South Indian Bank Share Price

1. For the half-year period ended on September 30, 2018, South Indian Bank reported its total income to be at Rs.3,654.2 crore, as against Rs.3,526.6 crore.
2. As for the expenditure for the period, the figure so far for the half-year period stood at Rs.3,074.7 crore, in comparison to Rs.2,686.8 crore. Consequently, the operating profit for the period was reported to be at Rs.579.4 crore. For the same period of the previous fiscal year, the operating profit was at Rs.839.7 crore.
3. On a YoY basis, the bank's provisions and contingencies for the half-year period dropped down from Rs.679.9 crore to Rs.436.2 crore. Owing to this, the bank reported a healthy profit for the period.
4. For the H1 FY 2019, South Indian Bank's net profit after taxation stood at Rs.93.1 crore, in comparison to Rs.105.7 crore for the same six-month period in the previous fiscal year.
5. Considering the asset quality of the bank, its gross non-performing assets (GNPA) stood at 4.61% as against 3.57% for the same period last year. Similarly, the bank's net NPA ratio has also worsened YoY from 2.57% to 3.16%.
6. As for the bank's balance sheet, as on September 30, 2018, its deposits, on a yearly basis, have improved from Rs.67,142.1 crore to Rs.74,911.2 crore. The bank has also registered a healthy growth in its advances. On a YoY basis, the bank's total advances grew by a little over 13% to Rs.56,572.4 crore.

South Indian Bank Stock Trends in 2018

1. On January 2, 2018, the opening stock price of South Indian Bank on the National Stock Exchange was Rs.31.75. Like many stocks that month, the South Indian Bank scrip rose marginally to reach its 52-week high at Rs.34.75. This rise was followed by a gradual drop in the share price which took the scrip back to its previous levels at Rs.30.
2. Over the course of February, the shares lost marginally to descend into the Rs.20 region. While the stocks didn't incur any sharp falls in this period, the investors still lost close to 10% over the course of the month. The closing price on February 28 was Rs.26.60 on the NSE.
3. Things didn't improve significantly over the course of March either. In fact, the shares lost another 15% in this month to descend below the Rs.25 mark. The scrip ended the month at Rs.22.80 and on the same day, interestingly enough, the volume of the shares traded was close to 12.2 million. However, over the course of April and May, the markets did improve and the South Indian Bank share price bounced back to its previous levels above the Rs.25 mark.
4. Even though the gains were highly marginal in this period, the shares managed to stay afloat above the Rs.25 mark. Things took a turn in the final week of May when the scrip, once again, started a bearish trend. This time, the shares eventually moved on to lose more than 40% over the course of the next few months.
5. In early July, the lender announced a final dividend of 40% and around that time, its shares were trading at levels close to Rs.21. At the end of the month, the stocks took a sharp plunge on account of a poor performance in the Q1 FY19. Consequently, the scrip descended below the Rs.20 mark.
6. Through most of August and September, the stock price of South Indian Bank varied at levels from Rs.15 - Rs.18. It wasn't until the final week of September that the shares took another nosedive and this time, the scrip went below the Rs.15 mark. In fact, this fall came around the same time as that of BSE SENSEX and Nifty. In early October, the shares hit their 52-week low at Rs.12.45.

South Indian Bank Stock Trends in 2016 and 2017

1. At the start of 2016, the share price of South Indian Bank was varying at levels close to Rs.20. Over the course of the first two months, the scrip lost a little over 15% to touch the Rs.16 mark. However, by the end of March, the shares had managed to recover marginally. This small, albeit significant rise, also marked the start of a bull run for the scrip.
2. Over the months of April and May, the lender's stocks appreciated steadily to ascend back to their previous levels above Rs. 19. This translated into a gain of 10% in two months time. In June, the company announced a final dividend of 50% by which time, the shares were seen trading hands at levels close to the Rs.20 mark.
3. Through the months of July and August, the South Indian Bank share price appreciated dramatically by close to 15%. A similar behaviour was seen in the months of September and October as well, with the shares eventually crossing the Rs.23 mark. However, post demonetisation, things took a turn and the scrip ended up shedding its recently earned gains. Consequently, the shares had to end the year on a dull note at Rs.19.60.
4. 2017, on the other hand, proved to be a landmark year for the shareholders. Over the course of the year, the scrip gained as much as 50%. Like many stocks that year, the South Indian Bank shares started the year on a dull note. Over the course of the first quarter of the calendar year, the shares were traded close to the Rs.21 mark.
5. In the month of April alone, the shares gained as much as 20% to cross the psychologically important mark of Rs.25. In May, the shares found some stability at those levels, only to surpass them at the end of the month. On May 31, 2017, the closing price of the scrip was Rs.28.15 on the NSE.
6. In early July, the company announced a final dividend of 40%. This announcement was followed by another rise and this time, the shares crossed the Rs.30 mark. However, the South Indian Bank share price failed to find momentum at those levels and consequently, the shares retreated back to their previous levels at Rs.28.
7. It wasn't until late September that the shares finally managed to break past the Rs.30 mark for good. Through the course of October and November, the shares maintained their bearings above the Rs.30 mark. The shares ended the year on a high at Rs.31.

Should you Invest in South Indian Bank Shares?

1. South Indian Bank is a private sector that offers a variety of banking and financial services to its customers. Its operations are similar to any other private sector bank in the country. The bank has been around for more than 70 years and has a good presence in the Indian banking sector.
2. For the half-year ended on September 30, 2018, South Indian Bank has reported its net profit after tax to be at Rs.93.1 crore, as against Rs.105.7 crore for the same six-month period of the previous fiscal year. However, during this period, the bank's provisions and contingencies dropped down from Rs.677.9 crore to Rs.436.2 crore.
3. Over the same period, the bank registered a healthy growth across all of its business segments. Its deposits grew by close to 10% YoY while its advances registered a growth of approximately 15%.
4. As for the asset quality of the bank for the same period, it has deteriorated slightly, YoY. Its Gross NPA ratio, as on September 30, 2018, stood at 4.61% while its Net NPA ratio was observed to be at 3.16%. However, in comparison to the industry average, these figures are still remarkable.
5. Considering the performance of its stock, the South Indian Bank scrip has been highly bearish in 2018. The shares have lost more than 50% since the start of the year and as of mid-October, they were seen trading at levels close to Rs.15. However, its P/E ratio is close to 8.3 while the industry average close to 31. This implies that the stocks are undervalued.
6. From a long-term perspective, South Indian Bank shares make for an attractive buy, especially at its current levels. Its non-performing asset count is low and it has registered a good growth in its business. However, before investing in this stock, it is strongly recommended that you research thoroughly on the company.

Company Information

South Indian Bank is a private sector bank based in Thrissur, Kerala. It offers a variety of banking services and financial products across personal, NRI, and business segments. These products are accounts and deposits, mutual funds, insurance, loans, money transfer, et cetera. As of October 2018, the bank has a total of 857 branches with 55 extension counters and more than 1,300 ATMs.

History of the Company

The roots of South Indian Bank can be traced back to the Swadeshi Movement back in the early 1900s. The bank was established in Thrissur with the idea of providing the people there a safe, efficient way to deposit their money and also to provide the business community with credit opportunities at affordable interest rates. It was among the first private sector banks in Kerala to become a scheduled bank under the RBI Act. Over the years, it acquired several small banks to consolidate its position in the banking industry. In April 1992, the South Indian Bank was chosen by the RBI to open a currency chest on its behalf. In November that year, the bank also opened its first NRI branch, thus becoming the first private bank to do so. It is also among the first banks to implement a core banking system.

Management of the Company

Mr. V. G. Mathew - Managing Director and Chief Executive Officer

Mr. V. G. Mathew is the Managing Director and Chief Executive Officer of South Indian Bank. He has held these positions since October 2014. He has also served as the bank's Executive Vice President. Prior to this, he was associated with the State Bank of India in the capacity of Chief General Manager of Corporate Accounts. He is a veteran of the banking industry, having been a part of it for more than 30 years. Mr. Mathew is a certified associate of the Indian Institute of Bankers. He holds a Masters' degree in Science from the University of Kerala.

Dr. John Joseph Alapatt - Non-Executive Independent Director

Dr. John Joseph Alapatt presently serves as the Non-Executive Independent Director of South Indian Bank Limited. Furthermore, he is also the Chairman of C.E.P.A.B and is associated with Janakshemam Kuries Private Limited as well. He has been with South Indian Bank for more than 20 years now. He is a prominent industrialist, having managed a small scale industry for several years. Dr. Alapatt finished his Bachelor's in Medicine and Surgery, and followed it with a postgraduate diploma from Bangalore University.

Mr. Salim Gangadharan - Non-Executive Part-Time Chairman

Mr. Salim Gangadharan currently serves as the Non-Executive Part-Time Chairman of South Indian Bank Limited. He is a certified associate of the Indian Institute of Bankers and has worked with the Reserve Bank of India for more than 30 years. Over the course of his impressive tenure with the RBI, he worked with various departments, particularly in financial markets and supervision. He rose through the ranks to eventually become the Chief General Manager of RBI. He has also been associated with various other groups such as the IMF, Central Bank of India, Central Bank of Oman, and Syndicate Bank. He has published various papers and handled several seminars on treasury management, risk management, payment systems, et cetera. Mr. Gangadharan holds a Masters' degree in Economics from the University of Kerala.

South Indian Bank Listings in NSE, BSE, and Stock Market Indices

The equity shares of South Indian Bank are available to the general public for trading. The shares are listed on the country's two prominent stock exchanges - the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective call signs for the same are as follows:

1. NSE Code: SOUTHBANKEQ
2. BSE Code: 532218
3. Sector: Finance, Banks - Private Sector
4. ISIN Code: INE683A01023

As for the stock market indices, the company comprises the following:

1. Nifty 500
2. Nifty Private Bank
3. Nifty Dividend Opportunities 50
4. Nifty Smallcap 100
5. Nifty Smallcap 50
6. S&P BSE 500
7. S&P BSE AllCap
8. S&P BSE Finance
9. S&P BSE SmallCap
10. S&P BSE Dollex 200

Registered Office

South Indian Bank Limited

Head Office

T. B Road, Mission Quarters

Thrissur - 680-001

Kerala, India

Contact number: +91-487-2420020

Email: sibcorporate@sib.co.in

Stocks vs. Mutual Funds: here's what we recommend

Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.

DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.