Highlights:

The bank has identified 6 C strategy for next 3 years with a mission to achieve profitability through quality credit growth as follows.

1. Capital: The bank aims to beef up capital to strengthen the balance sheet and exploit growth opportunities. The bank has taken shareholders approval for capital raising of Rs 1250 crore through equities and debt. Equity capital would be raised in different tranches and the first tranche would be raised by March 2021.

2. CASA: The bank is focused on driving on building strong low cost CASA book. It would leverage Kerala franchise to build a strong NRI deposit base. The bank proposes to raise CASA deposits ratio to 35% by March 2024.

3. Cost to income: The bank proposes to reduce cost to Income ratio through raising income and reducing cost. Focus would be on improving non credit related income. It would leverage a strong distribution network to increase total business, while using technology to reduce cost and increase income.

4. Competency building: The bank would be augmenting the talent of young resources, while revamping organization structure to build capabilities and focus on skill development across levels. Average age of the staff is 32% and 50% are professionally qualified. All 50% are women employees.

5. Customer focus: there would be a strong focus on enhancing customer experience with a Phygital approach at branches and diversified customer offerings.

6. Compliance: Compliance would be core for entire banking activities.

The bank is focusing on sharpening organization structure. The bank would be building vertical structure for assets business. It would scale up sourcing capability through Direct Marketing Associates (DMA) / Direct Sales Associates (DSA). The product experts would head each business and support verticals. The bank would also strengthen underwriting models and collection system.

The bank would revamp existing retail products with better delivery, pricing and quality, while also launching multiple retail products like LAS, SBL, IPO Funding, Dealer Funding, Tractor funding etc in phases.

The bank would focus on building robust infrastructure by leveraging technology to ramp up business.

The bank is targeting a higher share of customer wallet with the use of data analytics for deeper customer penetration with multiple product offerings. The bank is focusing on making South Indian Bank as a primary Bank for all asset and liability customers.

The bank proposes to build a strong and resilient loan book. The bank is targeting to raise advances book to Rs 1 lakh crore by March 2024 with a customer base of 1 crore. Initially the loan growth is expected to be slow, but the bank is targeting to accelerate loan growth to 10-15% in FY2022 and further higher to 20% for FY2023.

On the lending front, the focus would be on retail, agri and MSME segments, while it would use a calibrated approach in the corporate lending.

Fee income to asset ratio is targeted to improve to 0.4-0.6%.

The bank is targeting to substantially improve PCR excluding write-off 65% by March 2024 from existing level of 34%.

The bank proposes to improve NIM from the existing level of 2.7% to 3.5%.