Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (June 2020)
81 slides from Cholamandalam Investment And Finance's investor presentation, Jun 8, 2020
Slide 1: Corporate Presentation - March 2020
CORPORATE PRESENTATION - MARCH 2020
Slide 2: Table of Contents
Table of Contents 1. Group overview 2. Corporate 3. Financial 4. Business overview performance segments' overview 5. Funding profile 6. Subsidiaries 7. Risk performance management 2
Slide 3: Murugappa Group Overview
Murugappa Group Overview 3
Slide 4: Murugappa Group in a Nutshell
Murugappa Group in a Nutshell Consolidated Group Market 119 Years of $5.35 $10 Turnover cap (as on 31st Years Existence B B (FY19) Mar 2019 Listed 3 Sectors 28 Businesses 9 Companies 18 Geographical 90+ Manufacturing 50,000+ Work force Countries Presence Locations Locations 4
Slide 5: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Market Cap(Cr.) 18,392 10,207 17,404 Turnover (Cr.) 18,392 7,469 13,215 PAT(Cr.) 1,144 561 1,299 Market Cap(Cr.) 15,918 2,474 4,157 5,150 11,959 NA 5,445 Turnover (Cr.) 13,176 3,283 2,656 4,813 8.713 4,428 74 PAT(Cr.
Slide 6: Corporate Overview
Corporate Overview 6
Slide 7: Spirit of Murugappa
SPIRIT OF MURUGAPPA “The fundamental principle of economic activity is that no man you transact with will lose, then you shall not." 7
Slide 8: Business Update
Business Update • Chola has instituted a robust Business Continuity Plan as a response to COVID addressing financial planning, business strategy realignment, employee productivity re-focus, IT enablement and renewed customer engagement. • Chola’s FY20 disbursements decreased by 4% over FY19, majorly
Slide 9: Cholamandalam Investment & Finance Company Limited
Cholamandalam Investment & Finance Company Limited 14 lakh + customers 26,558 employees Helping customers enter better life Strong employees force to serve more customers 2 lakh customers in year 2000 to 14 lakh plus customers till date 200 plus employees in year 2000 to 26,500 employees today Rs. 6
Slide 10: Our journey so far
Our journey so far Consistently profit making and dividend paying1 company since 1979 with a strong track record and dividends to shareholders FY 1979-90 FY 2000-05 FY 2011 FY 2013 FY 2015 FY 2017 FY 2019 • Commenced • Started Chola • Obtained • Total AUM • Infused capital • Total AUM • Total AUM eq
Slide 11: Shareholding
Shareholding Shareholding Pattern Institutional Holders (More than 1%) o HDFC Mutual Fund o Birla Sun Life Mutual Fund o SBI Mutual Fund o Mirae Asset Management o HDFC Standard Life Insurance Co Ltd o Axis Mutual Fund o L&T Mutual Fund o DSP Mutual Fund o ICICI Prudential Life Insurance Company Ltd
Slide 12: Capital Infusion – QIP & Preferential Allotment
Capital Infusion – QIP & Preferential Allotment Subscription List of large investors & Allocation Price (₹) 320 GIC (Government of Singapore) 30% Actual amount raised (Cr) 900 Aditya Birla Mutual Fund 16% Demand (Cr) 3,464 ICICI Prudential Mutual Fund 16% Over Subscription 3.8 Times Janchor Partners
Slide 13: Business Profile and AUM as on 31st Mar 2020
Business Profile and AUM as on 31st Mar 2020 Business AUM Rs. 60,549Cr Vehicle Finance Home Equity Home Loan & Others Rs. 44,206Cr Rs. 12,960Cr Rs. 3,383Cr 73% 21% 6% Used Others 8% SME, 7% Vehicles, 26% Commercial 7% HCV, 13% Tractor , 8% CE , 5% LCV , 21% 3 Whlr , 1% SORP* 84% 2 Whlr, 4% Home Loan
Slide 14: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (5) 3 1091 1093 Punjab (23) 19 Himachal Pradesh (17) 16 873 907 Chandigarh (2) 2 703 Uttarakhand (16) 15 Haryana (32) 30 Delhi (5) 5 Rajasthan (81) UP (72) 62 Assam (25) 25 FY17 FY18 FY19 FY20 May-20 77 Meghalaya (3) 1 Bihar (42) 41 Gujarat Mizoram (1) 1
Slide 15: Financial Performance
Financial Performance iti! Y "95601,01
Slide 16: Financial Snapshot — 10 Years
Financial Snapshot —10 Years FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 CAGR CAGR Financials Snapshot YoY (10 IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP IGAAP INDAS INDAS INDAS (5 years) years) Disbursem ents 5,731 8,889 12,118 13,114 12,808 16,380 18,591 25,114 30,451 29,091 -4% 15% 20% A ssets u n
Slide 17: Chola: Financial Summary (I)
Chola: Financial Summary (I) Disbursements (₹Cr) Disbursements (%) IGAAP IND AS IGAAP IND AS *30,451 1,631 *29,091 3% 6% 5% 7% 6% 2,042 *25,114 3,837 13% 13% 10% 3,662 21% 16% 1,332 3,174 *18,591 *16,380 1,064 521 3,056 3,476 24,983 78% 82% 82% 83% 23,387 76% 20,607 14,471 12,383 FY16 FY17 FY18 FY19
Slide 18: Chola: Financial Summary (II)
Chola: Financial Summary (II) Business - Assets under Management (₹Cr) Business - Assets under Management (%) IGAAP IND AS IGAAP IND AS 12% *60,549 3,383 2% 3% 3% 4% 6% *54,279 2,047 12,960 24% 21% 21% 30% 28% *42,924 11,626 1,355 *34,167 10,096 *29,650 944 698 9,593 8,852 44,206 73% 75% 73% 40,606
Slide 19: Chola: Financial Summary (III)
Chola: Financial Summary (III) Profit after tax (₹Cr) Networth (₹Cr) IGAAP IND AS IGAAP IND AS 17% *8,172 32% 164 **1387 -11% *335 *6,176 1,186 156 *5,098 1,052 974 156 *4,285 *3,657 157 8008 719 156 6019 568 4942 4128 3501 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Reserves and Surplus Equit
Slide 20: Chola: Financial Summary (IV)
Chola: Financial Summary (IV) Net Income Margin (%) Expenses Ratio (%) IGAAP IND AS IGAAP IND AS 7.7% 7.5% 7.5% 6.8% 6.8% 3.1% 3.0% 3.0% 2.6% 2.6% FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 20
Slide 21: Chola: Financial Summary (V)
Chola: Financial Summary (V) Loan Losses & Provisions (%) ROTA PBT (%) IGAAP IND AS IGAAP IND AS **3.5% **1.5% 3.7% 3.7% 1.5% 3.4% *0.8% 3.1% *0.8% 2.7% 1.0% 0.8% 0.6% 0.7% FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 * One time provision for COVID 19 + Macro provision ** Overall loan losses an
Slide 22: Chola: Financial Summary (VI)
Chola: Financial Summary (VI) Return on equity (%) Earnings per share (₹) IGAAP IND AS IGAAP IND AS **20.0% ** 17.6 20.9% 19.6% *4.8% *4.3 18.0% 16.7% 15.2 15.2% 13.4 11.8 9.2 7.5 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 * One time provision for COVID 19 + Macro provision ** Overall ROE & E
Slide 23: Chola: Financial Summary (VII)
Chola: Financial Summary (VII) P/E Ratio P/BV Ratio IGAAP IND AS IGAAP IND AS 24.7 4.4 21.0 3.7 19.0 19.1 3.5 3.0 *11.4 * 1.5 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 23
Slide 24: Profit and Loss Statement (As per IND AS)
Profit and Loss Statement (As per IND AS) ₹ Cr Growth Growth % Particulars Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 Q4FY19 Q4FY20 FY19 FY20 % (YTD) Q4-o-Q4 Y-o-Y Disbursements 7,014 8,572 6,899 7,381 7,644 7,475 8,893 5,663 -36% 30,451 29,091 -4% Closing Assets (Managed) 46,709 62,827 52,486 64,409
Slide 25: Balance Sheet (As per IND AS)
Balance Sheet (As per IND AS) ₹ Cr Particulars Mar-18 Mar-19 Mar-20 ASSETS Financial Assets 43,391 56,637 63,021 Cash and Bank balance 888 3,675 6,959 Derivative financial instruments 6 89 114 Receivables 94 43 59 Loans 42,253 52,622 55,403 Investments 73 73 73 Other Financial Assets 77 135 413 Non-
Slide 26: Stagewise Assets & Provision Summary
Stagewise Assets & Provision Summary ₹ Cr Mar-18 Mar-19 Mar-20 Mar-20 Mar-20 Mar-18 Mar-19 Mar-20 Mar-20 Mar-20 Particular Normal Normal Normal Addn Total Normal Normal Normal Addn Total INR Cr INR Cr INR Cr INR Cr INR Cr % to GA % to GA % to GA % to GA % to GA Gross 43,079 53,554 56,926 56,926 100.
Slide 27: Stagewise ECL Summary – as of March 2020
Stagewise ECL Summary – as of March 2020 ₹ Cr Normal Additional Provisions Total Total Total For COVID Macro Addn Prov Particulars Moratorium Asset Prov Prov Prov DPD Freeze Status Rs in Cr Rs in Cr Rs in Cr Rs in Cr Rs in Cr Rs in Cr PCR (%) Stage 1 Non Moratorium 11,285 29 - - - 29 0.25% Stage 1 (
Slide 28: Business Overview
Business Overview 28
Slide 29: Vehicle Finance
Vehicle Finance
Slide 30: Vehicle Finance: FY20 Performance
Vehicle Finance: FY20 Performance Disbursements • Disbursements has degrown -6% in FY20 as compared to FY19. Assets under management • Assets have grown by 9% as compared to FY19. Loss and • Loan losses is at 0.9% as compared to 0.8% of FY19 at normal level as provisions well as after adjusting COVI
Slide 31: Sector outlook – Vehicle Finance business (1/2)
Sector outlook – Vehicle Finance business (1/2) Sector Outlook Chola’s Position • A faster recovery of the Rural sector and a good Rabi • More than 80% of our branches are present in the rural harvest expected to support tractor demand areas, towns and semi urban areas which gives us a immediately p
Slide 32: Sector outlook – Vehicle Finance business (2/2)
Sector outlook – Vehicle Finance business (2/2) Sector Outlook Chola’s Position • Recovery of Heavy Commercial Vehicles and • Our exposure to this segment has come down over the Construction Equipment segments expected to be slow – last 2 years and is below 14% at a portfolio level, our considering
Slide 33: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) Chola @ -3% Chola @ -10% CAGR @ 4% CAGR @ 5% 5,65,408 2,73,844 2,34,621 4,61,213 4,31,438 2,00,406 1,93,023 3,68,795 1,72,740 3,31,905 YTD Mar'17 YTD Mar'18 YTD Mar'19 YTD Mar'20 YTD Mar'25 (E) YTD Ma
Slide 34: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) Chola @ -58% Chola @3% CAGR @ 5% (47%) CAGR @ 9% 2,95,394 33,54,249 33,72,151 2,65,425 30,18,149 31,14,258 2,38,165 27,74,277 2,19,032 1,55,168 YTD Mar'17 YTD Mar'18 YTD Mar'19 YTD Mar'20 YTD Ma
Slide 35: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning CV PV Low Industry Low Low Industry Low Chola Position Chola Position Principal Operator Salaried > 50 Vehicles Large Operators 26- 50 vehicles HCV Self Employed with Returns Returns Financials RISK RISK Medium Operators 10 -25 – HCV & LCV vehicles Taxi a
Slide 36: Vehicle Finance—Business Model & Positioning
Vehicle Finance—Business Model & Positioning Tractor CE Low Industry Low Low Industry Low Chola Position Super Strategic Chola Position Large Farmer Strategic Customer Captive Users / Prior Vehicles Captive Users/Prior Vehicles Returns Returns Medium Retail operator RISK RISK Medium Farmers Small Re
Slide 37: Vehicle Finance - Disbursement/Portfolio Mix – FY20
Vehicle Finance - Disbursement/Portfolio Mix – FY20 Well diversified across geography & product segments Disbursements - State wise Portfolio - State wise MP AP MP AP Karnataka Karnataka Maharashtra Maharashtra Kerala Kerala 6% 5% 6% 5% 5% 5% Pondicherry Pondicherry 10% 11% Telangana 4% Telangana 4%
Slide 38: Vehicle Finance - Disbursement/Portfolio Mix – FY20
Vehicle Finance - Disbursement/Portfolio Mix – FY20 Well diversified across geography & product segments Disbursements (₹Cr) - Product wise Portfolio (₹Cr) - Product wise 3 Wheeler HCV 3 Wheeler HCV CE 1% CE 13% 6% 2% 5% 5% 2 Wheeler LCV 2 Wheeler 4% 19% 6% LCV 21% MUV 6% Used Vehicles 26% Used Vehi
Slide 39: Vehicle Finance - Disbursement Mix – Quarter-wise
Vehicle Finance - Disbursement Mix – Quarter-wise Disbursement (₹Cr) - Product wise Disbursement (%) – Product wise * 7,383 * 6,940 Low Yield 421 316 6% 5% 4% 5% 5% 959 7% 3% 5% 643 * 5,949 9% * 5,796 13% 269 17% 226 177 18% 21% 1,499 1,434 386 21% Medium Yield 1,017 * 4,703 20% 7% 6% 1,021 258 6% 4
Slide 40: Vehicle Finance - Portfolio Mix – Quarter-wise
Vehicle Finance - Portfolio Mix – Quarter-wise Portfolio (₹Cr) - Product wise Portfolio (%) – Product wise * 43,901 * 44,589 * 44,206 * 42,977 5% 5% 5% 5% 5% * 40,588 2,131 2,183 2,220 2,109 1,983 15% 14% 13% 6,043 5,603 17% 16% Low Yield 6,725 7,039 7,074 21% 21% 9,413 9,401 22% 21% 9,369 22% 9,283
Slide 41: Vehicle Finance: Financial summary FY20 (I)
Vehicle Finance: Financial summary FY20 (I) Disbursements (₹Cr) Assets under management (₹Cr) IGAAP IND AS IGAAP IND AS -6% 9% 2,056 24,983 42,150 23,387 40,606 20,607 31,473 14,471 3,360 12,383 2,186 20,271 17,914 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 On Book Assignment 41
Slide 42: Vehicle Finance: Financial summary FY20 (II)
Vehicle Finance: Financial summary FY20 (II) Income (₹Cr) Profit before tax (₹Cr) IGAAP IND AS IGAAP IND AS 21% 6,563 6% ** 1,342 5,430 -26% 1,269 * 397 4,192 988 3,609 945 3,159 682 555 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 * One time provision for COVID 19 + Macro provision ** PBT adju
Slide 43: Vehicle Finance: Financial summary FY20 (III)
Vehicle Finance: Financial summary FY20 (III) Net Income Margin (%) Expense Ratio (%) IGAAP IND AS IGAAP IND AS 8.5% 8.4% 8.1% 3.8% 3.8% 7.3% 3.6% 7.0% 3.0% 3.0% FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 43
Slide 44: Vehicle Finance: Financial summary FY20 (IV)
Vehicle Finance: Financial summary FY20 (IV) Loan Losses & Provisions (%) ROTA PBT (%) IGAAP IND AS IGAAP IND AS **1.8% 3.7% 3.6% **3.1% 1.7% 3.2% 3.0% 1.4% *0.9% *0.9% 2.2% 0.9% 0.8% 0.8% FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 * One time provision for COVID 19 + Macro provision ** Overal
Slide 45: Profit and Loss Statement: Vehicle Finance (Managed)
Profit and Loss Statement: Vehicle Finance (Managed) ₹ Cr Growth Growth % Particulars Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 Q4FY19 Q4FY20 FY19 FY20 % (YTD) Q4-o-Q4 Y-o-Y Disbursements 5,715 6,940 5,609 5,796 6,277 5,949 7,383 4,703 -36% 24,983 23,387 -6% Closing Assets (Managed) 33,542 42,977 35
Slide 46: Profit and Loss Statement: Vehicle Finance (On Book)
Profit and Loss Statement: Vehicle Finance (On Book) ₹ Cr Growth % Growth % Particulars Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 Q4FY19 Q4FY20 FY19 FY20 (YTD) Q4-o-Q4 Y-o-Y Disbursements 5,715 6,940 5,609 5,796 6,277 5,949 7,383 4,703 -36% 24,983 23,387 -6% Closing Assets (On B/S) 33,542 42,977 35,
Slide 47: Home Equity
Home Equity
Slide 48: Home Equity— FY20 Performance
Home Equity— FY20 Performance Disbursements • Disbursements has de-grown -5% in FY20 as compared to FY19. Asset under • The business has grown the Assets by 11% in FY20 management • Loan losses is at 0.04% from -0.04% at normal level & is at 0.7% from Loss and provisions -0.04% after adjusting COVID
Slide 49: Home Equity: Industry outlook
Home Equity: Industry outlook Sector Outlook Chola’s Position • CRISIL expects the COVID-19 pandemic and the • Chola shall continue to focus on retail ticket size loans lockdown to impact credit growth majorly during first to reduce concentration risk half of fiscal 2021. Measures from RBI and Gover
Slide 50: Home Equity—Financial Summary FY20 (I)
Home Equity—Financial Summary FY20 (I) Disbursements (₹Cr) Assets under Management (₹Cr) IGAAP IND AS IGAAP IND AS -5% 11% 3,837 2,425 3,662 3,476 1,671 3,174 671 3,056 1,978 2,904 9,954 10,536 9,424 6,873 6,689 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 On Book Assigned 50
Slide 51: Home Equity—Financial Summary FY20 (II)
Home Equity—Financial Summary FY20 (II) Income (₹Cr) Profit before tax (₹Cr) IGAAP IND AS IGAAP IND AS 13% **334 19% 1,478 305 -20% * 91 1,217 1,247 1,184 1,124 261 244 221 207 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 * One time provision for COVID 19 + Macro provision ** PBT adjusted befor
Slide 52: Home Equity—Financial Summary FY20 (III)
Home Equity—Financial Summary FY20 (III) Net Income Margin (%) Expenses Ratio (%) IGAAP IND AS IGAAP IND AS 5.1% 1.2% 1.2% 1.1% 1.1% 1.0% 4.4% 4.1% 3.8% 3.8% FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 52
Slide 53: Home Equity—Financial Summary FY20 (IV)
Home Equity—Financial Summary FY20 (IV) Loan Losses & Provisions (%) ROTA PBT (%) IGAAP IND AS IGAAP IND AS 3.2% 1.0% **2.7% 2.8% **0.7% 0.8% *0.7% 2.2% 2.3% 0.7% 2.0% *0.7% 0.0% 0.0% FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 * One time provision for COVID 19 + Macro provision ** Overall loa
Slide 54: Profit and Loss Statement: Home Equity (Managed)
Profit and Loss Statement: Home Equity (Managed) ₹ Cr Growth Growth % Particulars Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 Q4FY19 Q4FY20 FY19 FY20 % (YTD) Q4-o-Q4 Y-o-Y Disbursements 939 1,101 910 1,064 954 908 1,034 589 -43% 3,837 3,662 -5% Closing Assets (Managed) 10,374 12,119 10,742 12,612 11,1
Slide 55: Profit and Loss Statement: Home Equity (On Book)
Profit and Loss Statement: Home Equity (On Book) ₹ Cr Growth % Growth % Particulars Q1FY19 Q1FY20 Q2FY19 Q2FY20 Q3FY19 Q3FY20 Q4FY19 Q4FY20 FY19 FY20 (YTD) Q4-o-Q4 Y-o-Y Disbursements 939 1,101 910 1,064 954 908 1,034 589 -43% 3,837 3,662 -5% Closing Assets (On B/S) 9,331 10,129 9,773 10,331 9,718 1
Slide 56: Funding Profile
Funding Profile 56
Slide 57: CAR, Credit Rating
CAR, Credit Rating Capital Adequacy Ratio (CAR) – As per RBI guideline Tier I Tier II 19.68 20.68 18.64 18.36 17.36 5.42 6.42 5.03 5.12 4.92 13.26 13.61 13.24 15.26 12.44 2015–2016 2016–2017 2017–2018 2018–2019 2019-2020 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan typ
Slide 58: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) 120% (₹Cr) Borrowing mix by instrument type * 38,293 * 50,567 * 55,122 * 55,903 * 54,941 * 55,005 100% 6% 3% 7% 10% 10% 7% 3% 4% 4% 3% 3% 8% 5% 11% 9% 5% 15% 9% 80% 10% 3% 5% 5% 3% 2% 8% 8% 10% 2% 1% 12% 60% 21% 14% 32% 17% 40% 60% 54% 43% 47% 42% 35% 20% 9% 8%
Slide 59: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) Borrowing mix by investor type (₹Cr) * 38,293 * 50,567 * 55,122 * 54,941 * 55,005 * 55,903 100% * 60,000 11% 10% 9% 9% 8% 15% 90% 3% 2% 2% 2% 3% 3% 3% 3% 4% 4% 5% 4% 4% 4% 4% * 50,000 80% 1% 1% 70% * 40,000 60% 51% 57% 58% 61% 50% 65% * 30,000 68% 40% * 20,000 3
Slide 60: ALM Statement as of 31st Mar 2020 (As per IND AS)
ALM Statement as of 31st Mar 2020 (As per IND AS) (₹Cr) ALM snapshot as on 31st Mar 2020 Particulars 1m >1 to 2m >2 to 3m >3 to 6m >6m to 1 yr >1 to 3 yr >3 to 5 yr >5 yr Total Cash & Bank Balances 2,252.62 900.00 1,610.06 1,745.00 - - - - 6,507.68 Advances 427.91 272.52 403.76 2,464.42 9,192.91 26,
Slide 61: Subsidiaries
Subsidiaries 61
Slide 62: Subsidiaries – Update FY20
Subsidiaries – Update FY20 •CHFL recorded a gross income of 38.61 crores for the year ended •During the year CSEC focused on creating three distinct business 31 March, 2020 and made a loss before tax of 0.77 crores as lines for enhancing revenues and productivity - broking, wealth against a loss of
Slide 63: Risk Management
Risk Management 63
Slide 64: Risk Governance Structure
Risk Governance Structure Oversee the entire risk Board of Directors management process Formed in Oct 2007,operational Risk Management from 2008 Committee Meet four times in a year Reviews framework & process, periodic monitoring of exposures Review of other initiatives with a Chief Risk O
Slide 65: ERM as Value Centre in Corporate Processes
ERM as Value Centre in Corporate Processes • ERM at Chola works as a value centre • Risk management team engages in defining framework, overseeing enterprise wide risks and building a portfolio for risk appetite based decision making. • At Chola risk management is an integral part of the existing bu
Slide 66: ERM as Value Centre in Business Processes
ERM as Value Centre in Business Processes • Risk registers for various business process to identify laundry list of risks, controls, residual risks and KRIs for monitoring • ERM works with business teams on the overall customer life cycle management Active portfolio Identifying segments & management
Slide 67: ERM as Value Centre in Strategic Functions
ERM as Value Centre in Strategic Functions • Actively involved in giving strategic inputs for scenario building • Active participant in Asset Liability support group which monitors company’s liquidity position • Building forward looking macro indicators and its impact on business metrics • Involved
Slide 68: Information Technology
Information Technology 68
Slide 69: IT enablement for remote operations
IT enablement for remote operations Network Support: - Additional connectivity hardware and service support for all employees across the organization Server & Middleware Support: - Remote vendor support in place for managing and administrating servers & middleware - Application deployment and databa
Slide 70: Enhanced network security against cyberthreats
Enhanced network security against cyberthreats DC & NETWORK ENDPOINTS PEOPLE - SIEM (Security Information and - Increased review of the - Continuous Event Management) Monitoring endpoint update for Anti- communication on with frequent reviews of Virus & OS critical updates cyber precautions security
Slide 71: Human Resources
Human Resources 71
Slide 72: Employee wellness initiatives
Employee wellness initiatives 1. 2. No Salary Cuts Employee Assistance program – Enabled No Job Loss on call counselling support to all 26000+ employees to deal with anxiety and personal issues Energized 3. Wide insurance coverage, including Engaged COVID 4. Multiple touch points with Employees Cent
Slide 73: Phased Branch opening
Phased Branch opening At the branches • Every day tracking of branch functioning through video • Ensuring permissible calls, calls with branch • Permits for branch headcount at open branches managers opening • Educating employees - clear • Ensuring social distancing at • Permits for movement work pr
Slide 74: Comprehensive employee communication plan
Comprehensive employee communication plan Communication agenda Mode of reach Frequency General communication on state of affairs Mailers / Messenger Weekly Health and wellness drive Mailers / Messenger Weekly Guidelines - Roles and responsibilities Mailers / Phone calls with mapping during lockdown
Slide 75: ECL Methodology
Chola ECL Methodology 75
Slide 76: Measurement Framework
Measurement Framework Asset ECL classification PD 12 m Stage 1 LGD EAD Staging Lifetime ECL Retail Stage 2 Framework Basis Account Conduct it is classified into different stages PD : Probability of default PD (100 %) LGD : Loss given default Stage 3 LGD EAD : Exposure at time of default EAD
Slide 77: Measurement Framework
Measurement Framework Asset ECL Description classification PD 12 m • Assets with low risk (0-30 DPD) on reporting date Stage 1 LGD • Loss estimate based on a 1 year forward estimate EAD Lifetime • Assets with Significant Increase in Credit Risk (SICR) since initial recognition Stage 2 • Assets w
Slide 78: Retail Pooling
Retail Pooling Portfolios are segmented based on the below categories. PD Chola term structure and LGDs are computed for each segment separately. Home Vehicle Finance Home Equity Others Loan MLCV/2W/3W HCV New LCV New HE Delhi HE Tamil Nadu New HE Punjab / OLDER CAR/MUV New USED Haryana / HE Gujarat
Slide 79: Contact us
Contact us Cholamandalam Investment and Finance Company Limited (Chola), Dare House 1st Floor, No. 2, NSC Bose Road, Parrys, Our registered Chennai 600001. office Toll free number: 1800-200-4565 (9 AM to 7 PM) Land Line: 044–3000 7172 http://www.cholamandalam.com Sujatha P-Sr. Vice President & Compa
Slide 80: Disclaimer
Disclaimer • Certain statements included in this presentation may be forward looking statements made based on management’s current expectations and beliefs concerning future developments and their potential effects upon Cholamandalam Investment and Finance Company Ltd and its subsidiaries. There can
Slide 81: Thank You
} Chola % STRONGER TOGETHER Collaborating for Success! THANK YOU Lo
Cholamandalam Investment and Finance Company — Investor Presentation (June 2020) on 6ix