Pnb Housing Finance Limited · NSE:PNBHOUSING

Pnb Housing Finance — Investor Presentation (May 2019)

50 slides from Pnb Housing Finance's investor presentation, May 24, 2019

  1. Slide 1: Filing cover letter to stock exchanges

    F i n a n c e L 1 t11 1 t e ethCA.r Ki BCA.CA.t 241h May, 2019 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: 54

  2. Slide 2: May 2019

    May 2019

  3. Slide 3: Safe Harbour

    Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu

  4. Slide 4: Key Milestones

    Key Milestones • New Brand positioning with completely refurbished, elegant, • Obtained NHB license for loans and deposits convenient and secured offices 1988 2011 • Robust and scalable target operating model (TOM) implementation • Company commenced operations commenced • DEPL raises stake from 26%

  5. Slide 5: Kshitij Interventions Led to Company's Transformation

    Kshitij Interventions Led to Company’s Transformation 4

  6. Slide 6: Strong Brand Recognition Driven by Customer-centric Approach

    Strong Brand Recognition Driven by Customer-centric Approach Customer-centric Approach …together with… Initiatives to Reposition Brand Close and Robust lead direct Transparency in Customer Creation of Creation of Employees management integration communication service portal Trustworthy new logo new

  7. Slide 7: Omni-Channel Customer Touchpoints

    Omni-Channel Customer Touchpoints BRANCH MOBILE DOOR STEP DELIVERY CONTACT CENTER WEB (ISO 9001:2015 certified) DISBURSEMENT EXPERIENCE VOICE & EMAIL SERVICING Company Customer 6

  8. Slide 8: Scalable Hub & Spoke Model

    Scalable Hub & Spoke Model Spokes Regional Hub Central Operations Customer acquisition / Underwriting Post Disbursement Operations servicing Field Investigation CPC DSA DST Fraud Control Fountain head for Unit decision making Underwriter reviews the reports, does the Legal Team financial assessment

  9. Slide 9: Digital Tools used in Credit Appraisal

    Digital Tools used in Credit Appraisal Fraud Detection Vendor Management • State of the art features - GPS co- • Common pool of fraud customers from ordinates, digital signature, live dashboard over 100+ major FI’s in India etc. • Improved efficiencies Hunter u-Connect • Better control and monitorin

  10. Slide 10: Technology enabled Growth

    Technology enabled Growth Enabled Target Operating Model High Business Growth Integrated Business Ecosystem & Digital Customer Experience 2017-19 Operational Efficiency Secured Digital Enterprise 2016-17 Enterprise System Solution 2014-16 Security & Compliance Point solutions as Business Enabler 201

  11. Slide 11: Integrated Technology Platform

    Integrated Technology Platform IT as backbone of Business Processing Digitization to bring efficiencies and enhance customer service ‘Document Digitization Centre’ – true amalgamation of People, Process and Technology Scanned security and title documents are stored on dedicated private cloud for the

  12. Slide 12: Central Operations and Central Processing Centre

    Central Operations and Central Processing Centre  Image based processing  Centralized operational  Reduction in turn around process time • Central Operations and  Standardization of processes Processing Centre formalized  Repository Management &  Digitization of original with an objective to i

  13. Slide 13: People Initiatives

    People Initiatives Cultural Transformation Visioning and Values Institutionalize HR Processes and Policies Integration of Performance Training & Role Alignment Resources Management Development Competency Reward & Framework Recognition Cultural Transformation 12

  14. Slide 14: The Growth Journey

    The Growth Journey Year on Year Trends 13

  15. Slide 15: Accelerated growth in Disbursements

    Accelerated growth in Disbursements 36,079 33,195 +40% 38% 43% • Fastest growing amongst top five HFCs in India* 20,639 37% 33% • De risked over a period of 14,456 27% +84% time with pan India 33% presence 9,440 31% 27% 5,500 30% 30% 30% 3,682 30% 27% 32% 1,508 25% 27% 37% 16% 50%24% 46% 43% 81% 3%

  16. Slide 16: De-risked third party Dependency

    De-risked third party Dependency % Disbursement FY13: FY15: FY17: FY19: INR 3,682 INR 9,440 INR 20,639 INR 36,079 Crore Crore Crore Crore 34% 35% 41% 47% 30 47 53% 45% % % 5% 95% 70% 53 % 55% 65% 59% 66% FY12: FY14: FY16: FY18: INR 1,508 INR 5,500 INR 14,456 INR 33,195 Crore Crore Crore Crore Direct

  17. Slide 17: Asset Growth

    Asset Growth AUM crosses INR 80,000 Crore during FY 2019 84,722 • Strong growth in AUM with smaller base CAGR 62,252 +49% • PNB Housing share amongst the HFC sector 41,492 increased from 2.5% in 74,023 FY14 to 6.9% in Dec 2018* 27,555 57,014 CAGR +63% 17,297 38,531 • One of the Top 5 HFCs in 10,591

  18. Slide 18: Well Balanced AUM mix - Strong Competitive Edge

    Well Balanced AUM mix - Strong Competitive Edge Product-wise AUM Break-up 84,722 Total AUM of 84,722 Crore (As on 31-Mar-19) 62,252 58% Individual Housing Construction Finance 13% 41,492 59% Retail Loan Against 17% Property 29% Retail Non-residential 58% 4% Premises Loans 4% 27,555 60% 13% 4% Lease

  19. Slide 19: De-risked Geographical Concentration

    De-risked Geographical Concentration % of Asset Under Management 84,722 39% 62,252 39% 41,492 30% 34% 27,555 29% 30% 17,297 30% 27% 31% 10,591 29% 32% 6,621 25% 27% 3,970 36% 20% 23% 23% 41% 46% 71% 9% 59% 18% 52% FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 West South North Values in INR Crore One Crore

  20. Slide 20: Business Operations

    Business Operations No. of Branches Branches – Point of Sales & Services No. of Branches Unique Cities* Processing Hubs – Fountain head for Decision Making 102 18 21 15 Our Network 16 8 Geography Hub Branches 9 6 5 32 7 North 8 33 62 27 South 8 35 FY14 FY15 FY16 FY17 FY18 FY19 Total West 7 34 New Br

  21. Slide 21: Consistently maintaining NPAs below the Industry average

    Consistently maintaining NPAs below the Industry average One of the 2 years Lagged NPA* lowest Gross 1.04% and Net NPAs in 1.90 the Industry 1.60 0.67% 1.20 1.20 1.10 0.56% 1.00 1.00 0.93 0.48% 1.10 0.32% 0.33% 0.67 0.90 0.50 0.35% 0.20% 0.22% 0.22% 0.38% 0.50 0.60 0.07% 0.23% 0.16% 0.15% 0.14% 31-M

  22. Slide 22: Robust Credit Rating

    Robust Credit Rating 2019 CARE AAA (NCDs) AAA (Deposits) 2017 A1+ (CPs) CARE AAA A1+ (CPs) CRISIL AA+ (NCDs) 2016 FAAA (Deposits) CARE AAA CRISIL AA+ (NCDs) A1+ (CPs) A1+ (CPs) FAAA (Deposits) 2015 A1+ (CPs) ICRA AA+ (NCDs) CARE AAA CRISIL AA+ (NCDs) A1+ (CPs) FAAA (Deposits) ICRA AA+ (NCDs) INDIA R

  23. Slide 23: Well Diversified Borrowing Composition

    Well Diversified Borrowing Composition 2.8% 1.4% 7.7% 8.8% 12.9% 31.0% 25.9% • Raised cumulative 39.2% 33.7% 35.5% 37.7% 28.0% ECB of US$ 715 mn; 37.5% 9.3% US$ 250 mn under 15.0% 9.2% 16.7% approval route and 18.9% 9.6% 28.4% 11.3% 17.5% US$ 465 mn under 17.2% 40.8% 40.0% 3.5% 26.8% automatic route

  24. Slide 24: Growth in Deposit Outstanding

    Growth in Deposit Outstanding 14,315 • Second largest deposit CAGR mobilizer among HFCs* +31% 11,586 • Deposit growth of over 39 9,987 times from FY12 to FY19 on back of high credit rating and service quality 7,121 • Strong and predictable CAGR +138% 4,897 distribution channel- the base grew from ov

  25. Slide 25: Financial Performance

    a] Financial Performance 24 (©)) Housing

  26. Slide 26: Strong Revenue & Profit growth

    Strong Revenue & Profit growth Total Revenue Profit After Tax 7,683 1,192 +44% 5,489 841 +57% 3,908 524 2,699 326 +57% 1,777 +38% 1,116 196 127 661 92 463 75 FY12 FY13 FY14 FY15 FY16 FY17 FY18* FY19* FY12 FY13 FY14 FY15 FY16 FY17 FY18* FY19* * FY18 & FY19 numbers are on Consolidated basis and as per

  27. Slide 27: Operating Leverage Playing Out with Better Return Profile

    Operating Leverage Playing Out with Better Return Profile Opex to Average Total Asset Ratio Cost to Income Ratio 28.93% 30.81% 30.87% 0.91% 0.95% 0.98% 0.83% 23.01% 25.15% 22.43% 0.79% 0.73% 0.61% 0.65% 17.22% 19.61% FY12 FY13 FY14 FY15 FY16 FY17 FY18* FY19* FY12 FY13 FY14 FY15 FY16 FY17 FY18* FY19*

  28. Slide 28: CRAR and Comfortable Gearing

    CRAR and Comfortable Gearing Capital to Risk Asset Ratio 21.62% 17.77% 16.67% 13.81% 13.76% 13.98% 12.95% 12.70% 16.48% 11.50% 12.75% 9.51% 10.41% 9.04% 11.00% 9.94% 6.27% 5.14% 4.30% 3.01% 3.35% 3.66% 3.92% 2.98% 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 Tier 1

  29. Slide 29: Employee Efficiency

    Employee Efficiency INR Crore / Employee Disbursement / Employee Loans Outstanding / Employee 28.99 49.79 51.05 24.25 24.88 45.28 21.23 39.91 17.16 30.58 13.51 26.02 12.65 22.75 17.64 6.70 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 31-Mar-12 31-Mar-13 31-Mar-14 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 3

  30. Slide 30: Valuation & Shareholding

    Valuation & Shareholding 29

  31. Slide 31: Return to Shareholders

    Return to Shareholders Earning Per Share (INR) Dividend Per Share (INR) 71.19 9.00 9.00 50.52 6.00 36.72 25.42 27.48 3.40 25.07 22.3 24.41 3.00 3.00 2.20 2.50 FY12 FY13 FY14 FY15 FY16 FY17 FY18* FY19* FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Market Cap (INR Crore) Book Value Per Share (INR) 21,530 45

  32. Slide 32: Shareholding

    Shareholding Shareholding as on 31-Mar-19 4.0% 0.9% 2.4% 7.7% 32.8% 19.9% Included in “MSCI Global Small Cap Index” in November 2018 32.4% Promoters (PNB) Quality Investment Holdings (The Carlyle Group) Foreign Inst. Investors Mutual Funds Public & Others Bodies Corporates Financial Institutions / B

  33. Slide 33: Successful Listing - More than 20 times Oversubscribed

    Successful Listing- “More than 20 times Oversubscribed ” Issue Price INR 775 per Share Issue Size Key Anchor Book INR 3,000 Crore General Atlantic Face Value Bids Received Singapore Fund, INR 10 per Share >60,000 Crores Wasatch, Government of Singapore, Motilal Oswal MF, Birla Sunlife MF, SBI Life I

  34. Slide 34: Detailed Financials

    Detailed Financials 33 (©)) Housing

  35. Slide 35: Profit & Loss Statement - Consolidated

    Profit & Loss Statement - Consolidated Particulars (INR Crore) FY19* FY18* FY17 FY16 FY15 FY14 FY13 FY12 IndAS IGAAP Revenue from Operations 7,679 5,489 3,908 2,698 1,777 1,116 642 454 Other Income 4 1 0 1 - - 19 9 Total Revenue 7,683 5,490 3,908 2,699 1,777 1,116 661 463 Expenditure: Finance Cost 5

  36. Slide 36: Balance Sheet Statement (IND-AS Consolidated)

    Balance Sheet Statement (IND-AS Consolidated) Particulars (INR Crore) 31-Mar-19 31-Mar-18 Particulars (INR Crore) 31-Mar-19 31-Mar-18 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments 210.8 38.6 (b) Payables (a) Cash and cash equivalents 4,034.0 2,817

  37. Slide 37: Balance Sheet Statement- Equity & Liabilities (I-GAAP)

    Balance Sheet Statement- Equity & Liabilities (I-GAAP) Particulars (INR Crore) Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Mar-12 Equity and Liabilities Shareholder's Funds 5,577 2,146 1,581 935 621 404 Share Capital 166 127 104 66 50 30 Reserves and Surplus 5,412 2,019 1,477 869 571 374 Non-Current Liabilit

  38. Slide 38: Balance Sheet Statement- Assets (I-GAAP)

    Balance Sheet Statement- Assets (I-GAAP) Particulars (INR Crore) Mar-17 Mar-16 Mar-15 Mar-14 Mar-13 Mar-12 Assets Non-Current Assets 37,744 26,656 14,782 8,868 6,449 3,845 Fixed Assets 60 62 58 26 16 4 -Tangible Assets 48 48 38 23 13 4 -Intangible Assets 11 10 1 -Capital Work-in-Progress 2 4 18 3 4

  39. Slide 39: Saksham – Contributing to the Society

    Saksham – Contributing to the Society 38

  40. Slide 40: Glimpses of Social Interventions

    Glimpses of Social Interventions Enhancing Human Potential • Partnered with The Confederation of Real Estate Developers Association of India (CREDAI) to conduct Onsite & Offsite skill enhancement training programmes for construction workers Reaching Out, Reaching Far • Collaborated with various NGOs

  41. Slide 41: Awards and Recognitions

    Awards and Recognitions Recognised as Best Brand of Bagged Gold in ‘Home Won Silver for Annual Mr. Sanjaya Gupta Conferred bronze award at Winner at The Economic India 2019 by The Economic Loan Provider of the Year Report FY2017-18 recognised as One of the the SKOCH Awards 2018. Times Innovation Tri

  42. Slide 42: Awards and Recognitions

    Awards and Recognitions Listing of PNB Housing on National Recognized for Adjudged Winners Felicitated for Valuable PNB Housing recognized Stock Exchange’ Contribution in Promoting for Brand excellence Contribution to CREDAI PNB Housing felicitated at the RICS among the Top 100 CIOs of Green Buildin

  43. Slide 43: Corporate Governance

    Corporate Governance Board of Directors Under the provisions of the Companies Act, 2013. It has 11 members, 3 are non-executive directors, 7 are independent directors and Managing Director. Audit Committee (ACB) Under section 177 of the Companies Act, 2013. It has 3 members, all are independent dire

  44. Slide 44: Strong Management Team

    a] Strong Management Team 23 (©)) Housing

  45. Slide 45: Management Team

    Management Team Age : 56 Years Sanjaya Gupta No. of Years with PNB HF : 8 Years Managing Director Prior Engagements : AIG, ABN Amro Bank N.V. and HDFC Limited Age : 57 Years Age : 47 Years Age : 53 Years No. of Years with PNB HF No. of Years with PNB HF No. of Years with PNB HF : 8 Years : 7 Years :

  46. Slide 46: Highly Experienced Board

    Highly Experienced Board Sunil Mehta Sh. Lingam Venkata Prabhakar Sunil Kaul Shital Kumar Jain Gourav Vallabh Chairman – Non Executive Non Executive Director Non Executive Director Independent Director Independent Director Age: Age: Age: Age: Age: 59 Years 56 Years 59 Years 79 Years 41 Years Current

  47. Slide 47: Summary

    Summary Strong Industry Growth Best-in-Class Quality Robust Technology Indian Housing Finance Steady Underwriting Processes, Robust Technology Platform in Sector Poised for Strong Best-in-Class Asset Quality and place as Growth Enabler Growth benign Credit Costs Brand Recognition & Mortgage backed D

  48. Slide 48: Glossary

    Glossary ATA Average Total Assets GNPA Gross Non-Performing Asset ATS Average Ticket Size HFCs Housing Finance Companies AUM Asset Under Management LAP Loan against Property BVPS Book Value per Share LIG Low Income Group C/I Cost to Income LRD Lease Rental Discounting CRAR Capital to Risk Asset Rati

  49. Slide 49: Formulas

    Formulas Ratios Formulas Used Average Borrowings (%) Interest Expense / Average Borrowings Average Gearing Ratio (x) Average Borrowings / Average Net worth Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets Operating Expenditure(Employee Cost + Other Expenses + De

  50. Slide 50: Thank You

    Thank You Contact Ms. Deepika Gupta Padhi - Head-Investor Relations Phone: +91 11 23445214 Investor.relations@pnbhousing.com PNB Housing Finance Limited CIN: L65922DL1988PLC033856 www.pnbhousing.com 49

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