#1For use only in inds ди Gift Card IMOLAN Bak 5089 65XX XXXX 5000 05/16 05/39 CARDHOLDER NAME XXX RuPay International ATM Gum Debit Card 4375 VALD FROM VALIO THRU SOUTH INDIAN Bank ELECTRONIC USE ONLY VISA PLATINUM SOUTH. INDIAN Bank PREPAID 4377 4846 70 4377 MONTH/YEA VALID 12/2 VIJAY KUMAR THRU SOUTH INDIAN Bank Experience Next Generation Banking Banking that's ahead of its time, within your reach. NPC Mobile payments are now easier, safer, smarter! Investor Presentation October 2017 -#2Safe Harbor No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements", including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company's business, its competitive environment and political, economic, legal and social conditions in India. This communication is for general information purpose only, without regard to specific objectives, financial situations and needs of any particular person. 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This presentation can not be copied and/or disseminated in any manner. 2#3Contents Hv Q2 FY18 Highlights Business Strategy Performance Matrix SOUTH INDIAN Bank Next Generation Bank An Inflection Point ☑ About Us 3#4Hv Q2 FY18 Highlights#5Strengthened Management Team SOUTH INDIAN Bank Appointed Mr. Sanchay Sinha as Country Head-Retail Banking He has completed his PGCBM from XLRI and has more than 24 years of professional experience in retail distribution and institutional sales across multiple industries including Financial Services, Office Automation and Logistics Prior to this appointment, he was serving at Indusind Bank as Senior Vice President Having worked earlier with HDFC Bank, Mahindra & Mahindra, Modi Xerox etc, he brings into the bank his technical skills in retail distribution across channels and products as well as expertise in the Product Management & Planning Appointed Mr. Benoy Varghese as Country Head-Wholesale Banking He is a management graduate from CUSAT and he possess banking experience of more than 33 years in South Indian Bank with significant exposure in Corporate Banking He handled several important assignments in the Bank including being the Regional Head for Chennai and Mumbai regions of the Bank 5#6Award Wins SOUTH INDIAN Bank Won Two IDRBT Best Bank Awards "The Best Bank Award for Digital Banking among Small Banks" & "Best Bank Award for High Performance IT Ecosystem among Small Banks" www AA ay UBAV EXTE SHR KANUN MAITH KST WANK AND DRBT lore, Enable, Excel NEARTY WELC OVERA RIES NCE 6#7Award Wins SOUTH INDIAN Bank Bagged "Dun & Bradstreet, India's Top Banks & Banking Awards 2017" in the category Best Private Sector Bank - Priority Sector Lending (Agriculture) dun&bradstreet BANKING WARE 21 'In ET 7#8Key Performance Highlights- Q2 FY18 SOUTH INDIAN Bank Rs Crs CASA Deposits Advances Q2 FY18 16,485 Q2 FY18 67,142 Q2 FY18 49,717 Q2 FY17 13,697 Q2 FY17 60,192 Q2 FY17 44,428 20% 12% 12% Net Interest Income Other Income 503 Q2 FY18 Q2 FY18 280 Q2 FY17 445 Q2 FY17 146 13% 92% PPOP PAT* Q2 FY18 460 Q2 FY18 4 Q2 FY17 297 Q2 FY17 111 55% 96% PAT* was driven down on account of the exceptional provision on MTM valuation of Security Receipts received on the sale of assets to ARC Normalised PAT excluding the exceptional provision is Rs. 169 crore 8#9Profit & Loss excluding Exceptional Provision Rs Crs Reconciliation to PAT excluding Exceptional Provision SOUTH INDIAN Bank Q2-FY18 Q2-FY 17 Y-0-Y (%) Reported PAT including Exceptional Provision 4 111 -96% Exceptional Provision post tax 165 PAT excluding Exceptional Provision 169 111 53% With the incremental provisioning made, Provision Coverage towards the asset pool sold to ARC crossed 50% which would increase the prospects of the recovery 6#10Business Strategy 11: 10#11Our Strategy... SOUTH INDIAN Bank Focus on retail loan products Efficient branches for faster processing of loans Continuous training of work force Expand Retail Business Invest in Brand Building Advanced technology for ease of customers Strengthen SME Base • Cluster based approach in industry hubs Sole Banker to SMEs for all banking needs Dedicated vertical to penetrate SME banking Improve CASA Strategy & Road map in place to increase CASA funds Centralized processes allowing branches to focus on garnering low cost funds Enhance Asset Quality Improve share of other Income • Granulize loan portfolio to spread out risk • • • • Cautious approach on large corporate lending Special recovery cell for monitoring non performing and restructured assets Focus on increasing banking services for SME, Retail, NRI Enhance treasury capabilities & increase branch strength Expand POS & ATM Network Leveraging technology to introduce modern & new-age banking products 11#12...Performance in Line with Strategy Expand Retail, SME & Agriculture Business Rs. 30,525 Crs INCREASE 18% YoY SOUTH INDIAN Bank Strengthen SME Base Improve CASA Rs. 12,425 Crs Rs. 16,485 Crs INCREASE 19% YoY INCREASE 20% YoY Enhance Asset Quality (Restructured Book) Rs. 513 Crs Improve share of other Income Rs. 280 Crs DECREASE 60% YoY INCREASE 92% YoY 12 12#13Shall continue to focus on Core Strengths SOUTH INDIAN Bank 01 Increase ... CASA 02 Retail Business ... 03 SME Business ... More Products Retail Relationships SOUTH INDIAN Bank 06 | Sustainable... 05 Increase... Asset Quality Fee Income Sole Banker SME Relationships 04 | Improve NIM 13#14...Increase Retail & SME Business SOUTH INDIAN Bank 01 02 03 Centralized Marketing & Processing Centre (Kochi) Retail Hub • Home Loan • Auto Loan • MSME Loan • LAP Cluster Branches SERVER Loan Processing • • Enhanced risk management KYC compliance and fraud prevention tools Retail Business • Penetrate further in the existing set of Customers . Faster Sanctions Branch Profitability Focus on particular geographies and open additional branches Improve Branch Profitability 14#15Rs Crs ...by focus on Housing Loans in Retail Retail Breakup 12,002 12,234 11,566 1,369 1,436 10,358 10,409 1,329 · 986 1,047 1,094 1,154 801 1,094 909 3,127 3,252 3,292 2,446 2,622 2,085 2,041 2,017 1,535 1,606 1,432 1,290 1,321 1,361 1,320 • . SOUTH INDIAN Bank Housing: Key Initiatives Retail hub in Kochi to increase focus on housing finance Two more hubs to be set up - one in South India and one in North India Branch staff being given specific training to market mortgage loans Marketing initiative through TVCs Tailor made products for different segments 2,756 2,828 2,903 2,993 3,122 Jul to Sept 2017 Mortgage Loans Sanctioned : 2,085 Nos. • Amount of Mortgage Loans Sanctioned - 671 Crs Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Others LAD* Service & Traders Manufacturing Gold Housing *LAD = Loan against deposits 15#16...becoming a Banker of Choice to SMEs Average SME Loan / Account 19.69 17.66 16.10 15.76 Rs Lakhs 21.25 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 • - SOUTH INDIAN Bank SME Loan Book by Geography – Q2 FY18 Rest of India 24% South (Ex- Kerala) 34% O SME Highlights Kerala 42% Dedicated JGM appointed to ensure focus and better coordination with regions Focused 'Green Channel' branches to drive faster loan growth to SMEs Target to become banker of choice to SMEs thereby getting other business as well - liabilities, vehicle finance, etc. Ongoing training (in-house as well as external) 16#17...with the help of our Branch Network Total Branch Network SOUTH INDIAN Bank +3.6% 794 822 834 850 851 738 FY13 FY14 FY15 FY16 FY17 H1 FY18 Total ATM Network +13.3% No of Branch Location* 1,287 1,320 1,354 Branches 1,200 1,000 Kerala 463 800 South India (Ex-Kerala) 246 Rest of India 142 Total 851 FY13 FY14 FY15 FY16 FY17 H1 FY18 *Map for illustration purpose only 17#18... and our Experienced Employees Employee Addition SOUTH INDIAN Bank Total Employees: 7,447* 6,978 60 LO 279 191 7,447 11% 22% 1% 34% 32% Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Closing < 1 Year 5-10 Years 1-2 Years > 10 Years 2-5 Years *Employees include full-time officers and clerks. 18#19Performance Matrix M 19#20Strong Deposit Franchise Sept-17 56,040 Core & Non-Core Deposits Sept-17 11,102 12% 49,909 Sept-16 Core Deposit Sept-17 2,959 8% SOUTH INDIAN Bank Rs Crs Sept-17 67,142 12% 10,283 Sept-16 Non-Core Deposit CASA Deposits Sept-17 13,526 60,192 Sept-16 Total Deposit Sept-17 Rs Crs 16,485 23% 20% 20% 2,399 Sept-16 11,299 Sept-16 Current Deposit Savings Deposit 13,697 Sept-16 Total CASA 20 20#21Core Deposits Growing... Breakup of Deposits Rs Crs 66,117 65,791 67,142 63,595 60,192 SOUTH INDIAN Bank CASA Deposit Rs Crs +20% 16,485 2,959 13,697 2,399 13,526 11,299 38,498 39,162 39,618 37,415 36,279 Sep-16 Current Sep-17 Savings Term Deposits 12,994 13,540 13,522 13,526 +9% 11,299 39,618 2,753 2,399 2,946 3,064 2,959 36,279 10,215 11,874 9,693 10,043 11,039 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Term Savings Current Others* *Others includes: Bulk, Certificates of Deposits Sep-16 Sep-17 Rs Crs 21#22NRI Deposits Growing... NRI Deposits Rs Crs 17,850 17,389 16,821 16,317 15,476 CASA SOUTH INDIAN Bank In (%) 25.9 25.2 24.6 23.8 22.8 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 22#23Composition of Loan Book Corporate Advances (Above Rs 25 Crs) Rs Crs 17,982 17,198 17,901 17,536 17,872 SOUTH INDIAN Bank Retail Advances Rs Crs 31,845 29,183 29,728 27,230 27,252 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Segment wise Break Up of Total Loan Book Rs Crs 7,185, 14.45% 17,872, 35.95% 12,425, 24.99% O 1,320, 2.65% 10,914, 21.95% ■Corporate Retail Ex Gold ■Gold SME ■Agriculture 23 23#24Composition of Corporate Loan Book 73% of Corporate Loan Book is Investment Grade SOUTH INDIAN Bank Segment wise Break Up of Corporate Loan BookRs.25 crore Rs Crs Rs Crs Jun - 17 Sept - 17 100.0% 100.0% 100.0% 100.0% = 1.2% =0.8%= =0.5% -0.2%- 100.0% -0.2% Financial Intermediarias 3,471 4,062 9.9% 13.7% 18.9% 18.3% 19.2% Infrastructure 3,451 3,096 Cements & Products 1,120 1,057 21.5% 15.1% 15.9% Professional Services 980 960 19.0% 18.6% Basic Metal & Metal Products 928 911 Textiles 564 681 29.2% 33.0% 32.8% Trade 567 498 38.3% 35.0% Chemicals and Chemical Products 368 502 Food Processing and Agri Allied 464 488 Activities Construction 647 392 38.2% 37.4% 31.9% 27.0% 24.3% All Engineering 259 338 All other Manufacturing Industries 3,890 3,690 All Other Service Sectors 797 1,197 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Total Corporate Portfolio 17,536 17,872 AAA AA BBB* <BBB or unrated 24#25Key Focus: Retail, SME & Agriculture SOUTH INDIAN Bank Retail excluding Gold Rs Crs Gold (Average LTV - 65%) Rs Crs 10,245 10,641 10,914 1,432 1,290 1,321 1,361 1,320 8,925 9,119 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Agriculture SME Rs Crs Rs Crs 6,442 6,253 6,633 6,876 7,185 12,425 10,430 10,590 10,984 10,851 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Retail Loans (Excl. Gold), Agriculture & SME has grown by 18% ~17% of the Agriculture & SME Loans are backed by Additional Security by way of GOLD 25#26Advances growing Across Regions 49,717 47,084 47,264 45,234 44,428 14,515 14,170 13,541 13,413 13,632 15,440 13,923 14,054 14,693 15,034 17,092 17,548 18,221 18,689 19,762 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Rest of India South Ex- Kerala Kerala SOUTH INDIAN Bank Rs Crs 26#27Net Interest Income - Quarter Net Interest Income SOUTH INDIAN Bank Cost of Deposits & Yield on Advances Rs Crs In % Cost Of Deposit Yeild on Advances 503 445 418 439 461 10.59 10.32 9.97 10.06 10.03 6.75 6.53 6.33 6.24 6.05 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 Net Interest Margin Cost of Funds & Yield on Funds In % In % Cost of Funds Yield on Funds 2.95 2.75 2.66 2.74 2.80 8.66 8.32 8.16 8.14 8.06 6.18 5.97 5.72 5.62 5.42 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 27#28Net Interest Income - Cumulative Net Interest Income +18% 1,675 1,236 819 SOUTH INDIAN Bank Cost of Deposits & Yield on Advances Rs Crs In % Cost of Deposits Yield on Advances 10.73 10.59 10.43 10.06 10.05 964 6.86 6.75 6.64 461 6.24 6.14 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sept -16 Dec-16 Mar-17 Jun -17 Sept -17 Net Interest Margin In % +12 bps 2.87 2.75 2.72 2.72 2.80 Cost of Funds & Yield on Funds In % Cost of Funds Yield on Funds 8.80 8.63 8.50 8.14 8.10 6.32 6.20 6.06 5.62 5.52 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sept-16 Dec-16 Mar -17 Jun -17 Sept -17 28#29Improving Operating Efficiency Employee Additions 279 C/I Ratio SOUTH INDIAN Bank In % 51.08 191 49.20 48.53 44.19 42.63 3 -6 Sept -16 Dec -16 Mar-17 Jun -17 Sept -17 Sept -16 Dec -16 Mar -17 Jun -17 Sept -17 Business per Employee Rs Crs Business per Branch Rs Crs 13.2 13.5 13.8 14.3 14.1 129 130 117 119 120 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 29#30Sustainable Other Income Total Other Income led by .... SOUTH INDIAN Bank ...Sustainable : Transaction Fees + Technology 146 259 219 138 Rs Crs 280 86 74 Rs Crs 94 == 84 67 64 59 54 48 45 26 22 27 30 29 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Transaction Fees Technology Profit on Sale of Investments, Forex & Others 8 Rs Crs 9 Details 57 8 110 HTM 39 Investment Book as on Sept-17 Rs. Crs M Duration 13,742 5.61 AFS 4,822 4.02 16 127 89 51 25 68 18 HFT 1 0.00 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Total 18,564 5.31 Forex Other Profit on Sale of Investments 30#31Break Up of Provisions Rs Crs For NPA & NPI SOUTH INDIAN Bank Q2-FY 18 Q2-FY 17 Q1-FY 18 120.5 166.4 184.4 For Depreciation on Investments* 277.1 -24.8 26.1 For Standard Assets 13.9 -4.8 -6.9 For Restructured Advances/Sacrifices & FITL -0.2 -12.1 -0.2 For Unhedged Forex Exposure Others Taxes Total Provisions 1.3 133 3.8 -0.7 41.1 -0.1 21.7 2.3 58.5 53.7 455.9 186.8 278.0 Depreciation on Investments* moved up to Rs. 277 crore on account of the additional provision of Rs. 252 crore against the NPAs sold by the bank to an ARC during the previous year 31#32Non Performing Assets Gross NPA 3.96% 3.98% 2.45% 2.77% 3.61% 3.57% 2.52% Net NPA SOUTH INDIAN Bank 1.45% 2.54% 2.57% Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 Gross NPA Movement Net NPA Movement Rs Crs Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 Rs Crs Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 Opening 1,651 1,745 1,787 1,149 1,696 Opening 1,192 1,206 1,116 675 1,183 Additions 226 197 1,150 686 252 Additions 135 125 991 580 209 Deductions 132 155 1,788 140 182 Deductions 121 216 1,432 72 136 Closing 1,745 1,787 1,149 1,696 1,766 Closing 1,206 1,116 675 1,183 1,256 32#33Stressed Assets - QoQ Rs Crs NPA SOUTH INDIAN Bank Gross Basis Net Basis Q1-FY 18 Q2-FY 18 Q1-FY 18 1,696 1,766 1,183 Q2-FY 18 1,256 Restructured Standard Advance 240 252 240 252 Other Stressed Advances 0 0 Total Stressed Assets 1,936 2,018 1,423 1,508 Advances 46,992 49,446 46,474 48,931 Stressed Assets as % of Advances 4.12% 4.08% 3.06% 3.08% We have 'ZERO' accounts in our Watchlist of Large Corporate Book 33#34Restructured Advances Breakup Restructured Assets Break-up Rs Crs SOUTH INDIAN Bank Sector Standard Restructure - Q2FY18 1,293 1,295 532 653 571 501 513 262 761 261 261 642 9% 15% 76% 309 240 252 Infra Roads Construction EPC Others Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Restructured NPA Restructured Standard Advance 34#35Rs Crs Restructured Standard Asset Book SOUTH INDIAN Bank Restructured Standard Advance Increase in Opening Fresh Addition Existing Balance Uday - SDL Investments Decrease in Balance Slippages to Closing NPA Balance Infra Roads 179 Construction EPC 22 22 14 193 22 22 3 37 Others 39 1 Total 240 15 3 252 35#36Movement in Restructured Accounts 501 Movement in Restructured Accounts 15 3 Rs Crs 513 Opening Fresh Increase Upgradation Closure Addition in Balance in Standard Including Dec in Closing Balance Category Write Off SOUTH INDIAN Bank Shift of focus from Large Corporate to SMEs Defocusing from Power & Infra Sectors Special Recovery Cell & Asset Monitoring Cell 36#37Adequate Provisioning NPA Provisioning 97.7 100.4 489.7 487.0 Rs Crs Opening Additions Deductions Closing SOUTH INDIAN Bank Provision Coverage Ratio 44.09% - NPAs in the initial period of recognition require lower provisioning 37 32#38Fresh Slippages/Advance Ratios 0.35% 0.11% Retail Slippage 0.86% Agriculture Slippage 0.90% 0.61% 0.49% 0.34% 0.34% SOUTH INDIAN Bank 0.44% 0.27% Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 SME Slippage 0.85% 0.78% 0.64% 0.51% 0.39% Corporate Slippage 3.51% 2.37% 0.64% 0.65% 0.53% Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 Sept-16 Dec-16 Mar-17 Jun-17 Sept-17 38#39Well Capitalized to support Growth SOUTH INDIAN Bank BASEL III 12.4 12.1 11.7 11.1 1.5 11.1 1.4 1.4 1.7 1.7 10.9 10.8 10.4 9.5 9.4 Sep-16 Dec-16 Mar-17 Tier 2 Tier 1 Jun-17 Sep-17 In % 39#40Balance Sheet Overview- Q2 FY18 SOUTH INDIAN Bank Rs Crs Q2-FY 18 Q2-FY 17 Y-0-Y (%) Q1-FY 18 Q-0-Q (%) Capital & Liabilities 75,837 67,054 13.10% 73,195 3.61% Capital 180 135 33.60% 180 0.05% Reserves and Surplus 4,797 4,027 19.13% 4,822 -0.52% Deposits 67,142 60,192 11.55% 65,791 2.05% Borrowings 2,116 1,499 41.14% 1,147 84.44% Other Liabilities & Provisions 1,602 1,201 33.34% 1,255 27.64% Assets 75,837 67,054 13.10% 73,195 3.61% Cash & Balances with RBI 3,056 2,832 7.92% 3,206 -4.66% Balances with Banks 532 404 31.53% 321 65.60% Investments 18,208 15,777 15.41% 18,499 -1.58% Advances 48,954 43,548 12.42% 46,498 5.28% Fixed Assets 651 598 8.88% 653 -0.31% Other Assets 4,435 3,894 13.90% 4,018 10.38% Business (Advances + Deposits) 1,16,096 1,03,740 11.91% 1,12,289 3.39% Current Accounts 2,959 2,399 23.36% 3,064 -3.44% Savings Accounts 13,526 11,299 19.71% 13,522 0.03% CASA Ratio 24.55% 22.76% 7.89% 25.21% -2.61% 40 40#41Profit & Loss Overview- Q2 FY18 Rs Crs SOUTH INDIAN Bank Q2-FY18 Q2-FY 17 Y-0-Y (%) Q1-FY18 Q-0-Q (%) Net Interest Income 503 445 13.04% 461 9.23% Other Income Total Income 280 146 92.23% 219 27.89% 784 591 32.59% 680 15.25% Operating Expenses 323 294 10.10% 301 7.62% Operating Profit 460 297 54.79% 379 21.28% Provisions (Ex-Tax) & 454 128 253.51% 224 102.25% Contingencies Profit Before Tax 7 169 -96.10% 155 -95.75% Provision for Tax 2 58 -96.12% 54 54 -95.77% Profit After Tax 4 111 -96.09% 101 -95.74% 41#42CASA Gross NPA Net NPA Book Value per Share (Rs.) 27.1 Key Metrics- Quarterly Particulars Q1 Net Interest Margin (NIM) CRAR Basel III ROAA (Annualized) Provision Coverage FY16 FY17 SOUTH INDIAN Bank FY18 Q2 Q3 Q3 Q4 Q1 Q2 FY15 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2.7% 2.9% 2.5% 2.7% 2.5% 2.8% 2.9% 2.6% 2.7% 2.8% 2.7% 2.7% 2.8% 2.9% 12.2% 12.1% 11.4% 12.1% 11.4% 11.9% 11.7% 11.8% 11.7% 11.1% 11.1% 12.4% 12.1% 11.7% 0.5% 0.6% 0.6% 0.1% 0.5% 0.6% 0.7% 0.5% 0.6% 0.7% 0.6% 0.4% 0.6% 0.02% 62.5% 62.9% 60.4% 61.0% 56.1% 55.3% 50.3% 40.3% 42.6% 46.1% 50.2% 55.1% 44.6% 44.1% 22.1% 22.1% 21.5% 20.6% 22.3% 22.8% 23.0% 22.4% 23.2% 22.8% 25.9% 23.8% 25.2% 24.6% 1.5% 1.6% 1.8% 1.7% 1.9% 2.2% 2.8% 3.8% 4.0% 4.0% 4.0% 2.5% 3.6% 3.6% 0.9% 0.9% 1.0% 1.0% 1.2% 1.4% 1.8% 2.9% 2.9% 2.8% 2.5% 1.5% 2.5% 2.6% 25.9 26.5 26.6 27.1 27.8 28.5 28.5 30.0 30.8 31.6 26.9 27.7 27.6 EPS (Rs.) (Annualized) 3.8 3.0 2.9 2.3 1.9 2.3 2.6 2.5 2.8 3.0 3.1 2.6 2.3 0.1 Branches - Kerala 439 440 441 444 447 447 447 449 453 454 455 463 463 463 - South India (Ex- 230 232 233 239 242 244 244 245 245 245 245 246 246 246 Kerala) Rest of India 132 133 136 Total Branches 801 805 810 822 828 139 139 140 140 831 831 140 140 140 140 141 142 834 838 839 840 850 851 142 851 ATMs - Kerala 565 587 607 651 670 682 688 698 - South India (Ex- 297 313 325 365 378 380 384 701 713 718 724 387 388 391 393 394 396 745 756 393 Kerala) Rest of India Total ATMs 156 163 176 184 196 198 200 202 202 202 202 202 203 205 1,018 1,063 1,108 1,200 1,244 1,260 1,272 1,287 1,291 1,306 1,313 1,320 1,344 1,354 42#43Next Generation Bank 43#44Present across Customer Touch Points Traditional & Alternate Channels SOUTH INDIAN Bank SIB Mirror + ATMs ATM3DW 1,354 ATMs across India Mobile Banking SOUTH INDIAN Bank Branches 851 Branches & 52 Extension Counters SIBerNeT SIB POS Internet Banking Point of Sale 44 #4#45Technology Initiatives HO!! 0 SHAKE TO TRANSFER MONEY AND DO MUCH MORE. SOUTH INDIAN Bank SIB Mirror is a mobile-led platform with instant account access, balance retrieval, immediate fund transfers, all account intimations, and much more SIB-er Net is a suite of comprehensive internet banking services positioning SIB as a technology-driven bank offering superior services to retail customers Retail branches now interconnected with single-window service and providing real-time online, real-time transactions to customers SIB offers Visa, MasterCard, and RuPay debit cards with online access to users for secure domestic and international transactions SEUVER Centralized Processing Center allows enhanced risk management and customer creation with complete KYC compliance and fraud prevention tools 45#46Personal Banking: Technology Banking Active Internet Users Internet Transaction Volume SOUTH INDIAN Bank Internet Transaction Value (000)'s (000)'s Rs Crs 899 839 865 785 223 205 175 192 663 157 4,489 4,700 4,906 3,054 3,293 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Mobile Transaction Volume Mobile Transaction Value (000)'s Rs Crs 1,482 1,412 1,328 1,175 1,258 1,008 1,026 913 599 350 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 46#47Personal Banking: Debit Cards In Millions No of Active Debit Cards 3.2 3.3 3.3 3.2 SOUTH INDIAN Bank Debit Card Transaction Volumes In Millions 33.7 33.6 33.8 3.5 31.4 27.1 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Debit Card Transaction Value Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Rs Crs 6,655 6,685 5,929 5,480 4,028 Sep-16 Dec-16* Mar-17 Jun-17 Sep-17 *Transaction volumes and value dropped in December 2016 quarter owing to large number of ATM's being non- operational and volume restriction due to demonetisation 47#48An Inflection Point 48#49Moving Towards Vision 2020... SOUTH INDIAN Bank Appointed International Finance Corporation Entered Memorandum of Understanding with NSIC Opened Centralized Marketing & Processing Centre ■ Provides advisory support to bank on the medium and long term strategy for significant growth in retail, ■ Facilitates loans to MSE and promotes the MSME credit portfolio of the Bank ■ Houses the Bank's Marketing Dept, Retail Loan Hub and Transaction Banking Dept agriculture and SME sectors ....to become Retail Banking Power House 49 49#50About Us 50#51Milestones FIRST among the private sector banks in Kerala to become a scheduled bank in 1946 under the RBI Act FIRST private sector bank to open a NRI branch in November 1992 FIRST among the private sector banks in Kerala to open an "Overseas Branch" to cater exclusively to the export and import business in June 1993 1 SOUTH INDIAN Bank FIRST bank in the private sector in India to open a Currency Chest on behalf of the RBI in April 1992 FIRST bank in the private sector to start Industrial Finance Branch in March 1993 FIRST bank in Kerala to develop an in-house, a fully integrated branch automation software in addition to the in-house partial automation solution operational since 1992 The FIRST Kerala based bank to implement Core Banking System 51#52Expansion since FY07 Branch Network 465 ~2X 850 463 277 246 SOUTH INDIAN Bank ATM Network ~8X 1,320 724 394 174 84 202 39 51 FY07 FY17 South Ex-Kerala Others (Rest of India) 122 141 66 FY07 FY17 Kerala 52 52#53Performance since FY07 Net Interest Income 368 FY07 Rs Crs CAGR : 16% 1,675 FY17 Business (Advances + Deposits) 20,158 Rs Crs CAGR : 19% 112,507 104 FY07 Profit After Tax Rs Crs CAGR : 14% 393 FY17 Gross NPA In % 149bps 3.94 2.45 FY07 FY17 FY07 FY17 SOUTH INDIAN Bank 53#54Leadership Team Mr. V. G Mathew, MD & CEO SOUTH INDIAN Bank Post Graduate in Physics and CAIIB with over 37 years of experience ▪ Joined SIB in January, 2014 as Executive Vice President and appointed as MD & CEO in October, 2014 ▪ Significant experience in Retail & Corporate Credit, Technology and Risk Management Joined SBI as a probationary officer in the Ahmadabad Circle in 1978 and was Chief General Manager before joining SIB The major assignments handled by Mr. Mathew in SBI are " Dy. General Manager (IT Networking Project) " Dy. General Manager and Branch Head, (Overseas Branch, Bangalore) " General Manager, (Corporate Accounts Group-Mumbai Branch) " Chief General Manager (Risk Management) ■ Chief General Manager (Corporate Accounts Group) He has served on various committees at Corporate Center of SBI such as Wholesale Banking Credit Committee, Investment Committee, Corporate Centre Credit Committee and was a Director on the Board of SBI Macquarie Infrastructure Trustee (P) Limited 54#55Leadership Team Mr. Thomas Joseph K, EVP (Operations) • • Bachelors Degree in Engineering and Diploma in Management & CAIIB SOUTH INDIAN Bank He is associated with SIB since 1984 and heads Departments such as Risk Management, Technology, Marketing, Corporate Financial Management, Human Resource and Inspection & Vigilance •He was Head of Credit handling a portfolio of Rs.40,000 crores and was instrumental in the execution of the Retail Strategy of the Bank which saw significant growth in the MSME & Agriculture Sectors Mr. G Sivakumar, EVP (Credit) Postgraduate in Chemistry and holds Masters Degree in Business Administration & CAIIB • He heads Credit and Legal Departments He has over 35 Years of Experience in Domestic and International Banking in India and Abroad ⚫ Before joining SIB, he was the General Manager and Head of Private Equity Vertical in State Bank of India where he was responsible for Private Equity and Venture Capital Investments made by the Bank • He was also a nominee director on the Board of Directors of four companies and Investment Committee of more than ten Alternative Investment Funds Mr. K N Reghunathan, EVP (Treasury) • Commerce Graduate & CAIIB . •He is responsible for Treasury Operations of the Bank along with International Banking Division • Before joining SIB, he was associated with Union Bank of India and was General Manager of Treasury and International Banking Division. ⚫ He was the Bank's nominee on the Board of FIMMDA and SBI Global Factors and Member of the Advisory Committee of Metropolitan Stock Exchange of India, IDFC Investment Fund, TATA Growth Fund, TATA Innovative Fund, India Advantage Fund I & II 55#56• Management Team Mr. John Thomas, Senior General Manager (Business Development Department) Bachelors Degree in Science, MBA and CAIIB SOUTH INDIAN Bank Mr. Benoy Varghese, Senior General Manager (Country Head - Wholesale Banking) Bachelors Degree in Arts & Masters Degree in Business Administration and CAIIB Mr. Raphael T.J., Senior General Manager (Chief Information Officer) Bachelors Degree in Commerce, Masters in EXIM, Diploma in Financial Management and CAIIB Mr. Anto George T, General Manager (Head of Inspection & Vigilance Department and Chief of Internal Vigilance) Bachelors Degree in Arts & Post Graduate Diploma in Computer Application, Certification in RDBMS & Oracle 8i and JAIIB Mr. Paul V.L., General Manager (Administration) Mr. Sanchay Sinha (Country Head - Retail Banking) Masters Degree in Arts and Post Graduate Diploma in Personnel Management & JAIIB Bachelor's degree in Arts, Post Graduate Certificate in Business Management (XLRI) 56#57Management Team SOUTH INDIAN Bank Mr. C.P. Gireesh, Chief Financial Officer Bachelors Degree in Mathematics Fellow member of the Institute of Chartered Accountants of India and Certified Associate of the Indian Institute of Banking & Finance Mr. Jacob EA, Chief Compliance Officer Mr. Jimmy Mathew, Company Secretary Bachelors Degree in Science & CAIIB - I Bachelors Degree in Commerce, Associate Member of Institute of Company Secretary of India and Institute of Cost & Management Accountants of India. Also a Certified Associate of the Indian Institute of Banking & Finance 57 44#58Awards & Recognition Awarded with ISO 27001:2013 Certification SOUTH INDIAN Bank The certification process involved an extensive audit, conducted by British Standards Institution against the criteria set out by the ISO 27001:2013 standards on various domains of IT functions Certifica Award Ceremo ISO 9001: 20 2 D bi ish Sta 20 bsi. 150/IEC 27001 eferaten Seit 18.666310 58#59Awards & Recognition Microsoft Won "IBA Banking Technology Awards" 2017 Awards SOUTH INDIAN Bank Won National Payments Excellence Awards - 2016 WINNER PERTH Nex Bank ation Bani In n Podused Preserved by F Won Finnoviti Award - 2017 INNOVIL AWARDED SOUTH INDIAN BANK FOR SIP MIRROR 59#60SOUTH INDIAN Bank Company For further information, please contact: The South Indian Bank Ltd. CIN L65191KL1929PLC001017 - Mr. C. P. Gireesh, CFO/ Mr. Vijith S, Dy. General Manager [email protected] [email protected] www.southindianbank.com Investor Relations Advisors Strategic Growth Advisors Pvt. Ltd. CIN U74140MH2010PTC204285 Mr. Shogun Jain/ Ms. Sanghamitra Karak [email protected]/ [email protected] +91 77383 77756 / +91 9833692935 www.sgapl.net 60 60