Indostar Capital Finance Limited · NSE:INDOSTAR
Indostar Capital Finance — Elara Conference (2020)
12 slides from Indostar Capital Finance's conference presentation, 2020
Slide 1: Nimble Brave Focused Companies: Road ahead for Survivors!
Nimble Brave Focused Companies Road ahead for Survivors!
Slide 2: NBFCs contribution - Growth of Indian Economy
NBFCs contribution - Growth of Indian Economy 98.97 30 100 Niche sectors under penetrated by banks 87.67 90 25 79.18 75.23 80 23.7 68.87 70 20 20.8 61.39 60 17.7 15 50 14.9 12.5 40 10 10.8 NBFCs - Competitive Edge 8.58 30 7.64 7.2 5.92 5.59 Competitive 20 Quick disbursal 5 4.08 Interest Rates 10 Inn
Slide 3: NBFCs - Landscape
NBFCs - Landscape No. of NBFC’s registered with RBI Q1FY20 – Segment mix SME 6% MFI 3% 173 Listed companies VF 24% 9,610 Multiple products NBFC Universe 67% 26 Mcap >3,000cr SME MFI VF Multiple products Source: RBI, Ace Equity Source: Public Information, MCA Data 2
Slide 4: NBFCs – Last mile credit delivery
NBFCs – Last mile credit delivery Lending to Contribution Infrastructure niche of NBFCs in Lending segements Micro Finance Credit to Micro, Small Growth in the Technology and Medium Employment Innovation Enterprises – Sector MSMEs 3
Slide 5: NBFCs – Multiple Challenges
NBFCs – Multiple Challenges Decline of Demonetisation IL&FS crisis Subdued GDP COVID19 auto volumes IMPACT Disruptions to Asset quality Liquidity economic activity deterioration challenges Employee Erosion of market Growth retention cap 4
Slide 6: NBFCs – Borrowing Mix
NBFCs – Borrowing Mix Summary of Banks and MFs NBFC Exposure (Rs in Lac Cr.)` Growth in bank credit to NBFCs vis-a-vis bank credit growth 8.6 56 57 55 60 48 47 6.9 50 42 38 38 39 40 34 32 29 31 30 29 26 27 29 28 26 26 24 30 22 20 13 15 15 15 13 13 12 12 12 11 12 10 8 8 9 7 7 7 7 7 7 7 7 10 0 Jul-20
Slide 7: NBFCs – Borrowing Cost
NBFCs – Borrowing Cost AAA borrowing cost (%) AA borrowing cost (%) 9.22 8.69 9.89 9.28 7.79 7.32 8.52 8.22 9.32 8.55 9.87 7.63 9.11 7.15 8.28 7.82 9.24 8.47 9.76 7.1 8.92 6.26 6.98 7.83 Pre-IL&FS IL&FS peak 3QFY20 COVID19 peak Pre-IL&FS IL&FS peak 3QFY20 COVID19 peak 1 Year Average 3 Year Average 5
Slide 8: COVID19 – Creating uncertainties
COVID19 – Creating uncertainties March, 2020 June, 2020 August, 2020 Lockdown Moratorium I Moratorium II Unlocking No economic Beginning of activity except for unlocking in few essential services states % Opted for Moratorium New Disbursements (Rs. Cr.) Average collections (%) • Collections have gra
Slide 9: Nimble Brave Focused: Scenario Post COVID19
Scenario: Post COVID19 F ocused Strong Parentage will lead to a greater advantage and easy B rave access to funding Nimble Companies with the following: • Strong Balance sheet Asset Quality • High Capital Adequacy • Prudent ALM Liquidity ….will be in a better position Consolidation Companies wi
Slide 10: Indostar Capital - Overview
Indostar Capital - Overview SME Commercial Affordable Corporate Finance Total AUM Vehicle AUM Housing AUM AUM 9,690cr* 4,520cr AUM 831cr 2,868cr 1,748cr • IndoStar’s focus has been on the retail book Wholesale vs. Retail Book • Retail book grew 4.4 times since FY18 AUM (cr) 6,059 11,735 9,690* 100%
Slide 11: Indostar Capital – Way Forward
Indostar Capital – Way Forward IndoStar now has all the essential ingredients to rapidly grow its loan book in the future • Capital: We now have substantial growth capital, which we will utilize to pursue calibrated growth • Infrastructure: Our current infrastructure can comfortably support disburse
Slide 12: Thank you
INDOSTAR Thank you