Pnb Housing Finance Limited · NSE:PNBHOUSING

Pnb Housing Finance — Investor Presentation (July 2020)

50 slides from Pnb Housing Finance's investor presentation, Jul 13, 2020

  1. Slide 1: Exchange filing cover letter for corporate presentation

    July 13, 2020 The BSE Limited, National Stock Exchange of India Limited, Listing Department, Listing Department Phiroze Jeejeebhoy Towers, “Exchange Plaza” Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 540173 Symbol: PNBHOUSING Dear Sirs, Sub: Corporat

  2. Slide 2: Kshitij – The Transformational Journey, June 2020

    May 2019 June 2020

  3. Slide 3: Safe Harbour

    Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu

  4. Slide 4: Key Milestones

    Key Milestones • New Brand positioning with completely refurbished, elegant, convenient and • Obtained NHB license for loans and deposits 2011 secured offices 1988 • Robust and scalable target operating model (TOM) implementation commenced • Company commenced operations • DEPL raises stake from 26%

  5. Slide 5: Kshitij Interventions

    Kshitij Interventions Led to Company’s Transformation 4

  6. Slide 6: Evolution of Brand Driven by Customer-centric Approach

    Evolution of Brand Driven by Customer-centric Approach Customer-centric Approach …together with… Initiatives to Reposition Brand Close and Customer Creation of Creation of Robust lead direct Transparency in service portal new logo in new tagline in Employees management integration communication Trus

  7. Slide 7: Omni-Channel Customer Touchpoints

    Omni-Channel Customer Touchpoints BRANCH DOOR STEP DELIVERY MOBILE CONTACT CENTER (ISO 9001:2015 certified) WEB VOICE & EMAIL SERVICING DISBURSEMENT SOCIAL MEDIA EXPERIENCE TOLL FREE Company Customer 6

  8. Slide 8: Scalable Hub & Spoke Model

    Scalable Hub & Spoke Model Spokes Regional Hub Central Operations Customer acquisition / Underwriting Post Disbursement Operations servicing Field Investigation CPC DSA DST Fraud Control Fountain head for Unit decision making Underwriter reviews the reports, does the Legal Team financial assessment

  9. Slide 9: Digital Tools used in Credit Appraisal

    Digital Tools used in Credit Appraisal Fraud Detection Vendor Management • State of the art features - GPS co- • Common pool of fraud customers from ordinates, digital signature, live dashboard over 100+ major FI’s in India etc. • Improved efficiencies Hunter u-Connect • Better control and monitorin

  10. Slide 10: Technology enabled Growth

    Technology enabled Growth Enabled Target Operating Model High Business Growth Digital Customer Experience 2019-20 Operational Efficiency Secured & Integrated Digital Ecosystem 2016-19 Enterprise System Solution 2014-16 Security & Compliance Point solutions as Business Enabler 2013-14 Enhanced Custom

  11. Slide 11: Business Resilience powered by Technology

    Business Resilience powered by Technology Proactive communication & Outreach New Digital ways Application of / Working Self Business Resilience powered by Technology Service Solution in light of current Covid-19/lockdown phase that will reshape the new normal Community Shift Brick & Support Mortar S

  12. Slide 12: Integrated Technology Platform

    Integrated Technology Platform IT as backbone of Business Processing Digitization to bring efficiencies and enhance customer service ‘Document Digitization Centre’ – true amalgamation of People, Process and Technology Scanned security and title documents are stored on dedicated private cloud for the

  13. Slide 13: Central Operations and Central Processing Centre

    Central Operations and Central Processing Centre ❖ Image based processing ❖ Centralized operational ❖ Reduction in turn around process time • Central Operations and ❖ Standardization of processes Processing Centre formalized ❖ Repository Management & ❖ Digitization of original with an objective to i

  14. Slide 14: People Initiatives

    People Initiatives Cultural Transformation Visioning and Values Institutionalize HR Processes and Policies Integration of Performance Training & Role Alignment Resources Management Development Competency Reward & Framework Recognition Cultural Transformation 13

  15. Slide 15: Covid-19 Pandemic – the 3S Approach

    Covid-19 Pandemic – the 3S Approach Survive: • Health and Safety of our employees is of paramount importance • 100% offices closed post the directive issued by the Government Shifting Gears: • 80% employees worked from home • Focus on mass housing and capital efficient • Maintain moral and emotional

  16. Slide 16: The Growth Journey

    The Growth Journey Year on Year Trends 13

  17. Slide 17: Disbursements Trend

    Disbursements Trend 36,079 33,195 +37% 38% 43% • De risked over a period of time with pan India 20,639 18,626 presence 37% 33% 14,456 • Focus on lower risk 27% 44% 33% weighted Retail Assets 9,440 31% 27% 30% 27% 5,500 • FY2019-20 was a year of 3,682 27% 30% 30% 30% 27% 32% consolidation 1,508 16% 2

  18. Slide 18: Balanced Sourcing Channel

    Balanced Sourcing Channel % Disbursement FY13: FY15: FY17: FY19: INR 3,682 INR 9,440 INR 20,639 INR 36,079 Crore Crore Crore Crore 5% 35 34% % 43% 30% 47% 47 45 41% 53 55 % 57% 53% % % % 65 95% 59% 66% 70% % FY12: FY14: FY16: FY18: FY20: INR 1,508 INR 5,500 INR 14,456 INR 33,195 INR 18,626 Crore Cro

  19. Slide 19: Asset Growth

    Asset Growth 84,722 83,346 • Strong growth in AUM with CAGR 62,252 smaller base +46% • PNB Housing share amongst 41,492 the HFC sector increased from 2.5% in FY14 to 6.2% in 74,023 67,571 Dec 2019* 27,555 57,014 17,297 38,531 • One of the Top 4 HFCs in the 10,591 27,177 Country 6,621 16,819 3,970 10

  20. Slide 20: Well Balanced AUM Mix

    Well Balanced AUM Mix Product-wise AUM Break-up Total AUM of 83,346 Crore (As on 31-Mar-20) 3,970 6,621 10,591 17,297 27,555 41,492 62,252 84,722 83,346 Individual Housing Loans Retail Loan Against Property 4% 20% Retail Non- residental 58% 58% 12% 62% 63% 60% 59% Premises Loans 65% 18% 72% 75% 58%

  21. Slide 21: De-risked Geographical Concentration

    De-risked Geographical Concentration % of Asset Under Management 3,970 6,621 10,591 17,297 27,555 41,492 62,252 84,722 83,346 20% 23% 25% 27% 30% 34% 39% 39% 41% 9% 18% 23% 27% 29% 30% 29% 30% 30% 71% 59% 52% 46% 41% 36% 32% 31% 29% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 West South North Value

  22. Slide 22: Business Operations

    Business Operations No. of Branches Branches – Point of Sales & Services No. of Branches Unique Cities* Processing Hubs – Fountain head for Decision Making 3 105 18 2 21 15 16 8 Geography Hub Branches 9 5 64 6 7 32 0 North 8 33 27 South 8 35 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Total West 7 37 New Bra

  23. Slide 23: Gross Non-performing Assets

    Gross Non-performing Assets Retail GNPA: 1.25% 2.75% Corporate GNPA: 8.18% 1.75% 1.04% 0.67% 0.56% 0.48% 0.35% 0.32% 0.33% 0.38% 0.16% 0.20% 0.22%0.14% 0.22% 0.15% 0.23% 0.07% 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 Gross NPAs Net NPAs As on 31-Mar-2

  24. Slide 24: Credit Rating

    Credit Rating Rating Agency Fixed Deposit NCDs Bank Loans Commercial Paper FAA+ AA AA CRISIL A1+ (Outlook Negative) (Outlook Negative) (Outlook Negative) AA ICRA - - - (Outlook Negative) AA AA AA CARE A1+ (Outlook Stable) (Outlook Stable) (Outlook Stable) AA India Ratings - - (Outlook Negative) Upda

  25. Slide 25: Well Diversified Borrowing Composition

    Well Diversified Borrowing Composition 2.8% 1.4% 7.7% 8.8% 12.9% 18.8% • First HFC to sign a 31.0% 33.7% 25.9% 39.2% 35.5% funding of USD 75 37.7% 37.5% 28.0% 22.5% million via ECB from 9.3% 15.0% JICA (Japan 9.2% 16.7% 0.5% International 18.9% 9.6% 28.4% 11.3% 17.5% 19.6% Corporation Agency) in 17.

  26. Slide 26: Growth in Deposit Outstanding

    Growth in Deposit Outstanding • Second largest deposit 16,470 mobilizer among HFCs* 14,315 • Deposit growth of over 45 times from FY12 to FY20 on back of high credit rating 11,586 and service quality CAGR 9,987 +61% • Strong and predictable distribution channel- the 7,121 base grew from over 300 bro

  27. Slide 27: Financial Performance

    a] Financial Performance 26 (©)) Housing

  28. Slide 28: Strong Revenue & Profit growth

    Strong Revenue & Profit growth Total Revenue Operating Profit Profit After Tax 8,490 2,062 1,192 1,923 7,683 +31% 1,511 841 +44% +44% 5,490 646 3,908 907 524 2,699 586 326 1,777 334 196 1,116 206 127 661 139 75 92 463 109 FY12 FY13 FY14 FY15 FY16 FY17 FY18* FY19* FY20* FY12 FY13 FY14 FY15 FY16 FY17

  29. Slide 29: Operating Leverage and Return Profile

    Operating Leverage and Return Profile Opex to Average Total Asset Ratio Cost to Income Ratio 0.98% 28.93% 30.81% 30.87% 0.91% 0.95% 25.15% 0.79% 0.83% 23.01% 22.43% 0.73% 0.61% 0.65% 19.61% 0.55% 17.22% 16.89% FY12 FY13 FY14 FY15 FY16 FY17 FY18* FY19* FY20* FY12 FY13 FY14 FY15 FY16 FY17 FY18* FY19*

  30. Slide 30: CRAR and Gearing

    CRAR and Gearing Capital to Risk Asset Ratio 21.62% 17.77% 17.98% 16.67% 13.81% 12.95% 13.76% 13.98% 12.70% 16.48% 11.50% 12.75% 15.18% 9.51% 10.41% 9.04% 11.00% 9.94% 6.27% 4.30% 5.14% 3.01% 3.35% 3.66% 3.92% 2.98% 2.80% 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-1

  31. Slide 31: Valuation & Shareholding

    Valuation & Shareholding 29

  32. Slide 32: Return to Shareholders

    Return to Shareholders Earning Per Share (INR) Dividend Per Share (INR) 71.19 9.00 9.00 Considering the current economic scenario and in order to conserve capital, the Company 50.52 has not declared dividend for FY19-20 6.00 36.72 38.45 25.07 25.42 27.48 3.40 22.30 24.41 3.00 3.00 2.20 2.50 FY12 FY1

  33. Slide 33: Shareholding

    Shareholding Shareholding as on 31-Mar-20 Listed on Indian Stock Exchanges on 7th November 2016 5.41% 3.25% 0.88% 3.78% Included in 32.65% “MSCI Global Small Cap Index” in November 2018 21.80% Also Included in • BSE 200 • NIFTY500 Value 50 • BSE 500 • NIFTY 500 • BSE ALLCAP • NIFTY Midcap 100 • S&P

  34. Slide 34: Detailed Financials

    Detailed Financials 33 (©)) Housing

  35. Slide 35: Profit & Loss Statement - Consolidated

    Profit & Loss Statement - Consolidated Particulars (INR Crore) FY20* FY19* FY18* FY17 FY16 FY15 FY14 FY13 FY12 % CAGR IndAS IGAAP Revenue from Operations 8,482 7,679 5,489 3,908 2,698 1,777 1,116 642 454 Other Income 8 4 1 0 1 - - 19 9 Total Revenue 8,490 7,683 5,490 3,908 2,699 1,777 1,116 661 463

  36. Slide 36: Balance Sheet Statement (IND-AS Consolidated)

    Balance Sheet Statement (IND-AS Consolidated) Particulars (INR Crore) 31-Mar-20 31-Mar-19 31-Mar-18 Particulars (INR Crore) 31-Mar-20 31-Mar-19 31-Mar-18 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments 0.0 210.8 38.6 (a) Cash and cash equivalents 8,

  37. Slide 37: Balance Sheet Statement- Equity & Liabilities (I-GAAP)

    Balance Sheet Statement- Equity & Liabilities (I-GAAP) Particulars (INR Crore) Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Mar-12 Equity and Liabilities Shareholder's Funds 5,577 2,146 1,581 935 621 404 Share Capital 166 127 104 66 50 30 Reserves and Surplus 5,412 2,019 1,477 869 571 374 Non-Current Liabilit

  38. Slide 38: Balance Sheet Statement- Assets (I-GAAP)

    Balance Sheet Statement- Assets (I-GAAP) Particulars (INR Crore) Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Mar-12 Assets Non-Current Assets 37,744 26,656 14,782 8,868 6,449 3,845 Fixed Assets 60 62 58 26 16 4 -Tangible Assets 48 48 38 23 13 4 11 10 1 -Intangible Assets -Capital Work-in-Progress 2 4 18 3 4

  39. Slide 39: Strong Management Team

    a] Strong Management Team 38 (©)) Housing

  40. Slide 40: Management Team

    Management Team Age : 62 Years Age : 58 Years Age : 54 Years No. of Years with No. of Years with PNB HF No. of Years with PNB HF : 9 Years PNBHF : 1** Year : 7 Years Prior Engagements : Prior Engagements : Prior Engagements : HDFC Standard Life State Bank of India Religare Finvest Ltd Insurance, Uni

  41. Slide 41: Highly Experienced Board

    Highly Experienced Board Sunil Kaul R Chandrasekaran Sh CH. S. S. Mallikarjuna Rao Shital Kumar Jain Gourav Vallabh Independent Director Non Executive Director Independent Director Non Executive Chairman Independent Director Age: 60 Years Age: 80 Years Age: 62 Years Age: 58 Years Age: 42 Years MD, C

  42. Slide 42: Corporate Governance

    Corporate Governance Board of Directors Under the provisions of the Companies Act, 2013. It has 10 members, 1 is non-executive chairman,1 is non-executive director, 7 are independent directors and Managing Director. Audit Committee (ACB) Under section 177 of the Companies Act, 2013. It has 3 members

  43. Slide 43: Saksham – Contributing to the Society

    Saksham – Contributing to the Society 42

  44. Slide 44: Glimpses of Social Interventions

    Glimpses of Social Interventions Enhancing Human Potential • Partnered with Confederation of Real Estate Developers Association of India (CREDAI) to conduct Onsite & Offsite skill enhancement training for 13,000+ construction workers • Launched construction worker skills enhancement training in part

  45. Slide 45: Awards and Recognitions

    Awards and Recognitions Won Gold Award for Won the Gold award at Won the Gold Award at Felicitated as winner for Awarded for Best Mr. Nitant Desai Annual Report Outlook Money Awards the League of American Excellence in Customer awarded amongst FY2018-19 at the 10th 2019 under the ‘Home Communication

  46. Slide 46: Awards and Recognitions

    Awards and Recognitions Listing of PNB Housing on National Recognized for Adjudged Winners Felicitated for Valuable PNB Housing recognized Stock Exchange’ Contribution in Promoting for Brand excellence Contribution to CREDAI PNB Housing felicitated at the RICS among the Top 100 CIOs of Green Buildin

  47. Slide 47: Summary

    Summary Wide Spread Retail Strong Industry Growth Distribution Network and Robust Technology Unique Operating Model Indian Housing Finance Wide spread retail distribution Robust Technology Platform Sector Poised for Strong network with pan India in place as Growth Enabler Growth presence and over 22

  48. Slide 48: Glossary

    Glossary ATA Average Total Assets GNPA Gross Non-Performing Asset ATS Average Ticket Size HFCs Housing Finance Companies AUM Asset Under Management LAP Loan against Property BVPS Book Value per Share LIG Low Income Group C/I Cost to Income LRD Lease Rental Discounting CRAR Capital to Risk Asset Rati

  49. Slide 49: Formulas

    Formulas Ratios Formulas Used Average Borrowings (%) Interest Expense / Average Borrowings Average Gearing Ratio (x) Average Borrowings / Average Net worth Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets Operating Expenditure(Employee Cost + Other Expenses + De

  50. Slide 50: Thank You

    Thank You Contact Ms. Deepika Gupta Padhi - Head-Investor Relations Phone: +91 11 23445214 Investor.relations@pnbhousing.com PNB Housing Finance Limited CIN: L65922DL1988PLC033856 www.pnbhousing.com 49

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