South Indian Bank Ltd -
South Indian Bank Ltd (SIB) is a private sector bank that was founded in 1929. The bank is headquartered in Thrissur (Kerala) with a network of 929 branches and 1426 automated teller machines as of June 30, 2020.
Credit Rating-
Long term rating has been downgraded for Basel III tier 2 to A with negative outlook and Basel III AT1 perpetual bonds to A- with a negative outlook India Ratings.
South Indian Bank Financials
| Parameters(billion) | Q1FY21 | Q1FY20 |
|---|---|---|
| Net Interest Income | 5.87 | 5.36 |
| Profit After Tax | 0.82 | 0.73 |
| Net worth | 55.72 | 55 |
| Borrowings | 62.48 | 50.03 |
| NIM | 2.62% | 2.53% |
| CAR | 13.50% | 12.20% |
| Tier I | 10.80% | 9.70% |
| GNPA | 4.93% | 4.96% |
| NNPA | 3.09% | 3.41% |
South Indian Bank bonds trade data
| Date | ISIN | Coupon(%) | Maturity | Price | Yield(%) |
|---|---|---|---|---|---|
| 10-Aug-20 | INE683A08044 | 11.75 | 26-Jun-29 | 105.4 | 10.28 |
| 10-Aug-20 | INE683A08051 | 13.75 | 31-Dec-99 | 100.25 | 13.59 |
| 07-Aug-20 | INE683A08051 | 13.75 | 31-Dec-99 | 99.75 | 13.76 |
| 07-Aug-20 | INE683A08044 | 11.75 | 26-Jun-29 | 104.9 | 10.44 |
| 06-Aug-20 | INE683A08044 | 11.75 | 26-Jun-29 | 104 | 11.16 |
| 06-Aug-20 | INE683A08051 | 13.75 | 31-Dec-99 | 103 | 13.29 |
| 05-Aug-20 | INE683A08044 | 11.75 | 26-Jun-29 | 105.2 | 10.35 |
| 05-Aug-20 | INE683A08051 | 13.75 | 31-Dec-99 | 100 | 13.67 |
| 04-Aug-20 | INE683A08051 | 13.75 | 31-Dec-99 | 100 | 13.67 |
| 04-Aug-20 | INE683A08044 | 11.75 | 26-Jun-29 | 105.2 | 10.35 |
| 03-Aug-20 | INE683A08044 | 11.75 | 26-Jun-29 | 103 | 11.07 |
| 03-Aug-20 | INE683A08051 | 13.75 | 31-Dec-99 | 98.65 | 14.92 |
| 31-Jul-20 | INE683A08051 | 13.75 | 31-Dec-99 | 99 | 14.06 |
| 31-Jul-20 | INE683A08044 | 11.75 | 26-Jun-29 | 101.15 | 11.69 |
| 30-Jul-20 | INE683A08051 | 13.75 | 31-Dec-99 | 100 | 13.6 |
| 28-Jul-20 | INE683A08036 | 9.5 | 28-May-28 | 89.5 | 17.01 |
| 28-Jul-20 | INE683A08051 | 13.75 | 31-Dec-99 | 100 | 13.67 |
| 24-Jul-20 | INE683A08051 | 13.75 | 31-Dec-99 | 99.75 | 13.73 |
| 23-Jul-20 | INE683A08051 | 13.75 | 31-Dec-99 | 99.8 | 13.74 |
| 22-Jul-20 | INE683A08051 | 13.75 | 31-Dec-99 | 99 | 13.81 |
| 21-Jul-20 | INE683A08051 | 13.75 | 31-Dec-99 | 102 | 13.6 |
| 20-Jul-20 | INE683A08051 | 13.75 | 31-Dec-99 | 101.2 | 13.37 |
| 17-Jul-20 | INE683A08051 | 13.75 | 31-Dec-99 | 101.2 | 13.52 |
Capitalization-
SIBs net worth stood stable at Rs 55.7 billion in QFY21 from Rs 55 billion in Q1FY20. Its capital adequacy ratio(CRAR) came in at 13.5% with Tier I ratio was 10.8% in Q1FY21 from 12.2% in Q1FY20.
Moderate profitability-
Owing to high provisioning requirements, SIBs profitability has remained subdued over the last 4-5 fiscals. SIBs NII came down marginally to Rs 5.87 billion in Q1FY21 from Rs 5.96 billion in Q4FY20. During Q4FY20, the bank posted a loss due to a high provision of Rs 7.24billion. Banks NIM declined to 2.62% in Q1FY21 from 2.67% in Q4FY20. Going ahead, profitability is likely to get impacted by higher provisioning requirements and the adverse market condition caused by the global corona pandemic in the wake of loan moratorium and restructuring.
Weakening Asset quality- SIBs asset quality deteriorated in the last two fiscals driven by increased slippages in the corporate book and 2018 Kerala flood(as it has a strong presence in Kerala). Its gross NPA rose to 4.93% in Q1FY21 from 4.54% in Q1FY9. However, it improved from 4.98% in Q4FY20 and 4.96% in Q1FY20. In the current scenario of the corona pandemic, fiscal slippage will be a key concern in the near future.