Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q1 FY23 Earnings Presentation
36 slides from Pnb Housing Finance's earnings presentation, Jul 28, 2022
Slide 1: Submission of Investor Presentation to Stock Exchanges
@ pnb Housing Finance L imi ted E'!hCA..r Ki BCA..CA..t Date: July 28, 2022 SSE Limited, National Stock Exchange of India Limited, Listing Department, Listing Department Phiroze Jeejeebhoy Towers, "Exchange Plaza" Dalal Street, Sandra Kurla Complex, Mumbai- 400001 Sandra (E), Mumbai- 400051 Scrip Co
Slide 2: Investor Presentation Quarter Ended June 2022
Investor Presentation Quarter Ended June 2022 28-July-2022
Slide 3: Table of Content
Table of Content 1 Strategic Objective 2 Key Performance Highlights for Q1 FY22-23 3 Business Update – Retail & Corporate 4 Asset Quality 5 Digital Transformation 6 Financial Performance 7 Annexure
Slide 4: Strategic Objective
Strategic Objective 1 Accelerate growth by focussing on Retail Lending by leveraging our expertise in retail loan segment 2 Expand affordable Housing loan offering 3 Enhance underwriting and collection efficiencies and improve the credit quality of the portfolio 5 Drive growth through digitisation t
Slide 5: Key Performance Highlights – Q1FY23
Key Performance Highlights – Q1FY23 Disbursement AUM* Loan Asset* Retail Loans* INR 50,295 Crore INR 3,451 Crore INR 64,850 Crore INR 56,301 Crore (1.7% YoY | 1.1% QoQ) (+96.2% YoY | -6.7% QoQ) (-9.7% YoY | -1.7% QoQ) (-6.8% YoY | -1.0% QoQ) 91% of AUM (604 bps YoY | 159 bps QoQ) Deposits GNPA Total
Slide 6: Key Performance Highlights – Q1FY23
Key Performance Highlights – Q1FY23 Disbursements and Asset • Disbursement is up by 96.2% YoY to INR 3,451 Crore as against INR 1,759 crore in Q1FY22 primarily, on account of retail disbursement. • Retail Disbursement reported an increase of 105.6% YoY to INR 3,395 Crore as compared to INR 1,652 Cro
Slide 7: Key Performance Highlights – Q1FY23
Key Performance Highlights – Q1FY23 Yield & Cost Of Borrowing • Yield stood at 8.63% as compared to 10.19% in Q1FY22 and 8.53% in Q4FY22 I Cost of Borrowing stood at 7.21% as compared to 7.49% in Q1FY22 and 7.10% in Q4FY22 • Spreads at 1.42% as compared to 2.70% in Q1FY22 and 1.43% in Q4FY22 • Total
Slide 8: Key Business Trends
Key Business Trends No. of Logins & Sanctions Disbursement (INR Crore) 90% 96% 81% 3,698 28,708 34 3,451 2,961 56 24,353 2,828 21,516 129 95 20,363 19,241 17,035 14,390 14,754 1,759 13,420 107 3,664 3,395 8,977 2,833 2,733 • Retail loan asset registered 1,652 growth of 1.7% YoY and 1.1% sequentially
Slide 9: Business Update
Business Update (INR Crore) Disbursement Loan Asset* Asset* 18,626 67,571 83,346 1,515 62,255 74,469 14,614 56,889 56,301 11,786 65,977 7,159 6,006 64,850 11,246 10,445 365 411 17,111 52,957 67,571 50,469 49,730 50,295 62,255 56,889 56,301 10,034 10,881 3,451 56 3,395 FY20 FY21 FY22 Q1FY23 31-Mar-20
Slide 10: Wide Distribution Network
Wide Distribution Network 10 147 AUM – Geographical Breakup 137 113 24 34 29% 29% 29% 30% 113 42% 41% 113 30-Jun-21 30-Jun-22 North South West 31-Mar-22 Apr-Jun-22 30-Jun-22 Disbursement Geographical Break-up Unnati specific locations Branches and Outreaches Network 21% 35% 25% 22 hubs Over 24,000 c
Slide 11: Improved Retail contribution in Asset Under Management
Improved Retail contribution in Asset Under Management (INR Crore) AUM* Mix Product-wise Break-up Segment-wise Breakup 83,346 74,469 65,977 64,850 11% 9% 9% 9% 18% 16% 15% 15% 4% 4% 24% 22% 40% 40% 89% 91% 82% 84% 59% 63% 51% 45% 31-Mar-20 31-Mar-21 31-Mar-22 30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21
Slide 12: Focus on Retail Lending
Focus on Retail Lending (INR Crore) Increased disbursement of Retail loans… … with focus on Tier II & III cities for Retail… Disbursement 18,626 10,445 11,246 3,415 8% 4% 3% 2% 59.2% 56.9% 52.8% 51.4% 92% 96% 97% 98% 40.8% 43.1% 47.2% 48.6% FY20 FY21 FY22 Q1FY23 FY20 FY21 FY22 Q1FY23 Corporate Retai
Slide 13: Retail Loan Book – Key Attributes
Retail Loan Book – Key Attributes (INR Lakhs) Average Ticket Size Loan To Value 47 71% 72% 72% 69% 44 36 36 49% 49% 49% 48% 29 27 28 28 31-Mar-20 31-Mar-21 31-Mar-22 30-Jun-22 31-Mar-20 31-Mar-21 31-Mar-22 30-Jun-22 IHL LAP IHL LAP Lower Average Ticket Size indicating granularization of the book Con
Slide 14: Retail Loan Book – Average Ticket Size Range
Retail Loan Book – Average Ticket Size Range Individual Housing Loan Retail Loan Against Property 0.1% 0.1% 0.1% 0.0% 1.4% 0.3% 0.2% 1.1% 0.7% 0.2% 0.8% 0.1% 1.9% 1.6% 2.3% 0.3% 2.4% 0.3% 5.0% 4.6% 4.1% 3.9% 3.3% 2.5% 9.9% 10.3% 11.4% 11.0% 12.0% 12.9% 12.0% 13.9% 14.4% 15.5% 17.5% 18.6% 34.1% 33.3%
Slide 15: Significant Reduction in Corporate Book
Significant Reduction in Corporate Book % of Total 17.5% 15.8% 10.9% 9.3% AUM -59% (INR Crore) 14,614 11,786 10,356 7,159 8,637 6,006 5,912 5,015 3,052 2,243 1,206 906 344 903 340 651 Mar-20 Mar-21 Mar-22 Jun-22 Construction Finance Corporate Term Loan Lease Rental Discounting Average Ticket Size Ci
Slide 16: Update on accounts moved out of NPA
Corporate Book Remedial Actions • Project with O/s of INR 353 Crore A prominent builder in NCR has takeover the Project along with its liabilities All approvals from authorities including homebuyer consent has been received and transaction documents executed. Account has been upgraded to Stage
Slide 17: Non-Performing Assets
Non-Performing Assets 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 (INR Crore) Gross NPA 3,931 3,803 4,738 4,706 3,639 Loan Asset As on 30-Jun-22 INR Crore 61,469 60,317 57,856 57,939 57,338 (IndAS) Gross NPA (%) 6.40% 6.31% 8.19% 8.12% 6.35% Gross NPA 3,639 Net NPA (%) 4.05% 3.75% 5.46% 5.06%
Slide 18: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Particulars (INR Crore) 30-Jun-22 31-Mar-22 30-Jun-21 Gross Stage 1* 51,602 51,251 53,516 Gross Stage 1 as % to Loan Asset 90.00% 88.46% 87.06% ECL Provision Stage 1 600 583 601 ECL Provision % Stage 1 1.16% 1.14% 1.12% Gross Stage 2* 2,097 1,981 4,022 Gross Sta
Slide 19: Accelerate Digital Intervention across the value chain
Accelerate Digital Intervention across the value chain Integrated technologies across processes…. …leading to improvement in digital transformation Sourcing Upgradation ongoing to ACE 2.5 to enhance customer experience digitally & further integrate with our existing platform Ace Underwriting Launche
Slide 20: Financial Performance
Financial Performance Ghar Ki Baat
Slide 21: Well Diversified Resource Profile
Well Diversified Resource Profile (INR Crore) 7.4% 10.9% 7.5% 6.7% Credit Rating 24.4% 27.4% 27.9% 22.2% • Fixed Deposit: “AA” by CRISIL and CARE. 6.7% 8.3% • Commercial Paper: “A1(+)” by 9.7% 10.3% CARE & CRISIL 19.6% 23.7% • Non-Convertible Debentures: 0.5% 28.6% 29.8% “AA” by CARE, India Ratings,
Slide 22: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 1,693 1,217 1,586 1,153 1,112 1,496 1,426 1,412 1,057 1,053 1,653 1,103 1,035 996 1,538 1,435 1,307 1,301 931 930 40 49 61 118 111 114 118 116 126 122 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Interest
Slide 23: Financial Ratio Highlights – Quarter on Quarter
Financial Ratio Highlights – Quarter on Quarter Average Yield Average Cost of Borrowing 10.19% 9.69% 7.49% 9.24% 7.29% 7.24% 7.21% 8.53% 8.63% 7.10% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Yield (Excl. Securitisation 10.31% 10.10% 9.78% 8.94% 8.85% Income) Spread Net In
Slide 24: Margin Analysis - Annual
Margin Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.7% 10.7% 8.2% 2.8% 3.2% 7.9% 3.0% 9.4% 7.3% 7.2% 2.5% 2.8% 8.6% 2.1% 2.4% 1.4% FY20 FY21 FY22 Q1FY23 FY20 FY21 FY22 Q1FY23 FY20 FY21 FY22 Q1FY23 FY20 FY21 FY22 Q1FY23 Yield (Excl. Spread (Excl. 10.4% 10.4
Slide 25: Capital Position
Capital Position (INR Crore) Capital to Risk Asset Ratio Provisions 23.9% 4.4% 23.4% 4,000 4.0% 4.5 2.5% 3.5% 4.0 2.7% 3,500 3.5 3,000 2.6% 3.0 18.7%** 2,544 2,559 18.0% 2,500 2.5 3.2% 2,016 2.0 2.8% 2,000 1,766 1.5 1,500 1.0 1,000 0.5 0.0 500 21.4% -0.5 20.7% 0 -1.0 31-Mar-20* 31-Mar-21 31-Mar-22 3
Slide 26: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q1 FY23 Q1 FY22 YoY Q4 FY22 QoQ FY22 FY21 FY20 Interest Income* 1,299 1,611 1,299 5,822 7,190 7,688 Add: Net gain on fair value changes 0 42 8 111 162 159 Add: Income on derecognized loans assigned during the period 2 0 0 0 71 336 Less: Fi
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 31-Mar-22 31-Mar-21 31-Mar-20 Particulars (INR Crore) 31-Mar-22 31-Mar-21 31-Mar-20 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments - 51 - (a) Cash and cash equivalents 5,066 6,969 8,514 (b) Debt Se
Slide 28: Key Takeaways
Key Takeaways Continue to operate in Leverage advance mass housing and analytics and digital Improve collection Remedial Upgrade technology merchant segment tools to automate credit efficiencies through management Group platforms for enhanced appraisal journey in predictive analytics, to focus on re
Slide 29: Annexure
Annexure Ghar Ki Baat
Slide 30: ESG Snapshot
ESG Snapshot 99% EMI collections through digital mode Promoting quality education through infrastructure The Company through its CSR initiative supported development; 17,000+ children were given education and skill development opportunities till date • Solar Electrification in 20 government sc
Slide 31: Experienced Management Team
Experienced Management Team MANAGING DIRECTOR & CEO • Years of Experience: 36+ • Years with PNBHF: 1+ COMPANY SECRETARY & COMPLIANCE HEAD CHIEF FINANCIAL OFFICER CHIEF SALES OFFICER – RETAIL CHIEF CREDIT & COLLECTIONS OFFICER • Years of Experience: 33+ • Years of Experience: 22+ • Years of Experienc
Slide 32: Shareholding
Shareholding Shareholding as on 30-Jun-22 Top Shareholders 2.9% 7.6% 0.8% SSG Capital, General Atlantic Singapore Fund, Vanguard, Malabar 32.6% Investments, Blackrock (ETFs), United India Insurance, Bajaj Allianz 24.0% Life Insurance, Dimensional Fund Advisors, Franklin Templeton MF, Tata Mutual Fun
Slide 33: Growth of Housing Finance Sector
Growth of Housing Finance Sector Portfolio Growth of HFCs Portfolio Composition of HFCs* 2% 38% 16% 29% 29% 23% 25% 19% 25% 16% 20% 14% 14% 14% 6% 9% 14% 16% 13% 7% 10% 10% 7% 6% 2% 1% 67% 1% Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 P Mar-23 P On-Book POS Non Housing Loans Housing Loans Home
Slide 34: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets Cost to Income (%) Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - CSR cost - Fair value on repossessed assets) / (Net Revenue-Acq
Slide 35: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation, directly or indirectly, in any man
Slide 36: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com 35