line with average run-rate and notably unaffected by demonetization. GNPA ratio was stable at ~4% but largely due to ARC sales and write-offs. Deposits got ..