INVESTOR PRESENTATION

DEC 2011
South Indian Bank… At A Glance
83 Years • Number of years in banking business
674 • Number of branches
614 • Number of ATM’s
`58884 Cr • Business as on Dec 2011-2012
27% • Business Growth (Y – to – Y)
25% • Last 5 years business CAGR
`280 Cr • Net Profit for the period ended Dec 2011-2012

`102 Cr • Net Profit for the Q3 (2011-2012)

3.05 % • Net Interest Margin (Dec 11)
12.03% • Capital Adequacy Ratio (Basel II –Dec 11)
0.24% • Net Non-Performing Assets (Dec 11)

2
 History &
Background

Overview

Key Strength

Future Strategy

3
4
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
6
Shareholding Pattern – as on 31.12.2011
Others
3.88%

Individuals
Individuals
Corporates
39.46%
FII's Fis and Banks
42.25% FII's
Others

Corporates
Fis and Banks
7.81%
6.60%

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
9
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%

Rural, 124, 18%
Rural
Semi- Urban
Urban, 142, 21%
Urban
Semi- Urban, 309, Metro
46%

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
 Network Expansion (Number of branches added)

70 61
60

60
Number of Branches added

50
50

40
30

Estimated
30 25 25

20

10

0
FY 07 FY 08 FY 09 FY 10 FY 11 FY 12

14
 Branch Network
800
700
701
600 641
Number of Branches

580
500 530

Estimated *
475 500
400
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
 Network Expansion (Number of ATMs added)
136
140
116
120
Number of ATMs added

93
100

Estimated
80
55
60 50

40

20

0
FY 08 FY 09 FY 10 FY 11 FY 12

16
 ATM Network
700

600 625
500
489

Estimated *
Number of ATMs

400
373
300
280
200 225
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 & 614 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 Business Loans •Savings Bank Accounts • Depository Account
Housing Loans/ •Current Accounts • Mutual Funds sales
Mortgages •Fixed/ Recurring • Life Insurance sales
Auto Loans Deposits • General Insurance sales
Personal Loans • Group Insurance sales
Retail Education Loans • E-payment
Banking Employee Group Loans • Cash Management Services
SME Loans • Online Foreign Inward Remittance
• m-Commerce
• New Pension System
•Gold Coins/ingots

Commercial Banking

•Working Capital Loans

•Term Loans
•Wholesale Deposits
Wholesale
•Letters of Credit
Banking
•Banks Guarantees
• Bill Finance

19
 FINANCIAL INCLUSION
Particulars March 10 March 11 Dec 11
Number of Business Correspondents (BCs)
0 7 29
appointed
Number of villages with population above
2000 provided with banking facility (Rural 107 117 154
branches & BCs)
Number of rural households covered 2.46 Lakh 2.47 Lakh 3.58 Lakh
Number of ‘No-frills’ accounts (including
6.83 Lakh 10.26 Lakh 11.75 Lakh
Students A/c)

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 Net
Gross
Profit Profit Business Advance Deposit Net NPA
NPA
(Upto Dec) (Q3)

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)
200 179
180
160 143
140
120 102
100 Operating Profit
75
80
Net Profit
60
40
20
0
Q3 (FY 10-11) Q3 (FY 11-12)

Year to Year Growth (Q3)

Operating Profit • 25%

Net Profit • 36%
25
Profitability– FY12 (Period upto Dec)
600
488
500

400 372

300 280 Operating Profit

211
Net Profit
200

100

0
Q3 (FY 10-11) Q3 (FY 11-12)

Year to Year Growth (Period upto Dec)

Operating Profit • 31%

Net Profit • 33%
26
Improved Quality of Earnings
1.20
1.11
1.05 1.04 1.06
0.99
1.00 0.98 0.93 0.94
0.88 0.85
0.80

0.60 ROA - Q3*

ROAA - Q3*
0.40

0.20

0.00
FY-08 FY-09 FY-10 FY-11 FY-12

*Annualized

RoA coming mainly from Core Income

27
Business Trend for the period upto Dec
Total Business and Growth
(` in Crores)
120000
100,000
100000
78,000
80000

Projection
58,884 62,000
60000
46,186

Projection
40000 35,511

Projection
24,504 27,782
20000

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%
73.03%
73%
72%
71% 70.28%
69.83%
70%
69%
68%
66.75% 66.97%
67%
66%
65%
64%
63%
FY-08 FY-09 FY-10 FY-11 FY-12

29
Deposits for the period upto Dec
(` in Crores)
Growth in Deposits
Deposits
40000
33,834
35000
30000 26,998
25000 20,643
16,442
20000
14,484
15000
10000
5000
0
FY-08 FY-09 FY-10 FY-11 FY-12

Deposits increased @ 24% CAGR

30
 Deposits – Composition and Trend
Composition of Deposits Annual Trend in Low cost deposits
(` in Crores) (` in Crores)
7000
SB Deposit, 6058
6058, 18% 6000
4966
5000
4023
CD Deposit, 4000
1222, 4%
3000
2000 1183
976 1079 1019 1222
831
1000 416 459
452
0
Term
Deposit, FY-10 FY-11 FY-12
26554, 78%
SB Deposit CD Deposit NRE T-Deposit FCNR Dep

Low Cost deposits form 25% of total deposits.

31
Advances for the period upto Dec
Growth in Advances (` in Crores)

Adavance
30000
25050
25000
19188
20000
14868
15000 11340
10020
10000

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% 12.50% 12.30%
8%
7.77%
7.03%
12.00%
7%
7.15%
6% 6.74% 6.40% 11.50% 11.39%
5%
11.48%
11.00%
4%

3% 10.50% 10.70% 10.69%

2%
10.00%
1%

0% 9.50%
FY-08 FY-09 FY-10 FY-11 FY-12 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

12.50% 12.30%
9%

12.00%
12.11%
8% 7.77% 11.75%
11.50%
7.60% 7.66%
7% 11.00%
10.90%

6.57% 10.50% 10.69%

6% 6.40%
10.00%

5% 9.50%
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 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
7952
8000
7000 6452 Category Amount Percentage
6000
5129
5000 Held to Maturity 7229.90 86.67%
3904
4000 3538
3000 Held for Trading 98.33 1.18%
2000 1570
1177 1102
1000 668 390 Available for Sale 1014.10 12.16%
0
FY-08 FY-09 FY-10 FY-11 FY-12 Total 8342.34 100.00%

SLR Securities Non-SLR Securities

36
 Investment Portfolio (Dec -2011)

Yield on Investments Duration of Investments

8.00%
Mar-11 Jun-11 Sep-11 Dec-11
6.84%
7.00% 7.04%
6.00%
Total Investment
6.46% 6.35% 3.67 3.61 3.69 4.07
5.79% Portfolio
5.00%
Total HM
4.00%
Investment 4.81 4.68 4.61 4.55
3.00% Portfolio

2.00% Total HFT and

AFS together
1.00% 0.42 0.39 0.39 0.64
Investment
0.00% Portfolio
FY-08 FY-09 FY-10 FY-11 FY-12

37
Adequately Capitalized
20
18 17.35 CRAR – Basel 2
16 15.39 14.89
14.01
14
12.03
12
10 Yearly
8 Quarterly - Q3
6
4
2
0
FY-10 FY-11 FY-12

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%
12.31%
12% 11.27% 10.86% 10.80%
10% 9.61%

8%

6%

4%
2.58% 2.74% 2.65% 2.68% 2.42%
2%

0%
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
2754 2265
(` in crores)
2500
2000

2000 1879 1506

1500
1587 1301
1500
1334 1071
1043 1000 857
1000

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

8%
10.00% 9.85%
7.04%
7% 6.35%
9.50% 9.33% 6%
6.45%
6.05% 5.78%
8.98% 5%
9.00%
4%
8.50% 3%
8.54% 8.59%
2%
8.00%
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
3.10% 3.05%
300 280
3.05%
250 3.03%
211 3.00%
200
2.95%
145 148
150 2.90%
107
100 2.85%

50 2.80%
2.80%
0 2.75%
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

17.51% 1.11%
18%
16.50% 1.10%
16% 14.76% 1.06%
13.62% 1.05% 1.04%
14%
12.32%
12%
1.00% 0.98%
10%
0.95% 0.93%
8%

6% 0.90%
4%
0.85%
2%

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)
(Amount in ` )
60% 4 3.29

51.07% 50.79% 3
50% 47.28%
45.68% 45.83% 2.48
3

40%
2
1.71 1.74
1.57
30% 2

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
(` in Lakh) (` in Lakh)
1,200 7 6.64
Profit Per Employee
956 6
1,000 5.39

787 5
800 4.23
4.04
649 4
570 3.42
600
514
3

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) (` in Lakh)
90 120
79.90
80
100 96.91
70 67.10
81.09
60 55.78 80
50.32 67.83 66.99
50 44.27
60
40 51.53

30 40

20
20
10

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%
80% 76.11% 75.18%
72.97% 74.27%
2.53% 70.69%
2.50% 70%

60%
2.00% 1.85%
50%
1.46%
1.50% 1.33% 40%

1.00% 0.94% 30%

20%
0.49%
0.50% 0.39% 0.39% 0.39%
0.24% 10%

0.00% 0%
FY-08 FY-09 FY-10 FY-11 FY-12 FY-08 FY-09 FY-10 FY-11 FY-12
Gross NPA Net NPA

49 49
 Asset Quality
(Amount in ` crore)

Period Period
Change in Gross NPA & Year ended Year ended
ended ended
Net NPA 31/03/2010 31/03/2011
31/12/2010 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)

Year ended Year ended Period ended Period ended

Particulars
31/03/2010 31/03/2011 31/12/2010 31/12/2011

For NPA advance 34.98 27.74 31.75 7.34

For Depreciation on
-40.94 9.37 0.38 24.48
Investments
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
176.81 232.7 161.26 208.79
Contingencies

51 51
Performance Highlights
(` in Crore)
Year
Performance
Mar-10 Jun-10 Sep-10 Dec-10 ended Jun-11 Sep-11 Dec-11
Highlights
Mar-11
CRAR Basel 2 (%) 15.40% 15.99% 15.86% 14.89% 14.01% 13.51% 13.48% 12.03%
Return on Assets
1.07% 0.91% 1.03% 1.04% 1.05% 1.02% 1.05% 1.06%
(Annualised)
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 2 3
Enhancing income Ramping up low Enhancing
from distribution of cost as well as productivity per
third party retail liabilities branch/per
products franchise 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 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. 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
THANK YOU