INVESTOR PRESENTATION DEC 2011

INVESTOR PRESENTATION DEC 2011

South Indian Bank At A Glance 83 Years 674 614 `58884 Cr 27% 25% `280 Cr `102 Cr 3.05 % 12.03% 0.24% Number of years in banking business Number of branches Number of ATM s Business as on Dec 2011-2012 Business Growth (Y to Y) Last 5 years business CAGR Net Profit for the period ended Dec 2011-2012 Net Profit for the Q3 (2011-2012) Net Interest Margin (Dec 11) Capital Adequacy Ratio (Basel II Dec 11) Net Non-Performing Assets (Dec 11) 2

History & Background Overview Key Strength Future Strategy 3

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History & Pioneering Initiatives One of the oldest Banks in South India. Incorporated on January 25, 1929. Head Office: Thrissur, Kerala First among private sector Banks in Kerala to became a SCB in 1946. First private sector bank to open a NRI branch in Nov,1992 & an IFB branch in March 1993 First bank among the Pvt sector banks in Kerala to open an "Overseas Branch, june,93. Listed in NSE, BSE & CSE- IPO in 1998. FPO In 2006 Successful QIP in Sept 2007 5

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Shareholding Pattern as on 31.12.2011 Others 3.88% FII's 42.25% Individuals 39.46% Individuals Corporates Fis and Banks FII's Others Fis and Banks 6.60% Corporates 7.81% Diversified shareholding & tradition of good corporate governance practices 7

Vision & Mission CORPORATE VISION To emerge as the most preferred bank in the country in terms of brand, values, principles with core competence in fostering customer aspirations, to build high quality assets leveraging on the strong and vibrant technology platform in pursuit of excellence and customer delight and to become a major contributor to the stable economic growth of the nation. MISSION To provide a secure, agile, dynamic and conducive banking environment to customers with commitment to values and unshaken confidence, deploying the best technology, standards, processes and procedures where customer convenience is of significant importance and to increase the stakeholders value. 8

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Key Strengh Healthy Fundamentals Adequately Capitalised; 12.03% CRAR & 9.61% Tier 1 ratio Asset Quality; 0.94% GNPAs & 0.24% NNPAs 75.18% NPA Coverage ratio 17.51% ROE, 1.06% ROAA Over 85% secured loan book Strong Growth One of the fastest growing banks in India. 25% CAGR in business in last 5 years Constant growth in Business & Profitability Most advanced technology in all spheres of banking operations & delivery channels. Significant Turnaround Benchmarked HR Practices & Introduced Performance Linked Incentive schemes, ESOP, Annual Performance contest- Awards. Forward looking Human Capital Management Strategy Highly skilled human capital- 46% of human capital under age 30 with professional qualification Key Competitive Advantage Fast expanding branch network High Asset Quality with well diversified Loan portfolio 9% market share in Kerala s NRI deposit base. Strong boost to Income from high yielding gold loans forming 26% of the loan book. 10

Vast and Rapidly Growing Branch Network Spread of Branches Average Branch & ATM network growth @ 10% (for last & current FY) 11

Branch Network Category wise as in Dec 11 Metro, 99, 15% Urban, 142, 21% Rural, 124, 18% Semi- Urban, 309, 46% Rural Semi- Urban Urban Metro 12

State wise distribution of Branches Category wise as in Dec 11 STATES No: of Branches STATES No: of Branches KERALA 373 JHARKHAND 2 TAMIL NADU 117 MADHYA PRADESH 2 ANDHRA PRADESH 44 ORISSA 2 KARNATAKA 38 PONDICHERRY 2 MAHARASHTRA 24 RAJASTHAN 2 DELHI 21 ASSAM 2 WEST BENGAL 9 BIHAR 1 UTTAR PRADESH 8 CHANDIGARH 1 GUJARAT 6 JAMMU & KASHMIR 1 HARYANA 4 UTTARANCHAL 1 PUNJAB 4 TRIPURA 1 GOA 4 HIMACHAL PRADESH 1 CHATTISGARH 3 MEGHALAYA 1 13

Number of Branches added Estimated Network Expansion (Number of branches added) 70 61 60 60 50 50 40 30 25 25 30 20 10 0 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 14

Number of Branches Estimated * Branch Network 800 700 600 500 400 475 500 530 580 641 701 300 200 100 0 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 * No: of branches as on 31.12.2011 674 15

Number of ATMs added Estimated Network Expansion (Number of ATMs added) 140 120 116 136 100 93 80 60 50 55 40 20 0 FY 08 FY 09 FY 10 FY 11 FY 12 16

Number of ATMs Estimated * ATM Network 700 600 625 500 400 489 300 200 225 280 373 100 0 FY 08 FY 09 FY 10 FY 11 FY 12 * No: of ATM s as on 31.12.2011 614 17

EFFICIENT SERVICE LEVERAGING ON TECHNOLOGY Project SIBERTECH- 100% Core Banking Solution (CBS) using FINACLE from Infosys. Centralized Data Centre with most advanced technological platform in a new state of the art Green complied building at Kochi, Kerala. Emphasis on IT security & Risk Management - Disaster-recovery site at Bangalore for CBS & Regular IS Audits. Member of INFINET & 568 On-line ATMs through NFS tie-up with other banks A host of hi-tech products- International debit & credit cards, high speed & secure Internet & Mobile Banking for retail & corporate clients. Online Value added services - Stock trading, ticket booking, mobile recharges, shopping, Utility payments, offerings. SIB FINS Card -A smartcard based FI initiative in association with M/s Coromandel InfoTech India Ltd., Chennai, as the technology service provider. Successfully implemented RTGS & NEFT in all branches. Successfully launched Smart card at Christ University, Bangalore which works as Access card, Identity card, ATM card and card for payment of fees in Christ College for around 10000 students. Best-in-class IT products & solutions in all banking operations like Treasury, Risk Management, AML, Credit Processing, HR, Audit & KYC. 18

RANGE OF PRODUCTS Loan Products Deposit products Other Products Retail Banking Retail Business Loans Housing Loans/ Mortgages Auto Loans Personal Loans Education Loans Employee Group Loans SME Loans Savings Bank Accounts Current Accounts Fixed/ Recurring Deposits Depository Account Mutual Funds sales Life Insurance sales General Insurance sales Group Insurance sales E-payment Cash Management Services Online Foreign Inward Remittance m-commerce New Pension System Gold Coins/ingots Commercial Banking Wholesale Banking Working Capital Loans Term Loans Wholesale Deposits Letters of Credit Banks Guarantees Bill Finance 19

Particulars March 10 March 11 Dec 11 Number of Business Correspondents appointed (BCs) Number of villages with population above 2000 provided with banking facility (Rural branches & BCs) 0 7 29 107 117 154 Number of rural households covered 2.46 Lakh 2.47 Lakh 3.58 Lakh Number of No-frills accounts (including Students A/c) FINANCIAL INCLUSION 6.83 Lakh 10.26 Lakh 11.75 Lakh No-frills accounts - amount 64.06 crore 102.72 crore 119.93 crore We have been empanelled by UIDAI for opening No-Frills account based on AADHAAR enrollment in 26 districts & 39 villages already allotted for Financial Inclusion. We have implemented the Smart Card model for FI as per the open standards and as recommended by IBA /IDRBT Technical Committee. Also planning for implementing the Smart Card model for Urban FI. 20

Strategic Tie Ups Life Insurance with LIC General Insurance with Bajaj Allianz Mutual funds All the leading AMCs in India Sri Lanka's Hatton National Bank (HNB) Improve the remittance flow to India and Sri Lanka More than 30 exchange houses & banks in middle east Facilitating fast remittances for more than 2lakh NRI customers, mostly from Gulf countries Providing managerial support to overseas exchange house - HADI exchange house 21

RECOGNITIONS Best Bank in Asset Quality (Pvt Sect or Bank) Award - Dun & Bradstreet 2011 Best Bank in Priority Sector Lending (Pvt Sect or Bank) Award - Dun & Bradstreet 2011 Technology Excellence Award in 2010 from IRDBT India s Best Bank 2010 Award Business world Price Water House Coopers Best Banks Survey 2010 Best Asian Banking Website - Asian Banking & Finance Magazine, Singapore. Best Old Pvt Sector Bank - Financial Express India's Best Banks 2008-2009. Best Pvt Sector bank in the Service quality segment Outlook Money - CFore Survey. Best Website Award from Kerala Management Association 22

Business Performance Busniess. Net profit NIM 23

Financial Highlights FY12 (Q3) (` in Crores) Net Profit (Upto Dec) Net Profit (Q3) Business Advance Deposit Net NPA Gross NPA Dec11 280 102 58884 25050 33834 0.24% 0.94% 33% 36% 27% 31% 25% Dec 10 211 75 46186 19188 26998 0.39% 1.33% 24

Profitability FY12 (Q3) 200 180 160 140 120 100 80 60 40 20 0 179 143 102 75 Q3 (FY 10-11) Q3 (FY 11-12) Operating Profit Net Profit Year to Year Growth (Q3) Operating Profit Net Profit 25% 36% 25

Profitability FY12 (Period upto Dec) 600 500 488 400 372 300 200 211 280 Operating Profit Net Profit 100 0 Q3 (FY 10-11) Q3 (FY 11-12) Year to Year Growth (Period upto Dec) Operating Profit Net Profit 31% 33% 26

Improved Quality of Earnings 1.20 1.00 0.88 0.98 1.05 1.11 0.85 0.93 0.94 1.04 1.06 0.99 0.80 0.60 0.40 ROA - Q3* ROAA - Q3* 0.20 0.00 FY-08 FY-09 FY-10 FY-11 FY-12 *Annualized RoA coming mainly from Core Income 27

Projection Projection Projection Business Trend for the period upto Dec Total Business and Growth 120000 100000 (` in Crores) 100,000 80000 60000 40000 20000 24,504 27,782 35,511 46,186 58,884 62,000 78,000 0 FY-08 FY-09 FY-10 FY-11 FY-12 FY-12 Mar FY-13 Mar FY-14 Mar Business grew over 2.4 times at CAGR of 25% in 5 years 28

Business Trend for the period upto Dec Credit Deposit Ratio 74% 73% 72% 71% 70% 69% 68% 67% 66% 65% 64% 63% 73.03% 70.28% 69.83% 66.75% 66.97% FY-08 FY-09 FY-10 FY-11 FY-12 29

Deposits for the period upto Dec Growth in Deposits (` in Crores) 40000 35000 30000 25000 20000 15000 10000 5000 0 Deposits 33,834 26,998 20,643 16,442 14,484 FY-08 FY-09 FY-10 FY-11 FY-12 Deposits increased @ 24% CAGR 30

Deposits Composition and Trend (` in Crores) Composition of Deposits Annual Trend in Low cost deposits (` in Crores) SB Deposit, 6058, 18% CD Deposit, 1222, 4% 7000 6000 5000 4000 3000 4023 4966 6058 Term Deposit, 26554, 78% 2000 1000 0 1183 976 1079 416 Low Cost deposits form 25% of total deposits. 1222 1019 831 459 452 FY-10 FY-11 FY-12 SB Deposit CD Deposit NRE T-Deposit FCNR Dep 31

Advances for the period upto Dec Growth in Advances (` in Crores) Adavance 30000 25000 25050 20000 15000 10000 10020 11340 14868 19188 5000 0 FY-08 FY-09 FY-10 FY-11 FY-12 Advances increased by 31% (Y-to- Y) 32

Advances Composition (Dec 2011) Sector Upto 5 Crores Above 5 Crores Total % to total Agriculture 2226.74 326.78 2553.52 10.19% MSME 1525.76 625.63 2151.39 8.59% Large Scale Industries 517.72 3833.92 4351.64 17.37% Housing 1160.65 402.49 1563.14 6.24% Commercial Real Estate 63.28 0.00 63.28 0.25% NBFC 56.32 1111.01 1167.33 4.66% Food Credit 0.00 431.08 431.08 1.72% LC Bills 0.00 2965.71 2965.71 11.84% Other 7098.09 2704.82 9802.91 39.13% Total 12648.56 12401.44 25050.00 100.00% 33

Trend in Cost & Yield (For the period upto Dec) Trend in Cost of Deposits Trend in Yield on Advances 9% 8% 7% 6% 5% 4% 6.74% 7.15% 7.03% 6.40% 7.77% 12.50% 12.00% 11.50% 11.00% 11.48% 11.39% 12.30% 3% 2% 1% 10.50% 10.00% 10.70% 10.69% 0% FY-08 FY-09 FY-10 FY-11 FY-12 9.50% FY-08 FY-09 FY-10 FY-11 FY-12 34

Trend in Cost & Yield (Quarterly) Trend in Cost of Deposits Trend in Yield on Advances 9% 12.50% 12.30% 8% 7.77% 12.00% 11.50% 11.75% 12.11% 7.60% 7.66% 7% 11.00% 10.90% 6% 6.40% 6.57% 10.50% 10.69% 10.00% 5% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 9.50% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 35

Investment Portfolio (Dec 2011) SLR & Non SLR Securities Composition of Investment Book ` in Crores 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 7952 6452 5129 3904 3538 1570 1177 1102 668 390 FY-08 FY-09 FY-10 FY-11 FY-12 Category Amount Percentage Held to Maturity 7229.90 86.67% Held for Trading 98.33 1.18% Available for Sale 1014.10 12.16% Total 8342.34 100.00% SLR Securities Non-SLR Securities 36

Investment Portfolio (Dec -2011) Yield on Investments Duration of Investments 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 6.46% 7.04% 5.79% 6.35% 6.84% Total Investment Portfolio Total HM Investment Portfolio Mar-11 Jun-11 Sep-11 Dec-11 3.67 3.61 3.69 4.07 4.81 4.68 4.61 4.55 2.00% 1.00% 0.00% Total HFT and AFS together Investment Portfolio 0.42 0.39 0.39 0.64 FY-08 FY-09 FY-10 FY-11 FY-12 37

Adequately Capitalized 20 18 16 14 12 10 8 6 4 2 0 17.35 15.39 14.89 14.01 12.03 FY-10 FY-11 FY-12 CRAR Basel 2 Yearly Quarterly - Q3 The bank has CRAR in excess of the required minimum of 9% stipulated by RBI. 38

Strong Core Capital (Tier 1 & Tier 2 CRAR) 14% 12% 10% 12.31% 11.27% 10.86% 10.80% 9.61% 8% 6% 4% 2% 0% 2.58% 2.74% 2.65% 2.68% 2.42% Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Tier 1 CRAR Tier 2 CRAR Strong Core Capital. Dependence on Capital Instruments low. 39

Strong Core Capital (Trend) (` in crores) RWA Tier 1 Capital Tier 2 Capital Total Capital Mar 10 11377 1412 337 1749 Jun 10 11270 1476 326 1802 Sep 10 11861 1551 330 1881 Dec 10 13174 1622 340 1962 Mar 11 14647 1650 401 2051 Jun 11 15152 1645 401 2046 Sep 11 15173 1643 408 2051 Dec 11 17069 1640 414 2054 40

Trend in Income & Expenses (For the period ended Dec) Total Income Trend in Expenses 3000 2500 (` in crores) 2754 2500 2000 2265 2000 1500 1000 1043 1334 1587 1879 1500 1000 857 1071 1301 1506 500 500 0 0 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 Int on Adv Int on Inv Oth Int Int Exp Staff Exp Other Exp Gross Annual income grew over 2.6 times in 5 years at CAGR 27% 41

Trend in Income (For the period ended Dec) Yield on Funds Cost of Funds 10.00% 9.50% 9.00% 9.33% 8.98% 9.85% 8% 7% 6% 5% 4% 6.05% 6.45% 6.35% 5.78% 7.04% 8.50% 8.00% 8.54% 8.59% 3% 2% 1% 7.50% 0% FY-08 FY-09 FY-10 FY-11 FY-12 FY-08 FY-09 FY-10 FY-11 FY-12 42

Composition of Non-Interest Income (` in crores) Particulars Period ended 31/12/2010 Period ended 31/12/2011 Commission, Exchange & Brokerage 25.39 24.89 Profit on sale of investment (Net) 25.12 31.83 Profit on sale of Land, Building & Other assets (Net) -0.01 0.06 Profit on Exchange Transactions (Net) 13.59 19.46 Miscellaneous Income 1. Processing Fees 9.94 11.68 2. Rent Received - - 3. Others (Folio charges, Locker Rent) 62.18 76.65 Total 136.21 164.57 43

Profitability for the period ended Dec Growth in Net Profit Net Interest Margin 300 280 3.10% 3.05% 3.05% 250 200 150 100 107 145 148 211 3.00% 2.95% 2.90% 2.85% 3.03% 50 0 2.80% 2.75% 2.80% FY-08 FY-09 FY-10 FY-11 FY-12 FY-10 FY-11 FY-12 Net profit grew at CAGR of 27% (Y-Y) in last 5 years. Net Interest margin (NIM) remains at satisfactory range. 44

Efficiency for the period ended Dec Return on Equity Return on Average Asset 20% 1.15% Return on Average Asset 18% 16% 14% 12% 10% 8% 12.32% 14.76% 13.62% 16.50% 17.51% 1.10% 1.05% 1.00% 0.95% 0.98% 1.11% 0.93% 1.04% 1.06% 6% 0.90% 4% 2% 0.85% 0% 0.80% FY-08 FY-09 FY-10 FY-11 FY-12 FY-08 FY-09 FY-10 FY-11 FY-12 45 45

Efficiency for the period ended Dec Cost / Income Ratio Earning Per Share (Annualized) 60% 4 (Amount in ` ) 3.29 50% 51.07% 45.68% 50.79% 47.28% 45.83% 3 3 2.48 40% 30% 2 2 1.57 1.71 1.74 1 20% 1 10% 0 FY-08 FY-09 FY-10 FY-11 FY-12 FY-08 FY-09 FY-10 FY-11 FY-12 46 46

Productivity (for the period ended Dec) Average Business Per Employee Profit Per Employee 1,200 (` in Lakh) 7 Profit Per Employee (` in Lakh) 6.64 1,000 956 6 5.39 800 600 514 570 649 787 5 4 3 3.42 4.23 4.04 400 2 200 1 0 0 FY-08 FY-09 FY-10 FY-11 FY-12 FY-08 FY-09 FY-10 FY-11 FY-12 47 47

Productivity (for the period ended Dec) Average Business Per Branch Operating Profit Per Branch (` in Crores) 90 80 70 67.10 79.90 120 100 (` in Lakh) 96.91 60 50 40 44.27 50.32 55.78 80 60 51.53 67.83 66.99 81.09 30 40 20 10 20 0 0 FY-08 FY-09 FY-10 FY-11 FY-12 FY-08 FY-09 FY-10 FY-11 FY-12 48 48

Asset Quality for the period ended Dec Gross NPA & Net NPA(%) Provision Coverage 3.00% 2.50% 2.53% 80% 70% 76.11% 72.97% 74.27% 70.69% 75.18% 2.00% 1.85% 60% 50% 1.50% 1.46% 1.33% 40% 1.00% 0.94% 30% 0.50% 0.49% 0.39% 0.39% 0.39% 0.24% 20% 10% 0.00% FY-08 FY-09 FY-10 FY-11 FY-12 Gross NPA Net NPA 0% FY-08 FY-09 FY-10 FY-11 FY-12 49 49

Asset Quality (Amount in ` crore) Change in Gross NPA & Net NPA Year ended 31/03/2010 Period ended 31/12/2010 Year ended 31/03/2011 Period ended 31/12/2011 Gross NPA 211 253 230 234 Gross NPA (%) 1.32% 1.33% 1.11% 0.94% Net NPA 62 74 60 58 Net NPA (%) 0.39% 0.39% 0.29% 0.24% Asset Quality maintained at high level. Provision coverage comfortable 50 50

Break-up of Provision (` in Crore) Particulars Year ended 31/03/2010 Year ended 31/03/2011 Period ended 31/12/2010 Period ended 31/12/2011 For NPA advance 34.98 27.74 31.75 7.34 For Depreciation on Investments -40.94 9.37 0.38 24.48 For NPA investment 2.14 0.26 0.26 0.00 For standard assets 6.43 21.60 15.65 28.20 For income tax 133.55 152.94 107.92 141.94 For Restructured advances 7.58-0.05-0.04 3.34 General Provision 33 20 5 0 Other impaired assets 0.07 0.84 0.34 3.49 Total Provisions and Contingencies 176.81 232.7 161.26 208.79 51 51

Performance Highlights (` in Crore) Performance Highlights Mar-10 Jun-10 Sep-10 Dec-10 Year ended Mar-11 Jun-11 Sep-11 Dec-11 CRAR Basel 2 (%) 15.40% 15.99% 15.86% 14.89% 14.01% 13.51% 13.48% 12.03% Return on Assets (Annualised) 1.07% 0.91% 1.03% 1.04% 1.05% 1.02% 1.05% 1.06% NIM (%) 2.80% 2.80% 3.00% 3.00% 3.10% 2.80% 3.00% 3.05% Gross NPA's 211 223 228 254 230 236 230 234 Net NPA 61 65 67 74 60 63 58 58 Gross NPA (%) 1.32% 1.33% 1.27% 1.33% 1.11% 1.07% 0.99% 0.94% Net NPA (%) 0.39% 0.39% 0.38% 0.39% 0.29% 0.29% 0.25% 0.24% Provision Coverage 70.50% 70.70% 70.10% 70.70% 73.64% 73.15% 74.70% 75.18% CASA 5323 5852 5979 6045 6404 6790 7038 7280 CASA % 23.10% 25.10% 23.90% 22.40% 21.55% 21.47% 21.30% 21.51% Deposits 23012 23331 25060 26998 29721 31622 33038 33834 Advances 16115 16728 18029 19188 20799 22151 23348 25050 Yield on advances 11.14% 10.77% 10.61% 10.69% 10.90% 11.75% 12.11% 12.30% 52 52

FUTURE STRATEGY 53

Way Forward 1 Enhancing income from distribution of third party products 2 Ramping up low cost as well as retail liabilities franchise 3 Enhancing productivity per branch/per employee 54 54

Key Focus Aims to open 60 branches & 120 ATMs this fiscal to boost network & take branch tally to 701 by March 2012. Aims to increase total business mix to Rs 1.25 lakh crore by March 2015. Enhancing income from distribution of third party products Ramping up low cost as well as retail liabilities. Enhancing productivity per branch/per employee 55

IMPORTANT NOTICE 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 forwardlooking 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. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares in the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract or commitment Important Notice whatsoever. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This presentation can not be copied and/or disseminated in any manner. 56 56

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