Reliance Home Finance Ltd. · NSE:RHFL
Reliance Home Finance — Q1 FY2019 Earnings Presentation
32 slides from Reliance Home Finance's earnings presentation, Sep 11, 2018
Slide 1: Cover letter to exchanges
- HOME ReLIANCe FINANCE September 10, 2018 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Dalal Street, Fort. Plot No C/1 G Block Bandra Kurla Complex Mumbai 400 001 Bandra (East), Mumbai 400 051 BSE Scrip Code: 540709 NSE Scrip Symbol: RHF
Slide 2: Results for the quarter ended June 30, 2018
Results for the quarter ended June 30, 2018 Investor Presentation September 10, 2018
Slide 3: About Us
RELI/\NCe [nen About Us
Slide 4: Journey so far
Journey so far FINANCE AUM - Rs. 164bn Y Top 21 Best Workplace in Asia 2018 by Great places to work Y Best BFSI brand - The Economic Times Best BFSI Brands 2018 v BFSI Awards 2018 - Best affordable housing finance company of the year Public issue of NCDs - Rs.30bn v AUM crossed the mark of Rs. 112bn
Slide 5: Our Presence
Company ReLIANCe HOME FINANCE Our Presence Self Employed segment fiJ Established presence in the • Branches in 58 cities catering to approx. 140 locations Healthy asset quality reinforced by strong risk management m framework ~ Strong Management Team and •••••• Corporate Governance ••• Robust growth
Slide 6: Financial highlights
Financial highlights ReLIANCe HOME FINANCE Sustained growth with superior asset quality AUM increased to PBT for the quarter Rs. 156.4 billion at Rs. 724 million ·----------. (+21%) as on June 75% of our (+56%) 2018 home loan disbursements cater to the seH-employed Capital segment GNPA stable at Ade
Slide 7: Product offerings
Produd offerings ReLIANCe HOME FINANCE Customer Product Primary end use Strategy segment Self employed & Purchase of residential Key growth driver for future- Home Loans Salaried Funding through expansion in Tier II individuals property and Ill locations Self employed & Funding LIG & MIG segment for
Slide 8: Shareholding pattern
Shareholding pattern ReLIANCe HOME FINANCE Public and others Domestic 13.19% institutions I Banks I Mutual Funds 5.80% Foreign Investors Fils, NRis and others 6.02% Key shareholders ~·········································~ . : Life Insurance Corporation ... . • • ~································
Slide 9: The Opportunity
RELI/\NCe [nen The Opportunity
Slide 10: HFCs and NBFCs have consistently outperformed Banks
HOME HFCs and NBFCs have consistently outperformed Banks ReLIANCe FINANCE ( ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ... ,: : Market Share of Ba
Slide 11: Improving ecosystem
Improving ecosystem FINANCE HFCs * Dedicated affordable housing fund has been announced in the budget 2018-19* * NHB relaxed eligibility criteria for refinancing Reduction in standard asset provisioning & risk weights for incremental loans after August, 2017 SEBI increased exposure limits in HFCs up
Slide 12: Recent push to the affordable housing segment
Recent push to the affordable housing segment ee [>> ¥ MIGI (families with household Y Housing loan limits for PSL income between Rs 6 lakh and eligibility revised from existing Rs Rs 12 lakh) : Carpet area raised 28 lakh to Rs 35 lakh in from “up to 120 square metre" to metropolitan cities, and fro
Slide 13: Shortage of affordable housing (by Economic Group)
HOME Shortage of affordable housing (by Economic Group) ReLIANCe FINANCE ' ' Urban housing requirement ! Economic group-wise Shortage of l ' ' l _________________________________________________________________________________________ [ ', Affordable Housing Middle ....' j Affordable Housing limit r
Slide 14: Operational Highlights
HOME ReLIANCe FINANCE Operational Highlights
Slide 15: Product diagnostics
Produd diagnostics ReLIANCe HOME FINANCE (as on June 2018) Avg. Ticket Size Products AUMMix (Rs. million) - ------------------------- - ( - --------------------------- '\1 ': ' '' I ' Home Loan 55% i i '' 31% i ' 6.2 ''' ' ~ -------------------------- __,/ I ~.. - -------------------------- _/ I ''
Slide 16: Financial performance
Financial performance ReLIANCe HOME FINANCE Assets Under Management Total Loans Gross NPA (Rs. billion) {Rs. billion) {%1 156.4 140.9 129.7 116.3 0.8% 0.8% Jun-17 Jun-18 Jun-17 Jun-18 Jun-17 Jun-18 • AUM Total Income and Profit Before Tax Yield* and Net Interest Margin {Rs. million) {%) 3,921 4,109
Slide 17: Funding mix
HOME Funding mix ReLIANCe FINANCE Q1FY18 Q1FY19 Cost of Borrowings Jun-17 Jun-18 • Bank Loans • NCO • CP • Tier II Securitisation CRAR June 30, 2017 June 30, 2018 Tier I Capital 8.6% 73.8% Tier II Capital 8.4% 7.2% .------ Total 17.0% 21.0%
Slide 18: Credit ratings
Credit ratings ReLIANCe HOME FINANCE Instrument March 2018 ICRA Al+ Short Term BWR Al+ CARE AA+ Long Term BWRAA+ CARE AA+ Public Issue NCD (Secured) BWRAA+ CAREAA Public Issue NCD (Upper Tier II Secured) BWRAA CARE AA+ Tier II Unsecured Debt BWRAA+
Slide 19: Robust underwriting & risk management
HOME Robust underwriting & risk management ReLIANCe FINANCE Board through Audit Risk Management Group CRO Committee of RHF Committee I I I I I I I I -------------------------~-------------- NCM-Home NCM-Loan NM- Polley & Risk NCM-CF NM-RCU Loans Against Property Portfolio Risk Reviews Monthly port
Slide 20: Robust credit appraisal and monitoring
Robust credit appraisal and monitoring otes Real Time Risk Monitoring Objective Approach v To manage the risk arising out of delegation of absolute credit v Scientific method of sampling authority v Score-based prioritization To identify & review sanctioned cases to check adequate credit risk v Supe
Slide 21: Collections - objectives & strategy
Collections - objectives & strategy ec Collections / Reputation © Collections team governed by Collections Policy Manual v Manual gives guidelines on collection methodology, code of conduct, reputation risk etc. e Collection teams are especially sensitized about protecting reputation of the company
Slide 22: Digital initiatives - Key driver
Digital initiatives - Key driver... FINANCE save ‘ mr | Bsemrecospictre E-Collect RELUANCE ane) ¥ Mobile/TAB based app for collections field force v Electronic receipt and auto reconciliation ¥ Geo Tagging of customer and collection agent vy Productivity enhancement tool Reach Qut to Us ser em eral:
Slide 23: Digital initiatives - Key driver
Digital initiatives - Key driver FINANCE & RELIANCE CAPITAL COMPANY ccs vecisren ENTER REGISTERED MOBILE NUMBER TO LOGIN ee oo | MOT APPLIED FOR LOAM YET 7 REGISTER NOW Digital Lending Platform - Digital CRM - Lead Management “APPLY NOW” & Customer Service Y Online Loan Application & Sanction - “Hom
Slide 24: Ind AS transition
RELIANCE [Ener Ind AS transition
Slide 25: PAT reconciliation
PAT reconciliation ReLIANCe HOME FINANCE (Rs. in million} Particulars Ql FY18 Net Profit After Tax as per previous IGAAP 374 Add I (Less) :Adjustments as per lnd AS : -Effective Interest Rate (EIRlfor financial assets and liabilities recognised at (147) amortised cost/net interest on credit impaired
Slide 26: Expected Credit Loss (ECL)
HOME Expeded Credit Loss (ECL) ReLIANCe FINANCE (Rs. in million) Particulars Q1FY19 Q1FY18 Gross Stage 3 (GNPAl 1,281 1,102 ECL Provisions - Stage 3 291 211 Net Stage 3 990 23 Coverage ratio in Stage 3 22.r-' 19.1% Gross Stage 1 & 2 1,40,646 1,16,289 % Portfolio in Stage 1 & 2 99.1% 99.1% ECL Provis
Slide 27: Way forward
RELIANCE [Ener Way forward
Slide 28: Strategic triggers to reach Vision 2021
Strategic triggers to reach Vision 2021 AES FINANCE A: Process: Leaner Functioning * Digital processes * Efficient cost of funds * Stable asset quality * Robust collections B: Product Strategy: Right Mix Process * Right mix of retail and non-retail lending Product Growth along with C: Growth: Econom
Slide 29: Thank you
Thank you Investor relations contact: sambhav.jain@relianceada. com rhfl. investor@relianceada.com
Slide 30: Annexure
RELIANCE [Ener Annexure
Slide 31: Profit and Loss statement
HOME Profit and Loss statement ReLIANCe FINANCE (Rs. in million} Parflculars Ql FY19 Ql FY18 ch!ge FYIB FY17 ch!ge Assets Under 156,416 129,714 21% 163,789 111,745 47% Management Net Interest Income 1,128 1,090 4% 4,963 2,683 85% Total Income 4,109 3,921 5% 16,705 11,447 46% Interest expenses 2,855
Slide 32: Disclaimer
HOME Disclaimer ReLIANCe FINANCE This presentation does not constitute a prospectus, an offering circular, an advertisement, a private placement offer letter or offer document or an offer, or a solicitation of any offer, to purchase or sell any securities under the Companies Act, 2013 and the rules
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