Housing & Urban Development Corp. Ltd. · NSE:HUDCO
Housing & Urban Development — 9M FY19 Earnings Presentation
29 slides from Housing & Urban Development's earnings presentation, Jan 22, 2019
Slide 1: Regulation 30 intimation letter to stock exchanges
z treftli Trg g(14 1114 ui cl +I 5, ( 1-1177 t-itchlt T,r 3401H ), WIT %TIM 4<4 *4. qt.C1 -110003 : 011-24648160 tk4k1 : 011-24625308 Visit us at : www.hudco.org 1113T179. : L74899DL1970G01005276 *RR* : 07AAACH0632A1ZF Housing & Urban Development Corporation Ltd., (A Govt. of India Enterprise), Core
Slide 2: Corporate Presentation January 2019
Corporate Presentation January 2019
Slide 3: Disclaimer
Disclaimer This presentation is issued by Housing and Urban Development Corporation Limited (the “Company”) for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or for
Slide 4: HUDCO | At A Glance
HUDCO | At A Glance Company Overview Average Yield on Average Interest Earning Assets, Average Cost on Average Interest-Bearing Liabilities and Spread 1,2,3 HUDCO has more than 48 years experience in providing loans for housing and urban infrastructure projects in India 10.63% 9.67% 9.66% 9.54%
Slide 5: HUDCO | At A Glance (Cont'd)
HUDCO | At A Glance ... (Cont’d) Gross and Net Non Performing Assets (“NPAs”) to Total Loan Portfolio 6.68% 6.28% 6.02% 5.82% 2.06% 1.15% 1.42% 0.80% FY16 FY17 FY18 9M FY19 Gross NPAs to Total Loan Portfolio Net NPAs to Total Loan Portfolio Provision Coverage Ratio1 81.83% 86.93% 78.43% 70.56% FY16
Slide 6: Overview | Financing Products
Overview | Financing Products Total Outstanding Loan Portfolio INR. 568 bn1 Borrower Type Average Loan Size INR 888.61mn Individuals Private sector 0.24% Average Residual Tenor 9.67 years entities 5.53% NIM 5.08% Government and their agencies Gross NPA as a % of total loan 94.23% 5.82% portfolio Hou
Slide 7: Overview | Financing Products
Overview | Financing Products Housing Finance Urban Infrastructure Finance Loan to Value (LTV) Up to Loan to Value (LTV) Up to State governments and public sector agencies 90% of project cost State governments and public sector agencies 90% of project cost Private sector 70% Private sector (Power an
Slide 8: Details of Sanctions & Disbursements
Details of Sanctions & Disbursements Sanctions by Business Category (in INR mn) FY16 FY17 FY18 9M FY19 Particulars % of Loan % of Loan % of Loan % of Loan Amount Amount Amount Amount Portfolio Portfolio Portfolio Portfolio Housing Finance 187,900 61.06% 75,710 23.76% 157,697 40.80% 92,117 76.03% Urb
Slide 9: Loan Portfolio | Classification
Loan Portfolio | Classification Loan Portfolio by Business Category (in INR mn) FY16 FY17 FY18 9M FY19 Particulars % of Loan % of Loan % of Loan % of Loan Amount Amount Amount Amount Portfolio Portfolio Portfolio Portfolio Housing Finance 116,959 32.79% 127,291 32.09% 160,248 32.18% 246,948 43.48% U
Slide 10: HUDCO | Loan Products
HUDCO | Loan Products Loan Products Housing Finance Urban Infrastructure Finance Classified into : Classified into : Social Housing: Ultimate beneficiaries are borrowers belonging to Water Supply: Financing water related projects to unserviced areas, EWS and LIG category rehab projects and augme
Slide 11: Borrowings | Overview
Borrowings | Overview India Ratings (Fitch Group), ICRA and CARE have assigned a rating of ‘AAA’ to HUDCO’s long-term bonds, long-term bank facilities and fixed deposit programme Borrower Type (By Outstanding Loan Portfolio) Details Foreign Commercial Other term Average Paper Borrowing Amount Maturi
Slide 12: Borrowings | Details
Borrowings | Details Details of Borrowings (In INR mn) FY16 FY17 FY18 9M FY19 Particulars Amount % of Total Amount % of Total Amount % of Total Amount % of Total Tax-free bonds 173,885 68% 173,885 61% 173,885 46% 173,885 41% Taxable bonds 19,992 8% 45,650 16% 87,200 23% 160,800 37% Refinance assista
Slide 13: Details of NPA
Details of NPA NPA by Business Category (in INR mn) FY16 FY17 FY18 9M FY19 Particulars Amount % Amount % Amount % Amount % Housing Finance 3,816 1.07% 3,346 0.84% 2,914 0.59% 2,890 0.51% Urban Infrastructure 20,008 5.61% 20,516 5.17% 28,360 5.69% 30,009 5.31% Finance Total NPA Gross 23,824 6.68% 23,
Slide 14: HUDCO | Key Strengths
HUDCO | Key Strengths Financial Strength and Key Role in Various 1 Government Schemes Profitability Since 5 Inception Highest Credit Ratings, Experienced Senior 2 Access To Diversified and Management Team 4 Lower-cost Funding Pan-India Presence and Strong Relationships with State Governments 3
Slide 15: Key Role in Government Schemes
Key Role in Government Schemes HUDCO has a strong relationship with State Governments, reflected in higher participation in government housing and urban infrastructure programmes such as DAY-NULM, JNNURM and PMAY HFA Sanctions to State Governments and Agencies as a Percentage of Total Sanctions In
Slide 16: Highest Credit Ratings, Access to Diversified and Low-Cost Funding
Highest Credit Ratings, Access to Diversified and Low-Cost Funding Highest credit rating and strong relationships with government enables access to funds for a long-term duration, lower cost of borrowing and from a diversified lender base Rating of AAA for Long Term Debt Average Cost of Interest-bea
Slide 17: Pan-India Presence and Strong Relationships with State Governments
Pan-India Presence and Strong Relationships with State Governments Pan-India presence has helped develop strong relationships with state governments and their agencies HUDCO Presence across India HUDCO – Office Locations across India HUDCO’s registered office and corporate office is located at New
Slide 18: Experienced Board of Directors
Experienced Board of Directors On On Name HUDCO Bio HUDCO Board Name Board Bio since since Retired Indian Administrative Service Officer Indian Administrative Service Officer 34+ years of experience in public administration 23+ years of experience in administrative functions Amrit Abhijat
Slide 19: HUDCO | Major Awards
HUDCO | Major Awards Technology Sabha Award Recertification of HUDCO in ISO 9001:2015 Digital Leader Award for Excellence QMS HUDCO CMD receives Kalinga Khordha Rajbhasha Kirti Puraskar 2017 Governance Now PSU Awards 2016 Samman CSR Excellence Award 2016 PSU Summit & Awards 2015
Slide 20: Strategy
Strategy Grow Loan Portfolio with a Focus on housing finance loans which has lower gross NPA (0.51%1 for housing v/s 5.31%1 for urban 1 focus on Housing Finance and infrastructure) Social Housing Benefit from State government initiatives to help build new dwellings for the LIG, EWS & rural popul
Slide 21: Summary | Standalone P&L
Summary | Standalone P&L Summary Standalone P&L 1 Particulars FY14 FY15 FY16 FY17 FY18 9M FY19 18.77% Increase in average loan portfolio in FY 2018 from FY 2017. 1 Interest on loans(less: penal interest waved 2 28,221 32,558 31,090 34,342 39,896 39,808 off) Decrease in average yield on average b
Slide 22: Summary | Standalone P&L
Summary | Standalone P&L Summary Standalone P&L Particulars FY14 FY15 FY16 FY17 FY18 9M FY19 1 Increase in the average loans 1 Total Interest Income (Net of Interest Decrease in average cost of borrowings 12,165 15,365 12,801 14,866 17,534 18474 expense) Non-Interest income 756 1,159 1,148 1,119
Slide 23: Summary | Standalone Balance Sheet
Summary | Standalone Balance Sheet Summary Standalone Balance Sheet (in INR mn) Particulars FY14 FY15 FY16 FY17 FY18 9M FY19 Share capital 20,019 20,019 20,019 20,019 20,019 20,019 Reserve and Surplus 51,214 57,793 64,48 71654 78198 88,929 Net Worth 71,233 77,812 84,457 91,673 98217 108,948 Borrowin
Slide 24: Balance Sheet Highlights
Balance Sheet Highlights Dividend and Dividend Pay-out Ratio1 Cost to Income Ratio Dividend 1,204 1,324 1,325 (In INR mn) 16.6% 13.7% 12.8% 15.7% 11.1% 11.4% 15.4% FY16 FY17 FY18 FY16 FY17 FY18 9M FY19 Return on Equity2 Return on Average Assets (After Tax)3 12.2% 2.3% 2.2% 2.4% 9.7% 9.6% 8.4% 1.8% F
Slide 25: Details of Interest Earning Assets and Interest Bearing Liabilities
Details of Interest Earning Assets and Interest Bearing Liabilities Interest-earning Assets1 Interest-bearing Liabilities1 Average Balance Average Balance (in INR Mn) (in INR Mn) 507913 4,958 399,760 503710.0 1049.7 394,802 2700.0 453.6 Loans Investments Fixed deposits Others Total interest- Borrowi
Slide 26: Annexure
Annexure
Slide 27: Classification and Provisioning Requirements under HFC Directions
Classification and Provisioning Requirements under HFC Directions Asset classification Period of default Provisioning required Standard assets <=90 days 0.40% Standard assets (with respect to <=90 days 0.75% commercial real estate) Standard assets (with respect to <=90 days 1.00% Percentages represe
Slide 28: Classification of Loans & Expected Credit Loss (ECL) as per IND AS
Classification of Loans & Expected Credit Loss (ECL) as per IND AS December 31,2018 December 31,2017 Exposure at Default (amount) (% of total) ECL (amount) (% of total) ECL (INR mn, except perentages) Stage 1 526,451 93.13% 40 370,064 82.83% 37 Stage 2 5,945 1.05% 6 9.05% 63 40450.3 Stage 3 32,899 5
Slide 29: Thank You
Thank You
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