Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q4 FY2024 Earnings Presentation
36 slides from Pnb Housing Finance's earnings presentation, Apr 29, 2024
Slide 1: Cover letter to stock exchanges
Ref: PNBHFL/SE/EQ/FY25/16 Date: April 29, 2024 The BSE Limited, The 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:
Slide 2: Investor Presentation Quarter Ended March 2024
Investor Presentation Quarter Ended March 2024 29-Apr-24 Public
Slide 3: Table of Content
Table of Content 1 Key Performance Highlights 2 Key Development in FY24 3 Strategic Objectives 4 Business Update 5 Financial Performance 6 Annexure Public
Slide 4: Key Performance Highlights
Key Performance Highlights Retail Segment Corporate Segment Total INR 17,483 Crore (FY24) (18.5% YoY ) INR 100 Crore (FY24) INR 17,583 Crore (FY24) Prime: INR 15,830 crore (-53.7% YoY) (17.5% YoY) Affordable: INR 1,653 crore Disbursement INR 5,541 Crore (Q4 FY24) (24.1% YoY | 34.8% QoQ) INR 33 Crore
Slide 5: Key Performance Highlights
Key Performance Highlights AUM Loan Assets Deposits Net NPA Spread 2.34% (FY24) ( -47 bps YoY ) INR 71,243 Crore INR 65,358 Crore INR 17,798 Crore 0.95% (31-Mar-24) vs (6.9% YoY | 3.9% QoQ ) (10.3% YoY | 4.8% QoQ) Public 88% | ICD 12% 2.10% (Q4FY24) 1.14% (31-Dec-23) | 2.76% (31-Mar-23) ( -55 bps Yo
Slide 6: Key Developments in FY24
Key Developments in FY24 Successfully completed Increased Retail Scale-up in Affordable Capital Raise Contribution Segment Raised INR 2,494 crore via. Right 97% of Total Loan Asset Build INR 1,790 crore Loan Asset Issue in May 2023 vs 94% (31-Mar-23) in 15 months of operation Strengthened Improved A
Slide 7: Strategic Objectives
Strategic Objectives Retail Loan Asset Grow retail book including emerging segment Affordable Book Grow Affordable book especially in Tier 2 and 3 Asset Quality Strategic Leverage underwriting and collection efficiencies to have best-in class asset quality in the industry Objectives Borrowing Profil
Slide 8: Retail strategy ramping up well
Retail strategy ramping up well Retail Growth strategy and objectives… New management New strategy Leverage strong Continue growth Focus on higher Tech focus team with deep focused on building parentage and best trajectory in yielding emerging for operational retail business leading retail in class
Slide 9: Growth in Retail Prime segment
1 Growth in Retail Prime segment Prime Disbursement (INR crore) Prime Loan Asset (INR crore) 4,328 3,439 3,790 3,705 4,896 55,333 56,610 57,726 58,979 61,516 26% 25% 25% 25% 26% 29% 29% 28% 28% 28% 74% 75% 75% 75% 74% 71% 71% 72% 72% 72% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 31-Mar-23 30-Jun-23 30-Sep-
Slide 10: Carve out high yielding emerging market segment
Carve out high yielding emerging market segment Strategy update Product overview Right to win • Focus on Tier II/III cities for higher yielding emerging business within Prime Emerging • Dedicated 50 branches for emerging markets Metric Prime markets business (Target) Deep experience in retail segmen
Slide 11: Affordable Segment Strategy
2 Affordable Segment Strategy Jan-23: Jul-23: Nov-23: Dec-23: Mar-24: Started with INR 5 crore Reached disbursement Loan Asset crossed INR 1,000 Expanded presence to 100 Total footprint of 160 locations; Loan disbursements in run-rate of INR 100 crore / crore, one of the fastest in India branches ac
Slide 12: Ramp-up in Affordable segment
Ramp-up in Affordable segment Affordable Segment Distribution Network Distribution Network Disbursement (INR crore) 160 645 32% 100 374 406 88 89 25% 32% 228 28% 68% 75% 68% 72% Jun-23 Sep-23 Dec-23 Mar-24 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Disbursement 11.5% 11.4% 11.6% 11.6% yield % Individual Housing Lo
Slide 13: GNPA & Asset Quality
3 Asset Quality Overall Retail Corporate GNPA (INR Crore) 2,270 2,270 1,424 1,416 846 854 1,086 1,079 984 1,018 1,005 916 68 74 68 31- 30- 30- 31- 31- 31- 30- 30- 31- 31- 31- 30- 30- 31- 31- Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 3.83
Slide 14: Well Diversified Borrowing Profile
4 Well Diversified Borrowing Profile Borrowing Mix Cost of Borrowing 5.7% 9.2% NHB Refinance Term Loans 8.06% 7.97% 8.00% 7.99% 7.87% 8.07% 7.83% 7.98% 7.93% 7.76% 42.2% 40.2% ECBs Deposits 10.2% 2.6% NCDs 32.3% CPs 7.98%* 32.1% 9.6% 9.8% 6.0% 0.0% 31-Mar-23 31-Mar-24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4F
Slide 15: Tech Transformation Update
Tech Transformation Update: focused on core tech transformation for business 5 acceleration The objective is to upgrade our legacy systems, digitize processes and be cloud ready for scale and performance Partners Launched new cloud-based CRM platform by Salesforce for improving customer service capa
Slide 16: Business Update
Business Update Public 15 15
Slide 17: Wide Distribution Network
Wide Distribution Network Loan Asset – Geographical Breakup Affordable 82 160 branches & outreaches 34% 33% 300 29% 32% 111 189 37% 35% 31-Mar-23 31-Mar-24 Disbursement - Geographical Break-up 31-Mar-23 Mar-23 to Mar-24 31-Mar-24 Branches/outreaches 34% 35% 32% 37% 14,000+ Channel Partners for loans
Slide 18: Loan Asset Mix and Disbursement
Loan Asset Mix (INR Crore) Segment Mix Retail Product Mix Retail Profile Mix 59,273 62,337 65,358 6% 4% 3% 29.0% 28.2% 28.1% 41.3% 39.5% 39.2% Loan Asset 94% 96% 97% 71.0% 71.8% 71.9% 58.7% 60.5% 60.8% 31-Mar-23 31-Dec-23 31-Mar-24 31-Mar-23 31-Dec-23 31-Mar-24 31-Mar-23 31-Dec-23 31-Mar-24 Corporat
Slide 19: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Particulars (INR Crore) 31-Mar-24 31-Dec-23 31-Mar-23 Gross Stage 1* 62,430 59,301 54,999 Gross Stage 1 as % to Loan Asset 95.52% 95.13% 92.79% ECL Provision Stage 1 565 579 525 ECL Provision % Stage 1 0.90% 0.98% 0.95% Gross Stage 2* 1,944 1,956 2,003 Gross Sta
Slide 20: Expected Credit Loss (ECL) Provisions – Retail & Corporate
Expected Credit Loss (ECL) Provisions – Retail & Corporate Retail Corporate Particulars (INR Crore) 31-Mar-24 31-Mar-23 31-Mar-24 31-Mar-23 Gross Stage 1* 60,573 52,044 1,858 2,956 Gross Stage 1 as % to Loan Asset 95.68% 93.82% 90.53% 77.75% ECL Provision Stage 1 260 245 305 280 ECL Provision % Stag
Slide 21: Financial Performance
Financial Performance Public 20 20
Slide 22: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 1,777 1,752 1,812 1,197 1,225 1,252 1,246 1,634 1,704 1,146 1,702 1,008 1,048 1,057 1,087 1,070 1,601 1,676 1,718 1,681 150 168 166 176 33 28 59 70 110 -5 143 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 I
Slide 23: Financial Ratio Analysis – Quarter on Quarter
Financial Ratio Analysis – Quarter on Quarter Average Yield Average Cost of Borrowing 10.59% 10.58% 10.48% 10.29% 10.41% 10.43% 10.50% 10.19% 10.08% 10.08% 7.97% 7.97% 7.99% 7.99% 8.07% 7.98%* 7.98% 7.98% 7.76% 7.76% Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 *In Q3FY24, t
Slide 24: Consolidated Profit & Loss Statement – X 1-off
Consolidated Profit & Loss Statement – X 1-off Reported X 1-off Amount in INR Crore FY24 FY23 YoY (%) FY24 FY23 YoY (%) Total Interest Income 6,777 6,244 9% 6,765 5,960 13% Interest Expense 4,261 3,899 4,249 3,899 Net Interest Income (NII) 2,516 2,346 7% 2,515 2,062 22% Net Fees and Other Income 268
Slide 25: Financial Ratio Analysis - Annual
Financial Ratio Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.28% 10.35% 8.01% 2.81% 3.73% 3.74% 9.42% 7.30% 7.47% 2.34% 2.12% 2.80% FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 FY22 FY23 FY24 Gross Interest Margin Opex to ATA Ratio Return on Asset Return o
Slide 26: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q4 FY24 Q4 FY23 YoY Q3 FY24 QoQ FY24 FY23 YoY FY22 Interest Income 1,692.9 1,589.2 1,679.5 6,742.2 6,199.1 5,822 Add: Net gain on fair value changes 9.0 11.4 1.7 35.0 34.1 111 Add: Income on derecognized (assigned) loans 0.0 0.0 0.0 0.0 10
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 31-Mar-24 31-Mar-23 31-Mar-22 Particulars (INR Crore) 31-Mar-24 31-Mar-23 31-Mar-22 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments - (a) Cash and cash equivalents 2,142 3,678 5,066 (b) Debt Securit
Slide 28: Key Takeaways
Key Takeaways Asset Quality Focus on Retail Loan Growth Grow Affordable Segment including Emerging Segment Continued focus on Retail Segment incl. high Expanded presence to 160 locations to Leverage advance analytics and digital yielding emerging business support growth tools to automate credit appr
Slide 29: Annexure
Ghar Ki Baat Annexure
Slide 30: Shareholding Pattern
Shareholding Pattern Shareholding as on 31-Mar-24 Top 10 Shareholders 4.2% 6.6% 3.4% 28.1% • Promoter (PNB) 5.3% • Carlyle 9.8% • Ares SSG Capital • General Atlantic Singapore Fund 32.7% • Pioneer Investment Fund 9.9% • Tata Mutual Fund • Vanguard • BlackRock (ETFs) Promoters Quality Investment Hold
Slide 31: Distinguished Board of Directors
Distinguished Board of Directors Chandrasekaran Atul Kumar Goel Sunil Kaul Non-Executive Nominee Director Non-Executive Nominee Director Ramakrishnan Independent Director Nilesh Shivji Vikamsey Tejendra Mohan Bhasin Sudarshan Sen Independent Director Independent Director Independent Director Neeraj
Slide 32: Experienced and Professional Management Team
Experienced and Professional Management Team Girish Kousgi Managing Director and CEO Vinay Gupta Anujai Saxena Amit Singh Chief Financial Officer Chief Transformation Officer Chief People Officer Jatul Anand Dilip Vaitheeswaran Ajay Kumar Mohanty Chief Sales Officer - Retail Head - Internal Audit an
Slide 33: ESG Snapshot
ESG Snapshot ▪ 99.6% EMI collections through digital mode Environment ▪ The Company through its CSR initiative “Paryavaran” supported • Various program under Environment and Water Conservation in MP, Rajasthan, UP, Haryana & Maharashtra • Installation of 16 bottle recycling machines with aim to save
Slide 34: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets NIM (%) Net Interest Income including assignment income / Average Earning Assets Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost + ESOP cost + C
Slide 35: 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 36: 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 35
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