7 October 2016
2QFY17 Results Update | Sector: Financials
South Indian Bank
BSE SENSEX
28,061
Bloomberg
Equity Shares (m)
M.Cap. (INR b)/(USD b)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
12M Avg Val (INR m)
Free float (%)
S&P CNX
8,698
SIB IN
1,343.9
32.3/0.5
26 /16
8/24/2
93
100.0
CMP: INR24
TP: INR30 (+23%)
Buy
Financials & Valuation (INR Billion)
Y/E Mar
NII
OP
NP
NIM (%)
EPS (INR)
EPS Gr. (%)
BV/Sh (INR)
RoE (%)
RoA (%)
Payout (%)
Valuations
P/E (x)
P/BV (x)
Div Yield (%)
2016 2017E 2018E
15.1
8.8
3.3
2.8
2.5
8.5
27.5
9.3
0.5
24.4
9.7
0.9
2.1
17.0
11.2
4.0
2.8
3.0
19.6
29.8
10.3
0.6
23.3
8.1
0.8
2.5
20.1
12.9
4.9
2.8
3.6
23.2
32.5
11.7
0.6
23.3
6.6
0.7
3.0
South Indian Bank’s (SIB) PAT grew 18% YoY to INR1.1b, helped by strong
investment gains (45% of PBT). Core PPoP grew 13% YoY, aided by one-off
contribution to net interest income (our est. of INR440m). The bank reported
stable margin QoQ at 2.75% and expects it to be 2.8-2.85% in FY17.
Loans/deposits grew 10%/13% on YoY basis and 6%/4% on QoQ basis. The share
of CASA remains stable YoY at 22.8% (-40bp QoQ). The share of corporate
advances continues to drift lower (39% v/s 42% in 2QFY16).
Asset quality deteriorated QoQ with the addition of corporate slippage in the
quarter. Sequentially, the slippages ratio (annualized) increased from 1.3% to
2.3%. Overall GNPA ratio was stable QoQ at ~4%.
With delinquency from the corporate portfolio, OSRL declined to INR7.6b (1.8% of
loans) v/s INR9.5b in 1Q. Of the OSRL, 54% belongs to the construction segment
and 15% to discoms. The bank has INR11.7b (including pipeline of INR1.2b), 2.7%
of loans, in the form of SDR and S4A.
Valuation and view:
The focus on granular low-ticket retail and SME advances,
coupled with increasing share of core deposits, should provide stability to margins.
Efforts on fee income are yielding results, and the growth rate has improved to 18%
YoY in 1HFY17. Management is focusing on increasing efficiency of the existing
network and cutting the flab from the system. We expect C/Core Inc. ratio to decline
to 53% from 60% in FY16. Additional stress in the corporate segment can come from
OSRL+SDR book (~4.5% of overall loans). Low PCR will keep credit cost elevated.
Overall, we expect PAT CAGR of 21% over FY16-19 and ROAs to improve 10bp to 65bp
by end-FY19. Current valuations largely discount the negative. Maintain
Buy.
Alpesh Mehta
(Alpesh.Mehta@MotilalOswal.com); +9122 39825415/
Sunesh Khanna
(Sunesh.Khanna@MotilalOswal.com); +912239825521/Piran
Engineer
(Piran.Engineer@MotilalOswal.com); +9122 39804393
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on
www.motilaloswal.com/Institutional-Equities,
Bloomberg, Thomson Reuters, Factset and S&P Capital.

South Indian Bank
Exhibit 1: One-year forward P/BV
PB (x)
Median(x)
1.8
1.3
1.0
0.8
0.3
0.9
0.4
0.7
0
Peak(x)
Min(x)
Avg(x)
1.7
Exhibit 2: One-year forward P/E
15
10
5
PE (x)
Median(x)
Peak(x)
Min(x)
Avg(x)
13.5
6.8
6.5
2.3
6.5
Source: MOSL, Company
Source: MOSL, Company
Exhibit 3: DuPont Analysis: Gradual improvement in RoA led by lower provisions (%)
Interest income
Interest expense
Net interest income
Fee income
Core income
Operating costs
Cost to core income ratio
Employee Costs
Other Expenses
Core Operating Profit
Treasury Income
Operating Profit
Provisions
NPA Provisions
Other provisions
PBT
Tax
Tax Rate
ROA
Leverage (x)
ROE
FY12
9.79
7.00
2.79
0.56
3.36
1.69
50.3
1.02
0.66
1.67
0.11
1.78
0.22
0.06
0.16
1.56
0.47
29.8
1.10
19.7
21.6
FY13
9.84
6.99
2.84
0.61
3.46
1.70
49.2
1.05
0.65
1.75
0.13
1.88
0.43
0.29
0.13
1.45
0.34
23.4
1.11
18.4
20.5
FY14
9.57
6.90
2.67
0.57
3.24
1.69
52.0
1.01
0.68
1.55
0.13
1.69
0.30
0.26
0.04
1.39
0.42
30.4
0.97
17.2
16.6
FY15
9.27
6.87
2.39
0.58
2.98
1.72
57.7
1.11
0.61
1.26
0.29
1.55
0.80
0.39
0.41
0.74
0.28
37.8
0.46
17.1
7.9
FY16
9.09
6.62
2.47
0.62
3.09
1.88
60.7
1.13
0.75
1.21
0.22
1.44
0.60
0.66
-0.06
0.83
0.29
34.6
0.55
17.1
9.3
FY17E
8.69
6.18
2.50
0.64
3.14
1.78
56.7
1.02
0.77
1.36
0.28
1.64
0.75
0.59
0.15
0.90
0.31
34.6
0.59
17.6
10.3
FY18E
FY19E
8.44
8.47
5.90
5.92
2.54
2.55
0.64
0.63
3.18
3.18
1.74
1.68
54.6
52.9
1.01
0.99
0.73
0.69
1.44
1.50
0.19
0.16
1.63
1.66
0.69
0.70
0.54
0.56
0.15
0.14
0.94
0.96
0.32
0.33
34.0
34.0
0.62
0.64
18.8
19.9
11.7
12.7
Source: MOSL, Company
7 October 2016
2

South Indian Bank
Story in charts
Exhibit 4: Loan growth improves QoQ
Loans (INR b)
16
13
15
11
14 10
9
3
YoY Loan Growth (%)
Exhibit 5: CASA growth moderated QoQ
CASA Ratio (%)
20.5 22.0 19.3
10
10 8
10
14.6
14.3
11.4
7.6 8.8
YoY Growth (%)
17.0 18.1 16.6 15.4
13.6
13.5
12 12
Source: Company, MOSL
Source: Company, MOSL
Exhibit 6: Reported margins stable QoQ
2.9
3.1 3.0 3.0
2.7
2.5
2.9
2.7
2.5
2.7
2.8 2.7 2.7 2.8
Exhibit 7: Strong free income growth (+20% YoY)
Fee income (INR m)
45 43
23
(15)
25
18
6
16
2
20
(1)
9
14
20
YoY growth (%)
Source: Company, MOSL
Source: Company, MOSL
Exhibit 8: Slippages have ticked up sequentially
Slippage Ratio (%)
9.0
Exhibit 9: Reported PCR remains weak
GNPA (%)
NNPA (%)
Calc. PCR (%)
3.2 3.6
1.4
0.6
1.2 1.0
4.0
2.0 1.8 2.0 2.5
1.3
2.3
29
28
29
35
40 42 43
45
35
38 35
31
24 28
Source: Company, MOSL
Source: Company, MOSL
7 October 2016
3

South Indian Bank
Exhibit 10: Quarterly Snapshot (INR m)
FY15
1Q
Profit and Loss (INR m)
Interest Income
Loans
Investment
Others
Interest Expenses
Net Interest Income
Other Income
Trading profits
Forex Income
Others
Total Income
Operating Expenses
Employee
Others
Operating Profits
Provisions
NPA provisions
Provisions on Invst.
Others
PBT
Taxes
PAT
Asset Quality
GNPA
NNPA
GNPA (%)
NNPA (%)
PCR (Calculated, %)
Credit Cost (bp)
Ratios (%)
Non Int. to Total Income
Cost to Core Income
Tax Rate
Loan/Deposit
CASA Reported
CAR
Tier I
Reported NIMs (%) - Cumulative
Yield on loans
Cost of Deposits
Margins
Balance Sheet (INR B)
Gross Advances
Deposits
CASA Deposits
2Q
3Q
4Q
1Q
2Q
FY16
3Q
4Q
1Q
FY17
2Q
Variation (%)
QoQ
YoY
0
0
1
-8
-6
19
-16
-11
-79
-3
8
2
0
5
15
12
79
NM
-150
16
16
16
6
1
0
-12
304
3
1
19
-15
-1
15
20
21
25
20
16
-1
-6
7
40
90
87
NM
NM
16
12
18
96
120
172
138
-753
13,447 13,123 13,068 13,224 13,767 14,050 14,077 13,679 14,472 14,502
10,453 10,319 10,327 10,431 10,827 11,084 11,145 10,581 11,092 11,139
2,649 2,615 2,308 2,683 2,442 2,494 2,503 2,639 2,943 2,962
344
190
433
111
498
473
429
459
437
401
10,038 9,540 9,869 9,753 10,363 10,166 10,009 9,936 10,736 10,050
3,409 3,584 3,199 3,471 3,404 3,884 4,067 3,743 3,736 4,452
1,212
936
1,603 1,219 1,038 1,212 1,533 1,391 1,734 1,459
458
121
784
277
141
420
500
300
570
510
54
54
74
116
87
40
220
100
240
50
700
761
745
826
810
752
813
991
924
899
4,620 4,520 4,803 4,690 4,442 5,096 5,600 5,134 5,471 5,911
1,977 2,411 2,608 3,041 2,633 2,965 2,970 2,911 2,876 2,937
1,459 1,349 1,550 1,979 1,574 1,787 1,846 1,716 1,676 1,676
518
1,061 1,058 1,062 1,059 1,178 1,124 1,195 1,200 1,262
2,643 2,109 2,194 1,650 1,809 2,130 2,631 2,223 2,595 2,973
946
957
860
1,377
795
675
1,064 1,163 1,141 1,283
824
255
514
597
412
891
839
1,911
931
1,664
50
53
-35
69
203
-32
122
5
-54
-248
72
650
381
712
180
-184
103
-754
264
-133
1,697 1,152 1,335
272
1,014 1,456 1,567 1,060 1,454 1,690
431
389
455
109
361
522
551
331
503
585
1,267
763
879
163
653
934
1,016
730
951
1,105
5,173
3,105
1.5
0.9
40
94
26.2
48.1
25.4
74.1
22.1
12.2
10.6
12.1
8.0
2.7
345
465
103
5,532
3,184
1.6
0.9
42
29
20.7
55.5
33.8
76.3
22.1
12.1
10.7
11.9
7.9
2.9
356
467
103
6,613
3,796
1.8
0.9
43
57
33.4
66.1
34.1
75.7
21.5
11.4
10.0
11.5
8.0
2.5
367
485
104
6,435
3,571
1.7
1.0
45
65
26.0
70.8
40.1
72.6
20.6
12.0
10.4
11.6
8.1
2.7
377
519
107
7,138
4,640
1.9
1.2
35
44
23.4
62.5
35.6
73.6
22.3
11.4
10.0
11.5
7.9
2.5
385
523
117
8,923
5,496
2.2
1.4
38
92
23.8
64.0
35.8
75.2
22.8
11.9
9.6
11.4
7.7
2.7
399
530
121
11,080 15,624 16,516 17,453
7,160 11,853 11,918 12,064
2.8
3.8
4.0
4.0
1.8
2.9
2.9
2.8
35
24
28
31
84
189
90
157
27.4
60.8
35.1
75.4
23.0
11.7
9.4
11.4
7.6
2.8
403
534
123
27.1
61.5
31.2
74.4
22.2
11.8
9.8
11.2
7.5
2.7
415
557
125
31.7
61.7
34.6
72.0
23.2
11.7
9.9
10.9
7.0
2.7
417
579
135
24.7
54.9
34.6
73.2
22.8
11.1
9.5
10.7
6.9
2.8
-16
-12
1
-70
-83
8
441
6
10
602
4
13
137
2
13
Source: MOSL, Company
7 October 2016
4

South Indian Bank
Exhibit 11:
Financials:
Valuation
metrics
66
Rating
ICICIBC*
HDFCB
AXSB
KMB*
YES
IIB
IDFC Bk
FB
DCBB
JKBK
SIB
Private Aggregate
SBIN (cons)*
PNB
BOI
BOB
CBK
UNBK
OBC
INBK
ANDB
Public Aggregate
Banks Aggregate
HDFC*
LICHF
IHFL
GRHF
REPCO
DEWH
Housing Finance
RECL
POWF
Infra Finance
SHTF
MMFS
BAF
MUTH
SKSM
Asset Finance
NBFC Aggregate
Financials
Buy
Buy
Buy
Buy
Buy
Buy
Under Review
Buy
Under Review
Neutral
Buy
Buy
Neutral
Neutral
Buy
Neutral
Buy
Neutral
Buy
Buy
CMP
Mcap
EPS (INR)
P/E (x)
BV (INR)
FY17
145
332
243
208
390
333
43
50
69
146
30
234
189
239
157
498
314
410
300
109
FY18
160
386
274
240
471
385
46
54
78
162
32
253
200
255
173
527
348
428
324
114
P/BV (x)
FY17
1.26
3.86
2.19
3.76
3.27
3.67
1.72
1.45
1.80
0.60
0.81
2.70
1.28
0.76
0.49
1.04
0.66
0.48
0.32
0.73
0.54
0.80
1.66
RoA (%)
RoE (%)
(INR) (USDb) FY17 FY18 FY17 FY18
251
22.1
17.3 20.0 11.1 8.6
1,281 49.1
58.4 70.2 21.9 18.2
533
19.3
31.8 37.4 16.7 14.3
780
21.7
26.8 34.0 29.2 23.0
1,275
8.1
79.0 101.2 16.1 12.6
1,221 11.0
48.3 61.1 25.3 20.0
74
3.8
3.4
4.2 21.6 17.6
73
1.9
4.3
5.2 16.9 14.1
125
0.5
7.7
8.7 16.3 14.3
87
0.6
17.7 21.4 4.9 4.1
24
0.5
2.8
3.3
8.6 7.3
258
143
117
164
328
149
130
220
59
138.6
30.4
4.3
1.7
5.7
2.7
1.6
0.7
1.6
1.8
50.4
189.0
33.6
4.6
5.5
2.0
0.8
1.3
47.8
3.9
4.9
8.8
4.1
3.3
1.8
2.1
1.8
13.0
69.6
258.6
14.7
10.8
-10.8
14.1
26.8
22.4
16.7
25.3
1.5
24.3
12.8
21.6
20.0
36.8
39.1
24.2
31.4
6.4
20.3
17.5
13.3
-10.9
11.6
12.2
6.7
7.8
8.7
38.5
16.0
18.9
28.6
15.2
12.7
43.7
27.1
9.7
22.7
4.5
5.1
4.8
16.9
26.1
31.3
12.1
17.5
14.1
14.3
17.4
17.0
10.6
11.2
5.4
8.2
8.9
3.8
5.3
7.0
9.1
10.4
14.5
22.7
12.1
10.2
34.6
20.8
7.6
19.1
3.9
4.8
4.4
12.7
21.0
24.5
10.1
18.1
11.4
12.3
13.8
FY18 FY17 FY18 FY17 FY18
1.08 1.13 1.18 10.5 11.2
3.32 1.90 1.89 18.9 19.6
1.95 1.32 1.31 13.8 14.4
3.25 1.61 1.82 14.2 15.4
2.71 1.80 1.86 22.0 23.5
3.17 1.83 1.87 15.5 17.0
1.60 1.24 1.13 8.2 9.4
1.35 0.75 0.75 8.9 9.9
1.60 1.02 0.95 11.7 11.9
0.54 1.00 1.06 12.8 13.9
0.75 0.55 0.57 9.7 10.6
2.39
1.17 0.47 0.54 7.9 9.5
0.71 0.31 0.34 5.8 6.6
0.46 -0.16 0.29 -4.6 8.7
0.95 0.47 0.60 9.3 12.1
0.62 0.25 0.31 5.5 7.2
0.43 0.37 0.58 7.4 11.8
0.30 0.23 0.30 4.2 5.8
0.68 0.57 0.64 8.7 10.0
0.52 0.08 0.31 1.4 5.8
0.76
1.52
Buy
Buy
Buy
Buy
Buy
Buy
Neutral
Neutral
Buy
Buy
Buy
Buy
Buy
1,406
602
855
357
824
293
131
123
1,190
381
1,083
340
882
34.5
39.5
67.6
8.2
30.4
30.2
29.4
24.0
70.5
14.6
34.6
28.0
50.4
37.8
49.6
84.0
10.3
39.7
38.4
33.4
25.5
93.8
18.1
44.2
33.6
48.8
194
213
280
28
180
201
168
149
505
118
166
159
206
217 4.44 3.52 1.84 1.82 19.4 19.0
253 2.83 2.38 1.49 1.55 20.1 21.3
315 3.05 2.72 3.68 3.78 25.3 28.3
35 12.64 10.22 2.31 2.31 32.0 32.7
215 4.59 3.84 2.15 2.20 18.3 20.1
230 1.45 1.27 1.27 1.39 16.4 17.8
4.53 4.00
194 0.78 0.68 2.63 2.54 18.8 18.5
167 0.83 0.74 2.37 2.12 16.8 16.2
0.81 0.71
579 2.36 2.06 2.43 2.75 14.8 17.2
131 3.22 2.90 2.02 2.19 12.9 14.5
204
180
255
6.51
2.14
4.28
2.33
2.58
1.83
5.31
1.89
3.46
2.07
2.27
1.67
3.48 3.38 22.8 23.9
3.66 3.57 18.7 19.9
6.73 4.25 32.9 21.2
*Multiples adj. for value of key ventures/Investments; For ICICI Bank and HDFC Ltd BV is adjusted for investments in subsidiaries
7 October 2016
5

South Indian Bank
Financials and valuations
Income Statement
Y/E March
Interest Income
Interest Expense
Net Interest Income
Change (%)
Non Interest Income
Net Income
Change (%)
Operating Expenses
Pre Provision Profits
Change (%)
Provisions (excl tax)
PBT
Tax
Tax Rate (%)
Extra Ordinary Item
Profits Post EO
Change (%)
Equity Dividend (Incl tax)
Core PPP*
Change (%)
2012
35,834
25,617
10,217
29.2
2,471
12,688
28.4
6,173
6,515
24.0
792
5,723
1,707
29.8
0
4,017
37.3
791
6,107
25.7
2012
1,134
20,570
21,704
365,005
22.8
71,793
12.1
5,882
11,109
403,701
26,405
93,999
5.3
272,807
33.1
3,775
6,714
403,701
2,672
765
0.97
0.28
71.4
2013
44,343
31,535
12,808
25.4
3,349
16,158
27.3
7,672
8,486
30.2
1,927
6,559
1,536
23.4
0
5,023
25.1
1,094
7,909
29.5
2013
1,339
28,724
30,062
442,623
21.3
82,328
14.7
12,846
12,420
497,950
43,359
125,235
33.2
318,155
16.6
3,961
7,240
497,950
4,339
2,495
1.36
0.78
42.5
2014
50,151
36,163
13,988
9.2
3,685
17,672
9.4
8,829
8,843
4.2
1,554
7,289
2,214
30.4
0
5,075
1.0
1,258
8,145
3.0
2014
1,344
32,360
33,704
474,911
7.3
98,249
19.3
27,308
13,937
549,860
32,179
143,518
14.6
362,299
13.9
4,122
7,742
549,860
4,326
2,817
1.19
0.78
34.9
2015
52,862
39,200
13,662
-2.3
4,971
18,633
5.4
9,813
8,820
-0.3
4,570
4,250
1,608
37.8
-430
3,072
-39.5
980
7,180
-11.8
2015
1,350
34,544
35,894
519,125
9.3
106,863
8.8
22,325
13,819
591,163
35,951
140,861
-1.9
373,916
3.2
4,790
35,644
591,163
6,435
3,602
1.71
0.96
44.0
2016
55,572
40,475
15,097
10.5
5,174
20,271
8.8
11,478
8,793
-0.3
3,696
5,097
1,764
34.6
0
3,333
8.5
813
7,427
3.4
2016
1,350
37,106
38,456
557,207
7.3
124,590
16.6
23,150
12,936
631,749
30,995
146,189
3.8
410,857
9.9
4,870
38,837
631,749
15,624
11,853
3.77
2.88
24.1
2017E
59,153
42,120
17,033
12.8
6,280
23,313
15.0
12,142
11,170
27.0
5,074
6,096
2,109
34.6
0
3,987
19.6
929
9,270
24.8
2017E
1,350
41,301
42,651
646,360
16.0
146,421
17.5
26,808
14,460
730,279
39,800
157,884
8.0
484,812
18.0
5,838
41,944
730,279
18,600
12,298
3.84
2.54
33.9
2018E
66,624
46,560
20,064
17.8
6,537
26,601
14.1
13,711
12,890
15.4
5,448
7,442
2,530
34.0
0
4,911
23.2
1,144
11,390
22.9
2018E
1,350
45,068
46,418
756,242
17.0
172,093
17.5
29,582
16,230
848,471
45,244
170,515
8.0
581,774
20.0
5,638
45,300
848,471
21,379
12,311
3.67
2.12
42.4
(INR Million)
2019E
78,028
54,527
23,501
17.1
7,293
30,793
15.8
15,498
15,295
18.7
6,418
8,878
3,018
34.0
0
5,859
19.3
1,365
13,795
21.1
Balance Sheet
Y/E March
Equity Share Capital
Reserves & Surplus
Net Worth
Deposits
Change (%)
of which CASA Dep
Change (%)
Borrowings
Other Liabilities & Prov.
Total Liabilities
Current Assets
Investments
Change (%)
Loans
Change (%)
Fixed Assets
Other Assets
Total Assets
(INR Million)
2019E
1,350
49,562
50,912
892,365
18.0
202,282
17.5
32,483
18,234
993,995
53,937
187,567
10.0
698,129
20.0
5,438
48,924
993,995
Asset Quality
GNPA (INR m)
NNPA (INR m)
GNPA Ratio
NNPA Ratio
PCR (Excl Tech. write off)
E: MOSL Estimates
(%)
24,330
11,642
3.49
1.67
52.1
7 October 2016
6

South Indian Bank
Financials and valuations
Ratios
Y/E March
Spreads Analysis (%)
Avg. Yield-Earning Assets
Avg. Yield on loans
Avg. Yield on Investments
Avg. Cost-Int. Bear. Liab.
Avg. Cost of Deposits
Interest Spread
Net Interest Margin
Profitability Ratios (%)
RoE
RoA
Int. Expense/Int.Income
Fee Income/Net Income
Non Int. Inc./Net Income
Efficiency Ratios (%)
Cost/Income*
Empl. Cost/Op. Exps.
Busi. per Empl. (INR m)
NP per Empl. (INR lac)
* ex treasury and recoveries
Asset-Liability Profile (%)
Loans/Deposit Ratio
CASA Ratio
Investment/Deposit Ratio
G-Sec/Investment Ratio
CAR
Tier 1
2012
10.6
12.0
6.8
7.6
7.6
2.9
3.0
2013
10.5
12.1
6.8
7.6
7.6
2.8
3.0
2014
10.2
11.6
7.1
7.6
7.5
2.6
2.8
2015
10.1
11.3
6.7
7.5
7.4
2.6
2.6
2016
10.2
11.1
7.0
7.2
7.1
3.0
2.8
2017E
9.8
10.1
7.8
6.7
6.6
3.0
2.8
2018E
9.5
9.8
7.5
6.4
6.3
3.1
2.8
2018E
9.4
9.8
7.3
6.4
6.3
3.1
2.8
21.6
1.1
71.5
16.3
19.5
20.5
1.1
71.1
17.2
20.7
16.6
1.0
72.1
16.9
20.8
7.9
0.5
74.2
17.9
26.7
9.3
0.5
72.8
18.8
25.5
10.3
0.6
71.2
18.8
26.9
11.7
0.6
69.9
18.9
24.6
12.7
0.6
69.9
18.8
23.7
50.3
60.6
96.9
6.8
49.2
61.6
109.6
7.9
52.0
59.9
112.4
7.1
57.7
64.6
116.9
4.2
60.7
60.3
119.6
4.3
56.7
57.0
141.4
5.4
54.6
58.1
157.4
6.3
52.9
59.1
177.2
7.1
74.7
19.7
25.8
87.4
14.0
11.5
71.9
18.6
28.3
79.7
14.0
12.1
76.3
20.7
30.2
80.2
12.2
11.0
72.0
20.6
27.1
87.7
11.8
10.7
73.7
22.4
26.2
94.7
10.7
9.8
75.0
22.7
24.4
98.3
11.5
10.5
76.9
22.8
22.5
106.4
10.9
9.9
78.2
22.7
21.0
114.2
10.2
9.3
Valuation
Book Value (INR)
Change (%)
Price-BV (x)
Adjusted BV (INR)
Price-ABV (x)
EPS (INR)
Change (%)
Price-Earnings (x)
Dividend Per Share (INR)
Dividend Yield (%)
E: MOSL Estimates
17.9
19.1
1.3
17.4
1.4
3.5
36.8
6.8
0.6
2.5
21.4
19.9
1.1
20.2
1.2
3.8
5.9
6.4
0.7
2.9
24.1
12.5
1.0
22.7
1.1
3.8
0.6
6.3
0.8
3.3
25.6
6.1
0.9
23.8
1.0
2.3
-39.7
10.5
0.6
2.5
27.5
7.6
0.9
21.8
1.1
2.5
8.5
9.7
0.5
2.1
29.8
8.2
0.8
23.8
1.0
3.0
19.6
8.1
0.6
2.5
32.5
9.4
0.7
26.6
0.9
3.6
23.2
6.6
0.7
3.0
35.9
10.2
0.7
30.3
0.8
4.3
19.3
5.5
0.9
3.6
7 October 2016
7

South Indian Bank
Corporate profile: South India Bank
Company description
One of the earliest banks in southern part of India,
South Indian Bank (SIB) was incorporated in 1928
at Thrissur in Kerala. Under the RBI Act, SIB was the
first private sector bank in Kerala to become a
Scheduled Commercial Bank in 1946. Currently, the
bank is led by Mr. V. G. Mathew, MD & CEO. The
bank has a strong presence in South India (80%+
branches). As on June 2016, the bank had a
network of 838 branches and 1,291 ATMs.
Exhibit 12: Sensex rebased
Exhibit 12: Shareholding pattern (%)
Jun-16
Promoter
DII
FII
Others
0.0
13.1
38.4
48.5
Mar-16
0.0
18.7
33.0
48.4
Jun-15
0.0
12.9
28.2
59.0
Exhibit 13: Top holders
Holder Name
Yusuffali Musaliam Veetil Abdul Kader
First Carlyle Ventures Mauritius
Life Insurance Corporation Of India
Cx Securities Limited
Gkff Ventures
% Holding
4.9
4.9
4.8
3.2
3.0
Note: FII Includes depository receipts
Exhibit 14: Top management
Name
Amitabha Guha
V G Mathew
Jimmy Mathew
Designation
Chairman
Managing Director & CEO
Company Secretary
Exhibit 15: Directors
Name
Amitabha Guha
Cheryan Varkey
Francis Alapatt*
John Joseph Alapatt*
K Thomas Jacob*
Name
Mohan Alapatt*
Parayil George John Tharakan*
Ranjana Salgaocar*
Salim Gangadharan*
V G Mathew*
*Independent
Variation
(%)
-
-4.9
Exhibit 16: Auditors
Name
Deloitte Haskins & Sells
Type
Statutory
Exhibit 17: MOSL forecast v/s consensus
EPS
(INR)
FY17
FY18
MOSL
forecast
3.0
3.6
Consensus
forecast
3.0
3.8
7 October 2016
8

South Indian Bank
NOTES
7 October 2016
9

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