Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — FY2018-19 Earnings Presentation
81 slides from Sammaan Capital's earnings presentation, Apr 24, 2019
Slide 1: Audited Financial Results – FY 2018-19
Audited Financial Results – FY 2018-19 April 24, 2019
Slide 2: Contents
Contents Pg. No. 1. Business Update 03 2. Gaining Strength Through the Liquidity Crisis 04 3. ALM 05 4. Financial and Operational Highlights 10 5. Liabilities Profile 16 6. Indian Home Loans Market 22 7. Products Profile 31 8. Conservative Loan Against Property Portfolio 39 9. LAP Grading 42 10. Sta
Slide 3: Business Update
Business Update Key Financial Highlights: FY 18-19 vs FY 17-18 as per Indian Accounting Standards [IndAS] FY 18-19 FY 17-18 YoY Growth [%] Balance Sheet 130,104 132,470 -1.8% Loan Assets 120,525 122,233 -1.4% Net Worth 18,284 16,076 13.7% Total Revenues 17,027 14,959 13.8% Net Interest Income 6,415
Slide 4: Gaining Strength Through the Liquidity Crisis
Gaining Strength Through the Liquidity Crisis: Elongated Liabilities, Low Gearing, High CRAR, AAA Ratings Reaffirmed Before Sector Issues Current Period Parameters [Aug 2018] [21st Sep 2018 to 31st Mar 2019] Money raised in Preceding 6 Months [₹ Cr.] 40,287 51,312 Spread [%] 3.23% 3.42% Commercial P
Slide 5: Micro ALM Details
Micro ALM Details [Quarter-wise details for next 10 years] Amount in ₹ Cr Particulars Total Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Cash & Cash Equivalents 31,165 31,165 28,497 27,473 24,650 26,434 24,176 22,279 22,039 Customer Repayments 92,298 4,737 4,873 4,628 5,713 4,741 4,632 4,
Slide 6: Micro ALM Details
Micro ALM Details [Quarter-wise details for next 10 years] Amount in ₹ Cr Particulars Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Cash & Cash Equivalents 21,572 22,401 16,656 15,388 15,384 15,467 16,444 15,820 Customer Repayments 4,562 4,487 4,593 4,001 3,650 3,377 3,014 2,791 Total Infl
Slide 7: Micro ALM Details
Micro ALM Details [Quarter-wise details for next 10 years] Amount in ₹ Cr Particulars Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q4FY25 Cash & Cash Equivalents 16,656 16,110 16,149 17,286 18,536 19,740 20,685 21,676 Customer Repayments 2,659 2,235 2,219 2,202 1,266 1,213 1,051 942 Total Inflow
Slide 8: Micro ALM Details
Micro ALM Details [Quarter-wise details for next 10 years] Amount in ₹ Cr Particulars Q1FY26 Q2FY26 Q3FY26 Q4FY26 Q1FY27 Q2FY27 Q3FY27 Q4FY27 Cash & Cash Equivalents 22,280 22,231 22,856 23,438 24,005 23,411 22,274 22,786 Customer Repayments 985 939 864 748 538 526 516 506 Total Inflows [A] 23,265 2
Slide 9: Micro ALM Details
Micro ALM Details [Quarter-wise details for next 10 years] Amount in ₹ Cr Particulars Q1FY28 Q2FY28 Q3FY28 Q4FY28 Q1FY29 Q2FY29 Q3FY29 Q4FY29 > 10 Years Cash & Cash Equivalents 23,242 23,482 21,627 21,982 17,772 18,244 17,765 17,339 17,331 Customer Repayments 500 495 488 475 573 573 574 440 1,204 To
Slide 10: Financial and Operational Highlights
Financial and Operational Highlights 10
Slide 11: Business Summary
Business Summary • Balance Sheet : ₹ 1.30 Lakh Cr • Loans Outstanding : ₹ 1.21 Lakh Cr : [$ 17.22 Bn] • Loan Assets CAGR [7 years] : 23% • Cumulative Loans to Retail Customers : 11,24,730 • Cumulative Loans Disbursed till date : ₹ 2.47 Lakh Cr [$ 35.34 Bn] • Cost to Income Ratio [FY19] : 12.7% • Pro
Slide 12: Balance Sheet Assets
Balance Sheet Assets 5% 24% Loan Book Cash & Cash Equivalents Other Assets 71% Current Account Balance & Fixed Deposits 13,903 Investment in Bank CDs 8,285 Mutual Fund Investments 7,214 [available on t+1/t+2 basis] Liquid Quasi-Sovereign Bonds 1,219 Highly Rated Liquid Corporate Bonds 300 Highly Rat
Slide 13: Asset Composition
Asset Composition FY 17-18 FY 18-19 21% 17% 79% 83% Mortgage Loans Corporate Mortgage Loans • Home loans, which form the majority of incremental disbursals, are disbursed at an average ticket size of ₹ 24 Lakhs; average LTV of 73% [at origination] 13
Slide 14: Conservative ECL Provisions and Stable Asset Quality
Conservative ECL Provisions and Stable Asset Quality Q4 FY19 Q3 FY19 Gross Stage 3 1,061 987 % Portfolio in Stage 3 0.88% 0.79% ECL Provision Stage 3 228 247 Net Stage 3 832 739 Coverage Ratio % Stage 3 22% 25% Gross Stage 1&2 1,19,464 1,23,285 % Portfolio in Stage 1&2 99.12% 99.22% ECL Provision St
Slide 15: Asset Quality
Asset Quality Gross NPA As at Mar 31, 2019 [IndAS] % of Total [in ₹ Cr] Loan Assets 0.85% 0.88% GNPA: 1,061 0.88% 0.78% Stage 3 ECL Provisions: 228 0.19% NNPA: 832 0.69% Mar 17 Mar 18 Mar 19 • The stage 1&2 ECL provisions of ₹ 728 Cr have not been taken into account while calculating the Net NPA dpd
Slide 16: Liabilities Profile
Indiabulls HOUSING FINANCE Liabilities Profile
Slide 17: Liabilities
Liabilities 14% 5% 81% Shareholders' Funds Borrowings Other Liabilities 17
Slide 18: Funds Raised since 21st September 2018
Funds Raised since 21st September 2018 S.No. Facility Amount Raised 1 Bank Loans & Refinance 14,477 2 Bonds 5,480 3 Securitisation 21,480 Commercial Papers 4 [Outstanding CPs on Mar 31, 2019: ₹ 5,330 Crs] 9,875 Total Funds Raised 51,312 • IBH has raised Loans and Refinance from 17 Banks and Financia
Slide 19: Funding Mix
Funding Mix 3% 2% 4% 9% 10% 22% 37% 34% 34% 11% 12% 4% 40% 42% 36% Mar 17 Mar 18 Mar 19 Debentures and Securities Commercial Papers Bank Loans Sell Down ECB ECB: External Commercial Borrowing 19
Slide 20: Strengthening Liability Profile
Strengthening Liability Profile 1,20 ,900 1,10,204 1,04,988 1,00 ,900 80,9 00 7.0 Borrowings 60,9 00 Net Gearing 40,9 00 20,9 00 4.0 900 Mar 18 Mar 19 Total Funding [₹ Cr] Net Incremental Contribution to Incremental Mar 19 Mar 18 in 12 Months Borrowings in last 12 Months Bank Loans 46,100 41,698 4,4
Slide 21: Effective Pass Through: Spread Stay Strong
Effective Pass Through: Spread Stay Strong Spreads Cost of Funds Loan Assets [₹ Cr] Loan Assets 7-Yr CAGR: 23% Own Book 7-Yr CAGR: 20% 11.63% 12.15% 1,22,233 1,20,525 10.86% 8.73% 8.77% 11,562 8.39% 91,301 28,227 3.24% 3.42% 3.11% 8,687 7.83% 7.75% 7.65% 1,10,671 8.39% 7.75% 8.73% 82,614 92,298 Mar
Slide 22: Indian Home Loans Market
Indiabulls HOUSING FINANCE Indian Home Loans Market 22
Slide 23: Indian Housing Landscape
Indian Housing Landscape Regulator Government Push RERA has brought greater Housing for All by 2022, PMAY, etc. transparency and discipline Easier Credit Flow Fiscal Incentives Infrastructure status to housing; RBI, SEBI, Tax incentives and subsidies for IRDAI eased exposure norms to mortgage buyers
Slide 24: Housing Demand in India
Housing Demand in India • Estimated housing shortage: ~ 400 Lakh houses • Drivers of incremental demand: Current population growth Demand for 34 Lakh houses p.a. @ 1.3% p.a. Ongoing nuclearisation Demand for 25 Lakh houses p.a. @ 0.9% p.a. Rising income/aspirations – per Demand for 40-50 Lakh houses
Slide 25: Housing: From Social Objective to Centrepiece Economic Policy
Housing: From Social Objective to Centrepiece Economic Policy Housing sector has the ability to propel rural and urban economic activity - Housing sector: Country’s 4th largest employment provider* employing both semi-skilled and unskilled labour - Housing and the larger real estate sector has a hig
Slide 26: PMAY and Tax Incentives for Mid-Income Affordable Housing
PMAY and Tax Incentives for Mid-Income Affordable Housing Illustration for Indiabulls Housing’s average Home Loan at headline yield of 8.90% - House value: ₹ 3,500,000 - Home loan amount: ₹ 2,400,000 [Loan to value of 70%] - PMAY subsidy : ₹ 230,156 - Net loan amount: ₹ 2,169,844 Opening Loan Intere
Slide 27: EMI Smaller than Rent Cheque
EMI Smaller than Rent Cheque: PMAY and Tax Incentive for Mid-Income Affordable Housing Rental Yield v/s Home Loan Cost 5.0% 4.0% 3.4% 3.5% 3.9% 3.1% 3.4% 3.2% 2.3% 2.9% 2.6% 2.6% 2.7% 0.67% Rental yield Effective Interest Rate on Home Loans with PMAY [0.67%] Source: NHB; Industry reports Increasing
Slide 28: Growth Momentum in Residential Real Estate
Growth Momentum in Residential Real Estate • Housing sales up 58% YoY in Q1CY19 across key seven Indian Cities1 Mumbai: 95%, Pune: 80%, NCR: 51%1 • Over 78,000 units were sold in Q1CY19 with NCR, Mumbai, Bengaluru and Pune together Sales Pick-up accounting for 84% of the sales 1 • Launches up 91%
Slide 29: Commercial Office Space Absorption
Commercial Office Space Absorption • 12.8 Mn sq. ft. leased during Q1CY19 across top Indian cities, up 3% QoQ1 ‒ Bangalore, Delhi-NCR, Hyderabad and Mumbai accounts for 75% plus of leasing activity • Gross leasing activity in CY18 recorded a growth of 17% YoY, with 50.2 Mn sq. ft. of absorption, Pic
Slide 30: Strong Structural Drivers and Government Focus
Strong Structural Drivers and Government Focus Measures in the last 36 months: Boost to the Housing Sector Pradhan Mantri Subsidy eligibility under Pradhan Mantri Awas Yojana [PMAY] covers up to ₹ 12 lakh of home loan – Awas Yojana [PMAY] reduces effective home loan rates to 0.67% for mid-income aff
Slide 31: Product Profiles
Indiabulls HOUSING FINANCE Product Profiles
Slide 32: Home Loan Profile: Focus on Mid-Income Affordable Housing
Home Loan Profile: Focus on Mid-Income Affordable Housing Average Loan Size ₹ 24 Lakhs Maximum Loan to Value 80% Average Loan to Value 73% [at origination] Average Loan Term 15 years Average Customer Age 38 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing • PMAY
Slide 33: Smart City Home Loan: Technology-led cost-effective
Smart City Home Loan: Technology-led cost-effective Geographical Expansion through eHome Loans platform Minimum Loan Size ₹ 10 Lakhs Average Loan Size ₹ 15 Lakhs Maximum Loan Size ₹ 40 Lakhs Maximum Loan to Value 80% [at origination] Maximum Loan Term 20 years Average Customer Age 39 years Primary S
Slide 34: Loan Against Property Product Profile
Loan Against Property Product Profile Average Loan Size ₹ 73 Lakhs Maximum Loan to Value 65% Average Loan to Value 49% [at origination] Average Loan Term 7 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing Average Age of Business 7 years Basis of Credit Appraisal
Slide 35: Pan-India Brick-and-Mortar Branch Network
Pan-India Brick-and-Mortar Branch Network Head Master office Service Centers • Core credit Branches [MSC] committee • • • Regional credit hub • Loans above pre- • Service • Walk-in defined limits go to • Centers • Detailed credit the committee branches analysis • Customer • Customer interaction and
Slide 36: eHome Loans: Digitised Workflow, Analytics driven
eHome Loans: Digitised Workflow, Analytics driven Underwriting and Digital Payments Infrastructure Customer eHome Loan App and Portal IB Systems Toughpoints Application form Document upload e-sign Lead Sources Income proof directly Digitally enabled e-signs Data directly flows Basic information fill
Slide 37: eHome Loans: Digitised Workflow, Analytics driven
eHome Loans: Digitised Workflow, Analytics driven Underwriting and Digital Payments Infrastructure Sanctioning e-sign and instant Servicing Verifications Automated Credit Decisioning Disbursement Parallel reports Post application the following are On request for disbursement, customer Self Service t
Slide 38: Unique Franchise in Indian Mortgage Market
Unique Franchise in Indian Mortgage Market Consumer focused scalable lending model Strengths similar to Banks Scalability of Mortgage • Access to deep pools of capital: debt and equity • Focused on the most scalable and secure asset class: Home Loans • Funding efficiencies from highest AAA credit ra
Slide 39: Conservative Loan Against Property Portfolio
Conservative Loan Against Property Portfolio 39
Slide 40: Loan Against Property Product Profile
Loan Against Property Product Profile Average Loan Size ₹ 73 Lakhs Maximum Loan to Value 65% Average Loan to Value 49% [at origination] Average Loan Term 7 years Primary Security Mortgage of property financed Repayment Type Monthly amortizing Average Age of Business 7 years Basis of Credit Appraisal
Slide 41: Loan Against Property: Cashflow based underwriting
Loan Against Property: Cashflow based underwriting Loan repayments are immune from fluctuations in residential price inflation 28% 25% 27% 19% 21% 21% 22% 19% 23% 20% 21% 3-Year Amortization Experience 11% for IBH 6% 7% 2% 16% 14% 14% 3% 3% 5% 2% Contracted Amortization 23% 2008 2009 2010 2011 2012
Slide 42: LAP Grading
LAP Grading A Pioneering Initiative for Improved Risk Management and Greater Transparency 42
Slide 43: Loan Against Property Grading from CRISIL
Loan Against Property Grading from CRISIL • 16th quarter of industry-pioneering LAP grading initiative • Sourcing quality sustained through transition to GST • LAP grading engagement with CRISIL [an S&P Global Company] - CRISIL grades LAP loans on aspects such as past payment track record; nature of
Slide 44: CRISIL LAP Grading Methodology
CRISIL LAP Grading Methodology Detailed assessment of key factors determining quality of LAP loans Financial Strength Business Management • Interest and debt service cover • Business sector and sectoral prospects • Revenues, margin and profitability • Business duration and track record • Networth an
Slide 45: CRISIL LAP Grading
CRISIL LAP Grading Grading Segment Characteristics Total Interest Disbursals Outstanding Grading Quality of Service Loan to EBITDA Apr 15 –Feb Liabilities/ Scale LAP Loans# Coverage Value [LTV] Margins 19 Total Net Ratio [ISCR] worth Over 99% of LAP1 Highest 8.30% 10.3 – 13.3 1.3 – 1.4 49% 15% – 19%
Slide 46: Static Credit Performance Analysis of LAP and HL Pools
Static Credit Performance Analysis of LAP and HL Pools 46
Slide 47: Retail Loan Book of Highest Quality
Retail Loan Book of Highest Quality Portfolio performance of all sold down pools of ₹ 54,044 Cr Initial Pool Details of Initial POS Average Sold Down Pool Loan Pool Number of Disbursement Ticket Size Months on 180+ dpd Principal Principal Amortisation 90+ dpd % Type Pools [₹ Cr] [at disbursement] Bo
Slide 48: Home Loans Pool Performance Factsheet: CRISIL Direct Assignments
Home Loans Pool Performance Factsheet: CRISIL Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Sold Down Disbursement Pool Principal Amortisa- Sr. No Investor Principal MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] [₹ Cr] tion# [₹ Cr] 1 Bank 4 20-Mar-14 345.2 292.3 60
Slide 49: Home Loans Pool Performance Factsheet: CRISIL Direct Assignments
Home Loans Pool Performance Factsheet: CRISIL Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Sold Down Disbursement Pool Principal Amortisa- Sr. No Investor Principal MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] [₹ Cr] tion# [₹ Cr] 29 Bank 8 30-Jun-16 186.5 157.4 32
Slide 50: Home Loans Pool Performance Factsheet: CRISIL Direct Assignments
Home Loans Pool Performance Factsheet: CRISIL Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Sold Down Disbursement Pool Principal Amortisa- Sr. No Investor Principal MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] [₹ Cr] tion# [₹ Cr] 57 Bank 8 31-Jul-18 109.4 90.4 7 8
Slide 51: LAP Pool Performance Factsheet: CRISIL Direct Assignments
LAP Pool Performance Factsheet: CRISIL Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Sold Down Disbursement Pool Principal Amortisatio Sr. No Investor Principal MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] [₹ Cr] n# [₹ Cr] 1 Bank 3 31-Dec-13 224.4 178.6 62 7.9 96%
Slide 52: LAP Pool Performance Factsheet: CRISIL Direct Assignments
LAP Pool Performance Factsheet: CRISIL Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Sold Down Disbursement Pool Principal Amortisatio Sr. No Investor Principal MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] [₹ Cr] n# [₹ Cr] 26 Bank 1 20-Mar-12 236.0 222.3 84 10.6 95
Slide 53: LAP Pool Performance Factsheet: CRISIL Direct Assignments
LAP Pool Performance Factsheet: CRISIL Direct Assignments [Sold Down] Initial Pool Details of Initial POS Sold Down Sold Down Disbursement Pool Principal Amortisa- Sr. No Investor Principal MPS 90+ dpd % 180+ dpd % CCR MCR QCR Date [₹ Cr] [₹ Cr] tion# [₹ Cr] 51 Bank 15 27-Dec-18 462.3 354.6 3 335.8
Slide 54: Home Loans and LAP Pool Performance Factsheet
Home Loans and LAP Pool Performance Factsheet Pass-Through Certificates HL Pools Initial Pool Details of Initial POS Sold Down Sold Down Disbursement Pool Principal Amortis- 90+ 180+ Outstanding Sr No Investor Principal MPS CCR MCR QCR Date [₹ Cr] [₹ Cr] ation# dpd % dpd % Rating from [₹ Cr] 1 Bank
Slide 55: Corporate Social Responsibility
Corporate Social Responsibility 55
Slide 56: Indiabulls Foundation: Corporate Social Responsibility
Indiabulls Foundation: Corporate Social Responsibility Health Free Mobile Medical Vans Transforming Mokhada, Shahapur Transforming Talukas - Free primary healthcare facility provided at & Trimbakeshwar doorsteps for the underprivileged - Medical vans, clinics, health camps, nutrition - 2 vans added
Slide 57: Board of Directors, Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding
Board of Directors, Ratings, Business Value Proposition, Key Ratios, Valuations, and Shareholding 57
Slide 58: Eminent and Experienced Board of Directors
Eminent and Experienced Board of Directors Board of Directors with pre-eminence and experience in diverse fields • Mr. Sameer Gehlaut : Executive Chairman • Mr. Gagan Banga : Vice Chairman, Managing Director and CEO • Mr. S.S. Mundra : Former Deputy Governor, The Reserve Bank of India • Dr. K.C. Cha
Slide 59: Credit Ratings and Auditors
Credit Ratings and Auditors Rating Agency Long Term Credit Rating CRISIL [an S&P Global Company] AAA ICRA [a Moody’s Investors Service Company] AAA CARE Ratings AAA Brickwork Ratings AAA Auditors Statutory Auditor S R Batliboi & Co. [Indian Member firm of Ernst & Young] Internal Auditor Grant Thornt
Slide 60: Productivity Ratios
Productivity Ratios FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 No. of 4,512 4,243 4,072 4,099 4,840 5,453 6,388 8,111 8,676 Employees Profit per 0.17 0.24 0.31 0.38 0.39 0.43 0.46 0.47 0.47 employee [₹ Cr] Asset per 3.71 5.85 8.09 10.84 11.82 14.02 16.23 16.26 15.00 empl
Slide 61: Key Financial Metrics
Key Financial Metrics FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Pre Tax RoAA 5.5% 4.9% 4.9% 4.8% 4.9% 4.9% 4.6% 4.3% 4.2% [%] Post Tax RoAA 4.1% 3.7% 3.8% 3.8% 3.7% 3.7% 3.6% 3.3% 3.0% [%] RoE [%] 17.2% 22% 26% 27% 29% 26% 26% 30% 24% Capital 23.87% 19.96% 18.58% 20.47%
Slide 62: Valuations and Returns
Valuations and Returns Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Market Price per Share [₹] 155 207 272 286 558 674 998 1,194 744* Dividend per Share [₹] 10 13 20 29 35 36 36 42 40 Dividend Yield [%] 6.5% 6.3% 7.4% 10.2% 6.3% 5.3% 3.6% 3.5% 5.4% Market Capitalisation 4.8 6.5 8.5
Slide 63: Shareholding Pattern
Shareholding Pattern 9.0% 21.5% 13.0% 56.5% Founder Foreign Institutional Shareholding MFs/Banks/IFI Public MF: Mutual Funds; IFI: Indian Financial Institutions As on 31st Mar, 2019 63
Slide 64: Detailed Financials
Indiabulls HOUSING FINANCE Detailed Financials 64
Slide 65: Consolidated Balance Sheet
Consolidated Balance Sheet Current Account Balance & Fixed 13,903 Deposits Investment in CDs 8,285 Mutual Fund Investments 7,214 [available on t+1/t+2 basis] Liquid Quasi-Sovereign Bonds 1,219 Highly Rated Liquid Corporate Bonds 300 Highly Rated Commercial Paper 245 Total Cash and Cash Equivalents 3
Slide 66: Consolidated Income Statement
Consolidated Income Statement The company had cash, cash equivalents and investments in liquid debt instruments of ₹ 31,165 Cr as at 31st Mar, 2019. The company receives income from its cash, cash equivalents and investments in liquid debt instruments through the quarter, most of which appears in ‘O
Slide 67: Merger with Lakshmi Vilas Bank
Merger with Lakshmi Vilas Bank 67
Slide 68: Merger Rationale
Merger Rationale Value of banking license • Access to stable, low-cost funding in the form of public deposits • Expanded distribution franchise leading to broader customer base and diverse product portfolio Geographical and product diversification, with cross-sell opportunities • IBH’s presence in n
Slide 69: Transaction Details
Transaction Details Merger of LVB with Lakshmi Vilas Bank [LVB] to amalgamate into Indiabulls Housing Finance [IBH] subject to IBH RBI and other regulatory & statutory approvals Share swap ratio of 0.14:1 [14 shares of IBH will be given for every 100 shares of LVB] has been agreed Swap Ratio upon by
Slide 70: Precedents and Regulation
Precedents and Regulation Announced: Jan 2019 Gruh Finance Bandhan Bank [HFC] Received regulatory approval Balance Sheet: ₹ 20,000 Crs Balance Sheet: ₹ 47,000 Crs from RBI Capital First IDFC Bank Announced: Jan 2018 [NBFC] Balance Sheet: ₹ 29,500 Crs Balance Sheet: ₹ 1,23,250 Crs Amalgamated: Dec 20
Slide 71: Strong Regulatory Framework: No Dispensation Required
Strong Regulatory Framework: No Dispensation Required • By becoming a bank, IBH is voluntarily submitting itself to come under the direct banking supervision of RBI for all its existing and future businesses • As a bank portfolio performance will be closely scrutinized − Asset Quality Review: String
Slide 72: LVB Today
LVB Today Loan Advances ₹ 24,123 Cr Deposits ₹ 30,787 Cr CASA ₹ 7,036 Cr CRAR: 7.7% Capital Adequacy Ratio Tier 1: 5.6% Profits [9MFY19] Losses of ₹ 630 Cr GNPA: 13.9% Asset Quality NNPA: 7.6% Depositors and Account Holders 21,86,891 Loan Customers 1,86,112 Employees 4,881 569 branches in 150 towns
Slide 73: IBH Today
IBH Today Net Worth ₹ 18,284 Cr Increased 69% in last three years Total Loan Assets ₹ 1,20,525 Cr 7-year CAGR: 23% Profitability [PAT] FY19: ₹ 4,091 Cr 7-Year CAGR: 19% Spread 3.42% In line with spreads of other private Indian banks Asset Quality GNPA: 0.88%; NNPA: 0.69% GNPAs have remained between
Slide 74: Amalgamated Entity Financials
Amalgamated Entity Financials As on December 31, 2018 Amalgamated Entity Net Worth [₹ Crs] 19,472 Loan Book [₹ Crs] 1,23,393 Operating Profit [₹ Crs] 4,630 9MFY19 Net Profit [₹ Crs] 2,455 Capital Adequacy Ratio 20.6% Tier 1 14.4% Return on Assets [Annualized] 2.0% Return on Equity [Annualized] 19.2%
Slide 75: IBH's Financial Strength Preserved
IBH’s Financial Strength Preserved: Smaller Balance Sheet of LVB Absorbed for a Banking License Amalgamated IBH Entity IBH LVB Particulars [H1FY19] [9MFY19] [9MFY19] [9MFY19] Net Worth 17,350 19,472 17,792 1,680 Loan Book 1,14,903 1,23,393 99,270 24,123 PPOP FY18 6,097 6,452 6,097 355 PAT FY18 3,847
Slide 76: Modest Investment for a Lasting Legacy
Modest Investment for a Lasting Legacy Deposits ₹ 30,787 Cr CASA ₹ 7,036 Cr Depositors and Account Holders 21,86,891 Loan Customers 1,86,112 569 branches in 150 towns and cities in 19 states Branch Network 1,046 ATMs • Dilution of only 9.5% • Capital support of ₹ 188 Cr: preference equity of 4.9% Th
Slide 77: Steps of the Transaction
Steps of the Transaction Share Issuance Stakeholders’ Filing of the Approval scheme and NCLT approval Regulatory filings and approvals Scheme would be RoC filing post the implemented final approval after approval of from the Reserve Board Approval Necessary Bank of India at least 2/3rd of ap
Slide 78: Update on OakNorth Bank
Indiabulls HOUSING FINANCE Update on OakNorth Bank
Slide 79: Update on OakNorth Bank
Update on OakNorth Bank Performance of Bank • Within three years of operations, OakNorth Bank’s deposits have risen to ₹ 13,409 Crs and lending facilities to ₹ 23,890 Crs • The loan book has a gross yield of 8.2%, cost of funds of 1.8% and NIM of 6.2% Deposits [₹ Crs] Lending Facilities [₹ Crs] 13,4
Slide 80: Safe Harbour Statement
Safe Harbour Statement This document contains certain forward-looking statements based on current expectations of Indiabulls Housing Finance Ltd.’s [CIN: L65922DL2005PLC136029] management. Actual results may vary significantly from the forward-looking statements in this document due to various risks
Slide 81: Thank you
Indiabulls HOUSING FINANCE Thank you
Indiabulls Housing Finance — FY2018-19 Earnings Presentation on 6ix