Cholamandalam Investment And Finance Co. Ltd. · NSE:CHOLAFIN
Cholamandalam Investment And Finance — Investor Presentation (December 2018)
78 slides from Cholamandalam Investment And Finance's investor presentation, December 2018
Slide 1: Cholamandalam Investment and Finance Company Limited Corporate Presentation - December 2018
Cholamandalam Investment and Finance Company Limited Corporate Presentation - December 2018
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 118 Years of $5.05 Consolidate $10.3 Group Market Years Existence B Turnover B cap (as on 31st (FY18) Mar 2018) Listed 3 Sectors 28 Businesses 9 Companies 18 Geographical 90+ Manufacturing 35000 Work force Countries Presence Locations Locations + 4
Slide 5: Murugappa Group Overview
Murugappa Group Overview Murugappa Group Agriculture Engineering Financial services Sector Performance—FY17-18 Market Cap(Cr.) 19,863 10,886 22,659 Total Income (Cr.) 15,509 7,602 9,603 PAT(Cr.) 679 363 1,216 Major Companies Market Cap(Cr.) 13,161 3,652 6,791 6,555 19,704 Total Income (Cr.) 11,049 4
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: Cholamandalam Investment & Finance Company Limited
Cholamandalam Investment & Finance Company Limited 8 lakh + customers 21,900+ employees Helping customers enter better life Strong employees force to serve more customers 2 lakh customers in year 2000 to 8 lakh plus customers till date 200 plus employees in year 2000 to 21,900 plus employees today R
Slide 9: 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 YTD Dec 18 • Commenced • Started Chola • Obtained • Total AUM • Infused capital • Total AUM • Total AUM
Slide 10: Shareholding Pattern and Chola Finance share price growth
Shareholding Chola Finance—share Shareholding Pattern price Growth Institutions 40 , 21% 30 20 10 (%) Public, 6% 0 -10 -20 Promoters, 53% Chola Finance Sensex BFSI Index FII, 20% -30 Mar-18 Dec-17 Dec-18 Jun-18 Sep-18 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Promoters share holding of 53.07% includes CI
Slide 11: Business Profile and AUM as on 31st Dec 2018
Business Profile and AUM as on 31st Dec 2018 Business AUM Rs. 50,393Cr Vehicle Finance Rs. Home Equity Others 37,494Cr Rs. 11,145Cr Rs. 1,753Cr 23% 3% 74% Tractor, 7% Others, Agri, 1% Trip Loans, 4% Older Vehicles, CE, 5% SME, 13% 7% Commercial, 11% 10% HCV, 18% Refinance, 12% 3Whlr and SCV, 7% SORP
Slide 12: Strong Geographical Presence
Strong Geographical Presence Jammu & Kashmir (3) Branch Network 873 883 885 891 Punjab (20) 137 137 98 Himachal Pradesh (12) 217 Chandigarh(1) 254 267 254 Uttarakhand (14) 222 Harayana (27) Delhi (5) 245 247 265 208 Assam (23) 172 192 192 201 Rajasthan (69) UP (63) 54 55 55 60 Bihar (34) Meghalaya (
Slide 13: Disbursals: Growth and mix
Disbursals: Growth and mix Disbursement growth ₹ Cr Disbursement mix ₹ Cr 26% 21,558 6,761 7,644 2% 4% 12% 12% 17,106 13% 45% 26% 83% 82% 7,644 7,014 6,899 6,761 5,492 4,853 Q1 Q2 Q3 YTD Q3FY18 Q3FY19 VF HE HL FY 18 FY 19 13
Slide 14: Financial Performance
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Slide 15: Performance Highlights—Q3FY19 & YTD Dec 18
Performance Highlights—Q3FY19 & YTD Dec 18 Disburse- Profit after ROTA (PBT) Book Value EPS1 ROE1 ments Tax ₹ 7,644Cr ₹ 304Cr 3.6% ₹382.7 ₹77.8 20.7% Q3-FY19 13% 39% 23% 39% Q3-FY18 ₹ 6,761Cr ₹ 219Cr 3.5% ₹312.7 ₹56.1 18.3% Disburse- Profit after ROTA (PBT) Book Value EPS1 ROE1 ments Tax YTD Dec ₹ 2
Slide 16: Financial Snapshot (IGAAP)—10 Years
Financial Snapshot (IGAAP)—10 Years ₹ Cr Financials CAGR CAGR Snapshot FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 YoY (5 years) (10 years) Assets under 6,033 6,851 9,124 13,462 18,998 23,253 25,453 29,650 34,167 42,879 25% 17% 24% management Total Income 1,121 930 1,202 1,788 2,556 3,263 3,69
Slide 17: Chola: Financial Summary (I)
Chola: Financial Summary (I) Disbursements (₹Cr) Business - Assets under Management (₹Cr) *50,393 26% *47,720 *45,328 1468 *21,558 969 1043 1,308 *38,980 *36,456 *34,992 *17,106 2,803 735 807 1,018 916 2,368 13% 45% 26% *7,014 *6,899 *7,644 *6,761 *5,492 451 *4,853 411 447 356 954 939 368 910 799 29
Slide 18: Chola: Financial Summary (II)
Chola: Financial Summary (II) Profit after tax (₹Cr) Networth (₹Cr) 41% 23% 22% *5,984 22% *5,680 *5,398 156 156 *4,871 156 *4,661 *4,442 156 156 156 894 49% 39% 36% 633 285 305 304 210 204 219 4,285 5,242 4,504 5,524 4,715 5,828 Q1FY18 Q1FY19 Q2FY18Q2FY19 Q3FY18Q3FY19 YTD YTD Q1FY18 Q1FY19 Q2FY18 Q
Slide 19: Chola: Financial Summary (III)
Chola: Financial Summary (III) Net Income Margin (%) Expenses Ratio (%) 7.9% 7.7% 7.6% 3.0% 7.4% 7.5% 2.9% 2.9% 2.9% 6.9% 7.0% 6.8% 2.5% 2.5% 2.5% 2.5% Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 19
Slide 20: Chola: Financial Summary (IV)
Chola: Financial Summary (IV) Loan Losses & Provisions (%) ROTA PBT (%) 1.3% 1.3% 4.0% 3.9% 3.8% 1.2% 3.8% 3.5% 3.6% 3.5% 3.4% 1.0% 0.9% 0.7% 0.7% 0.5% Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 20
Slide 21: Chola: Financial Summary (V)
Chola: Financial Summary (V) Return on equity (%) Earnings per share (₹) 21.8% 21.8% 21.4% 1,849 19.1% 36% 77.9 77.8 18.3% 73.2 17.7% 56.1 53.8 52.2 Q1 Q2 Q3 Q1 Q2 Q3 FY 18 FY 19 21
Slide 22: Chola: Financial Summary (VI)
Chola: Financial Summary (VI) P/E Ratio P/BV Ratio 23.1 4.4 20.9 20.7 20.9 4.1 1,849 3.9 3.7 3.2 3.3 16.2 15.0 Q1 Q2 Q3 Q1 Q2 Q3 FY 18 FY 19 22
Slide 23: Profit and Loss Statement (As per IND AS)
Profit and Loss Statement (As per IND AS) ₹ Cr Growth Growth % Growth % Particulars Q1FY18 Q1FY19 Q2FY18 Q2FY19 Q3FY18 Q3FY19 YTD Dec17 YTD Dec18 % (YTD) Q2-o-Q2 Q3-o-Q3 Y-o-Y Disbursements 4,853 7,014 5,492 6,899 6,761 7,644 17,106 21,558 26% 13% 26% Closing Assets (Managed) 36,076 46,893 37,417 52
Slide 24: Balance Sheet (As per IND AS)
Balance Sheet (As per IND AS) ₹ Cr Particulars Dec-17 Mar-18 Dec-18 ASSETS Financial Assets 39,757 43,554 53,298 Cash and Bank balance 852 888 3,649 Derivative financial instruments - - 116 Loans 38,269 42,198 48,925 Investments 311 320 387 Other Financial Assets 324 148 221 Non- Financial Assets 65
Slide 25: Provision analysis: IND AS vs IGAAP
Provision analysis: IND AS vs IGAAP ₹ Cr Particulars Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 As per IGAAP GNPA 1,467 1,278 1,377 1,347 1,375 NNPA 927 722 778 751 753 Provision 540 556 599 597 622 GNPA% 3.7% 2.9% 3.0% 2.8% 2.7% NNPA% 2.3% 1.7% 1.7% 1.6% 1.5% Provision Coverage% 36.8% 43.5% 43.5% 44.3% 45.
Slide 26: Business Overview
Business Overview 26
Slide 27: Vehicle Finance
Vehicle Finance 27
Slide 28: Vehicle Finance: Q3FY19 and YTD Dec 18 Performance
Vehicle Finance: Q3FY19 and YTD Dec 18 Performance (As per IND AS) Disbursements • Disbursements has grown 11% in Q3FY18 and 27% on YTD basis Assets under management Assets have grown by 34% as on Dec 2018 Loss and Loan losses Q3FY19 is at 0.9% provisions Loan losses (YTD) reduced to 0.9% from
Slide 29: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic LCV Sales Trend in Domestic SCV Sales (in Units) (in Units) CAGR @ 12% CAGR @ 14% 3,28,911 7,33,502 4,66,154 1,94,742 3,98,226 1,23,127 1,24,207 1,33,333 2,19,407 2,37,416 YTD Dec15 YTD Dec16 YTD Dec17 YTD Dec18 YTD Dec'22 YTD Dec15 YTD Dec16 YTD Dec17 YTD Dec
Slide 30: Auto Industry Outlook
Auto Industry Outlook Trend in Domestic HCV Sales Trend in Domestic Car & MUV Sales (in Units) (in Units) CAGR @ 4% CAGR @ 10% 34,88,766 2,48,844 2,12,713 1,73,939 22,22,482 22,96,226 23,82,874 1,62,659 1,58,153 20,42,731 YTD Dec15 YTD Dec16 YTD Dec17 YTD Dec18 YTD Dec'22 YTD Dec15 YTD Dec16 YTD Dec
Slide 31: 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 32: 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 33: Vehicle Finance - Disbursement/Portfolio Mix – Q3FY19
Vehicle Finance - Disbursement/Portfolio Mix – Q3FY19 Well diversified across geography & product segments Disbursements - State wise Portfolio - State wise MP AP Karnataka MP AP Maharashtra Karnataka 5% 5% Kerala Maharashtra Kerala 6% Pondicherry 5% 5% 10% 5% Pondicherry 4% Telangana 12% 4% Telanga
Slide 34: Vehicle Finance - Disbursement/Portfolio Mix – Q3FY19
Vehicle Finance - Disbursement/Portfolio Mix – Q3FY19 Well diversified across geography & product segments Disbursements - Product wise Portfolio - Product wise Tractor, 7% Older Tractor, 7% Older CE, 5% Vehicles, CE, 5% Vehicles, 13% 15% HCV, 14% HCV, 18% Refinance, 12% Refinance , 14% LCV, 20% 3Wh
Slide 35: Vehicle Finance: Financial summary Q3FY19 (I)
Vehicle Finance: Financial summary Q3FY19 (As per IND AS) (I) Disbursements (₹Cr) Assets under management (₹Cr) 27% 17,447 34% 38% 37,494 37% 35,439 33,490 13,720 27,959 25,661 24,380 11% 29% 48% 6,240 5,665 5,542 5,607 4,295 3,819 Q1 Q2 Q3 YTD Q1 Q2 Q3 FY 18 FY 19 35
Slide 36: Vehicle Finance: Financial summary Q3FY19 (II)
Vehicle Finance: Financial summary Q3FY19 (As per IND AS) (II) Income (₹Cr) Profit before tax (₹Cr) 29% 3,934 35% 915 3,041 679 32% 30% 25% 24% 45% 35% 1,317 1,393 1,224 324 1,052 314 978 1,011 277 223 223 232 Q1 Q2 Q3FY19 YTD Q1 Q2 Q3FY19 YTD FY 18 FY 19 36
Slide 37: Vehicle Finance: Financial summary Q3FY19 (III)
Vehicle Finance: Financial summary Q3FY19 (As per IND AS) (III) Net Income Margin (%) Expense Ratio (%) 8.4% 8.3% 3.8% 7.9% 8.0% 3.6% 3.6% 3.6% 7.4% 7.3% 7.2% 7.2% 2.9% 2.9% 2.9% 2.9% Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 37
Slide 38: Vehicle Finance: Financial summary Q3FY19 (IV)
Vehicle Finance: Financial summary Q3FY19 (As per IND AS) (IV) Loan Losses & Provisions (%) ROTA PBT (%) 1.1% 1.1% 3.7% 3.7% 3.5% 3.5% 3.5% 3.4% 3.4% 3.4% 1.0% 0.9% 0.9% 0.9% 0.8% 0.7% Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 38
Slide 39: Profit and Loss Statement: Vehicle Finance
Profit and Loss Statement: Vehicle Finance (As per IND AS) ₹ Cr Growth Growth % Growth % Particulars Q1FY18 Q1FY19 Q2FY18 Q2FY19 Q3FY18 Q3FY19 YTD Dec17 YTD Dec18 % (YTD) Q2-o-Q2 Q3-o-Q3 Y-o-Y Disbursements 3,819 5,665 4,295 5,542 5,607 6,240 13,720 17,447 29% 11% 27% Closing Assets (Managed) 24,380
Slide 40: Home Equity
Home Equity 40
Slide 41: Home Equity—Q3 FY19 and YTD Dec18 Performance
Home Equity—Q3 FY19 and YTD Dec18 Performance (As per IND AS) Disbursements • Disbursements has grown 19% in Q3FY18 and 18% on YTD basis • The business has grown the Assets by 13% in YTD FY19 (YoY). Pre- Asset under closures are being controlled by better customer engagement, though management it co
Slide 42: Home Equity: Industry outlook
Home Equity: Industry outlook • NBFCs’ Loan against property book likely to grow at 12–15% in FY19 • Moody’s said that rising interest rates for LAP over the rest of 2018, together with cautious underwriting in light of rising delinquencies • The larger NBFCs have moderated their ticket sizes, in vi
Slide 43: Home Equity—Financial Summary Q3FY19 (I)
Home Equity—Financial Summary Q3FY19 (As per IND AS) (I) Disbursements (₹Cr) Assets under Management (₹Cr) 18% 14% 8% 11% *11,145 *10,727 2,803 *10,358 *9,609 *9,661 968 *9,778 1,468 1,043 2,368 916 807 9,758 735 9,677 9,315 9,043 8,693 8,855 10% 19% 27% 939 910 954 830 799 740 Q1 Q2 Q3 Q1 Q2 Q3 YTD
Slide 44: Home Equity—Financial Summary Q3FY19 (II)
Home Equity—Financial Summary Q3FY19 (As per IND AS) (II) Income (₹Cr) Profit before tax (₹Cr) 1% 909 915 59% 221 -3% -2% 8% 139 46% 310 299 303 298 319 4% 204% 296 84 80 55 57 58 26 Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 44
Slide 45: Home Equity—Financial Summary Q3FY19 (III)
Home Equity—Financial Summary Q3FY19 (As per IND AS) (III) Net Income Margin (%) Expenses Ratio (%) 4.7% 4.4% 4.4% 1.2% 4.1% 4.1% 1.1% 1.0% 1.0% 1.0% 3.7% 3.7% 1.0% 1.0% 3.5% 0.9% Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 45
Slide 46: Home Equity—Financial Summary Q3FY19 (IV)
Home Equity—Financial Summary Q3FY19 (As per IND AS) (IV) Loan Losses & Provisions (%) ROTA PBT (%) 3.2% 1.9% 2.9% 2.8% 1.4% 2.4% 1.3% 2.3% 2.2% 1.0% 1.9% 0.8% 1.1% -0.1% 0.0% -0.6% Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 46
Slide 47: Profit and Loss Statement: Home Equity
Profit and Loss Statement: Home Equity (As per IND AS) ₹ Cr Growth Growth % Growth % Particulars Q1FY18 Q1FY19 Q2FY18 Q2FY19 Q3FY18 Q3FY19 YTD Dec17 YTD Dec18 % (YTD) Q2-o-Q2 Q3-o-Q3 Y-o-Y Disbursements 740 939 830 910 799 954 2,368 2,803 10% 19% 18% Closing Assets (Managed) 9,609 10,358 9,661 10,72
Slide 48: Home Loan
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Slide 49: Home Loan—Q3FY19 and YTD Dec18 Performance
Home Loan—Q3FY19 and YTD Dec18 Performance (As per IND AS) Disbursements • Disbursements has grown 108% in Q3FY18 and 85% on YTD basis Asset under • Asset has grown 89% YoY management Loan losses in Q3FY19 is at 1.2% Loss and provisions Loan losses (YTD) reduced to 1.2% from 1.8% YoY Profit befo
Slide 50: Home loan: Industry outlook
Home loan: Industry outlook • Overall Industry is expected to grow around 17%-19% and affordable housing segment to grow at much higher rate of around 22-25% • Smaller affordable housing players are expected to grow at much higher rate of 30% • The recent liquidity crunch faced by some NBFCs and HFC
Slide 51: Home Loan—Financial Summary Q3FY19 (I)
Home Loan—Financial Summary Q3FY19 (As per IND AS) (I) Disbursements (₹Cr) Assets under Management (₹Cr) 1,563 85% 765 1,314 89% 84% 86% 1,123 827 413 108% 715 70% 605 76% 309 242 214 143 149 122 Q1 Q2 Q3 YTD Q1 Q2 Q3 FY 18 FY 19 51
Slide 52: Home Loan—Financial Summary Q3FY19 (II)
Home Loan—Financial Summary Q3FY19 (As per IND AS) (II) Income (₹Cr) Profit before tax (₹Cr) 84% 20 216% 129 96% 92% 8 84% 83% 576% 7 6 83% 6 70 4 4 50 43 36 (1) 23 27 20 Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 52
Slide 53: Home Loan—Financial Summary Q3FY19 (III)
Home Loan—Financial Summary Q3FY19 (As per IND AS) (III) Net Income Margin (%) Expenses Ratio (%) 3.7% 3.7% 3.6% 3.4% 6.6% 6.7% 6.7% 6.6% 6.4% 6.5% 3.2% 5.9% 6.1% 2.9% 2.7% 2.5% Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 53
Slide 54: Home Loan—Financial Summary Q3FY19 (IV)
Home Loan—Financial Summary Q3FY19 (As per IND AS) (IV) Loan Losses & Provisions (%) ROTA PBT (%) 3.8% 2.2% 2.2% 2.1% 2.1% 2.1% 2.1% 1.3% 1.8% 1.4% 1.2% 1.2% 1.2% 1.1% 0.9% -0.8% Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 54
Slide 55: Profit and Loss Statement: Home Loan
Profit and Loss Statement: Home Loan (as per IND AS) ₹ Cr Growth Growth % Growth % Particulars Q1FY18 Q1FY19 Q2FY18 Q2FY19 Q3FY18 Q3FY19 YTD Dec17 YTD Dec18 % (YTD) Q2-o-Q2 Q3-o-Q3 Y-o-Y Disbursements 122 214 143 242 149 309 413 765 70% 108% 85% Closing Assets (Managed) 605 1,123 715 1,314 827 1,563
Slide 56: Funding Profile
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Slide 57: CAR, Credit Rating
CAR, Credit Rating Capital Adequacy Ratio (CAR) Tier I Tier II 19.7% 18.6% 18.4% 18.5% 17.8% 6.4% 5.0% 5.1% 4.7% 4.7% 13.3% 13.6% 13.2% 13.8% 13.1% 2015–2016 2016–2017 2017–2018 Q3FY18 Q3FY19 Minimum CAR Stipulated by RBI is 15% & for Tier I is 10% Credit Rating Loan type India ratings Care ICRA Cri
Slide 58: Diversified Borrowings Profile (I/II)
Diversified Borrowings Profile (I/II) (₹Cr) Borrowing mix by instrument type * 29,593 * 37,734 * 40,522 * 46,637 * 46,811 15% 13% 13% 13% 19% 26% 35% 37% 39% 39% 9% 2% 6% 11% 4% 10% 10% 4% 5% 6% 35% 31% 26% 25% 24% 10% 9% 9% 8% 8% Mar-17 Mar-18 Q1FY19 Q2FY19 Q3FY19 Tier II Capital Debentures CC / WC
Slide 59: Diversified Borrowings Profile (II/II)
Diversified Borrowings Profile (II/II) Borrowing mix by investor type (₹Cr) * 29,593 * 37,734 * 40,520 * 46,637 * 46,811 15% 13% 13% 13% 19% 3% 3% 3% 4% 3% 1% 3% 3% 1% 1% 42% 51% 55% 52% 55% 1% 7% 1% 1% 1% 1% 8% 7% 7% 7% 26% 19% 18% 17% 19% 2% 1% 3% 2% 2% Mar-17 Mar-18 Q1FY19 Q2FY19 Q3FY19 Trusts Mu
Slide 60: ALM Statement as of 31st December 2018
ALM Statement as of 31st December 2018 Particulars (Cr.) 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 & Investments 300 1,302 1,125 - - - - - 2,727 Advances 1,651 1,125 1,142 5,108 8,319 21,618 5,000 4,982 48,945 Trade Receivable & Others 53 526 13 57 203 400 210
Slide 61: Subsidiaries
Subsidiaries 61
Slide 62: Cholamandalam Home Finance Ltd (As per IND AS)
CHOLAMANDALAM HOME FINANCE LTD (As per IND AS) Income (₹Cr) Profit after tax (₹Cr) -770% -722% -682% -717% 2.2 28.7 0.8 0.7 0.8 (4.5) (4.0) (5.2) 328% (13.7) 337% 316% 331% 10.3 9.5 8.9 6.7 2.2 2.1 2.4 Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 62
Slide 63: Cholamandalam Securities Ltd (As per IND AS)
CHOLAMANDALAM SECURITIES LTD (As per IND AS) Income (₹Cr) Profit after tax (₹Cr) 21% 15% 17.0 1.9 14.1 1.7 1.6 249% 37% 37% -93% -9% -37% 6.5 5.9 0.7 5.1 4.7 4.6 4.3 0.5 0.5 0.3 0.1 Q1 Q2 Q3 YTD Q1 Q2 Q3 YTD FY 18 FY 19 63
Slide 64: Risk Management
Risk Management 64
Slide 65: 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 66: ERM as value centre
ERM as value centre • 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 business process and mana
Slide 67: ERM Framework
ERM Framework Measurement & Monitoring 04 01 Review mechanism to using KRI monitor & control risks Evaluate Probability & Impact Understanding & of each event Identification of various risks 03 02 HIGHLIGHTS OF THE RISK MANAGEMENT FRAMEWORK Chola Composite Risk Index, computed using multiple KRIs, h
Slide 68: ERM Framework
ERM Framework Identification, Prioritization and Monitoring of Risk and Process Indicators Identification and Measurement of Risk Assessment of Risk parameters. to Track Operational Risk Level Events & parameters Stage 1 Stage 2 Stage 3 QUALITATIVE RISK MONITORING QUANTITATIVE ASSESSMENT VALIDATION
Slide 69: Risk Monitoring : Risk Index Scoring Methodology
Risk Monitoring : Risk Index Scoring Methodology Scoring method Spread of Weightages m o q r s t Identified Top 20 risks are a combination of n 2.25 p 2.25 2.5 2.25 1.5 a credit, market and operational risks. 4 1 2 21 l 25% weight is given for operational risks – k 2 similar to the weight prescr
Slide 70: Risk Control Self Assessment (RCSA) Framework
Risk Control Self Assessment (RCSA) Framework 1 2 3 Survey Self Assessment Post Survey Analysis Prepare RCSA checklist by RCSA roll out to branches. Upon 100% Completion of Self • Process owner Assessment incorporating Self-certify • Prepare Exception Report. •New risks & controls. Report Gaps o
Slide 71: Business Continuity Planning
Business Continuity Planning BCP Phase Process • Identify critical activities & resources 1 Business Impact analysis • Estimate Recovery Time Objective • Estimate maximum allowable downtime • Identify Risk, Threat & Vulnerabilities 2 Risk Assessment • Cause & Effect of identified risks on business •
Slide 72: ECL Methodology
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Slide 73: Measurement Framework
Measurement Framework Asset ECL classification PD12m 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 Dis
Slide 74: Measurement Framework
Measurement Framework Asset ECL Description classification PD12m • 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 wit
Slide 75: Retail Pooling
Retail Pooling Cholamandalam Investments Portfolios are segmented based and Finance Co. Ltd. on the below categories. PD term structure and LGDs are computed for each segment separately. Home Vehicle Finance Home Equity Others Loan LCV/CAR/M MLCV/2W/3 HE Tamil HCV New HE Delhi UV New W New Nadu HE P
Slide 76: 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 77: 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 78: Thank You
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