Reliance Home Finance Ltd. · NSE:RHFL
Reliance Home Finance — Q3 FY2019 Earnings Presentation
41 slides from Reliance Home Finance's earnings presentation, Feb 11, 2019
Slide 1: Letter to exchanges: Investor Presentation
--- - HOME ReLIANCe FINANCE February 11 , 2019 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers. Exchange Plaza, 5111 Floor, Dalal Street Fort, Plot No. C/1 , G Block, Sandra Kurla Complex, Mumbai 400 001 Sandra (East), Mumbai 400 051 BSE Scrip Code: 540709 NSE Scrip Sy
Slide 2: Results for the quarter ended December 31, 2018
Results for the quarter ended December 31, 2018 Investor Presentation February ll, 2019
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 59 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: Awards
Awards ... ReLIANCe HOME FINANCE Best BFSI Brand 2018 by The Economic Times Best BFSI Brands National Award for Best Housing Finance Companies for "Technology Initiative of the year" by CMO - Asia
Slide 7: Awards
HOME Awards ReLIANCe FINANCE Best Most affordable 0 0 prom1s1ng housing brand in finance housing company finance by of the year ETNow by ET Now
Slide 8: Recognitions
HOME Recognitions ReLIANCe FINANCE Great Best Workplaces™ Place To Work® ASIA 2018 Best Workplaces in Asia! Reliance Home Finance has been recognised as the Top 21st Best Workplace in Asia by GPTW
Slide 9: Financial highlights
Financial highlights ReLIANCe HOME FINANCE Sustained growth with superior asset quality ·----------. 70% of our home loan disbursements cater to the seH-employed segment L--------------.. Wide distribution footprint with focus on serving self-employed clientele Present in approx. 140 locations throu
Slide 10: 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 11: Shareholding pattern
Shareholding pattern ReLIANCe HOME FINANCE Public and others Domestic 13.25% institutions I Banks I Mutual Funds 5.89% Foreign Investors Fils, NRis and others 5.86% Key shareholders ~·········································~ . : Life Insurance Corporation ... . • • ~································
Slide 12: The Opportunity
RELI/\NCe [nen The Opportunity
Slide 13: HFCs and NBFCs have consistently outperformed Banks
HOME HFCs and NBFCs have consistently outperformed Banks ReLIANCe FINANCE ( ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ... ,: : Market Share of Ba
Slide 14: 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 15: 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 16: 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 17: Operational Highlights
HOME ReLIANCe FINANCE Operational Highlights
Slide 18: Product yields and ticket sizes
HOME Produd yields and ticket sizes ReLIANCe FINANCE (as on Dec 2018) Average yield (%) 14.4% 12.5% 10.1% 10.5% Home Affordable LAP Construdion Loan Housing Finance (----- - - - - "'• ,-----"' ,-----"' "'• ( -Affordable 1 Loan against : 1 Construction : 1 1 I Home Loan I I 1 Housing , _____ 1 1 Prop
Slide 19: Financial performance
Financial performance ReLIANCe HOME FINANCE Assets Under Management Total Loans Total Income and Profit Before Tax {Rs. billion) (Rs. billion) (Rs. million) 182.9 161.6 5,161 148.0 128.3 4,239 676 876 Dec-17 Dec-18 Dec-17 Dec-18 Q3 FY18 Q3 FY19 • Total Income Profit Before Tax Yield and Net Interest
Slide 20: Funding mix
HOME Funding mix ReLIANCe FINANCE Dec-17 Dec-18 • Bank Loans • NCO • CP • Tier II • Securitisation CRAR Dec 31, 2017 Dec 31, 2018 Tier I Capital 13.5% 12.7% Tier II Capital 8.0% 6.1% .------ Total 21.5% 18.8%
Slide 21: Credit, Risk & Monitoring
HOME ReLIANCe FINANCE Credit, Risk & Monitoring
Slide 22: Credit ratings
Credit ratings ReLIANCe HOME FINANCE Instrument December 2018 ICRA Al+ Short Term BWR Al+ CARE AA Long Term BWRAA+ CARE AA Public Issue NCD (Secured) BWRAA+
Slide 23: 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 24: 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 S
Slide 25: 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 26: Digital Initiatives
RELI/\NCe [nen Digital Initiatives
Slide 27: Digital Portals / Mobile app
Digital Portals I Mobile app ReLIANCe HOME FINANCE Reliance Home Finance Digital Lending Platform --··-- -- ·--·-· ReL!/\NCe ... ~:!eE __....... _,.., ... ACUA~<~ct: ~oi.L co.t"J.HY • .. .........,,.,_w 1tt.O.d· ~ CIAJfWUgn c:.r.ocUs. 00 0 WELCOME! T~hOigU!lnlflgPIIItfM'r tttucl. ::Owtnll'rt. tm~r t
Slide 28: 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 29: 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 30: Ind AS transition
RELIANCE [Ener Ind AS transition
Slide 31: Expected Credit Loss (ECL)
HOME Expeded Credit Loss (ECL) ReLIANCe FINANCE (Rs. in million) Particulars Q3 FY19 Gross Stage 3 (GNPA) 1,681 ECL Provisions - Stage 3 401 Net Stage 3 1,280 Coverage ratio in Stage 3 23.9% Gross Stage 1 & 2 160,690 %Portfolio in Stage 1 & 2 99% ECL Provision - Stage 1 & 2 778 Net Stage 1 & 2 159,9
Slide 32: Our People
RELIANCE [Ener Our People
Slide 33: Board of Directors
Board of Directors HOME RELI/\NCe [nen Mr. Padmanabh Vora Non-Executive Chairman & Independent Director = Independent Director on the Board and also a Member of the Audit Committee, Nomination and Remuneration Committee, Risk Management Committee and the Chairman of Stakeholders Relationship Committ
Slide 34: Board of Directors (2/2)
Board of Directors (2/2) HOME RELI/\NCe [nen Mr. Gautam Doshi Non-Executive Director = A Non-executive director on our Board and a member of the Audit Committee, Nomination and Remuneration Committee Stakeholders Relationship Committee, Corporate Social Responsibility Committee and Risk Management C
Slide 35: Way forward
RELIANCE [Ener Way forward
Slide 36: 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 37: Thank you
Thank you Investor relations contact: sambhav.jain@relianceada. com rhfl. investor@relianceada.com
Slide 38: Annexure
RELIANCE [Ener Annexure
Slide 39: Profit and Loss statement
HOME Profit and Loss statement ReLIANCe FINANCE (Rs. in million) Particulars Q3 FY19 Q3 FY18 Ch% FY18 FY17 Ch% ange ange Assets Under 182,883 148'040 24% 163,789 111,745 47o/o Management Net Interest Income 1,278 1,157 10% 4,963 2,683 85o/o Total Income 5,161 4,239 22% 16,705 11,447 46o/o Interest e
Slide 40: Summarised Balance Sheet
HOME Summarised Balance Sheet ReLIANCe FINANCE (Rs. in million) Particulars Sep 30, 2018 Capital 4,851 Reserves 13,956 Borrowings 1,35,383 Other Uabilities 8,861 Total 1,63,050 Cash I bank balance 3,859 Investments 682 Loans 1,52,363 Fixed Assets 2,608 Other Assets 3,539 Total 1,63,050
Slide 41: 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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