Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q4 FY2023 Earnings Presentation
31 slides from Pnb Housing Finance's earnings presentation, May 18, 2023
Slide 1: Exchange filing cover letter
Ref: PNBHFL/SE/EQ/FY24/18 May 18, 2023 BSE Limited, 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: PNBHOUSING Dear
Slide 2: Investor Presentation Quarter Ended March 2023
Investor Presentation Quarter Ended March 2023 18-May-2023 Public
Slide 3: Table of Content
Table of Content 1 Capital Raise Update 2 Strategic Objective 3 Performance Highlights 4 Business Update 5 Asset Quality 6 Financial Performance 7 Annexure Public
Slide 4: Successful completion of Rights Issue – Subscribed by ~1.21 times
Successful completion of Rights Issue – Subscribed by ~1.21 times • Successful completion of Right Issue in May 2023 of INR 2,493.76 Crore with ~1.21 times subscription • Top 4 shareholders viz PNB, Carlyle, Ares SSG, General Atlantic participated in the Rights Issue • Participation from large domes
Slide 5: Shareholding Pre & Post Rights Issue
Shareholding Pre & Post Rights Issue Pre - Rights Issue Post - Rights Issue (as on 5th April 2023) (as on 4th May 2023) Top 15 Shareholders 1.9% 2.2% 3.5% • Promoter (PNB) 4.8% 6.8% 3.7% • Carlyle 6.2% 32.5% 6.1% 28.2% • Ares SSG Capital 9.8% 9.8% • General Atlantic Singapore Fund 9.9% • Tata Mutual
Slide 6: Key Core Strengths and Strategic Objectives
Key Core Strengths and Strategic Objectives Core strengths Strategic objectives Diversified product portfolio with significant retail mix and 1 Asset mix Accelerate growth by focusing on retail lending deleveraging corporate loan book 2 Distribution Pan-India distribution network Expand affordable s
Slide 7: Focus on Strategic Objectives aided in delivering Improved Performance
Focus on Strategic Objectives aided in delivering Improved Performance (INR Crore) 1 Growth in Retail Loan Book 2 Improved Asset Quality (GNPA) Total Retail 55,471 8.1% -178 bps -29 bps 2,348 -119 bps -16 bps -34 bps 999 -16 bps -104 bps 50,520 1,015 -0.3% -54 bps 590 -1.2% 3.8% -29 bps 430 bps Y-o-
Slide 8: Key Performance Highlights
Key Performance Highlights Retail Segment Corporate Segment Total INR 14,750 Crore (FY23) INR 215 Crore (FY23) INR 14,965 Crore (FY23) (35.6% YoY ) (-41.0% YoY ) (33.1% YoY ) Disbursement INR 30 Crore (Q4 FY23) INR 4,495 Crore (Q4 FY23) INR 4,465 Crore (Q4 FY23) (21.9% YoY | 32.8% QoQ) (-12.1% YoY |
Slide 9: Key Performance Highlights
Key Performance Highlights AUM Deposits NIM ROA INR 66,617 Crore INR 17,248 Crore 3.73% (93 bps YoY) (FY23) 1.61% (FY23) (-2.5% YoY | -2.9% QoQ ) (1.24% FY22 ) (-0.5% YoY | 1.3% QoQ ) Public 90% | ICD 10% 3.74% (-94 bps QoQ) (Q4FY23) Capital Adequacy Gearing Ratio Book Value Per Share 24.4% 4.9x INR
Slide 10: Improved Retail contribution in Loan Asset
Improved Retail contribution in Loan Asset (INR Crore) Loan Asset Mix Retail Product-wise Break-up Retail Segment-wise Breakup 57,895 58,034 59,273 8% 6% 6% 5% 5% 13% 25% 24% 24% 44% 42% 41% 87% 92% 94% 69% 71% 71% 56% 58% 59% 31-Mar-22 31-Dec-22 31-Mar-23 31-Mar-22 31-Dec-22 31-Mar-23 31-Mar-22 31-
Slide 11: De-risking Corporate Portfolio
De-risking Corporate Portfolio Corporate loan book (INR crore) Reduction in Corporate GNPA through multi-pronged strategy (INR crore) % of total 12.7% 6.4% loan assets) 3,574 1,892 2,738 7,375 3,877 3,802 846 846 Mar-22 Mar-23 Mar-22 Mar-23 Key measures undertaken to resolve corporate book in FY23 P
Slide 12: Wide Distribution Network
Wide Distribution Network Loan Asset – Geographical Breakup Affordable 24 82 branches & locations 38% 34% 189 27% 29% 137 52 35% 37% 31-Mar-22 31-Mar-23 Disbursement - Geographical Break-up 31-Mar-22 Apr 22 - Mar-23 31-Mar-23 Branches/outreaches 28% 34% 30% 22 hubs for credit decision making 32% 42%
Slide 13: Expand Affordable Segment, especially in tier-2 and tier-3 cities
Expand Affordable Segment, especially in tier-2 and tier-3 cities PNB Housing Finance is ready to capitalize on available opportunity in Affordable Segment Distribution Network Affordable Segment Built a separate affordable vertical with dedicated sales, credit, collections and operations. Affordabl
Slide 14: Non-Performing Assets
Non-Performing Assets -52% 10 Overall GNPA 8.13% 4,705 8 6.35% 6.06% 3,638 3,502 6 4.87% 3.83% 2,824 2,270 4 5.06% 4.26% 2 3.59% 3.22% 2.76% 0 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 • Retail Collection Efficiency for FY23 is 98.6% 3.89% 3.
Slide 15: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Particulars (INR Crore) 31-Mar-23 31-Dec-22 31-Mar-22 Gross Stage 1* 54,999 53,133 51,209 Gross Stage 1 as % to Loan Asset 92.79% 91.56% 88.45% ECL Provision Stage 1 525 536 583 ECL Provision % Stage 1 0.95% 1.01% 1.14% Gross Stage 2* 2,003 2,076 1,981 Gross Sta
Slide 16: Expected Credit Loss (ECL) Provisions – Retail & Corporate
Expected Credit Loss (ECL) Provisions – Retail & Corporate Retail Corporate Particulars (INR Crore) 31-Mar-23 31-Mar-22 31-Mar-23 31-Mar-22 Gross Stage 1* 52,044 46,594 2,956 4,616 Gross Stage 1 as % to Loan Asset 93.82% 92.23% 77.75% 62.59% ECL Provision Stage 1 245 283 280 300 ECL Provision % Stag
Slide 17: Financial Performance
Financial Performance Public 16
Slide 18: Well Diversified Resource Profile
Well Diversified Resource Profile Borrowing Mix – 31-March-22 (%) Borrowing Mix – 31-March-23 (%) Credit Rating 8.8% 9.8% 5.7% • Fixed Deposit: “AA” by 14.4% CRISIL and CARE. • Commercial Paper: “A1(+)” by CARE & CRISIL • Non-Convertible 32.2% 32.1% 42.2% Debentures: “AA” by CARE, India Ratings, 33.
Slide 19: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 1,794 1,172 1,146 1,682 1,634 1,051 1,048 1,099 1,420 1,409 964 996 1,008 1,613 1,730 931 930 1,307 1,301 1,601 135 124 143 113 108 69 64 33 4 116 118 52 -5 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Int
Slide 20: Financial Ratio Highlights – Quarter on Quarter
Financial Ratio Highlights – Quarter on Quarter Average Yield Average Cost of Borrowing 10.70% 11.38% 7.76% 10.65% 10.41% 10.43% 7.55% 9.57% 7.21% 7.32% 8.53% 8.53% 8.63% 8.46% 7.10% Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Reported Ex. one-off in securtization Spread Ne
Slide 21: Margin Analysis - Annual
Margin Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.7% 10.3% 7.9% 2.8% 2.8% 3.7% 7.3% 7.5% 9.4% 3.2% 2.1% 2.8% FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 Gross Interest Margin Opex to ATA Ratio Return on Asset Return on Equity 4.1% 0.8% 1.
Slide 22: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q4FY23 Q4FY22 YoY Q3FY23 QoQ FY23 FY22 YoY FY21 FY20 Interest Income 1,589 1,299 1,714 6,199 5,822 7,190 7,688 Add: Net gain on fair value changes 11 8 17 34 111 162 159 Add: Income on derecognized loans assigned during the - - - 11 - 71 3
Slide 23: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-20 Particulars (INR Crore) 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-20 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments - - 51 - (b) Debt Securities 3,994 6,202 11,46
Slide 24: Key Takeaways
Key Takeaways Focus on Retail Strengthen underwriting Resolutions in Capital Raise Enhance Profitability Segment Growth and Collections Corporate Book & Return Ratios including Affordable Framework Segment Leverage advance analytics Resolution in multiple Successfully completed Improvement in Return
Slide 25: Annexure
Annexure Ghar Ki Baat
Slide 26: Experienced, professional management team
Experienced, professional management team Girish Kousgi Managing Director and CEO Sanjay Jain Vinay Gupta Jatul Anand Company Secretary & Compliance Chief Financial Officer Chief Credit & Collections Officer Head Ajay Kumar Mohanty Anujai Saxena Amit Singh Head – Internal Audit Chief Transformation
Slide 27: ESG Snapshot
ESG Snapshot ▪ 99.7% EMI collections through digital mode Environment ▪ The Company through its CSR initiative supported • Solar Electrification in 23 government school in Haryana & UP and initiated in 1 tribal school in Jharkhand. • Undertaken various programme under Environment and Water Conservat
Slide 28: Growth of Housing Finance Sector
Growth of Housing Finance Sector Portfolio Growth of HFCs Portfolio Composition of HFCs* 15% 14% 2% 16% 9% 11% 7% 12% 7% 6% 5% 6% 6% 14% 1% Mar-20 Mar-21 Mar-22 Mar-23 P 68% On-Book POS Non Housing Loans Housing Loans Home Loans LAP Construction Finance Others HFCs Share Total HFC Loans 10.3 10.9 12
Slide 29: 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 30: 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 31: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations & Treasury) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com Public 30
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