Q1 FY18 Investor Update

19891994

2002

2004

2009

2011

2012

2013

Incorporated

IPO

AAA Rating

GDR Issue

Crossed Rs. 500 crs profit

Crossed Rs. 50,000 Cr loan portfolio

• Best HFC by CNBC TV 18• Construction Industry Award

•Crossed Rs. 1000 cr profit &Rs 75,000 Cr assets

2015

2

2014

• Best HFC by ABP News

•Crosses Rs 1 lakh cr in portfolio •Best Housing Finance Co. by BFSI Awards• Best data quality in HFCby CIBIL

A Journey of 28 Years…

•Business Today-Best CEO Award• Business World -Most Respected Co Award•Outlook Money-Best HFC•Best HFC by ABP News•Best Data Quality by CIBIL•Asia Pacific Entrepreneurship Award•Power Brands Awards by Franchise India

2016

2017

•Outlook Money-Best HFC•Business Today BFSI Best CEO

3

Q1 FY18 PAT at Rs 470.06 cr as against Rs 407.84 cr up 15 %

Q1 FY18 Revenue from operations up by 8 % to Rs 3633 cr

Outstanding Loan portfolio up by 15 % to Rs. 147051 cr

Individual Loan Portfolio up by 14 % to Rs 141440 cr

Q1FY18 Disbursements Rs 8699 cr against Rs 7542 cr up by 15 %

Individual Loan Disbursements Rs 8286 cr against Rs 7064 cr, up by 17%

Net Interest Income Rs 913 cr up by 11%

Net Interest Margins 2.50 % for Q1 FY18 as against 2.61% for Q1FY17

Gross NPAs at 0.72% as against 0.59 % as on 30.6.2016

Net NPAs 0.38% as against 0.28% on corresponding dates

Individual Loans Gross NPAs at 0.42% as against 0.35% on 30.6.2016

Total Provisions at Rs 1137 cr as against total Gross NPAs of 1066 cr

Executive Summary – Q1/FY18

4

Disbursement (Rs. Cr) CAGR 14%

Profit After Tax (Rs. cr) CAGR 17%Income (Rs. cr) CAGR 16%

Loan Portfolio (Rs.cr) CAGR 17%

Update – last 5 years

5

Gross & Net NPAs

Operating Expense to Total Income

Total Provisions* (Rs cr)

Profit per employee (Rs. lacs)

* Provisions Including Provisions on Std. Assets & Teaser Loans

Update – last 5 years

6

EPS (Rs) (Rs 2/- pd up)

Return on Avg Equity

Book Value (Rs)(Rs 2/- pd up)

Return on Avg Loan Assets

Update – last 5 years

7

• 9 Regional Offices

• 22 Back Offices

• 249 Marketing Offices

• Rep offices in Dubai & Kuwait

• Coverage of more than 450 centres

• 1890 Employees

Back offices

Operating offices

Regional offices

Corporate office

Nagercoil

ThiruvananthapuramKottayam

Ernakulam

Kozhikode

Thrissur

Tirumangalam

Madurai

ThanjavurPondicherry

Tiruchirapalli

Coimbatore

Salem

Vellore

ChennaiHosurMysore

Mangalore

Bengaluru

Panjim

Vashi

Mumbai

NelloreHubliTirupati

BellaryAnantapur

Kurnool

Guntur

Kakinada

Vijayawada

Hyderabad Rajahmundry

Visakapatnam

Warangal

Bhubaneshwar

Kolkata

Silchar

Guwahati

Siliguri

Gangtok

Patna

ShimlaJalandharAmritsar

LudhianaChandigarh

Dehradun

HaldwaniKarnal

Bareilly

GhaziabadNew Delhi

AgraLucknow

Kanpur

JaipurAjmer

Gwalior

Bikaner

Jodhpur

Rajkot

Udaipur

Ahmedabad

Vadodara Indore

Bhopal

Allahabad

Jabalpur

Varanasi

Ranchi

Jamshedpur

RourkelaBilaspur

RaipurNagpurJalgaonSuratVapi

AurangabadNasik

KalyanThaneJogeshwari

Pune

Kolhapur

Belgaum

Gulburga

Nallasopara

Kota

Hassan

Erode

Kannur

Kollam

Palghat

Gandhidham

Satara

Durg-Bhilai

Gorakhpur

Meerut

Behrampur

Cuttack

Dhanbad

Durgapur

Jorhat

Malda

GurgaonFaridabad

Noida

AmbalaBhatinda

HisarPatiala

Geographic Presence

8

HOME LOAN AGENTS (HLAs)

(Agents of LIC)

DIRECT SALES AGENTS (DSAs)

(Small Firms/Companies etc)

CUSTOMER RELATIONS

ASSOCIATES (CRAs)

(Individual Agents)

249Marketing Offices

39 branches of

LICHFL Financial Services(100% subsidiary of LICHFL)

Distribution Network

9

Origination Pattern &

Average Ticket Size

10

Loan Book Composition

O/s Portfolio Rs. 147051 cr

30.06.2017

O/s Portfolio Rs. 144534 cr

31.03.2017

11

Installment to Net Income RatioOn Incremental Sanctions

For FY 15 33.86%

For FY16 33.25%

For FY17 32.12%

For Q1FY18 30.36%

Loan To Value RatioOn Incremental Sanctions

For FY 15 51%

For FY16 47%

For FY17 45%

For Q1FY18 47%

Pure Floating Rate LoansTo Outstanding Portfolio

As of FY 15 37%

As of FY16 47%

As of FY17 70%

As of Q1FY18 73%

PrepaymentLump Sum/ opening book

For FY 15 8.4%

For FY16 11.9%

For FY17 10.9%

For Q1FY18 10.9%

Individual Loans – Portfolio Stats

12

Q1 FY2018 Q1FY 2017

Return on Average Equity (%) 17% 18%

Return on Average Assets (%) 1.3% 1.4%

Earnings per share (on Rs 2 pd up) 9.31 8.08

Capital Adequacy Ratio

Tier I

Tier II

Total

March 2017

13.35

2.29

15.64

March 2016

13.86

3.18

17.04

Financial Highlights

13

Executive Summary-Q1/FY18

Var Q1FY18 Q1FY17

Interest Income on Individual Loans 7.25% 3444.92 3212.03

Interest Income on Project Loans 43.35% 163.85 114.30

Total 8.49% 3608.77 3326.33

Processing Fees & Other Fees (26.75%) 24.43 33.35

Other Income 6.00% 21.38 20.17

Gross Income 8.13% 3654.58 3379.85

Interest Expenses 7.77% 2696.25 2501.81

Net Interest Income 10.67% 912.52 824.52

Salary & Other Establishment Exp. (2.00%) 135.39 138.16

Net Provisions & Diminutions (10.30%) 104.46 116.46

Profit before Tax 15.25% 718.48 623.43

Income Tax Provision including Deferred Tax 15.23% 248.42 215.58

Net Profit 15.26% 470.06 407.84

Executive Summary-Q1/FY18

Var Q1FY18 Q1FY17

Disbursements

Individual 17.29% 8286 7064

Project (13.48%) 413 478

Total 15.35% 8699 7542

Outstanding Portfolio

Individual 14.36% 141440 123681

Project 49.41% 5611 3758

Total 15.39% 147051 127437

Net Interest Margins(%) 2.50% 2.61%

Borrowings during the Qtr. (Rs. Cr.) 13620 9804

Incremental Cost(i.e. for the year to date) 7.68% 8.70%

Incremental Yield(overall, annualised) 9.86% 10.68%

Incremental Spreads 2.18% 1.98%

15

Outstanding Borrowings – Rs.129163 cr

Source Wtd

Avg

Cost

(%)

Banks 8.32%

Non Convertible Debenture 8.57%

National Housing Bank 8.35%

FCNRB Loans 9.66%

Sub. Bonds & Upper Tier II 9.18%

Commercial Paper 6.50%

Deposits 8.10%

Total 8.50%

as on 30.6.2017

Liability Profile

During Q1FY18, Borrowings were Rs 13620 cr @ 7.68%

16

Change in Liability Mix- last 5 yrs

Wtd. Avg. cost

of Funds

Bank funding has

reduced from

32% in FY12 to

25% in FY14.

Retail Deposits

increased to 2.2%

Bank Funding down

from 32% in FY12 to

8.9% in Q1FY18.

Deposits have also

increased in the

same period

8.50% 8.59% 9.14% 9.48% 9.75%

17

Yield & Cost of Funds on portfolio

18

NIMs

19

30.6.2017 30.6.2016

Gross NPA (Rs. cr) 1066 757

Gross NPA (%) 0.72% 0.59%

Provisions for NPA (Rs. cr)* 513 401

Net NPA(%) 0.38% 0.28%

Provisions incl teaser loan prov & std asset

prov.

1137 935

Gross & Net NPAs

*Excluding provisions on standard assets/teaser loans

Provisions cover incl teaser loan prov & std

asset prov.

107% 124%

20

Gross & Net NPAs

21

DISCLAIMER

This presentation is made purely for information. We have attempted to provide relevantinformation which we believe will help in knowing the Company. The users may use their ownjudgment and are advised to make their own calculations before deciding on any matter basedon the information given herein.

While every care is taken to verify the accuracy of the information given in this presentation,neither the Company nor its officials would in any way be liable for any action taken or nottaken by the viewers or the users of this presentation or for any claims, losses etc.

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