INVESTOR PRESENTATION

MARCH 2012

South Indian Bank… At A Glance

2

• Number of years in banking business83 Years

• Number of branches700

• Number of ATM’s663

• Business as on March 2012`64136 Cr

• Business Growth (Y – to – Y)27%

• Last 5 years business CAGR25%

• Net Profit for the FY ended March 2012`401 Cr

• Net Interest Margin (March 12)3.10 %

• Capital Adequacy Ratio (Basel II –March 12)14.00%

• Net Non-Performing Assets (March 12)0.28%

3

History & Background

Key Strength

Business Performance

Future Strategy

Overview

4

&

Background

First private sector bank to open a NRI branch in Nov,1992

& an IFB branch in March 1993.

One of the oldest Banks in South India.

First among private sector Banks in Kerala to became aSCB in 1946.

Listed in NSE, BSE & CSE- IPO in 1998. FPO In 2006.

Incorporated on January 25, 1929. Head Office: Thrissur,

Kerala.

Successful QIP in Sept 2007.

First bank among the Pvt sector banks in Kerala to open an

"Overseas Branch”, June ’93.

History & Pioneering Initiatives

5

6

Shareholding Pattern – as on 31.03.2012

Diversified shareholding & tradition of good corporate governance practices

7

Individuals37.85%

Corporates7.66%Fis and Banks

6.42%

FII's46.15%

Others1.93%

Individuals

Corporates

Fis and Banks

FII's

Others

Vision & Mission

8

CORPORATE VISION

MISSION

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 highquality assets leveraging on the strong and vibrant technology platform inpursuit of excellence and customer delight and to become a major contributorto the stable economic growth of the nation.

To provide a secure, agile, dynamic and conducive banking environment tocustomers with commitment to values and unshaken confidence, deploying thebest technology, standards, processes and procedures where customerconvenience is of significant importance and to increase the stakeholders’value.

9

Healthy Fundamentals

Adequately Capitalised;

•14.00% CRAR & 11.54% Tier 1 ratio

Asset Quality;

• 0.97% GNPAs & 0.28% NNPAs

•71.36% NPA Coverage ratio

•18.53% ROE, 1.12% 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.

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 24% of the

loan book.

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 Strengh

10

Spread of Branches

11

Average Branch & ATM network

growth @ 10% (for last & current FY)

Vast and Rapidly Growing Branch Network

12

Rural, 130, 18%

Semi- Urban, 321, 46%

Urban, 146, 21%

Metro, 103, 15%

Rural

Semi- Urban

Urban

Metro

Branch Network Category wise as in March 2012

13

STATES No: of Branches STATES No: of Branches

KERALA 385 MADHYA PRADESH 2

TAMIL NADU 122 ORISSA 2

ANDHRA PRADESH 46 PONDICHERRY 2

KARNATAKA 40 RAJASTHAN 2

MAHARASHTRA 25 ASSAM 2

DELHI 21 BIHAR 1

WEST BENGAL 10 CHANDIGARH 1

UTTAR PRADESH 9 JAMMU & KASHMIR 1

GUJARAT 6 UTTARANCHAL 1

GOA 5 TRIPURA 1

HARYANA 4 HIMACHAL PRADESH 1

PUNJAB 4 MEGHALAYA 1

CHATTISGARH 3 NAGALAND 1

JHARKHAND 2 TOTAL 700

State wise distribution of Branches Category wise as in March 2012

14

0

10

20

30

40

50

60

70

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

25 25

30

50

6159

Num

be

r o

f B

ran

ch

es a

dd

ed

Network Expansion (Number of branches added)

15

Nu

mb

er

of

Bra

nc

he

s

475500

530580

641

700

0

100

200

300

400

500

600

700

800

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

Branch Network

16

Nu

mb

er

of

AT

Ms

ad

de

d

0

20

40

60

80

100

120

140

160

180

FY 08 FY 09 FY 10 FY 11 FY 12

5055

93

116

174

Network Expansion (Number of ATMs added)

17

Nu

mb

er

of

AT

Ms

225

280

373

489

663

0

100

200

300

400

500

600

700

FY 08 FY 09 FY 10 FY 11 FY 12

ATM Network

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 & 663 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

EFFICIENT SERVICE LEVERAGING ON TECHNOLOGY

RANGE OF PRODUCTS

19

Loan Products Deposit products Other Products

Retail Business Loans

Housing Loans/

Mortgages

Auto Loans

Personal Loans

Education Loans

Employee Group Loans

SME Loans

•Savings Bank Accounts

•Current Accounts

•Fixed/ Recurring

Deposits

• Depository Account

• Mutual Funds sales

• Life Insurance sales

• General Insurance sales

• Group Insurance sales

• E-payment

• Cash Management Services

• Online Foreign Inward Remittance

• m-Commerce

• New Pension System

•Gold Coins/ingots

Commercial Banking

•Working Capital Loans

•Term Loans

•Letters of Credit

•Banks Guarantees

• Bill Finance

•Wholesale Deposits

Retail Banking

Wholesale Banking

20

Particulars March 10 March 11 March 12

Number of Business Correspondents (BCs)appointed

0 7 40

Number of villages with population above2000 provided with banking facility (Ruralbranches & BCs)

107 117 169

Number of ‘No-frills’ accounts (includingStudents A/c)

6.83 Lakh 10.26 Lakh 11.99 Lakh

No-frills accounts - amount 64.06 crore 102.72 crore 130.47 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 implemented the Smart Card model for Urban FI.

FINANCIAL INCLUSION

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

Strategic Tie Ups

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 CoopersBest 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

RECOGNITIONS

22

Business Performance

23

24

Net Profit

401

292

Business

64136

50520

Advance

27635

20799

Deposit

36501

29721

Net NPA

0.28%

0.29%

Gross NPA

0.97%

1.11%

(` in Crores)

Financial Highlights – FY12

MARCH 2012

MARCH 2011

37% 27% 33% 23%

Profitability– FY12

25

• 24%Operating Profit

• 37%Net Profit

Year to Year Growth

525

651

293

401

0

100

200

300

400

500

600

700

FY 10-11 FY 11-12

Operating Profit

Net Profit

RoA coming mainly from Core Income

26

0.890.96

0.92 0.89

0.991.01

1.09 1.07 1.051.12

0.00

0.20

0.40

0.60

0.80

1.00

1.20

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

ROA

ROAA*

*Annualized

Improved Quality of Earnings

27

Total Business and Growth

Business grew over 2.4 times at CAGR of 25% in 5 years

(` in Crores)

25,91030,237

39,127

50,520

64,136

78,000

100,000

0

20000

40000

60000

80000

100000

120000

FY-08 FY-09 FY-10 FY-11 FY-12 FY-13 Mar FY-14 Mar

Pro

jectio

n

Pro

jectio

n

Business Trend

28

68.97%

65.51%

68.76% 68.94%

74.74%

60%

62%

64%

66%

68%

70%

72%

74%

76%

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

Credit Deposit Ratio

29

Deposits increased @ 25% CAGR

(` in Crores)

15,156

18,092

23,012

29,721

36,501

0

5000

10000

15000

20000

25000

30000

35000

40000

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

Deposits

Deposits Growth

30

Low Cost deposits form 20% of total deposits.

Annual Trend in Low cost depositsComposition of Deposits

(` in Crores)(` in Crores)

4271

5203

5917

1052 1201 1262

443 499 418

0

1000

2000

3000

4000

5000

6000

7000

FY-10 FY-11 FY-12

SB Deposit CD Deposit FCNR Dep

Deposits – Composition and Trend

SB Deposit, 5917, 16%

CD Deposit, 1262, 4%

Term Deposit,

29322, 80%

Advances increased by 33% (Y-to- Y)

31

(` in Crores)

10754

12145

16115

20799

27635

0

5000

10000

15000

20000

25000

30000

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

Adavance

Advances Growth

32

Sector Upto 5 Crores Above 5 Crores Total % to total

Agriculture 1668.64 339.88 2008.52 7.27%

MSME 1448.79 316.74 1765.53 6.39%

Large Scale Industries 458.01 4125.45 4583.46 16.59%

Housing 1093.75 91.96 1185.71 4.29%

Commercial Real Estate 61.43 29.38 90.81 0.33%

NBFC 53.40 1517.12 1570.52 5.68%

Food Credit 0.00 407.38 407.38 1.47%

Infrastructure 0.00 3448.29 3448.29 12.48%

Gold Loan (Non Priority) 5236.68 0.00 5236.68 18.95%

FSLD (Non Priority) 1515.15 0.00 1515.15 5.48%

LC Bills 0.00 2848.91 2848.91 10.31%

Other Bills 217.64 0.00 217.64 0.79%

Miscellaneous 1193.22 1563.33 2756.55 9.97%

Total 12946.71 14688.44 27635.15 100.00%

Advances – Composition (March 2012)

33

Trend in Cost of Deposits

6.72%

7.26% 6.93%

6.57%

7.94%

3.20%

4.60%

6.00%

7.40%

8.80%

10.20%

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

Cost of Deposit

10.58%

11.73%11.14%

10.90%

12.50%

6.60%

8.40%

10.20%

12.00%

13.80%

15.60%

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

Yield on Advances

Trend in Yield on Advances

Trend in Cost & Yield (Annual)

34

6.57%

7.60%7.66% 7.77%

7.94%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

Mar-11 Jun-11 Sep-11 Dec-11 Mar-12

10.90%

11.75%12.11% 12.30%

12.50%

8.00%

9.00%

10.00%

11.00%

12.00%

13.00%

14.00%

Mar-11 Jun-11 Sep-11 Dec-11 Mar-12

Trend in Cost of Deposits Trend in Yield on Advances

Trend in Cost & Yield (Quarterly)

35

SLR & Non SLR Securities Composition of Investment Book

` in Crores

Category Amount Percentage

Held to Maturity 8229.00 87.54%

Held for Trading 263.00 2.80%

Available for Sale 908.00 9.66%

Total 9400.00 100.00%

36184067

5641

6803

8214

9542008

15152121

1186

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

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

SLR Securities Non-SLR Securities

Investment Portfolio

36

Mar-11 Jun-11 Sep-11 Dec-11 Mar-12

Total

Investment

Portfolio

3.67 3.61 3.69 4.07 4.08

Total HM

Investment

Portfolio

4.81 4.68 4.61 4.55 4.51

Total HFT

and AFS

together

Investment

Portfolio

0.42 0.39 0.39 0.64 0.90

Duration of Investments

6.60%

6.77%

5.90%6.39%

6.92%

3.20%

4.00%

4.80%

5.60%

6.40%

7.20%

8.00%

8.80%

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

Yield on Investment - Quarterly

Investment Portfolio

Yield on Investments

15.39

14.01 14.00

13

14

14

15

15

16

FY-10 FY-11 FY-12

Yearly

37

The bank has CRAR in excess of the required minimum of 9% stipulated by RBI.

CRAR – Basel 2

Adequately Capitalized

38

Strong Core Capital. Dependence on Capital Instruments low.

11.27%10.86% 10.80%

9.61%

11.54%

2.74% 2.65% 2.68% 2.42% 2.46%

0%

2%

4%

6%

8%

10%

12%

14%

Mar-11 Jun-11 Sep-11 Dec-11 Mar-12

Tier 1 CRAR Tier 2 CRAR

Strong Core Capital (Tier 1 & Tier 2 CRAR)

39

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

Mar 12 16987 1960 417 2377

(` in crores)

Strong Core Capital (Trend)

40

Gross Annual income grew over 2.6 times in 5 years at CAGR 27%

Total Income Trend in Expenses

Trend in Income & Expenses

11631493

1734

2117

3179

0

500

1000

1500

2000

2500

3000

3500

FY08 FY09 FY10 FY11 FY12

Int Exp Staff Exp Other Exp

(` in crores)

14341851

2144

2643

3830

0

500

1000

1500

2000

2500

3000

3500

4000

FY08 FY09 FY10 FY11 FY12

Int on Adv Int on Inv Oth Int

41

Yield on Funds

8.70%

9.42%8.82%

8.76%

9.99%

4.00%

5.20%

6.40%

7.60%

8.80%

10.00%

11.20%

12.40%

13.60%

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

Cost of Funds

6.08%6.50%

6.23%

5.93%

7.14%

3.00%

3.80%

4.60%

5.40%

6.20%

7.00%

7.80%

8.60%

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

Trend in Income

42

Particulars Period ended

31/03/2012

Period ended

31/03/2011

Commission, Exchange & Brokerage 38.42 35.41

Profit on sale of investment (Net) 40.78 39.37

Profit on sale of Land, Building & Other assets (Net) 0.82 -0.96

Profit on Exchange Transactions (Net) 25.61 19.07

Miscellaneous Income

1. Processing Fees 17.75 15.36

2. Rent Received 0.01 0.01

3. Others (Income on Technology products, Third party

products, Sale of Gold coins, Non fund business etc)123.68 88.43

Total 247.07 196.69

(` in crores)

Composition of Non-Interest Income

43

Net profit grew at CAGR of 27% (Y-Y) in last 5 years.Net Interest margin (NIM) remains at satisfactory range.

Growth in Net Profit

152

195234

293

402

0

50

100

150

200

250

300

350

400

450

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

2.77%

3.06%

3.10%

2.50%

2.60%

2.70%

2.80%

2.90%

3.00%

3.10%

3.20%

3.30%

3.40%

FY-10 FY-11 FY-12

Profitability

Net Interest Margin

(` in Crores)

44

Return on Average Asset

13.06%

14.93%15.74% 15.86%

18.53%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

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

1.01%

1.09%

1.07%

1.05%

1.12%

0.94%

0.96%

0.98%

1.00%

1.02%

1.04%

1.06%

1.08%

1.10%

1.12%

1.14%

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

Efficiency

Return on Equity Return on Average Asset

44

45

(Amount in ` )

46.22%47.80% 47.14% 46.82%

48.65%

10%

20%

30%

40%

50%

60%

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

1.68 1.72

2.07

2.59

3.55

0

1

1

2

2

3

3

4

4

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

Efficiency

Cost / Income Ratio Earning Per Share (Annualized)

45

46

(` in Lakh)

Profit Per Employee

(` in Lakh)

530586

676

792

971

0

200

400

600

800

1,000

1,200

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

3.59

4.31

4.80

5.46

7.13

0

1

2

3

4

5

6

7

8

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

Productivity

Average Business Per Employee Profit Per Employee

46

47

(` in Crores) (` in Lakh)

45.16

50.36

57.20

66.56

78.62

0

10

20

30

40

50

60

70

80

90

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

54.57

68.1971.28

82.46

93.74

0

10

20

30

40

50

60

70

80

90

100

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

Productivity

Average Business Per Branch Operating Profit Per Branch

47

48

1.78%

2.18%

1.32%

1.11%

0.97%

0.33%

1.13%

0.39%

0.29%0.28%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

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

Gross NPA Net NPA

75.93%

48.45%

70.82%73.94%

71.36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

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

Asset Quality for the year ended March

Gross NPA & Net NPA(%) Provision Coverage

48

49

Asset Quality maintained at high level. Provision coverage comfortable

(Amount in ` crore)

Change in Gross NPA &

Net NPA Year ended 31/03/2012 Year ended 31/03/2011

Gross NPA 267 230

Gross NPA (%) 0.97% 1.11%

Net NPA 76 61

Net NPA (%) 0.28% 0.29%

Provision Coverage Ratio (%) 71.36% 73.94%

Asset Quality

49

50

(` in Crore)

Particulars Year ended

31/03/2012

Year ended

31/03/2011

For NPA advance 21.04 27.74

For Depreciation on Investments 14.07 9.37

For NPA investment -0.69 0.26

For standard assets 39.75 21.60

For income tax 170.69 152.94

For Restructured advances 4.01 -0.05

General Provision 0 20

Other impaired assets 2.79 0.84

Other (ADWDRS) -1.80 0

Total Provisions and Contingencies 249.86 232.70

Break-up of Provision

50

51

Performance Highlights Year ended

Mar-11 Jun-11 Sep-11 Dec-11

Year ended

Mar-12

CRAR Basel 2 (%) 14.01% 13.51% 13.48% 12.03% 14.00%

Return on Assets (Annualised) 1.05% 1.02% 1.05% 1.06% 1.12%

NIM (%) 3.10% 2.80% 3.00% 3.05% 3.10%

Gross NPA's 230 236 230 234 267

Net NPA 60 63 58 58 76

Gross NPA (%) 1.11% 1.07% 0.99% 0.94% 0.97%

Net NPA (%) 0.29% 0.29% 0.25% 0.24% 0.28%

Provision Coverage 73.64% 73.15% 74.70% 75.18% 71.36%

CASA 6404 6790 7038 7280 7179

CASA % 21.55% 21.47% 21.30% 21.51% 19.67%

Deposits 29721 31622 33038 33834 36501

Advances 20799 22151 23348 25050 27635

Yield on advances 10.90% 11.75% 12.11% 12.30% 12.50%

(` in Crore)

Performance Highlights

51

FUTURE STRATEGY

52

Way Forward

53

1

Enhancing income

from Technology

products, Treasury,

Forex and gold

coins

2

Ramping up low

cost as well as

retail liabilities

franchise

3

Enhancing

productivity per

branch/per

employee

53

Key Focus

Aims to increase total business mix to ` 1.25 lakh Crore by March 2015.

Enhancing income from Technology products, Treasury, Forex and gold coins

Ramping up low cost as well as retail liabilities.

Enhancing productivity per branch/per employee

54

IMPORTANT NOTICE

55

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 containedin this presentation is only current as of its date. Certain statements made in this presentation may not be based onhistorical information or facts and may be “forward looking statements”, including those relating to the Company’sgeneral business plans and strategy, its future financial condition and growth prospects, and future developments inits 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 forgeneral information purpose only, without regard to specific objectives, financial situations and needs of anyparticular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any sharesin the Company and neither any part of it shall form the basis of or be relied upon in connection with any contract orcommitment Important Notice whatsoever. The Company may alter, modify or otherwise change in any manner thecontent of this presentation, without obligation to notify any person of such revision or changes. This presentationcan not be copied and/or disseminated in any manner.

55

56

THANK YOU