GRUH Finance LimitedGRUH Finance Limited(A Subsidiary of HDFC Limited)(A Subsidiary of HDFC Limited)

MARCH 2016

1

Profile• Promoted by HDFC & AKFED on July 21, 1986

• Commenced operations in 1988 from Ahmedabad

• A subsidiary of HDFC - Since June 2000A subsidiary of HDFC Since June 2000

• Regulated by National Housing Bank (NHB) – Wholly owned

b idi f R B k f I di (RBI)subsidiary of Reserve Bank of India (RBI)

• Recognized by NHB for Refinance facility

2

Profile• Cumulative Housing Units Financed – 3,30,243

As on March 31, 2016

• Cumulative Disbursement of Rs. 19,072 Cr.

• Average Loan Per Unit on Cumulative Disbursement – Rs.7.39 LacAverage Loan Per Unit on Cumulative Disbursement Rs.7.39 Lac

• Cumulative Disbursement in Rural Areas(*) – Rs.8692 Cr.

• Retail Network of 179 offices across 10 States.

• Consistent track record of Dividend Payout(*)

Rural Areas are locations where populations is less than 50,000

3

ProfileAs on March 31 2016

• OutstandingLoanAssets of Rs. 11,115 Cr.

As on March 31, 2016

• Average LoanOutstandingPer Unit – Rs. 6.38Lac

• LoanDisbursementduring the year– Rs. 3,857Cr.

• Average LoanPer Unit onDisbursementduring the year–Rs. 8.86 Lac

• LoanDisbursement in RuralAreasduring the year– Rs. 2,135Cr. ( 55%)

• GrossNPAs Rs. 35.55 Cr– 0.32% of Outstanding LoanAssets of Rs. 11,115 Cr.

• NetNPAs Rs. 10.38 Cr ( 0.09%)

4

RatingsRatings• Public Deposits :

‘FAAA’ b CRISIL d– ‘FAAA’ by CRISIL and– ‘MAAA’ by ICRA

• Non Convertible Debentures : ‘AAA (Stable)’ by ICRA• Non-Convertible Debentures : AAA (Stable) by ICRA• Subordinated NCD: ‘AAA (Stable)’ by ICRA • Commercial Paper : ‘A1+’ by ICRAp y

“These rating indicates high safety with regard to timely payment of interest and principal”

5

GRUH is a Trend-Setter• First to commence Lending in Rural Areas – 1988

• First to introduce Tenure Based Pricing – 1997

• First to target Self-Employed Category in informal segmentFirst to target Self Employed Category in informal segment

- 2002

Fi t t i t d N ti A ti d L P d t 2002• First to introduce Negative Amortized Loan Product – 2002

• First to introduce Risk Based Pricing – 2005

- Pricing linked to Credit Score

6

Share Holding Patterng

FI, MF & Banks

As on March 31, 2016

Individuals19.05%

4.16% Corporate Bodies2.23%

FII's12 91%12.91%

NRIs/OCBs3.06%

HDFC58.59%

7

GRUH’S PresenceRetail Offices

FY Nos.Jharkhand, 

1

No. of Retail Offices As on March 31, 2016

2010 - 95

2013 - 134

2015 - 154

Gujarat, 46

Chhattisgarh, 13

Rajasthan, 12 Tami l  Nadu, 10Uttar Pradesh, 3

1

Bihar, 1

2016 - 179

Districts covered - 121Karnataka, 17

Districts covered 121Taluka serviced - 1107

Maharashtra, 49

Madhya  Pradesh, 27

8

Compounded Average Growth Rate (CAGR) as at March 31, 2016

3 Years 5 Years 7 Years 10 Years3 Years(%)

5 Years(%)

7 Years(%)

10 Years(%)

Disbursements 21 26 29 27Disbursements 21 26 29 27

Loan Assets 27 28 27 26

NIM 25 24 26 28

Profit After Tax 19 22 25 27

9

Assets Profile1.49% 1.75%

1.96%

0.13% 0.16% 0.15%0.00% 0.00% 0.24%

98%

99%

100%

1.25% 0.87%0.73%

96%

97%

98%

Deffered Tax Assets

97.13% 97.22% 96.92%94%

95%Fixed Assets Current Assets Investments Loan Assets

91%

92%

93%

90%

Mar 16 Mar 15 Mar 14

10

Loan Assets Profile3.84% 4.17% 4.88%

3.91% 3.59% 2.97%90%

100%

60%

70%

80%

Developer Loans

92.25% 92.24% 92.15%

20%

30%

40%

50%p

NRP Loans ‐ Individuals

Home Loans ‐ Individuals

0%

10%

20%

Mar‐16 Mar‐15 Mar‐14Mar 16 Mar 15 Mar 14

* 91.73% of Loans are on Variable Rates** Average duration of loan sanction is 198.88 months

11

Liability Profiley120%

8% 8% 9%80%

100%

92% 92% 91%40%

60% Shareholders' Funds

Loan Funds

0%

20%

Mar 16 Mar 15 Mar 14

12

Sources of Borrowingg46%

45%

50%

39%

34%

38%

33%

30%

35%

40%

NHB 

Bank Loans

17%20%

25%

30% Public Deposits

Others

14%16% 16%

9%

17%

8%10%

15%

0%

5%

Mar‐16 Mar‐15 Mar‐14

13

Borrowing Profile As on March 31, 2016

ROI Base Tenure Base

1%

52%

Fixed

Floating

99%

Short Term (**) Long Term (*)

48%

(*) Average tenure 8.79 years(**) Average tenure less than one year

14

Quarterly Financial ResultsAs on March 31, (Rs. In Crore)

Q4-CY Q4-PY Q3-CY YOY CY YOY PY

1 Operating Income 366 91 304 99 323 55 1275 40 1060 321. Operating Income 366.91 304.99 323.55 1275.40 1060.32

2. Interest and Other Charges 215.09 182.74 203.40 807.41 677.73

3. Non-interest Expenses 20.14 14.09 19.76 81.33 62.74

4. Depreciation 0.80 0.96 0.73 3.03 1.29

5. Provisions, Contingencies &Write Offs 6.10 2.31 17.84 21.93 17.72

6. Total Expenditure 242.13 200.10 241.73 913.70 759.48

7. Profit Before Tax 124.78 104.89 81.82 361.70 300.84

8 Tax Expenses 36 96 30 83 28 08 118 12 97 048. Tax Expenses 36.96 30.83 28.08 118.12 97.04

9. Profit After Tax 87.82 74.06 53.74 243.58 203.80

15

Income StatementAs on March 31, (Rs. in Crores)

2016 2015 Growth (%)

Interest income 1228.58 1021.39 20Interest income 1228.58 1021.39 20

Interest expenses 807.41 677.73 19

Net interest Margin 421.17 343.66 23

N I t t I 46 81 38 92 20Non-Interest Income 46.81 38.92 20

Non-Interest Expenses 81.32 62.73 26

Depreciation 3.03 1.29 135

Provisions, Contingencies & Write Offs 21.93 17.72 24

Profit Before Tax 361.70 300.84 20

Provision for Taxation 118 12 97 04 22Provision for Taxation 118.12 97.04 22

Profit After Tax 243.58 203.80 20

16

Operating IncomeAs on March 31, (Rs. in Crores)

2016 2015 Growth (%)Interest on Loans 1207.52 1007.00 20

Interest on Fixed Deposits and SLR Investments etc. 20.32 14.05 44

Surplus from deployment in Cash Management Schemes/Dividends on Mutual Funds 0.74 0.34 18

Interest Income 1228.58 1021.39 20Fees and Other Charges 41.05 33.10 24

Bad Debt Recovery 0.18 0.37 (51)

Other Operating Income 5.58 5.45 2Other Operating Income 5.58 5.45 2

Non-Interest Income 46.81 38.92 20

17

Balance SheetAs on March 31, (Rs. in Crores)

2016 2015 Growth (%)

Sources of Funds

Share Capital 72.74 72.68 1

Reserves & Surplus 762.56 638.82 19Borrowings 10244.40 8215.58 25Current Liabilities & Provisions 304.37 234.90 30Deferred Tax Liability (Net) 58.55 18.77 212

11442.62 9180.75 25

Application of FundsApplication of Funds

Loan Assets 11114.56 8926.48 25Investments 142.92 79.81 79Current Assets 170 58 160 74 6Current Assets 170.58 160.74 6Fixed Assets 14.56 13.72 6

11442.62 9180.75 25

18

Composition of Outstanding Loans

A At C A At C G th(Rs. in Crores)

As At March 31,

2016

Compos-ition

As AtMarch 31,

2015

Compos-ition

Growth

Amount Amount %Individuals Housing 10253 51 92 25 8233 76 92 24 24 53Housing 10253.51 92.25 8233.76 92.24 24.53NRP Loans 427.10 3.84 371.97 4.17 14.82Developers Construction 433.95 3.91 320.75 3.59 35.30Total 11114.56 100.00 8926.48 100.00 24.51

19

Risk ProfileRisk Profile Loan Assets & NPAs

As on March 31, (Rs. in Crores)

2016 2015 20142016 2015 2014Loan Assets (Rs.) 11115 8926 7020

Provision for Standard Assets (Rs.) 51.44 39.11 30.82

Gross NPAs (Rs.) 35.55 25.05 18.87

Provision for NPAs (Rs.) 8.54 8.47 7.60

Provision for Contingencies 16.63 16.58 12.04

Net NPAs (Rs.) 10.38 0.00 0.00

RatiosGross NPA as % to Loans 0 32 0 28 0 27Gross NPA as % to Loans 0.32 0.28 0.27

Net NPA as % to Loans 0.09 0.00 0.00

20

Gross NPAs & Net NPAs

0.520.50

0.60

0.32

0 27 0 28

0.320.30

0.40

0.27 0.28

0 050.090.10

0.20

0.000.05

0.00 0.00

-0.10

0.00Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

Gross NPA to Loans (%) Net NPAs to Loans (%)

21

Provisions & Contingencies 55 00

39 1140.66

43.21

47.23

51.44

45.00

55.00

In C

rore

) 30.8232.23

34.7136.63

39.11

29.72

24 61

34.9735.00

(Rs.

10 16 9 9812.95 12.23 13.65

15.67

12.04

19.47 20.62

16.59

22.5024.61

16.63

15.00

25.00

7.6010.16 9.98

8.47 8.54

5.00

Mar - 14 Jun - 14 Sep - 14 Dec - 14 Mar - 15 Jun - 15 Sep - 15 Dec - 15 Mar - 16-5.00

Mar. 14 Jun. 14 Sep. 14 Dec. 14 Mar. 15 Jun. 15 Sep. 15 Dec. 15 Mar. 16

Provision for NPAs Provision for Standarad Assets Provision for Contingencies

22

NIM & NIE to Average Total Assets

4.644 384 00

4.50

5.00

4.384.21 4.18

4.08

3.00

3.50

4.00

1.50

2.00

2.50

0.95 0.890.83 0.76 0.760.50

1.00

0.00Mar-12 Mar-13 Mar-14 Mar-15 Mar-16

Net Interest Margin to Average Total Assets(%) Non-Interest Expenses to Average Total Assets (%)

23

PBT & PAT to Average Total Assets

3.81

3.31 3 34

3.66

3.513.50

4.00

4.50

2.76 2.262.48

3.343.29

3.19

3.20

3.15

2.50

3.00

2.212.18 2.14 2.11 2.07

2.36

1.50

2.00

0 00

0.50

1.00

0.00Mar. - 14 Jun. - 14 Sep. - 14 Dec. - 14 Mar. - 15 Jun. - 15 Sep. - 15 Dec. - 15 Mar. - 16

PAT to Average Total Assets (%) PBT to Average Total Assets (%)

24

Cost to Income Ratio (%)

19.2218 04

20.00

25.00

17.87

17.03

17.7116.65 15.82

19.0318.04

17.0315.00

10.00

0 00

5.00

0.00Mar. - 14 Jun. - 14 Sep. - 14 Dec. - 14 Mar. - 15 Jun. - 15 Sep. - 15 Dec. - 15 Mar. - 16

Cost to Income Ratio (%)

25

Key Financial RatiosAs on March 31,

2016 2015 2014

Net Interest Margin / ATA (%) 4.08 4.18 4.21

Non Interest Expenses / ATA (%) 0.76 0.76 0.83

PBT/ATA (%) 3.51 3.66 3.81

PAT/ATA (%) 2.36 2.48 2.76

Cost to Income Ratio (%) 17.03 16.65 17.87

ATA = Average Total Assets

26

Key Financial RatiosKey Financial Ratios

As on March 31,

2016 2015 2014Capital Adequacy Ratio (%) 17.82 15.36 16.36

Tier – I 16.13 13.89 14.70

Tier II 1 69 1 47 1 66Tier –II 1.69 1.47 1.66

27

Productivity RatiosProductivity RatiosAs on March 31,

2016 2015 2014

Average No. of Employees 618 567 532618 567 532

Average No. of Retail offices 167 148 138

Profit Before Tax Per Employee ( Rs. in Lakhs) 59 53 46

Total Assets Per Employee ( Rs. in Lakhs) 1852 1621 1363

28

Customer Segments As on March 31 2016As on March 31, 2016

Self Employed18.31%

In Employment59.96%Businessmen

20 41%20.41%

Professionals1.32%

29

Profile of CustomersAs on March 31, 2016 2015 2014No. of Incremental Loans 40084 34608 31555N f Li A tNo. of Live Accounts 174115 151645 131211

Average Loan Disbursed per unit (Rs. In lac) 8.86 8.39 7.64Average Cost per dwelling unit (Rs In lac) 14 97 14 26 13 97Average Cost per dwelling unit (Rs. In lac) 14.97 14.26 13.97

Loan amount wise break up (%)

a) up to Rs. 5 Lakhs 12 71 13 55 17 22) p 12.71 13.55 17.22

b) more than 5 Lakhs up to 10 Lakhs 36.19 34.59 37.10c) more than 10 Lakhs up to 30 Lakhs 40.56 34.64 32.02

d) more than 30 Lakhs 10.54 17.22 13.65

30

Profile of CustomersAs on March 31, 2016 2015 2014L t d d i (%)Loans extended in areas(%)

a) Population is less than 50,000 56.94 54.90 47.91b) Population is more than 50 000 43 06 45 10 52 09b) Population is more than 50,000 43.06 45.10 52.09

Average Loan to Value Ratio 67 64 65Average Income of the Borrower 43510 34635 39473Average Installment to Income Ratio 30 30 33Average Fixed Obligation Ratio 37 37 40

31

T f P ti Fi dTypes of Properties Financed

Period Ending March 31, 2016

Period Ending March 31, 2015

Cases % Cases %Cases % Cases %

Row House / Tenements / Bungalows

116732 67.09 102128 67.42

Fl t 56013 32 19 48216 31 83Flats 56013 32.19 48216 31.83

Others 1250 0.72 1133 0.75

Total 173995 100 00 151477 100Total 173995 100.00 151477 100

32

Rural Focus

• Cumulative Rural Disbursement of Rs.8,692 Cr.

(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 80-100 villages)

,

• Disbursed 1,79,367 cases in rural segment

• Presence in 121Districts of 10 States• Presence in 121Districts of 10 States

• Servicing customers in 1,107 Taluka places in 10 States

Di b d R 1 1 C T 3 20 969 f ili d G ld• Disbursed Rs. 17,177 Cr. To 3,20,969 families under Golden

Jubilee Rural Housing Finance Scheme of Government of India

• Cumulative disbursement of Rs.1,688 Cr. To 33,678 families

under Rural Housing Fund

33

Thank You

34