GRUH Finance — Q3 FY2018-19 Earnings Presentation
39 slides from GRUH Finance's earnings presentation, Jan 29, 2019
Slide 1: GRUH Finance Limited
GRUH FINANCE LIMITED We help you build homes SEC: 2019 January 29. 2019 The BSE Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, “Exchange Plaza”, 26th Floor, Dalal Street Bandra-Kurla Complex, Mumbai 400 001 Bandra CE ), Mumbai 400 051 BSE Code No: 511288 Symbol : GRUH Kind Ann
Slide 2: GRUH Finance Limited - Dec 2018
GRUH Finance Limited (A Subsidiary of HDFC Limited) DEC 2018 1
Slide 3: GRUH Profile
GRUH PROFILE {¥GRUH We help you build homes
Slide 4: GRUH profile key facts
• Promoted by HDFC & AKFED on July 21, 1986 p • Commenced operations in 1988 from Ahmedabad • A subsidiary of HDFC LTD • Regulated by National Housing Bank (NHB) • Recognized by NHB for Refinance facility • Retail Network of 195 offices across 11 States & one Union Territory • Consistent track recor
Slide 5: Merger
Merger The Board of Directors of GRUH Finance Limited approved the merger of GRUH into Bandhan Bank on January 7, 2019. The merger e ge would ou d be subject to regulatory egu ato y a and d sshareholder a e o de approvals. The share exchange ratio accepted by the Boards of Bandhan Bank and GRUH is 5
Slide 6: Shareholding Pattern as on Dec 31, 2018
Shareholding Pattern as on Dec 31, 2018 Financial Institutions, Mutual Funds & Banks Public / Resident Indian 9.84% 17.75% Corporate Bodies 1.94% Financial Institutional Investors (FIIs) 10.58% Non_Resident Indians 2.06% Promoter ‐ HDFC Ltd. 57 83% 57.83% 5
Slide 7: Ratings
Ratings g • Public Deposits : – ‘MAAA@’ by ICRA and – ‘FAAA’ by CRISIL • Non-Convertible Debentures : ‘AAA@’ by ICRA and ‘AAA’ AAA by CRISIL • Subordinated NCD: ‘AAA@’ by ICRA and ‘AAA’ by CRISIL • Commercial Paper : ‘A1+’ by ICRA and CRISIL “These These ratings indicate high safety with regard to t
Slide 8: GRUH's contribution to Housing Stock
GRUH’s contribution to Housing Stock • Cumulative Housing Units Financed – 4,44,830 • Cumulative Disbursement of Rs. 32,059 Crore • Cumulative Housing Units Financed in Rural Areas - 2,22,607 • Cumulative Disbursement in Rural Areas(*) Rs. 13,041 Crore • Cumulative Disbursement under Pradhan Mantri
Slide 9: Performance Highlights
Performance Highlights {¥GRUH We help you build homes
Slide 10: Performance Highlights
PERFORMANCE HIGHLIGHTS • Loan Disbursement during the period – Rs. 3,603 Crore – Average Loan Per Unit Disbursed during the year - Rs. 9.46 Lac • Outstanding g Loan Assets of Rs. 16,852 , Crore - 95% of the Loans are Retail - 46% of the loans are at location where population is less than 50,000 • GR
Slide 11: Performance Highlights
PERFORMANCE HIGHLIGHTS Performance of the 9 Months Period Dec'18 Dec'17 Growth % Loan Assets 16,852 14,775 14 Disbursement 3,603 3,748 (4) Profit After Tax 317 274 16 10
Slide 12: Key Financial Ratio
Key Financial Ratio Key Ratios As At As At As At Dec’2018 Sept’2018 Dec’2017 Net Interest Margin to ATA (%) 3.94 4.08 4.47 Yield on A Average erage Loans (%) 11 31 11.31 10 93 10.93 11 39 11.39 Cost of Borrowings (%) 8.23 7.55 7.71 Cost to Income Ratio (%) 16.17 15.93 14.84 Credit Cost to Loan Asset
Slide 13: Balance Sheet
Balance Sheet (Rs. in Crore) Dec’2018 Dec’2017 Growth (%) Sources of Funds Share Capital 146.55 73.13 100 p Reserves & Surplus 1612.93 1351.62 19 Borrowings 18168.51 13211.22 38 Current Liabilities & Provisions 384.82 555.04 (31) 20312.81 15191.01 34 Application of Funds Loan Assets 16851.86 14774.6
Slide 14: Income Statement
Income Statement (Rs in Crore) (Rs. Particulars Dec’2018 Dec’2017 Growth (%) Interest income 1426.49 1210.85 18 Interest expenses 926.61 731.56 27 Net interest Margin 499.88 479.29 4 Non-Interest Income 46.30 42.53 9 Non-Interest Expenses 88.27 77.40 14 Provisions for Expected Credit Loss and Write
Slide 15: Reconciliation of Net Profit under Indian GAAP and Ind AS
Reconciliation of Net profit as reported under erstwhile Indian GAAP and Ind AS for Q3 & 9 Months FY 17-18 ((Rs. in Crore)) Particulars Q3 FY 17-18 For 9 Months Period FY 17-18 Net Profit reported as per previous Indian GAAP 82.16 232.17 Add/(L Add/(Less) ) : Adjustments Adj t t for f GAAP differenc
Slide 16: Loan Assets, PAT and NIM trends
350 Profit After Tax Loan Assets 317 18000 16,852 300 16000 250 AT (Rs. in crores) 14000 12000 200 10000 150 8000 6,555 103 6000 100 PA 4000 50 2000 0 0 Dec'13 Dec'14 Dec'15 Dec'16 Dec'17 Dec'18 Dec'13 Dec'14 Dec'15 Dec'16 Dec'17 Dec'18 Loan Assets ( Rs. in crores) PAT ( Rs. in Crores) 550 NIM & NIM
Slide 17: Margin, cost and NPA ratios
NIM & NIE to Average Total Assets PBT & PAT to Average Total Assets 4.50 5.00 4.00 4.50 3.50 3.96 3.88 4.00 4 49 4.49 4 47 4.47 4 47 4.47 4 43 4.43 4 34 4.34 3.77 4.11 4.20 4.08 3.00 3.53 3.55 3.53 3.52 3.44 3.50 3.94 3.00 3.09 2.50 2.78 2.82 2.86 2.50 2.61 2.55 2.57 2.50 2.00 2.37 2.00 2.04 1.50 1.
Slide 18: Composition of Borrowings
Composition of Borrowings 70 60 58 50 49 40 34 31 30 28 27 25 20 13 11 10 9 10 5 0 Dec'16 Dec'17 Dec'18 Banks/NHB NCDs CPs Public Deposits 17
Slide 19: Composition of Assets
Composition of Assets 120 97 98 100 83 80 60 40 20 15 1 2 2 2 0 0 Dec'16 Dec'17 Dec'18 Loan Assets Liquid Funds & Bank Deposits Current Assets & Others 18
Slide 20: Interest Rate profile of Loan Assets and Borrowings
Interest Rate profile of Loan Assets and Borrowings (% Composition) Fixed Rate Variable Rate Total Loans 5 95 100 Borrowings 61 39 100 19
Slide 21: NPAs under Ind AS
NPAs under Ind AS (Rs In Crore) (Rs. Particulars For 9 H1 For 9 Months FY 1819 Months FY 1819 FY 1718 Loan Assets 16,852 16,663 14,775 Stage - III Loan Assets 146 147 108 ECL Provision required q as per p Ind AS norms on Total 47 50 40 Loan Assets ECL Provision required as per Ind AS on Total Loan 0
Slide 22: NPAs under NHB Norms
NPAs under NHB Norms (Rs. In Crore) Particulars For 9 Months H1 For 9 Months FY 1819 FY 1819 FY 1718 Loan Assets 16,852 16,663 14,775 Gross NPAs 146 147 108 Gross NPAs ((%)) 0.87 0.88 0.73 Provisions as per NHB Norms: - Standard Assets 67 67 66 - NPAs 33 32 24 100 99 90 Actual Provisions carried in
Slide 23: Market and Business Overview
Market and Business Overview 22
Slide 24: Market Scenario
Market Scenario • Housing shortage of 10 mn units in Urban Areas & 43.67 mn in Rural Areas. • Country’s population is growing at 1.2% p.a. • 32% of Country’s population is in Urban Areas, where shortage of housing units it is i estimated ti t d att 10 mn units it • Increasing Urbanization and rising
Slide 25: Introduction of RERA Act 2016
Introduction of Real Estate (Regulatory & Development) Act 2016 (RERA) Act, Brings in accountability, functions in a more transparent manner and improves visibility of delivery to buyers. Customer’s Benefit • Raising the transparency levels. • Likely y to restore confidence of buyers y and investors
Slide 26: Government Initiatives - Focus on Affordable Housing
Government Initiatives - Government focus on Affordable H Housing i Demand side incentives Supply side incentives Interest Subsidy Scheme Income Tax Exemption p (CLSS – Credit Linked Subsidy Scheme) - 100% tax deduction on Affordable Housing Projects - Promotion of affordable housing for weaker sect
Slide 27: Operation Highlights
Operation Highlights f) )GRUH help you build homes
Slide 28: Outstanding Portfolio
OUTSTANDING PORTFOLIO Composition of Outstanding Loan Portfolio (Rs. In Crore) As on Dec’2018 As on Dec’ 2017 Growth Amount % Amount % % Retail Loans - Home Loans 13,976.45 82.94 12,170.56 82.37 14.84 - Mortgage & NRP Loans 2,068.26 12.27 2,013.41 13.63 2.72 16,044.71 6,0 95.21 95 14,183.97 , 83 9 9
Slide 29: Product Wise Loan Outstanding
Product Wise Loan Outstanding g Composition of Outstanding Portfolio (%) as on Product wise Dec’2018 Dec’2017 Dec’2016 Dec’2015 Dec’2014 Home Loans 82 94 82.94 82 37 82.37 81 47 81.47 82 68 82.68 86 07 86.07 Mortgage & NRP 12.27 13.63 14.46 13.22 10.40 Developer Loans 4.79 4.00 4.07 4.10 3.53 Total
Slide 30: Profile of Individual Loans
Profile of Individual Loans Operations Details Dec’2018 Dec’2017 Dec’2016 Dec’2015 Dec’2014 1. Average loan per 8.07 7.74 7.33 6.89 6.35 unit (Rs. In Lac) 2. Avg. cost per dwelling unit (Rs. 13.12 12.42 12.18 11.76 10.96 In Lac) 3. Average FOIR (%) 36 38 37 37 36 4. Average LCR (%) 66 60 65 64 64 29
Slide 31: Key Financial Ratios
Key Financial Ratios As on Dec 31, 2018 2017 2016 Capital Adequacy Ratio* (%) 19.34 18.09 17.81 Tier – I 18.19 16.73 16.29 Tier –II 1.15 1.36 1.51 *Minimum Regulatory Requirement of 12% 30
Slide 32: Productivity Ratios
Productivity Ratios As on Dec 31, 2018 2017 2016 Average No. of Employees 692 682 657 Average No. of Retail offices 194 188 179 Profit After Tax Per Employee (Rs. in Lac) 61 54 38 Total Assets Per Employee ( Rs. Rs in Lac) 2 919 2,919 2 206 2,206 1 964 1,964 31
Slide 33: Key Features of the CLSS Scheme
Key Features of the CLSS Scheme for a First Time Owner of a House Particulars EWS LIG MIG-I MIG-II Household Income (Rs. in Lac p.a.) 3 6 12 18 Maximum loan amount eligible for 6 6 9 12 subsidy Interest Subsidy (% per annum) 6.5% 6.5% 4% 3% Loan tenure 20 20 20 20 Carpet Area (Sq mtrs.) 30 60 160 20
Slide 34: PMAY - Credit Linked Subsidy Scheme: Contribution of GRUH
PMAY - Credit Linked Subsidy Scheme (EWS/LIG & MIG) C t ib ti Contribution off GRUH Loans Disbursed Under PMAY - CLSS Category For 9 Months For 9 Months Growth (%) FY18 19 FY18-19 FY 17 17-18 18 Units (Units) EWS/LIG 12043 11538 4.38 MIG 1789 1523 17 47 17.47 Total 13832 13061 5.90 33
Slide 35: Challenges At Rural Areas
Challenges At Rural Areas • Thin density at rural locations • Rising trend of migration to urban locations • Presence of PSU Banks and Local/Regional Co-operative Banks • Delay in issue of construction permission at rural locations • Difficulty in verification of title documents at rural locations •
Slide 36: Performance Under Rural Area
Performance Under Rural Area (Rural location is a location where population is less than 50000. A state is divided into districts and each District cover 10-15 Talukas and each Taluka is a cluster of 30 -100 villages) • Cumulative Rural Disbursement of Rs. 13,041 Crore • Cumulative Housing Units Fin
Slide 37: Awards and Accolades
Awards and Accolades •Winner in Affordable Housing Finance Category at the Outlook Money Awards 2017. • Best Performing Primary Leading Institution under CLSS for EWS/LIG segment • Highest number of loans to EWS segment under CLSS for EWS/LIG. EWS/LIG • CNBC Bajar Gujarat Ratna Award 2015-16 for “Ex
Slide 38: Disclaimer
Disclaimer This presentation may contain statements about events and expectations that may be “forward looking”, including those relating to general business plans and strategy of GRUH Finance Limited (GRUH), its future outlook and growth prospects, and future developments in its business and its co
Slide 39: Thank You
Thank You {}GRUH We help you build homes