South Indian Bank

A must listen Q2 FY 23 CONCALL . Bank seems to be in safe hand of new MD. Views invited on SIBank prospects from kerala or south india n others who are tracking it for long.

invested tracking qtyl

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First question answered by management speaks a lot . SIB is majorly concentrated in Kerala and in last couple of years state is witnessing heavy rains and floods and retail and sme hit by it. So in order to grow business they are looking into corporate loans and thats the same mistake they done in past. In terms of banking kerala is already a mature market and u can see number of psu and private banks, co-operative banks( they are getting big pie of deposits as their interest rates are higher) along with gold nbfc like muthoot, manapurram and number of small players like ICL, koshamattam and others even in a tier 3 city. Federal Bank , CSB all got the same concentration risk in Kerala and i think federal Bank did better in moving out to other Southern states. I have not studied thoroughly the breakup kerala and non kerala business for SIB. IMO we need to be cautious and watch their corporate loans closely.

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Looks like SIB is having great leadership at the helm… getting more confident that they will walk the talk this time around…

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Why was South Indian bank trading at such low valuations to start with

Asset Quality & banking reach only in 4 states … however things seem to be turning around for them under their new MD

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Kerala-based South Indian Bank (SIB) has posted a net profit of Rs 223 crore during the second quarter of the current financial year, as against a net loss of Rs 187 crore during the July to September quarter of 2021-22.

The bank’s total income for the quarter under review increased by 11 per cent to Rs 1,995 crore as compared to Rs 1,804 crore during the same period last year. Murali Ramakrishnan, managing director and chief executive officer of the Bank, while announcing the results, stated that the strategy of realigning the business by the bank had contributed to the above improved performance.

“During this period, Bank could register growth in the desired segments of liabilities like CASA and retail deposits and focus on building quality asset portfolio across all verticals like corporate, SME, auto loan, credit card, personal loan, gold loan,” he added. The bank’s CASA was up by 14 per cent during the period under review. SIB’s gross non-performing assets for the quarter decreased to 5.67 per cent of gross advances as compared to 6.65 per cent during the Q2 of 2021-22. The bank’s net NPA also declined to 2.51 per cent as against 3.85 per cent during the same quarter last year.

South Indian Bank posts net profit of Rs 223 crore in second quarter

Murali Ramakrishnan, MD and CEO of the Bank, while announcing the results, stated that the strategy of realigning the business by the bank had contributed to the above improved performance

He also stated that, in line with the strategic intent of the bank viz, “Profitability through quality credit growth”, the Bank could churn around 50 per cent of its advances portfolio since October 2020 amounting to Rs. 33,768 crore with a NIM of 3.6 per cent and GNPA of only 0.03 per cent. This coupled with a robust recovery or collection mechanism, had helped the Bank to reduce the fresh slippages by 34.09 per cent on Y-o-Y basis from Rs 531.31 Crore to Rs 350.17 Crore, he added. Provisions for bad loans and contingencies declined to Rs 179 crore during the quarter as against Rs 420 crore reserved for the year-ago period.

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I was going through the Q1FY23 concall transcript. Looks like he is under-promise and over deliver type of person :slight_smile:

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https://www.business-standard.com/shows/banking-show/exclusive-chat-with-murali-ramakrishnan-md-ceo-south-indian-bank-1777.htm

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In Q1 FY’23 concall, the MD had given a guidance of 1000 crore slippages for the entire year, wheras after Q2 results and in media interactions he has mentioned the figure of 1600 crores. Can anybody throw some light on this? Attached snippet of Q1 FY’23 Concall.

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