GRUH Finance — FY2019 Earnings Presentation
40 slides from GRUH Finance's earnings presentation, May 1, 2019
Slide 1: GRUH Finance Limited Investor Presentation
— GRUH Fl ANCE LIMITED We help you build homes SEC: 2019 May 1,2019 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 (E ), Mumbai 400 051 BSE Code No: 511288 Symbol : GRUH Kind Attn: G
Slide 2: GRUH Finance Limited (A Subsidiary of HDFC Limited)
GRUH Finance Limited (A Subsidiary of HDFC Limited) MARCH 2019 1
Slide 3: GRUH Profile
GRUH PROFILE f}GRUH We help you build homes
Slide 4: GRUH profile key facts
• Promoted by HDFC & AKFED on July 21, 1986 • 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 record
Slide 5: Merger
Merger The Board of Directors of the Company, at its meeting held on January 7, 2019, approved a Scheme of Amalgamation, for the merger of GRUH Finance Limited with Bandhan Bank Limited with effect from proposed Appointed Date of January 1, 2019. In this regards, Competition Commission of India, BSE
Slide 6: Shareholding Pattern as on March 31, 2019
Shareholding Pattern as on March 31, 2019 5
Slide 7: Ratings
Ratings • Public Deposits : – ‘MAAA@’ by ICRA and – ‘FAAA’ by CRISIL • Non-Convertible Debentures : ‘AAA@’ by ICRA and ‘AAA’ by CRISIL • Subordinated NCD: ‘AAA@’ by ICRA and ‘AAA’ by CRISIL • Commercial Paper : ‘A1+’ by ICRA and CRISIL “These ratings indicate high safety with regard to timely paymen
Slide 8: GRUH's contribution to Housing Stock
GRUH’s contribution to Housing Stock • Cumulative Housing Units Financed – 4,56,625 • Cumulative Disbursement of ₹ 33,391 Crore • Cumulative Housing Units Financed in Rural Areas - 2,26,615 • Cumulative Disbursement in Rural Areas(*) ₹13,442 Crore • Cumulative Disbursement under Pradhan Mantri Awas
Slide 9: Ind AS Transition
Ind AS Transition • In line with direction issued from Ministry of Corporate Affairs and National Housing Bank, GRUH has adopted Indian Accounting Standards (Ind AS) with effect from 1st April 2018 and the effective date of such transition is April 1, 2017. The comparative figures of corresponding p
Slide 10: Ind AS Transition
Ind AS Transition Key Changes Impacted Line IGAAP IND AS Item Mutual Fund Income from Cash basis Fair value method operations SLR Income from Premium is amortised Net present Value operations over residual tenure discounted under Goal seek method is followed. Fee Income Fees Income Booked upfront Am
Slide 11: Ind AS Transition
Ind AS Transition Key Changes Impacted Line IGAAP IND AS Item Interest Income on Income from Not recognised As on April 1, 2017, NPAs Operations credited to reserve. There after incremental amount is recognised in P&L. NCD issue expenses Finance cost Adjusted in securities Amortised through premium
Slide 12: Performance Highlights
Performance Highlights f}GRUH We help you build homes
Slide 13: Performance Highlights
PERFORMANCE HIGHLIGHTS (₹ in crore) Q4 FY 18 19 Q3 FY 18 19 Growth % Net Interest Margin 171 151 13 Operating Profit 153 138 10 Profit After Tax 129 97 34 Disbursements 1,332 866 54 FY 18-19 FY 17-18 Growth % Total Income 2,027 1,694 20 Non-Interest Expenses 114 100 14 Profit After Tax 447 403 11 Lo
Slide 14: Key Financial Ratio
Key Financial Ratio Key Ratios As At As At As At March’19 Dec’18 March’18 Net Interest Margin to ATA (%) 4.00 3.94 4.50 Yield on Average Loans (%) 11.37 11.31 11.33 Cost of Borrowings (%) 8.50 8.23 7.56 Cost to Income Ratio (%) 15.79 16.17 14.18 Non-Interest Expense to ATA (%) 0.68 0.70 0.69 Loans t
Slide 15: Balance Sheet
Balance Sheet (₹ in Crore) March 2019 March 2018 Growth (%) Sources of Funds Share Capital 146.74 73.14 101 Reserves & Surplus 1744.70 1482.10 18 Borrowings 16507.16 13968.93 18 Current Liabilities & Provisions 386.95 397.19 (3) 18785.55 15921.36 18 Application of Funds Loan Assets 17407.86 15587.77
Slide 16: Income Statement
Income Statement (₹ in Crore) Particulars March 2019 March 2018 Growth (%) Interest income 1972.17 1642.59 20 Interest expenses 1301.20 984.80 32 Net interest Margin 670.97 657.79 2 Non-Interest Income 54.49 51.15 7 Non-Interest Expenses 114.49 100.49 14 Provisions for Expected Credit Loss and Write
Slide 17: Reconciliation of Net profit under Indian GAAP and Ind AS
Reconciliation of Net profit as reported under erstwhile Indian GAAP and Ind AS (₹ in Crore) Particulars Q4 FY 17-18 FY17-18 Net Profit reported as per previous Indian GAAP 130.51 362.68 Add/(Less) : Adjustments for GAAP difference Increase in interest income pursuant to application of effective int
Slide 18: Reconciliation of equity attributable to shareholders
Reconciliation of equity attributable to shareholders of the Company as on March 31, 2018 (₹ in Crore) Equity under previous Indian GAAP 1,380.92 Impact on Loans and advances using effective rate of interest (32.13) Increase in employee benefit expenses due to fair valuation of employee stock (12.75
Slide 19: Loan Assets
Loan Assets (₹ in crore) 20000 17,408 18000 16000 14000 12000 10000 8000 7,020 6000 4000 2000 0 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 18
Slide 20: Profit After Tax
Profit After Tax (₹ in crore) 500 447 450 400 350 300 ) 250 i 200 177 PAT (R 150 100 50 0 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 19 19
Slide 21: NIM & NIM to Average Total Assets
NIM & NIM to Average Total Assets 700 671 7.1 6.8 600 6.5 6.2 500 5.9 5.6 NIM (₹ in crore) 400 5.3 300 271 5 4.7 200 4.21 4.4 4.1 100 4.00 3.8 0 3.5 Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 NIM (₹ In crore) NIM to ATA (%) 20 20
Slide 22: NIM & NIE to Average Total Assets
NIM & NIE to Average Total Assets 5.00 4.50 4.49 4.47 4.47 4.50 4.34 4.00 4.20 4.08 4.00 3.94 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.72 0.72 0.77 0.72 0.69 0.67 0.71 0.70 0.68 0.00 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Net Interest Margin to Avereage Total Assets(%) Non-Intere
Slide 23: Return on Assets
Return on Assets (%) 5.00 4.50 4.00 3.50 3.00 2.50 2.76 2.75 2.66 2.48 2.36 2.37 2.00 1.50 1.00 0.50 0.00 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 22 22
Slide 24: PBT & PAT to Average Total Assets
PBT & PAT to Average Total Assets 4.50 4.00 3.88 3.88 3.50 3.77 3.67 3.53 3.55 3.53 3.52 3.44 3.00 2.78 2.86 2.50 2.75 2.66 2.61 2.55 2.57 2.50 2.37 2.00 1.50 1.00 0.50 0.00 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 PAT to Average Total Assets (%) PBT to Average Total Assets (%)
Slide 25: Cost to Income Ratio
Cost to Income Ratio (%) 18.00 16.00 15.87 15.89 15.93 16.17 15.79 14.00 14.81 14.84 14.18 14.19 12.00 10.00 8.00 6.00 4.00 2.00 0.00 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 24 24
Slide 26: Gross & Net NPAs to Loans
Gross & Net NPAs to Loans (%) 1 0.9 0.8 0.7 0.66 0.6 0.5 0.35 0.4 0.31 0.3 0.2 0.1 0.00 0 Mar'17 June'17 Sept'17 Dec'17 Mar'18 June'18 Sept'18 Dec'18 Mar'19 Gross NPAs to Loans (%) Net NPAs to loans (%) 25 25
Slide 27: Borrowings Profile
Borrowings Profile 90 80 77 70 67 67 63 60 55 50 40 29 30 26 20 20 16 14 13 10 8 9 9 9 10 5 0 0 1 0 Mar‐15 Mar‐16 Mar‐17 Mar‐18 Mar‐19 Banks/NHB NCDs Public Deposits CPs 26 26
Slide 28: Composition of Assets
Composition of Assets 120 100 98 98 93 80 60 40 20 5 0 2 0 2 2 0 Mar'17 Mar'18 Mar'19 Loan Assets Bank Deposits Current Assets & Others 27
Slide 29: NPAs under Ind AS
NPAs under Ind AS (₹ in Crore) Particulars March March 2019 2018 Loan Assets 17,408 15,588 Stage - III Loan Assets 114 70 ECL Provision required as per Ind AS norms on Total Loan Assets 45 37 ECL Provision required as per Ind AS on Total Loan Assets (%) 0.26 0.24 Actual Provisions carried in Books 1
Slide 30: Stage wise composition of Loan Assets under Ind AS
Stage wise composition of Loan Assets in % under Ind AS Stage March’19 Mar'2018 Mar'2017 I 95.58 94.48 95.18 II 3.76 5.07 4.51 III 0.66 0.45 0.31 100.00 100.00 100.00 29 29
Slide 31: NPAs under NHB Norms
NPAs under NHB Norms (₹ in Crore) Particulars March 2019 Mach 2018 Gross NPAs 114 70 Gross NPAs (%) 0.66 0.45 Minimum Provisions required as per NHB Norms: - Standard Assets 51 46 - NPAs 31 18 82 64 Excess Provisions carried towards - Standard Assets 17 20 - NPAs and Contingencies 22 52 39 72 Actual
Slide 32: Outstanding Portfolio
OUTSTANDING PORTFOLIO Composition of Outstanding Loan Portfolio (₹ in Crore) As At March 31, 2019 As At March 31, 2018 Growth Amount % Amount % % Individuals Housing 14337.19 82.72 12818.21 82.53 11.85 Mortgage 1783.43 10.29 1680.63 10.82 6.12 NRP loans 335.36 1.93 364.81 2.35 (8.07) Developers Cons
Slide 33: Product Wise Loan Outstanding
Product Wise Loan Outstanding Composition of Outstanding Portfolio (%) as on Product wise March 2019 March 2018 March 2017 March 2016 March 2015 Home Loans 83 83 81 81 86 Mortgage & NRP 12 13 14 15 10 Developer Loans 5 4 5 4 4 Total 100 100 100 100 100 32
Slide 34: Profile of Individual Loans
Profile of Individual Loans Operations Details March 2019 March 2018 March 2017 March 2016 March 2015 1. Average loan per 8.19 7.83 7.52 7.39 6.49 unit (Rs. In Lac) 2. Avg. cost per dwelling unit (Rs. 13.35 12.72 12.44 13.65 11.14 In Lac) 3. Average FOIR (%) 38 39 39 39 36 4. Average LCR (%) 69 69 6
Slide 35: Key Financial Ratios
Key Financial Ratios As on March 31, 2019 2018 2017 Capital Adequacy Ratio* (%) 20.21 18.90 18.32 Tier – I 19.17 17.68 16.82 Tier –II 1.04 1.22 1.50 *Minimum Regulatory Requirement of 12% 34
Slide 36: Productivity Ratios
Productivity Ratios As on March 31, 2019 2018 2017 Average No. of Employees 685 682 661 Average No. of Retail offices 195 190 182 Profit After Tax Per Employee (₹ in Lac) 65 59 45 Total Assets Per Employee (₹ in Lac) 2744 2335 2056 35
Slide 37: ALM Structural Profile as on March 31, 2019
ALM Structural Profile as on March 31, 2019 4,000 3,574 3,500 3,000 2,500 2,336 2,000 1,925 1,935 1,500 1,434 1,351 1,121 1,000 570 500 254 175 - 1 to 14 days Over 15 days to one Over 1 month to 2 Over 2 month to 3 Over 3 month to 6 month months months months Cumulative Inflow (₹ in Crore) Cumulativ
Slide 38: 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. • CNBC Bajar Gujarat Ratna Award 2015-16 for “Excellence
Slide 39: 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 40: Thank You
Thank You f}GRUH We help you build homes