Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q2 FY2025 Earnings Presentation
53 slides from Pnb Housing Finance's earnings presentation, Oct 24, 2024
Slide 1: Stock exchange cover letter for investor presentation
Ref: PNBHFL/SE/EQ/FY25/94 Date: October 24, 2024 The BSE Limited The National Stock Exchange of India Limited Listing Department, Listing Department Phiroze Jeejeebhoy Towers, “Exchange Plaza” Dalal Street, Bandra Kurla Complex, Mumbai – 400001 Bandra (E), Mumbai – 400051 Scrip Code: 540173 Symbol:
Slide 2: Investor Presentation Quarter Ended September 2024
Investor Presentation Quarter Ended September 2024 24-October-2024 Public
Slide 3: Table of Content
Table of Content 1 Key Performance Highlights 2 Business Update 3 Segment Update – Prime 4 Segment Update – Emerging Markets 5 Segment Update – Affordable 6 Asset Quality 7 Technology Update 7 Financial Performance 8 Annexure Public
Slide 4: Key Performance Highlights
Key Performance Highlights • In Q2’FY25, Retail Disbursement grew by 28% YoY to INR 5,341 crore; Affordable and Emerging Markets segments accounted for 31% of the Retail Disbursement. Business Highlights • As on 30th Sep 2024, Retail Loan Asset stands at INR 67,970 crore; Affordable and Emerging Mar
Slide 5: Key Performance Highlights
Key Performance Highlights Retail Segment Corporate Segment Total 5,341 (Q2 FY25) 5,341 (Q2 FY25) (28.2 % YoY | 21.5 % QoQ) NIL (Q2 FY25) (27.8% YoY | 21.5% QoQ) • Prime: 3,676 (21.9% YoY) • Emerging Markets: 1,035 (31.1% YoY) 34 (H1 FY25) 9,738 (H1 FY25) Disbursement • Affordable: 630 (68.4% YoY) (
Slide 6: Key Performance Highlights
Key Performance Highlights AUM Loan Asset Deposits Net NPA Spread 2.21% (Q2FY25) INR 17,659 Crore 0.84% (30-Sep-24) vs ( -38 bps YoY | +10 bps QoQ) INR 74,724 Crore INR 69,501 Crore (10.8% YoY | 3.0% QoQ ) (14.2% YoY | 3.8% QoQ) Public 87.2% | ICD 12.8% 0.92% (30-Jun-24) | 1.19% (30-Sep-23) 2.16% (H
Slide 7: Overall Business Update
Overall Business Update Public 6 6
Slide 8: Loan Asset and Disbursement Mix
Loan Asset Mix (INR Crore) Segment Mix Retail Product Mix Retail Profile Mix 60,852 66,986 69,501 4.0% 2.7% 2.2% 28.0% 27.8% 27.8% 40.0% 38.8% 38.5% Loan Asset 96.0% 97.3% 97.8% 72.0% 72.2% 72.2% 60.0% 61.2% 61.5% 30-Sep-23 30-Jun-24 30-Sep-24 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Corporate Reta
Slide 9: Wide Distribution Network
Wide Distribution Network Loan Asset – Geographical Breakup 33% 33% 303 200 31% 33% 103 36% 34% 30-Sep-23 30-Sep-24 Disbursement - Geographical Break-up 30-Sep-23 30-Sep-24 Branches/outreaches 34% 35% 37% 38% 14,000+ Channel Partners for loans & deposits 29% 27% H1FY24 H1FY25 Top 5 State share in th
Slide 10: Well Diversified Borrowing Profile
Well Diversified Borrowing Profile Borrowing Mix Cost of Borrowing 9.1% 8.2% NHB Refinance 7.99% 7.87% 8.07% 7.83% 7.98% 7.93% 7.92% 7.75% 7.84% 7.82% Term Loans 39.4% 39.1% ECBs Deposits 2.6% 2.3% NCDs 32.5% 31.0% CPs 9.3% 9.9% 7.1% 9.5% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 30-Jun-2024 Q1 FY25 30-Sep
Slide 11: Strategic Objectives
Strategic Objectives Retail Loan Asset Grow retail Asset including high yielding Emerging Markets segment Affordable Asset Grow Affordable Asset especially in Tier 2 and 3 Asset Quality Leverage underwriting and collection efficiencies to have best-in class asset quality in the industry Strategic Bo
Slide 12: Retail strategy ramping up well
Retail strategy ramping up well Retail Growth strategy and objectives… Tech focus New strategy Leverage strong Management team Continue growth Focus on higher for operational focused on building parentage and best with deep retail trajectory in yielding Emerging efficiency; Salesforce leading retail
Slide 13: Leveraging Prime segment experience to grow Emerging Markets and Affordable
Leveraging Prime segment experience to grow Emerging Markets and Affordable Moving down the affordability pyramid… Experience brings advantages… Average Ticket size Yield 8-9% Super Prime Strong brand recall Pan India presence 35L 9-10% Trusted brand with long history and 30+ years of experience Pri
Slide 14: Retail Business Focus Areas
Retail Business Focus Areas LOAN Asset (INR crore)* Q2FY24 Q1FY25 Q2FY25 Change% (YoY) Prime 47,409 50,825 52,467 10.7% Emerging Markets 10,317 11,971 12,545 21.6% Affordable 745 2,361 2,959 297.2% • Retail Segment classified as Total 58,471 65,157 67,970 16.2% Prime, Emerging Markets and Affordable
Slide 15: Segment Update – Prime
Segment Update – Prime Public 14 14
Slide 16: Prime Segment Update
Prime Segment Update Loan Asset (INR crore) Loan Asset by Product (%) Loan Asset by Profile (%) 52,467 50,825 28.2% 28.3% 28.1% 27.7% 27.5% 42.0% 41.6% 41.3% 40.9% 40.5% 49,828 48,233 47,409 71.8% 71.7% 71.9% 72.3% 72.5% 58.0% 58.4% 58.7% 59.1% 59.5% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24
Slide 17: Segment Update – Emerging Markets
Segment Update – Emerging Markets Public 16 16
Slide 18: Emerging Markets Segment Update
Emerging Markets Segment Update Loan Asset (INR crore) Loan Asset by Product (%) Loan Asset by Profile (INR crore) 11,971 12,545 11,688 10,746 26.9% 27.1% 27.1% 27.1% 27.7% 30.1% 29.7% 29.5% 29.0% 28.7% 10,317 73.1% 72.9% 72.9% 72.9% 72.3% 69.9% 70.3% 70.5% 71.0% 71.3% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2
Slide 19: Segment Update – Affordable
Segment Update – Affordable Public 18 18
Slide 20: Roshni Business: Key Milestones
Roshni Business: Key Milestones Jan-23 Jul-23 Nov-23 Dec-23 Mar-24 May-24 Jun-24 Sep-24 Reached disbursement Fastest to cross Expanded presence to Total footprint of Fastest to cross Loan Asset at Loan Asset at Started with Loan Asset of run-rate of INR 5 Crore INR 100 Crore / INR 1,000 100 branches
Slide 21: Affordable Segment Distribution Strategy
Affordable Segment Distribution Strategy Distribution Network Disbursement Channel Mix – H1 FY25 160 160 160 33.3% 100 Inhouse 89 66.7% DSA Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Geographic Presence Loan Asset Geographical Breakup % of Loan Asset State # Branches 30-Sep-23 30-Sep-24 Tamil Nadu 21 19.9%
Slide 22: Ramp-up in Affordable Segment
Ramp-up in Affordable Segment Sanction (INR crore) Disbursement (INR crore) 645 630 586 31.4% 35.2% 1,120 28.6% 950 406 892 374 623 25.3% 31.6% 495 74.7% 68.4% 68.6% 71.4% 64.8% Q2FY24 Q2'24 Q3FY24 Q3'24 Q4FY24 Q4'24 Q1'25 Q1FY25 Q2'25 Q2FY25 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Individual Housing Loa
Slide 23: Affordable Segment Portfolio Matrix
Affordable Segment Portfolio Matrix Loan Asset by Product Loan Asset by Profile Loan Asset by Profile – Formal/Informal 25% 30.6% 42.6% 57.4% 18% 54% 69.4% 4% Individual Housing Loan Salaried SAL - Formal SAL - Informal Non Housing Loan Self Employed SE - Formal SE - Informal Loan Asset by Ticket Si
Slide 24: Asset Quality
Asset Quality Public 23 23
Slide 25: Credit Underwriting Process Flow
Credit Underwriting Process Flow Login Credit appraisal Collateral Disbursement Digital intervention at each step Customer provides all data Assessment of three C’s: Verification of valuation and Hassle free disbursement digitally (eKYC, Financials, Credibility title of collateral post customer’s ac
Slide 26: Retail Portfolio Highlights
Retail Portfolio Highlights Sustainable growth Improved credibility Total of 41,373 logins were booked in Q2 FY25 as Quarter on quarter improvement in sourcing against 36,151 logins in Q1 thereby registering 14% quality; 87% of the loans booked in Q2 FY25 had growth bureau score of more than 700 vis
Slide 27: Retail Collection Strategy
Retail Collection Strategy Collections supported by Technology, Data & Analytics Analytics based case allocation Geo-allocation Real Time Field Force Tracking Delinquency Prediction Modelling Verticalization of Collection Team to Improve Asset Quality X-Bucket Resolution Emphasis on Recovery on Pre-
Slide 28: Retail Collections Update
Retail Collections Update Collection Efficiency Write off Recovery Dedicated team to focus on bucket X, pre-NPA and NPA resolutions Dedicated team is handling the written off cases with the help of legal to get maximum recovery through settlement 49 48 29 28 10 99.5% 99.2% 99.2% 99.0% 99.9% Q2 FY24
Slide 29: Asset Quality: GNPA & NNPA
Asset Quality Overall Retail Corporate GNPA (INR 1,018 68 74 68 1,005 Crore) 1,086 1,079 984 906 865 916 906 865 0 0 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY24 1.78% 1.73% 1.74% 1.67% 3.35% 3.31% 1.50% 1.45% 1.39% 2.86% 1.35% 1.24% 1.27%
Slide 30: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Particulars (INR Crore) 30-Sep-24 30-Jun-24 30-Sep-23 Gross Stage 1* 66,688 63,996 57,796 Gross Stage 1 as % to Loan Asset 95.95% 95.54% 94.98% ECL Provision Stage 1 502.69 481 559 ECL Provision % Stage 1 0.75% 0.75% 0.97% Gross Stage 2* 1,948 2,084 1,970 Gross
Slide 31: Technology Update
Technology Update Public 30 30
Slide 32: Technology Vision and Foundations
Technology Vision and Foundations Tech Vision PNBHFL to be a large Digital player in the HFC ecosystem collaborating and partnering with fintech, banks, market aggregators etc., leveraging synergy & scale through platforms, offering personalised products and ease of services promoting high levels of
Slide 33: IT Landscape: Overall Flow and Applications
IT Landscape: Overall Flow and Applications Public 32
Slide 34: IT Landscape: Overall Flow and Applications
IT Landscape: Overall Flow and Applications Technology Benefits Realized: LOS Technology Levers (CRM Solution): • Full Digitalization of all verification activities during loan sourcing • New & enhanced website with integrated channels (Legal, Technical, FI, FCU) • Cloud based robust CRM solution •
Slide 35: Financial Performance
Financial Performance Public 34 34
Slide 36: Retail and Corporate Profit & Loss Statement – Quarterly
Retail and Corporate Profit & Loss Statement (Consolidated) –– Quarterly Retail Corporate Total Particulars (INR crore) Q2 FY25 Q2 FY24 Chg (YoY%) Q2 FY25 Q2 FY24 Chg (YoY%) Q2 FY25 Q2 FY24 Chg (YoY%) Net Interest Income 634 563 12.5% 35 97 -64.5% 669 661 1.2% Non fund based income 92 59 56.6% 0 3 -
Slide 37: Retail and Corporate Profit & Loss Statement – Half-Yearly
Retail and Corporate Profit & Loss Statement (Consolidated) –– Half-Yearly Retail Corporate Total Particulars (INR crore) Chg Chg H1 FY25 H1 FY24 Chg (YoY%) H1 FY25 H1 FY24 H1 FY25 H1 FY24 (YoY%) (YoY%) Net Interest Income 1,244 1,118 11.3% 76 160 -52.6% 1,320 1,278 3.3% Non fund based income 174 91
Slide 38: Financial Ratio Analysis – Quarter on Quarter
Financial Ratio Analysis – Quarter on Quarter Average Yield Average Cost of Borrowing 10.48% 10.29% 10.08% 10.58% 10.19% 10.08% 7.99% 7.99% 8.07% 7.98%* 7.98% 7.98% 10.03% 10.03% 10.05%10.05% 7.92% 7.92% 7.84% 7.84% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 *In Q3FY24, th
Slide 39: Financial Ratio Analysis - Annual
Financial Ratio Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.28% 10.35% 10.04% 8.01% 7.88% 2.81% 3.73% 3.74% 3.66% 9.42% 7.30% 7.47% 2.34% 2.12% 2.16% 2.80% FY22 FY23 FY24 H1 FY25 FY22 FY23 FY24 H1 FY25 FY22 FY23 FY24 H1 FY25 FY22 FY23 FY24 H1 FY25 Gross I
Slide 40: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q2 FY25 Q2 FY24 YoY Q1 FY25 QoQ H1FY25 H1FY24 YoY FY24 FY23 FY22 Interest Income 1,780 1,703 4.5% 1,739 2.4% 3,519 3,370 4% 6,742 6,199 5,822 Add: Net gain on fair value changes 6.8 15 -54.7% 9 -24.4% 16 24 -35% 35 34 111 Add: Income on de
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 30-Sep-24 31-Mar-24 31-Mar-23 31-Mar-22 Particulars (INR Crore) 30-Sep-24 31-Mar-24 31-Mar-23 31-Mar-22 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments 29 - (a) Cash and cash equivalents 2,064 2,142
Slide 42: Key Takeaways
Key Takeaways Focus on Retail Loan Growth Grow Affordable Segment Asset Quality including Emerging Markets Segment Expanded presence to 160 locations to Continued focus on Retail Segment incl. high support growth Augmented Collections efforts led to yielding Emerging Markets business improvement in
Slide 43: Annexure
Ghar Ki Baat Annexure
Slide 44: Shareholding Pattern
Shareholding Pattern Shareholding as on 30-Sep-24 Top 10 Shareholders 7.5% 8.0% • Promoter (PNB) 28.1% • Carlyle 16.0% • GIC Singapore 19.9% • HSBC Mutual Fund • Nippon Mutual Fund 11.4% • Birla Sun Life Mutual Fund • Tata Mutual Fund 7.7% • Vanguard 1.3% • Abakkus AIF Promoters Quality Investment H
Slide 45: Distinguished Board of Directors
Distinguished Board of Directors Chandrasekaran Atul Kumar Goel Sunil Kaul Non-Executive Nominee Director Non-Executive Nominee Director Ramakrishnan Independent Director Nilesh Shivji Vikamsey Tejendra Mohan Bhasin Sudarshan Sen Independent Director Independent Director Independent Director Neeraj
Slide 46: Experienced and Professional Management Team
Experienced and Professional Management Team Girish Kousgi Vinay Gupta Amit Singh Managing Director and CEO Chief Financial Officer Chief People Officer Ajay Kumar Mohanty Anujai Saxena Jatul Anand Head - Internal Audit and Chief of Chief Credit & Collections Officer Internal Vigilance Business Head
Slide 47: Governance
Governance Governance Regulations Good Practices Policies Key Features of Governance • RMC of the Board oversees the company’s Risk Management practices and approve the Risk Risk Based Management Framework of the Strategy Report Performance company Management • Executive RMC Comprising of senior mem
Slide 48: Overarching ESG Framework
Overarching ESG Framework Our Motivation Ghar ki Baat Through Strong ESG, A Board ESG Oversight at Governance Dedicated ESG team Level Agenda Leadership CONSERVE RESPECT PRACTICE Empowered by our ESG Conserve Resources & Promote social equity & Practice Sustainability strategic areas as a “Way of li
Slide 49: ESG Dashboard
ESG Dashboard Environment Social Governance ~2.30 GJ/revenue (in crores) 16%+ Women Project Sanjeevani – 7 80%+ Women 60% Energy Intensity Employees No. Applicants/Co-Applicant** Independent Directors Ambulances handed over to Northern Command of the ~0.45 Ton/revenue (in Indian Army to support cror
Slide 50: Awards and Accolades
Awards and Accolades Public 49
Slide 51: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Book NIM (%) Net Interest Income including assignment income / Average Earning Assets Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost + ESOP cost + CSR
Slide 52: 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 53: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi National Head-Investor Relations & Treasury Phone: +91 124 6030500 Investor.relations@pnbhousing.com www.pnbhousing.com Public 52
PNB Housing Finance — Q2 FY2025 Earnings Presentation on 6ix