Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q3 FY2022 Earnings Presentation
38 slides from Pnb Housing Finance's earnings presentation, Jan 20, 2022
Slide 1: Exchange filing cover letter: Investor Presentation
The BSE Limited, Listing Department, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai — 400 001 Scrip Code: 540173 Dear Sirs, Sub: Investor Presentation thar Ki Baat January 20, 2022 National Stock Exchange of India Limited, Listing Department “Exchange Plaza” Bandra Kurla Complex, Bandra (E), Mumbai
Slide 2: Investor Presentation Quarter Ended December 2021
Investor Presentation Quarter Ended December 2021 20-January-2022
Slide 3: Contents
Contents A Progress on the Agenda Strategy Monitorables Business & Financial Performance Digital Drive & Branch Network B Shareholding and ESG Snapshot Growth in Housing Finance Sector Key Takeaways 2
Slide 4: Agenda envisaged in January 2021
Agenda envisaged in January 2021 Strengthening the Core Drive Efficiency Accelerate Growth Capital Risk Cost Digital Retail Focused Grow Affordable Management Position Management Management Drive Lending Housing “Unnati” • Strengthen leadership • Improve capital and • Leverage advance • Rationalize
Slide 5: Strengthening the Core – Key Monitorables
Strengthening the Core – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 9MFY22 Remarks Management team is being continuously Key roles hired at senior level^ 5 hires and 2 promotion 6 hires and 3 promotions strengthened As a part of succession plan, senior level Management Incentive plan
Slide 6: Drive Efficiency – Key Monitorables
Drive Efficiency – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 9MFY22 Remarks Higher on account of increased Cost to Income Ratio 16.9% 15.1% 19.6% investments to enhance business activities and lower income Incremental Cost of Borrowing 8.5% 6.8% 5.8% Supported by NHB Phase 2 of pilot
Slide 7: Accelerate Growth – Key Monitorables
Accelerate Growth – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 9MFY22 Remarks Disbursements grew by 18% in 9M FY22 Retail Loan Book (YoY) -6% -5% -5% (YoY) Building Granular book (Disbursement of upto 88.1% 93.0% 94.7% Focus on lower ticket loans sourcing INR 2 crore) Retail Focussed
Slide 8: Update on Project “IGNITE”
Update on Project “IGNITE” Focus on high-yielding affordable housing Unnati business: 13 new dedicated Unnati locations opened in Q3 FY 22. 25 new locations to be operationalized by March 2022 Focus on core capability of serving self-employed by creating new models backed by advanced analytics Key C
Slide 9: Business and Financial Performance
Business and Financial Performance 8
Slide 10: Performance Highlights
Performance Highlights 7.16% on AUM (includes 1.25% on account of RBI Disbursement* INR 7,548 Crore GNPA notification) (+19% YoY) 7.64% on Loan Assets (2.64% PY) INR 66,539 Crore Total Provision/ 4.4% Asset Under Management (-14% YoY) Total Assets (3.5% PY) 88% of the AUM Retail Loans (83% of AUM as
Slide 11: Business Trends - Quarter on Quarter
Business Trends - Quarter on Quarter No. of Logins No. of Sanctions Disbursement (INR Crore) -6.2% -9.1% -11.7% +5.7% +2.5% -4.5% 4,103 25,473 19,201 195 22,943 16,232 3,203 20,363 21,516 14,390 14,754 48 2,961 2,828 129 95 13,420 8,977 1,759 3,908 3,156 107 2,833 2,733 1,652 Q3FY21 Q4FY21 Q1FY22 Q2
Slide 12: Business Update
Business Update (INR Crore) Asset AUM CAGR -6% 84,722 83,346 74,469 66,539 • As on 31-Dec-21, retail 74,023 67,571 62,255 56,798 AUM is 88% of total AUM compared to 83% as on 31-Mar-19 31-Mar-20 31-Mar-21 31-Dec-21 31-Dec-20 AUM Loan Assets • Covid Restructured loans of INR 2,483 Crore as on Disburs
Slide 13: Asset Under Management Mix
Asset Under Management Mix AUM Mix Product-wise Break-up Segment-wise Breakup Dec-21 Dec-21 4% 12% 12% 12% 18% 16% 21% 22% 48% 62% 40% Dec-20 Dec-20 88% 17% 84% 17% 82% 79% 4% 44% 57% 22% 39% 31-Mar-19 31-Mar-20 31-Mar-21 31-Dec-21 Individual Housing Loan Corporate Retail Retail Loan Against Propert
Slide 14: Retail Segment Focus Areas
Retail Segment Focus Areas Increasing Disbursement in Category B and C branches Increasing AUM from Category B & C branches 59.2% 56.9% 53.4% 63.3% 65.7% 62.9% 60.8% 69.2% 40.8% 43.1% 46.6% 36.7% 31.0% 34.3% 37.1% 39.2% FY19 FY20 FY21 9MFY22 31-Mar-19 31-Mar-20 31-Mar-21 31-Dec-21 Category A Categor
Slide 15: Retail Loan Book – Key Attributes
Retail Loan Book – Key Attributes (INR Lakhs) Average Ticket Size Weighted Average Loan to Value 51 47 71% 71% 72% 72% 44 41 31 49% 49% 49% 49% 29 28 27 31-Mar-19 31-Mar-20 31-Mar-21 31-Dec-21 31-Mar-19 31-Mar-20 31-Mar-21 31-Dec-21 IHL LAP IHL LAP Salaried vs Self-Employed Under construction vs Com
Slide 16: Retail Loan Book – Average Ticket Size Range
Retail Loan Book – Average Ticket Size Range Individual Housing Loan Retail Loan Against Property 0.1% 0.1% 0.1% 0.1% 0.4% 1.4% 0.3% 1.1% 0.2% 0.8% 0.2% 2.5% 1.9% 1.6% 0.3% 1.6% 2.5% 2.4% 5.0% 4.6% 4.2% 3.3% 6.2% 4.5% 10.8% 11.5% 12.0% 12.9% 12.0% 13.9% 15.8% 15.1% 16.0% 17.5% 18.6% • Focus on granu
Slide 17: Corporate Book Exposure
Corporate Book Exposure % of Total 21.1% 17.5% 15.8% 11.7% AUM -57% (INR Crore) 17,922 14,614 11,152 11,786 10,356 7,761 8,637 3,678 6,135 3,052 2,243 3,092 1,069 1,206 906 557 Mar-19 Mar-20 Mar-21 Dec-21 Construction Finance Corporate Term Loan Lease Rental Discounting Average Ticket Size City Conc
Slide 18: Corporate Book Performance
Corporate Book Performance • 65% of the book is with Zero DPD on a declining base 33% of the Construction Finance Book • 66% of the book is in Stage 1; majority backed by Tier 1 Developers comprises completed and near completion projects • Down Sell / Accelerated pre payment of INR 2,294 Crore in 9M
Slide 19: Corporate Book Remedial Actions
Corporate Book Remedial Actions City Based Resolutions Underway on few NPA Final Stages of Resolution Developers Accounts • Project with O/s of INR 181 crore Resolution Plan finalized by the Committee of Creditors in NCLT. NCLT Mumbai approval in process Resolution achieved, however, account wil
Slide 20: Gross Non-Performing Assets
Gross Non-Performing Assets % of Loan Asset Gross NPA 4.47%* 4.44% 6.00% 5.92% 7.64% Net NPA 2.69% 2.43% 3.61% 3.32% 4.87% NPA of INR 4,340 Crore includes INR 829 (INR Crore) 4.8% Crore, which is less than 90 DPD but included 4.5% 4.4% 5,000 4.1% 5 3.5% 4 due to asset classification norms as per RBI
Slide 21: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Classification of the Assets based on the ECL computation under Ind AS: Particulars (INR Crore) 31-Dec-21 30-Sep-21 31-Dec-20 Gross Stage 1 49,706 52,080 56,379 Gross Stage 2 2,752 3,691 6,497 Gross Stage 3a (less than 90 DPD; as per RBI notification dated 12-No
Slide 22: Well Diversified Resource Profile
Well Diversified Resource Profile (INR Crore) 8.5% 7.4% 10.9% 8.9% 18.2% 24.4% 23.9% • ~71% of the total resource is 22.2% floating; giving opportunity 5.7% 6.7% for replacement & repricing 8.3% 9.4% 17.2% 19.6% 9.6% 23.7% 0.5% 28.1% 1.6% 22.5% 0.2% 28.0% 16.5% 14.2% Credit Rating 18.8% 16.9% 15.3%
Slide 23: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 1,896 1,834 1,346 1,295 1,693 1,217 1,153 1,586 1,496 1,112 1,246 1,150 1,103 1,035 996 100 145 114 118 116 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Finance Cost Operating Expense Profit After Tax Pre-
Slide 24: Financial Ratio Highlights – Quarter on Quarter
Financial Ratio Highlights – Quarter on Quarter Average Yield Average Cost of Borrowing 10.62% 10.39% 10.19% 9.69% 7.72% 7.60% 9.24% 7.49% 7.29% 7.24% 10.43% 10.03% 10.31% 10.10% 9.78% Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Yield Yield (Excl. Securitisation income) Spr
Slide 25: Margin Analysis - Annual
Margin Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.4% 10.7% 10.7% 8.0% 8.2% 2.8% 2.3% 3.2% 9.7% 7.9% 2.9% 3.0% 3.0% 7.4% 2.5% 2.4% 9.9% 10.4% 10.4% 10.1% 2.7% 2.5% 2.2% 1.9% FY19 FY20 FY21 9MFY22 FY19 FY20 FY21 9MFY22 FY19 FY20 FY21 9MFY22 FY19 FY20 FY21
Slide 26: Capital Position
Capital Position (INR Crore) Capital to Risk Asset Ratio Provisions 21.6% Stage 3 20.9% 36.2% 45.2% 36.3% Coverage ratio (%) 2.7% 18.7%** 4,000 4.4% 5 18.0% 4.1% 3,500 4 3.2% 3,000 2.8% 2.6% 2,544 2,494 3 2,500 14.0% 2,000 1,766 2 1,500 0.8% 3.0% 1 1,000 594 0 500 18.9% 0 -1 15.5% 31-Mar-19 31-Mar-2
Slide 27: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q3 FY22 Q3 FY21 YoY Q2 FY22 QoQ 9M FY22 9M FY21 YoY FY21 FY20 FY19 Interest Income* 1,411 1,758 1,500 4,523 5,520 7,190 7,688 6,793 Add: Net gain on fair value changes 24 43 38 103 123 162 159 129 Add: Income on derecognized loans assigned
Slide 28: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 30-Sep-21 31-Mar-21 31-Mar-20 31-Mar-19 Particulars (INR Crore) 30-Sep-21 31-Mar-21 31-Mar-20 31-Mar-19 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments - 51 - 211 (a) Cash and cash equivalents 5,693
Slide 29: Digital Interventions across the Value Chain
Digital Interventions across the Value Chain Tools & Collaborations Interventions • Implemented cloud based Virtual System interface to ensure secure working from any location • Integration of ACE (A Digital Onboarding Platform) with Loan Origination System (LOS) made live in Q1 for smooth flow of d
Slide 30: Strong Distribution Network
Strong Distribution Network AUM – Geographical Breakup Disbursement Origination (9M FY22) 29% 38% 42% 62% 29% North South West In-House DSA Network 94 branches 13 new Unnati 17 outreach 22 decision Over 22,000 with presence in locations centers making hubs channel partners 64 unique cities Central S
Slide 31: ESG Snapshot
ESG Snapshot Environment Social Human Capital Governance • 99% EMI collections through digital mode • Covid-19: Operationalized 70 bedded ICU • Team of 1,421 employees as on 31st • Diversified & highly experienced Board of 12 Facility, provided oxygen concentrators, December 2021 members with 6 inde
Slide 32: Experienced Management Team
Experienced Management Team MANAGING DIRECTOR & CEO • Years of Experience: 36+ • Years with PNBHF: 1 CHIEF CENTRALIZED COMPANY SECRETARY CHIEF FINANCIAL OFFICER OPERATIONS & TECHNOLOGY & COMPLIANCE HEAD CHIEF PEOPLE OFFICER • Years of Experience: 24+ • Years of Experience: 35+ • Years of Experience:
Slide 33: Shareholding
Shareholding Shareholding as on 31-Dec-21 Top Shareholders 3.2% 0.2% 6.7% 0.9% SSG Capital, General Atlantic Singapore Fund, Malabar 32.6% Investments, Vanguard, Blackrock (ETFs), United India Insurance, 24.3% Tata Mutual Fund, Bajaj Allianz Life Insurance, Dimensional Fund Advisors, Franklin Temple
Slide 34: Growth of Housing Finance Sector
Growth of Housing Finance Sector Portfolio Growth of HFCs Portfolio Composition of HFCs* 2% 39% 17% 29% 29% 26% 23% 24% 19% 19% 20% 11% 7% 9% 13% 15% 15% 7% 9% 7% 6% 2% 66% 6% 1% Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22P On-Book POS Non Housing Loans Housing Loans Home Loans LAP Construction
Slide 35: Key Takeaways
Key Takeaways Robust and scalable Continue to operate in Hub and Spoke model Remedial mass housing and Improve collection Strengthening digital merchant segment management Enhance productivity efficiencies through presence across the Leverage advance Group to focus on and right size predictive analy
Slide 36: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost – ESOP cost - CSR cost - Fair value on repossessed assets) / Cost to Income (%) (Net Revenue-Acq
Slide 37: 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 to purchase or subscribe for any se
Slide 38: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com 37
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