Bank and Financial Services Management: Nadeem Sakkir B2277 Mba-A (2018-2020)

Bank and Financial Services
Management
Assignment on Bank with

special reference to
South Indian bank ltd
NADEEM SAKKIR
B2277
MBA- A
(2018-2020)
South Indian bank.ltd
History of the company

South Indian Bank was registered as a Private Limited Company under the Companies Act of 1913 and
commenced business on 29-01-1929 at Round South, Thrissur. The South Indian Bank Ltd. was formed
by a group of 44 enterprising men of Thrissur who contributed Rs.500/ - each to the initial paid-up
capital of Rs.22,000/ -. Their main objective was to serve the merchant community of Thrissur by freeing
them from the clutches of the money lenders who charged exorbitant rates of interest. The bank
received very good support from the public at large. Initially, the growth was slow but steady. The
number of branches opened each year testified its stability and popularity. It was included in the second
schedule of the Reserve Bank of India and became a scheduled Bank on 07-08-1946. SIB was the first
scheduled Bank in the private sector in Kerala to get the license under section 22 of the Banking
Regulation Act 1949 from RBI on 17-06-1957.
Share holding pattern

Shareholding belonging to the category: "Public and holding more than 1% of the Total
No. of Shares"
Shares as % of Total No. of

No. Name of the Shareholder Total Shares held
Shares
1 Bodies Corporate 120,510,104 6.66
2 Ashish Dhawan 28,000,000 1.55
3 Life Insurance Corporation of India 58,319,232 3.22
4 Lavender Investments Limited 88,836,000 4.91
L&T MUTUAL FUND TRUSTEE LIMITED-L&T

5 37,969,200 2.1
EMERGING BUSINESSES FUND
PEAR TREE POLARIS FOREIGN VALUE SMALL CAP

6 72,656,800 4.01
FUND
ICICI PRUDENTIAL BANKING AND FINANCIAL

7 36,710,499 2.03
SERVICES FUND
8 Trusts 52,692 0
9 IVA International Fund 37,232,310 2.06

10 Clearing Members 33,059,195 1.83
11 HUF 26,379,870 1.46
12 ACACIA Banyan Partners 31,210,267 1.72
13 ACACIA PARTNERS - LP 24,985,520 1.38
14 Director or Director's Relatives 2,089,600 0.12
15 IEPF 6,711,874 0.37
16 ACACIA INSTITUTIONAL PARTNERS - LP 20,700,000 1.14
17 Non-Resident Indian (NRI) 158,108,753 8.74
18 Yusuffali Musaliam Veettil Abdul Kader 90,059,249 4.98
19 Foreign Nationals 262,100 0.01
20 Foreign Portfolio Investor (Category - III) 136,548 0.01
Financial leverage ratios
parameter MAR'19 MAR'18
Operational & Financial Ratios:
Earnings Per Share (Rs) 1.37 1.85
DPS(Rs) 0.25 0.40
Book NAV/Share(Rs) 28.16 27.65
Margin Ratios:
Yield on Advances 10.97 11.35
Yield on Investments 7.37 7.89
Cost of Liabilities 5.69 5.56
NIM 2.33 2.55
Interest Spread 5.28 5.79
Performance Ratios:
ROA(%) 0.28 0.43

ROE(%) 4.90 6.98
ROCE(%) 7.04 8.81
Efficiency Ratios:
Cost Income Ratio 54.88 47.17
Core Cost Income Ratio 57.39 50.40
Operating Costs to Assets 1.63 1.60
Capitalization Ratios:
Tier 1 ratio 0.00 0.00
Tier 2 ratio 0.00 0.00
CAR 0.00 0.00
Valuation Parameters:
PER(x) 12.09 12.31
PCE(x) 9.44 10.35
Price / Book(x) 0.59 0.82
Yield(%) 1.51 1.75
EV / Net Sales(x) 1.15 1.32
EV / Core EBITDA(x) 6.37 5.52
EV / EBIT(x) 1.51 1.73
EV / CE(x) 0.09 0.10
M Cap / Sales 0.44 0.67
Growth Ratio:
Core Operating Income Growth 2.76 17.31
Operating Profit Growth -20.09 -4.37
Net Profit Growth -26.09 -14.68
BVPS Growth 1.87 8.32

Advances Growth 14.90 17.62
EPS Growth(%) -26.12 -14.96
Liquidity Ratios:
Loans / Deposits(x) 0.06 0.06
Total Debt / Equity(x) 0.05 0.05
Current Ratio(x) 0.24 0.25
Quick Ratio(x) 6.10 5.61
Total Debt / Mcap(x) 0.00 0.00
Net NPA in Rs. Million 0.00 0.00
Products and services offered by

south Indian bank (SIB)
South Indian Bank is a private sector bank that was founded in the year 1929 and is head-quartered in
Thrissur City, Kerala, India. The bank offers banking and financial services to the customers. The banking
products mainly include loans, savings, investment vehicles, insurance etc. The bank has strength of
more than 838 branches, 20 regional offices, 42 ext. counters and 4 service branches spread across
India. The bank has also set up over 1244 ATMs and 4 Cash Deposit Machines all over India.
IFSC Code
The IFSC code is a unique alphanumeric code which distinctly identifies the bank’s branch that is
involved in electronic mode of fund transfers. Every bank-branch has a unique code for identification to
each branch.
Credit Cards
South Indian Bank offers a wide array of credit cards which caters to the daily spend needs of the
individuals. These cards are uniquely designed to provide good reward points and cashback benefits on
travel or lifestyle spends at a very competitive rate of interest.
Savings Account
South Indian Bank offers a wide range of savings accounts, fixed deposit schemes, current accounts at a
very competitive rate of interest. The various types of savings account schemes are:
o Regular Savings Account
 No tax deductions on the interest returns
 Nomination facility available
 Accounts can be opened in jointly with family members
o Privilege Savings Account
 International ATM cum Debit card available
 Accounts can be opened jointly
 Nomination facility available
o Group Salary Savings Account
 Free fund transfer facilities
 No charges on non-maintenance of minimum balance
 Free Global ATM cum Debit card
o Junior Savings Account
 Free ATM cum Global debit card
 Loan facility available for eligible students
 Free fund transfer from parent’s account to Junior account
o Basic Savings Bank Deposit Account
 Zero minimum balance for opening the account
 No charges on non-operation
 Free ATM cum debit card

o Mahila Plus Account
 Average minimum monthly balance to be maintained is Rs 5,000
 Nomination facility is available
 Unlimited usage of other bank ATMs
o SB Invest
 Free internet banking and free fund transfer
 Free m-commerce facility
 No minimum balance requirement
All the above savings account schemes earn an interest rate of 4% p.a. which is payable half-yearly on
the daily balances in the account.
Fixed deposits
South Indian Bank offers a wide range of retail products to the consumers including fixed deposits
whose rates of interest are never fixed. Let us look into the fixed deposit schemes provided by South
Indian bank:
 SIB Flexi Smart Deposit
 Kalpakanidhi
 SIB Flexi Deposit
 SIB Tax Gain 2006
 Fast Cash Deposit
 Fixed Deposit
 Recurring Deposit
 SIB Care
 SIB MAXIMO Non Callable Deposits

The interest rates on the deposits differ based on the tenure of deposits. Below are the different fixed
deposit interest rates on deposit tenures are as follows:
o Short-term fixed deposit rates
The interest rates for short-term fixed deposit for deposits less than 1 year tenure range from 4.00% to
7.00% p.a.
o Medium and long-term fixed deposit rates
The interest rates on medium and long term deposit ranges from 6.50% p.a. to 6.75% p.a.
o Fixed Deposit rates for senior citizens
For senior citizens, the fixed deposit rate of interest increases by 0.50% than the regular FD rates
provided to non-senior applicants.
Loans
South Indian Bank offers a wide variety of loans that cater to various requirements of the customers like
purchase of a new house or buying a new car, personal expenses or educational fees etc. The different
types of offered loans are as follows:
 Personal loan
 Mobi loan
 Home loans
 Gold loans
 Educational loans
 Agriculture loans
 Flexi loan
 Other loans
Home Loans
South Indian Bank offers loan solutions to all the house related problems of the consumers. They
provide home loans to buy a new house, buy a plot to build a new house, renovate the old house, loan
against property etc. The rate of interest in this home loan remains constant and there is no upper limit
for the amount of the loan. The repayment options rate also flexible. These home loans are offered to
salaried class, business class, next generation people, agriculturists, NRIs, and also senior citizens.
NRI Banking
South Indian Bank offers wide range of products and services of which Non-Resident Indians (NRIs) fall
under various types of accounts. Below are various types of NRI accounts:
 NRE Rupee Account:
This account can be maintained in the form of savings and tem deposits and does not support tax
deducted at source facility. This account is in the form of Indian Rupee. The fund in this account is fully
repatriable and also offers nomination facility to all its employees.
 NRO Rupee Account
This account is maintained in the form of Indian Rupee and joint accounts are permitted. The interest is
chargeable under the Indian Income Tax and the fund is partly repatriated.
 Foreign Currency Deposits
This account is maintained in foreign currency like USD, GBP, EURO, AUD, CHF, and JPY. The rate of
returns in this account is high and it provides protection against the currency exchange rate fluctuations.
Additional Value Added Services
 SIB rewards
 3 in one Trading KIT
 Education fee collection
 Green PIN
 SIB Pure Gold
 Sovereign Gold Bonds

 Any Branch Banking
 Mobile Banking
 Internet Banking
 Applications Supported by Blocked Amount
 DE mat Services
 National Pension Scheme
 Online Trading - SIBer Trade
 PAN Service Agency
 Co-Branded Credit Cards
 Prepaid Gift Cards
 SIB Collect
 SIB Contactless Debit Card
 KYC Certification of Mutual Fund Investors
 Cash Management Services
 MasterCard Secure Code
 RuPay Pay Secure
 Verified by VISA
 SIB Travel Card
 SIB Academia
 Tax Payment
 Tax Saving Investments
 Centralized Direct Debit Services
 Distribution of Capital Gain Bonds & Tax Free Bonds
 Branches with Safe Deposit Lockers

Internet Banking
South Indian Bank offers a host of services to the customers through the introduction of internet
banking wherein the customers can enjoy online banking facility within the comforts of their own
houses. The various types of facilities available are:
 Online mobile bill payments
 Payment of premium related to insurance
 Payments of credit cards
 Repayment of loans
 Payment of donations and charity
 Payments related to religious purposes
 Payments to educational institutions
 Details of the balances in the account
 Statement of the account
 Stoppage of the payment of cheques
Profitability liquidity and solvency ratios

Profitability ratios
Operating margin (%) 8.46 11.42 9.65 7.71 7.26
Gross profit margin (%) 7.45 10.39 8.53 6.51 7.28
Net profit margin (%) 3.59 5.40 6.71 5.99 5.81
Adjusted cash margin (%) 4.17 5.67 6.97 6.58 5.29
Adjusted return on net worth (%) 4.85 6.69 8.52 8.98 8.90
Reported return on net worth (%) 4.85 6.69 8.52 8.98 8.90
Return on long term funds (%) 102.75 94.52 103.69 122.89 127.15
Liquidity ratios
Current ratio 3.07 3.55 2.84 3.00 0.67
Current ratio (Inc. st loans) 0.06 0.06 0.05 0.06 0.01
Quick ratio 44.06 45.76 38.47 36.68 29.55
Inventory turnover ratio - - - -
Leverage ratios
Long term debt / Equity - - - - -
Total debt/equity 16.74 15.21 14.79 15.65 15.69
Owners fund as % of total source 5.95 6.49 6.50 6.23 6.23
Fixed assets turnover ratio 0.07 0.08 0.08 0.09 0.0
Total assets of south Indian bank and its competitors
South Indian bank = 92,279.22
Axis Bank Ltd. = 800,996.53
Bandhan Bank Ltd = 56,441.71
Dhanalaxmi Bank Ltd = 11,798.89
Federal Bank Ltd. = 159,339.99
HDFC Bank Ltd. = 1,244,540.69

Axis Bank Ltd
Leverage ratios
Liquidity ratios
Current ratio 1.81 1.92 1.73 1.84 0.65
Current ratio (inc. st loans) 0.10 0.10 0.10 0.07 0.02
Quick ratio 17.84 20.02 17.10 25.74 20.64
Inventory turnover ratio - - - - -
Bandhan Bank Ltd
Operating margin (%) 41.59 37.68 37.05 22.30 -
Gross profit margin (%) 40.41 35.89 35.34 20.04 -
Net profit margin (%) 29.37 28.01 28.44 17.40 -
Leverage ratios
Total debt/equity 3.91 3.64 5.46 4.54 -

Fixed assets turnover ratio 0.13 0.13 0.16 0.16 -
Liquidity ratios
Current ratio 0.42 0.61 0.17 0.11 0.67
Quick ratio 29.69 42.66 15.09 10.45 0.67
Inventory turnover ratio - - - -
Dhanlaxmi Bank Ltd
Operating margin (%) 5.64 0.30 -4.26 -3.19 -2.79
Gross profit margin (%) 4.31 -1.55 -6.32 -4.62 -5.21
Net profit margin (%) -2.45 1.13 -17.39 -18.81 -19.49
Adjusted cash margin (%) -1.02 2.72 -14.40 -16.30 -16.15
Adjusted return on net worth (%) -3.31 1.89 -41.23 -33.35 -34.21
Reported return on net worth (%) -3.31 1.89 -41.23 -33.35 -34.21
Leverage ratios
Liquidity ratios
Current ratio 3.27 2.80 2.02 1.11 0.79
Quick ratio 33.08 32.08 23.58 28.45 18.55

Federal Bank Ltd.
Leverage ratios
Liquidity ratios
Current ratio 2.03 2.29 2.23 2.60 0.96
Quick ratio 37.04 39.96 33.74 33.68 28.59
HDFC Bank
Leverage ratios
Liquidity ratios
Current ratio 0.89 0.80 0.74 1.04 0.58
Quick ratio 16.61 17.48 11.19 14.51 12.69
Analysis of the institution
When the financial leverage ratios compared in

2018-2019 it is evident from that the company
has a weak financial performance and company
offers a wide variety of products and services to
its customers
As when south Indian bank and its 5
competitors are compared with considering
different ratios, I found out that south Indian
bank has a poor performance and Bandhan
bank has best performance

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Bank and Financial Services

Assignment on Bank with

History of the company

Share holding pattern

Shares as % of Total No. of

1 Bodies Corporate 120,510,104 6.66

2 Ashish Dhawan 28,000,000 1.55

3 Life Insurance Corporation of India 58,319,232 3.22

4 Lavender Investments Limited 88,836,000 4.91

L&T MUTUAL FUND TRUSTEE LIMITED-L&T

PEAR TREE POLARIS FOREIGN VALUE SMALL CAP

ICICI PRUDENTIAL BANKING AND FINANCIAL

9 IVA International Fund 37,232,310 2.06

11 HUF 26,379,870 1.46

12 ACACIA Banyan Partners 31,210,267 1.72

13 ACACIA PARTNERS - LP 24,985,520 1.38

14 Director or Director's Relatives 2,089,600 0.12

15 IEPF 6,711,874 0.37

16 ACACIA INSTITUTIONAL PARTNERS - LP 20,700,000 1.14

17 Non-Resident Indian (NRI) 158,108,753 8.74

18 Yusuffali Musaliam Veettil Abdul Kader 90,059,249 4.98

19 Foreign Nationals 262,100 0.01

20 Foreign Portfolio Investor (Category - III) 136,548 0.01

Financial leverage ratios

parameter MAR'19 MAR'18

Operational & Financial Ratios:

Earnings Per Share (Rs) 1.37 1.85

DPS(Rs) 0.25 0.40

Book NAV/Share(Rs) 28.16 27.65

Yield on Advances 10.97 11.35

Yield on Investments 7.37 7.89

Cost of Liabilities 5.69 5.56

NIM 2.33 2.55

Interest Spread 5.28 5.79

ROA(%) 0.28 0.43

ROCE(%) 7.04 8.81

Cost Income Ratio 54.88 47.17

Core Cost Income Ratio 57.39 50.40

Operating Costs to Assets 1.63 1.60

Tier 1 ratio 0.00 0.00

Tier 2 ratio 0.00 0.00

CAR 0.00 0.00

PER(x) 12.09 12.31

PCE(x) 9.44 10.35

Price / Book(x) 0.59 0.82

Yield(%) 1.51 1.75

EV / Net Sales(x) 1.15 1.32

EV / Core EBITDA(x) 6.37 5.52

EV / EBIT(x) 1.51 1.73

EV / CE(x) 0.09 0.10

M Cap / Sales 0.44 0.67

Core Operating Income Growth 2.76 17.31

Operating Profit Growth -20.09 -4.37

Net Profit Growth -26.09 -14.68

BVPS Growth 1.87 8.32

EPS Growth(%) -26.12 -14.96

Loans / Deposits(x) 0.06 0.06

Total Debt / Equity(x) 0.05 0.05