Pnb Housing Finance Limited · NSE:PNBHOUSING

Pnb Housing Finance — Q4 FY2022 Earnings Presentation

42 slides from Pnb Housing Finance's earnings presentation, Apr 28, 2022

  1. Slide 1: PNB Housing Finance Limited – Investor Presentation Filing Letter

    @ pnb Housing Finance Limited E1h~r Ki B~~t April 28, 2022 The SSE Limited, National Stock Exchange of India Limited, Listing Department, Listing Department Phiroze Jeejeebhoy Towers, "Exchange Plaza" Dalal Street, Sandra Kurla Complex, Mumbai- 400 001 Sandra (E), Mumbai - 400 051 Scrip Code: 540173

  2. Slide 2: Investor Presentation Quarter and Year Ended March 2022

    Investor Presentation Quarter and Year Ended March 2022 28-April-2022

  3. Slide 3: Table of Content

    Table of Content 1 Strategy Envisaged 2 Strategy Monitorables 3 Key Performance Highlights 4 Business update 5 Financial performance 6 Key Takeaways 7 Appendix 2

  4. Slide 4: Strategy envisaged in January 2021

    Strategy envisaged in January 2021 Strengthening the Core Drive Efficiency Accelerate Growth Capital Risk Cost Digital Retail Focused Grow Affordable Management Position Management Management Drive Lending Housing “Unnati” • Strengthen leadership • Improve capital and • Leverage advance • Rationaliz

  5. Slide 5: Strategy Monitorables – Attained Sustainable Performance

    Strategy Monitorables – Attained Sustainable Performance Pillars to Agenda Monitorables FY20 FY21 FY22 Remarks Total Provision to Total Asset* 2.61% 4.09% 4.50% Maintain adequate provision Capital Position % of loans sanctioned within Stipulated turnaround time of over 85% 84% 83% stipulated TAT 80%

  6. Slide 6: Strategy Monitorables – Focusing on Sustainable Performance

    Strategy Monitorables – Focusing on Sustainable Performance Pillars to Agenda Monitorables FY20 FY21 FY22 Remarks Leadership Team established; CFO Key roles hired at senior level^ 5 hires and 2 promotion 9 hires and 4 promotions position to be filled shortly Management Remains committed to introduce

  7. Slide 7: Strategy Monitorables – Focusing on Sustainable Performance

    Strategy Monitorables – Focusing on Sustainable Performance Pillars to Agenda Monitorables FY20 FY21 FY22 Remarks Increased focus on digital sourcing; Ace Digital sourcing 9% 19% 47% integration and 2.0 was made live resulting in higher customer convenience Delivery of phase 1 is on track and the Co

  8. Slide 8: Key Interventions in FY2022

    Key Interventions in FY2022 Focus on high-yielding affordable housing Unnati business: 29 dedicated Unnati locations added in FY22 Focus on core capability of serving self-employed by creating models backed by advanced analytics: pilot testing for these models on actual cases completed in Q4 FY22. K

  9. Slide 9: Performance Highlights – Q4FY22

    Performance Highlights – Q4FY22 Disbursement* Loan Asset Retail Asset (%) Retail GNPA INR 3,698 Crore INR 56,889 Crore 89% of AUM (88% PQ) 3.56% (+31% QoQ) (INR 56,798 Crore PQ) (-140 bps QoQ) Deposits Gearing Ratio Capital to Risk Asset Ratio Credit Rating ICRA revised NCD INR 17,807 Crore 5.4x rat

  10. Slide 10: Key Business Trends

    Key Business Trends No. of Logins No. of Sanctions Disbursement (INR Crore) +0.2% +12.7% -9.9% +30.4% +33.4% +30.8% 4,103 28,708 19,201 19,241 195 3,698 25,473 34 21,516 14,390 14,754 2,961 2,828 20,363 129 95 13,420 8,977 1,759 3,908 3,664 107 2,833 2,733 1,652 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4

  11. Slide 11: Performance Highlights – FY22

    Performance Highlights – FY22 INR 11,246 Crore 6.99%^ on AUM Disbursement* GNPA 7.61%^ on Loan Assets (+8% YoY) (4.44% PY) INR 65,977 Crore Total Provision/ 4.5% Asset Under Management (-11% YoY) Total Assets (4.1% PY) 89% of the AUM Retail Loans (84% of AUM as on Return on Asset 1.24% 31-Mar-21) (1

  12. Slide 12: Business Update

    Business Update (INR Crore) Asset Loan Asset Disbursement 83,346 67,589 -9% 18,626 -11% 62,255 1,515 74,469 14,614 56,889 65,977 11,786 7,159 +8% 11,246 10,445 365 411 17,111 67,571 52,975 62,255 50,469 49,730 56,889 10,034 10,881 31-Mar-20 31-Mar-21 31-Mar-22 Mar-20 Mar-21 Mar-22 FY20 FY21 FY22 AUM

  13. Slide 13: Asset Under Management Mix

    Asset Under Management Mix (INR Crore) AUM Mix Product-wise Break-up Segment-wise Breakup AUM 83,346 74,469 65,977 11% 11% 11% 18% 16% 16% 16% 4% 4% 23% 22% 40% 39% 89% 82% 84% 58% 61% 45% 49% 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 Corporate Loan Corporate Retail Retai

  14. Slide 14: 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 8% 4% 3% 59.2% 56.9% 52.8% 92% 96% 97% 40.8% 43.1% 47.2% FY20 FY21 FY22 FY20 FY21 FY22 Corporate Retail Tier I Tier II & III … led to increas

  15. Slide 15: Retail Loan Book – Key Attributes

    Retail Loan Book – Key Attributes (INR Lakhs) Average Ticket Size Loan To Value 47 71% 72% 72% 44 36 49% 49% 49% 29 27 28 31-Mar-20 31-Mar-21 31-Mar-22 31-Mar-20 31-Mar-21 31-Mar-22 IHL LAP IHL LAP Lower Average Ticket Size indicating granularization of the book Consistently maintained LTV Salaried

  16. Slide 16: 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% 1.4% 0.3% 1.1% 0.2% 0.7% 0.2% 1.9% 1.6% 2.3% 0.3% 5.0% 4.6% 4.1% 3.3% 2.5% 9.9% 11.4% 12.0% 12.9% 12.0% 13.9% 14.4% 17.5% 18.6% 34.1% 33.7% 35.6% 18.6% 20.2% 20.4% 21.6% 19.9% 18.2% 48.2%

  17. Slide 17: Significant Reduction in Corporate Book

    Significant Reduction in Corporate Book % of Total 17.5% 15.8% 10.9% AUM -51% (INR Crore) 14,614 11,786 10,356 7,159 8,637 5,912 3,052 2,243 1,206 906 344 903 Mar-20 Mar-21 Mar-22 Construction Finance Corporate Term Loan Lease Rental Discounting Average Ticket Size City Concentration Geographical Di

  18. Slide 18: Corporate Book Performance

    Corporate Book Performance • 62% of the book is with Zero DPD on a declining base 33% of the Construction Finance Book • 64% of the book is in Stage 1; majority backed by Tier 1 Developers comprises completed and near completion projects • Down Sell / Accelerated pre payment of INR 2,664 Crore in FY

  19. Slide 19: Corporate Book Remedial Actions

    Corporate Book Remedial Actions City Based Developers Final Stages of Resolution Resolutions Underway on few NPA Accounts • Project with O/s of INR 181 Crore  Resolution Plan finalized by the Committee of Creditors in NCLT. NCLT approval in process Mumbai  Resolution achieved, however, account wil

  20. Slide 20: Gross Non-Performing Assets

    Gross Non-Performing Assets 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 % of Loan Asset Gross NPA 4.44% 6.00% 5.92% 7.64% 7.61% Net NPA 2.43% 3.61% 3.32% 4.87% 4.49% Loan Asset 62,225 60,439 59,283 56,798 56,889 As on 31-Mar-22 INR Crore (INR Crore) 4.5% 4.8% 4.4% 4.5% 5,500 4.1% 5 5,000 Gross

  21. Slide 21: Expected Credit Loss (ECL) Provisions

    Expected Credit Loss (ECL) Provisions Particulars (INR Crore) 31-Mar-22 31-Dec-21 31-Mar-21 Gross Stage 1 51,251* 50,295* 56,399 Gross Stage 1 as % to Loan Asset 88.46% 86.89% 89.19% ECL Provision Stage 1 583 626 647 ECL Provision % Stage 1 1.14% 1.24% 1.15% Gross Stage 2 1,981* 2,852* 3,834* Gross

  22. Slide 22: ECL Provisions – Retail and Corporate

    Expected Credit Loss (ECL) Provisions – Retail and Corporate IndAS Balances Retail Corporate Particulars (INR Crore) 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 Gross Stage 1 46,636* 47,202* 4,615 9,197 Gross Stage 1 as % to Loan Asset 92.2% 92.1% 62.6% 76.6% ECL Provision Stage 1 283 251 300 396 ECL Pr

  23. Slide 23: Well Diversified Resource Profile

    Well Diversified Resource Profile (INR Crore) 7.4% 10.9% 7.5% • ~70% of the total resource is floating; giving 24.4% 22.2% 27.4% opportunity for replacement & repricing 6.7% 8.3% 9.7% • Liquidity Coverage Ratio 19.6% maintained at 144% as 23.7% against stipulated 50% 0.5% 28.6% 1.6% 22.5% 16.5% 0.0%

  24. Slide 24: Digital Interventions across the Value Chain

    Digital Interventions across the Value Chain Tools & Collaborations Interventions • Implemented cloud based Virtual System interface to ensure secure working from any location • Integration of ACE (A Digital Onboarding Platform) with Loan Origination System (LOS) made live in Q1 for smooth flow of d

  25. Slide 25: Strong Distribution Network – derisked Geographical Concentration

    Strong Distribution Network – derisked Geographical Concentration AUM – Geographical Breakup Disbursement Origination 29% 38% 41% FY22 62% 30% 29% 41% FY21 42% 59% 29% North South West In-House DSA Network 100 branches with presence in 70 unique Over 23,000 channel cities and 40 Outreach centers; 29

  26. Slide 26: Financial Performance

    Financial Performance 25 (©)) Housing

  27. Slide 27: Financial Highlights – Quarter on Quarter

    Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 1,834 1,295 1,693 1,217 1,586 1,153 1,112 1,496 1,426 1,057 1,150 1,103 1,035 996 931 145 114 118 116 126 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Finance Cost Operating Expense Profit After Tax Pre-pr

  28. Slide 28: Financial Ratio Highlights – Quarter on Quarter

    Financial Ratio Highlights – Quarter on Quarter Average Yield Average Cost of Borrowing 10.39% 10.19% 7.60% 7.49% 9.69% 9.24% 7.29% 8.53% 7.24% 7.10% Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Yield (Excl. Securitisation 10.03% 10.31% 10.10% 9.78% 8.94% Income) Spread Net

  29. Slide 29: 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% 2.5% 2.8% 2.1% FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 FY22 Yield (Excl. Spread (Excl. Securitisation 10.4% 10.4% 9.8% Securitisation 2.2% 2.5% 2

  30. Slide 30: Capital Position

    Capital Position (INR Crore) Improving Capital to Risk Provisions Asset Ratio Stage 3 41.0% 23.4% 36.2% 45.2% Coverage ratio (%) 2.7% 4,000 4.5% 5 4.1% 18.7%** 3,500 4 18.0% 3,000 2.6% 2,544 2,559 3 3.2% 2,500 2.8% 2,000 1,766 2 1,500 1 1,000 0 500 20.7% 0 -1 31-Mar-20 31-Mar-21 31-Mar-22 15.2% 15.5

  31. Slide 31: Employee Efficiency

    Employee Efficiency (INR Crore) Disbursement / Employee Asset under Management / Employee 11.8 52.8 50.7 46.9 8.0 7.1 FY20 FY21 FY22 31-Mar-20 31-Mar-21 31-Mar-22 Total Revenue / Employee Operating Profit / Employee 5.4 5.2 1.4 1.3 4.4 1.2 FY20 FY21 FY22 FY20 FY21 FY22 Calculated on average number o

  32. Slide 32: Consolidated Profit & Loss Statement

    Consolidated Profit & Loss Statement Particulars (INR Crore) Q4 FY22 Q4 FY21 YoY Q3 FY22 QoQ FY22 FY21 YoY FY20 Interest Income* 1,299 1,670 1,411 5,822 7,190 7,688 Add: Net gain on fair value changes 8 39 24 111 162 159 Add: Income on derecognized loans assigned during the period 0 35 0 0 71 336 Le

  33. Slide 33: 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

  34. Slide 34: Key Takeaways

    Key Takeaways Continue to operate in Leverage advance Improve collection Remedial mass housing and analytics and digital Upgrade technology efficiencies through management Group merchant segment tools to automate credit platforms for enhanced predictive analytics, to focus on resolution appraisal jo

  35. Slide 35: Annexure

    Annexure 34 (©)) Housing

  36. Slide 36: ESG Snapshot

    ESG Snapshot Environment Social Human Capital Governance • As on date, 99% EMI collections through • Covid-19: Operationalized 70 bedded ICU • Team of 1,425 employees as on 31st March • Diversified & highly experienced Board of 12 digital mode Facility, provided oxygen concentrators, 2022 members wi

  37. Slide 37: Experienced Management Team

    Experienced Management Team MANAGING DIRECTOR & CEO • Years of Experience: 36+ • Years with PNBHF: 1+ COMPANY SECRETARY & COMPLIANCE HEAD CHIEF FINANCIAL OFFICER BUSINESS HEAD – RETAIL CREDIT HEAD – RETAIL • Years of Experience: 30+ • Years of Experience: 22+ • Years of Experience: 25+ • Years of Ex

  38. Slide 38: Shareholding

    Shareholding Shareholding as on 31-Mar-22 Top Shareholders 2.9% 0.2% 7.4% 0.9% 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 Mutua

  39. Slide 39: 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

  40. Slide 40: 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

  41. Slide 41: 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

  42. Slide 42: 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 41

PNB Housing Finance — Q4 FY2022 Earnings Presentation on 6ix