Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q1 FY2024 Earnings Presentation
30 slides from Pnb Housing Finance's earnings presentation, Jul 24, 2023
Slide 1: Submission of Investor Presentation to Stock Exchanges
Ref: PNBHFL/SE/EQ/FY24/44 Date: July 24, 2023 BSE Limited, 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: PNBHOUSIN
Slide 2: Investor Presentation Quarter Ended June 2023
Investor Presentation Quarter Ended June 2023 24-July-2023 Public
Slide 3: Table of Content
Table of Content 1 Capital Raise Update 2 Strategic Objective 3 Performance Highlights 4 Business Update 5 Asset Quality 6 Financial Performance 7 Annexure Public
Slide 4: Successful completion of Rights Issue – Subscribed by ~1.21 times
Successful completion of Rights Issue – Subscribed by ~1.21 times Status Post – Rights Issue Rights Issue • Successful completion of Right Issue in May 2023 of INR 2,493.76 Crore with ~1.21 times subscription Outstanding Equity Shares Book Value Per Share • Top 4 shareholders viz PNB, Carlyle, Ares
Slide 5: Shareholding Pattern
Shareholding Pattern Pre - Rights Issue Top 10 Shareholders Shareholding Pattern As on 30th June 2023 Change (as on 5th April 2023) • Promoter (PNB) Promoter (PNB) 32.5% 28.2% -4.4% • Carlyle Quality Investment Holdings PPC (Carlyle) 32.1% 32.7% 0.6% • Ares SSG Capital Investment Opportunities V Pte
Slide 6: Key Core Strengths and Strategic Objectives
Key Core Strengths and Strategic Objectives Core strengths Strategic objectives Diversified product portfolio with significant retail mix and 1 Asset mix Accelerate growth by focusing on retail lending deleveraging corporate loan book 2 Distribution Pan-India distribution network Expand affordable s
Slide 7: Focus on Strategic Objectives aided in delivering Improved Performance
Focus on Strategic Objectives aided in delivering Improved Performance (INR Crore) 1 Growth in Retail Loan Book 2 Improved Asset Quality (GNPA) Total 8.13% -178 bps Retail 56,978 -29 bps 1,507 -119 bps -16 bps -34 bps 2,348 -16 bps -0.29% -104 bps -54 bps 999 -7 bps 3.76% 50,520 1,015 -1.19% -29 bps
Slide 8: Key Performance Highlights
Key Performance Highlights Retail Segment Corporate Segment Total Disbursement INR 3,667 Crore INR 19 Crore INR 3,686 Crore Q1FY24 (8.0% YoY | -17.9% QoQ) (-66.0% YoY | -36.9% QoQ) (6.8% YoY | -18.0% QoQ) INR 56,978 Crore INR 3,416 Crore INR 60,395 Crore Loan Book (11.5% YoY | 2.7% QoQ) (-44.7% YoY
Slide 9: Key Performance Highlights
Key Performance Highlights AUM Loan Assets Deposits Spread NIM INR 67,340 Crore INR 60,395 Crore INR 16,935 Crore 2.62% (Q1FY24) 3.86% (Q1FY24) (2.3% YoY | 1.1% QoQ ) (5.4% YoY | 1.9% QoQ) (120 bps YoY | -3 bps QoQ) (150 bps YoY | 12 bps QoQ) Public 90% | ICD 10% ROA Capital Adequacy Gearing Ratio B
Slide 10: Improved Retail contribution in Loan Asset
Improved Retail contribution in Loan Asset (INR Crore) Loan Asset Mix Retail Product-wise Break-up Retail Segment-wise Breakup 57,287 59,273 60,395 11% 6% 6% 5% 5% 5% 25% 24% 24% 41% 43% 41% 89% 94% 94% 70% 71% 71% 57% 59% 59% 30-Jun-22 31-Mar-23 30-Jun-23 30-Jun-22 31-Mar-23 30-Jun-23 30-Jun-22 31-
Slide 11: De-risking Corporate Portfolio
De-risking Corporate Portfolio Corporate loan book (INR crore) Reduction in Corporate GNPA through multi-pronged strategy (INR crore) % of total 10.8% 5.7% loan assets) 878 2,762 1,732 6,178 3,416 3,416 854 854 Jun-22 Jun-23 Jun-22 Jun-23 Key measures undertaken to resolve corporate book since March
Slide 12: Wide Distribution Network
Wide Distribution Network Loan Asset – Geographical Breakup Affordable 34 88 branches & outreaches 37% 34% 198 27% 30% 147 51 36% 36% 30-Jun-22 30-Jun-23 Disbursement - Geographical Break-up 30-Jun-22 Jun 22 - Jun-23 30-Jun-23 Branches/outreaches 35% 35% 29% 36% 14,000+ active Channel Partners for l
Slide 13: Expand Affordable Segment, especially in tier-2 and tier-3 cities
Expand Affordable Segment, especially in tier-2 and tier-3 cities Affordable Segment Distribution Network Disbursements (INR Crore) +66% 228 137 Q4FY23 Q1FY24 PNB Housing Finance is ready to capitalize on available opportunity in Affordable Segment Built a separate affordable vertical with dedicated
Slide 14: Non-Performing Assets
Non-Performing Assets -38% 7 6.35% Overall GNPA 6.06% 3,638 3,502 6 4.87% 2,824 5 3.83% 3.76% 2,270 2,270 4 4.26% 3 3.59% 3.22% 2 2.76% 2.59% 1 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 30-Jun-23 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 30-Jun-23 • Retail Collection Efficiency for Q1FY24 is 99.1% 3.73%
Slide 15: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Particulars (INR Crore) 30-Jun-23 31-Mar-23 30-Jun-22 Gross Stage 1* 56,119 54,999 51,554 Gross Stage 1 as % to Loan Asset 92.92% 92.79% 89.99% ECL Provision Stage 1 499 525 600 ECL Provision % Stage 1 0.89% 0.95% 1.16% Gross Stage 2* 2,006 2,003 2,095 Gross Sta
Slide 16: Financial Performance
Financial Performance Public
Slide 17: Well Diversified Resource Profile
Well Diversified Resource Profile Borrowing Mix – 31-Mar-23 (%) Borrowing Mix – 30-Jun-23 (%) Credit Rating 0.7% • Fixed Deposit: “AA” by 5.7% 9.5% 5.7% 9.8% CRISIL and CARE. • Commercial Paper: “A1(+)” by CARE & CRISIL • Non-Convertible Debentures: “AA” by 32.1% 32.1% 42.0% 42.2% CARE, India Rating
Slide 18: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 1,794 1,172 1,146 1,197 1,682 1,634 1,704 1,099 1,048 1,409 1,730 964 996 1,008 1,048 1,613 1,601 1,676 930 1,301 118 135 124 143 150 108 69 64 33 28 52 -5 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Inte
Slide 19: Financial Ratio Highlights – Quarter on Quarter
Financial Ratio Highlights – Quarter on Quarter Average Yield Average Cost of Borrowing 11.38% 7.97% 10.70% 10.41% 10.59% 7.76% 7.55% 8.63% 7.21% 7.32% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Spread Net Interest Margin 3.83% 4.68% 3.38% 4.14% 3.74% 3.86% 2.65% 2.62% 2.3
Slide 20: Margin Analysis - Annual
Margin Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.68% 10.28% 10.59% 7.91% 7.97% 2.77% 2.81% 3.73% 3.86% 7.30% 7.47% 2.62% 9.42% 3.16% 2.12% 2.80% FY21 FY22 FY23 Q1FY24 FY21 FY22 FY23 Q1FY24 FY21 FY22 FY23 Q1FY24 FY21 FY22 FY23 Q1FY24 Gross Interest Margi
Slide 21: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q1 FY24 Q1 FY23 YoY Q4 FY23 QoQ FY23 FY22 FY21 Interest Income 1,667 1,299 1,589 6,199 5,822 7,190 Add: Net gain on fair value changes 9 0 11 34 111 162 Add: Income on derecognized loans assigned during the period - 2 - 11 - 71 Less: Finan
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-20 Particulars (INR Crore) 31-Mar-23 31-Mar-22 31-Mar-21 31-Mar-20 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments - - 51 - (b) Debt Securities 3,994 6,202 11,46
Slide 23: Key Takeaways
Key Takeaways Focus on Retail Strengthen underwriting Resolutions in Capital Raise Enhance Profitability Segment Growth and Collections Corporate Book & Return Ratios including Affordable Framework Segment Leverage advance analytics Resolution in multiple Successfully completed Improvement in Return
Slide 24: Annexure
Ghar Ki Baat Annexure
Slide 25: Experienced, professional management team
Experienced, professional management team Girish Kousgi Vinay Gupta Sanjay Jain Managing Director and CEO Company Secretary & Compliance Chief Financial Officer Head Jatul Anand Ajay Kumar Mohanty Anujai Saxena Chief Credit & Collections Officer Head – Internal Audit Chief Transformation Officer Ami
Slide 26: ESG Snapshot
ESG Snapshot ▪ 99.7% EMI collections through digital mode Environment ▪ The Company through its CSR initiative supported • Solar Electrification in 24 government school in Haryana & UP and initiated in 1 tribal school in Jharkhand. • Undertaken various programme under Environment and Water Conservat
Slide 27: Growth of Housing Finance Sector
Growth of Housing Finance Sector Portfolio Growth of HFCs Portfolio Composition of HFCs* 2% 15% 15% 11% 11% 6% 10% 8% 14% 3% 2% 3% 1% -1% Mar-20 Mar-21 Mar-22 Dec-22 69% -1% On-Book POS Non Housing Loans Housing Loans Home Loans LAP Construction Finance Others HFCs Share Total HFC Loans 5.7 5,9 6.6
Slide 28: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets Cost to Income (%) Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - CSR cost - Fair value on repossessed assets) / (Net Revenue-Acq
Slide 29: 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 30: 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 29
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