Q3 FY17 Investor Update A Journey of 27 Years… • Best HFC by ABP 2016 News •Business Today- 2014 2015 Best CEO Award •Crosses Rs 1 • Business World lakh cr in -Most Respected •Crossed Rs. 1000 cr profit & Co Award Rs 75,000 Cr assets portfolio •Best Housing •Outlook Money- 2013 Finance Co. by Best HFC BFSI Awards •Best HFC by ABP • Best HFC by CNBC TV 18 2012 • Best data News • Construction Industry Award quality in HFC •Best Data 2011 by CIBIL Quality by CIBIL Crossed Rs. 50,000 Cr loan portfolio •Asia Pacific 2009 Entrepreneurship Crossed Rs. 500 crs profit Award 2004 GDR Issue •Power Brands Awards by 2002 AAA Rating Franchise India 1994 IPO 2017 1989 Incorporated •Outlook Money- Best HFC •Business Today2 BFSI Best CEO Executive Summary – Q3 FY17 . Q3 FY17 PAT at Rs 499.26 cr as against Rs 418.90 up 19% . Q3 FY17 Revenue from operations up by 13% to Rs 3513 cr . Outstanding Loan portfolio up by 15% to Rs. 135366 cr . Individual Loan Portfolio up by 15% to Rs 130878 cr . Q3FY17 Loan Disbursements Rs 9684 cr against Rs 8422 cr up by 15% . Individual Loan Disbursements Rs 8555 cr against Rs 8067 cr . Net Interest Income Rs 915 cr up by 23 % . Net Interest Margins 2.75% for Q3 FY17 as against 2.58% for Q3FY16 . Gross NPAs at 0.56% as against 0.58% as on 31.12.2016 . Net NPAs 0.27% as against 0.32% on corresponding dates . Individual Loans Gross NPAs 0.32% against 0.32% as on 31.12.2016 . Total Provisions at Rs 969 cr as against total Gross NPAs of Rs 759 cr 3 Update – last 5 years Disbursement (Rs. Cr) CAGR 16% Loan Portfolio (Rs.cr) CAGR 19% Income (Rs. cr) CAGR 19% Profit After Tax (Rs. cr) CAGR 16% 4 Update – last 5 years Gross & Net NPAs Total Provisions* (Rs cr) Operating Expense to Total Income Profit per employee (Rs. lacs) * Provisions Including Provisions on Std. Assets & Teaser Loans 5 Update – last 5 years EPS (Rs) (Rs 2 pd up) Book Value (Rs)(Rs 2 pd up) Return on Avg Equity Return on Avg Loan Assets 6 Geographic Presence Corporate office • 7 Regional Offices Regional offices Back offices Amritsar Jalandhar • 21 Back Offices Shimla Operating offices Ludhiana Ambala Chandigarh Bhatinda • 245 Marketing Offices Patiala Dehradun Hisar Noida Karnal Meerut Haldwani Gurgaon New Delhi Faridabad Ghaziabad Gangtok • Rep offices in Dubai & Kuwait Bareilly Bikaner Siliguri Jorhat Jaipur Agra Gorakhpur Guwahati Jodhpur Kota Ajmer Lucknow • Coverage of more than 450 centres Malda Udaipur Kanpur Patna Silchar Gwalior Varanasi Dhanbad Behrampur Ahmedabad Allahabad Ranchi Durgapur • 1735 Employees Gandhidham Bhopal Jamshedpur Kolkata Rajkot Vadodara Indore Jabalpur Rourkela Bilaspur Surat Jalgaon Nagpur Raipur Vapi Durg-Bhilai Cuttack Nallasopara Nasik Aurangabad Bhubaneshwar Kalyan Thane Warangal Jogeshwari Mumbai Visakapatnam Pune Hyderabad Rajahmundry Vashi Kolhapur Gulburga Vijayawada Satara Kurnool Belgaum Kakinada Anantapur Guntur Panjim Bellary Hubli Nellore Tirupati Bengaluru Mangalore Hosur Chennai Mysore Vellore Hassan Salem Kannur Thrissur Coimbatore Erode Kozhikode Tiruchirapalli Palghat Pondicherry Ernakulam Thanjavur Kottayam Madurai Thiruvananthapuram Tirumangalam Kollam Nagercoil 7 Distribution Network HOME LOAN AGENTS (HLAs) (Agents of LIC) 245 DIRECT SALES AGENTS (DSAs) (Small Firms/Companies etc) Marketing Offices CUSTOMER RELATIONS ASSOCIATES (CRAs) (Individual Agents) 39 branches of LICHFL Financial Services (100% subsidiary of LICHFL) 8 Origination Pattern & Average Ticket Size 9 Loan Book Composition 31.12.2016 30.09.2016 O/s Portfolio Rs. 135366 cr O/s Portfolio Rs. 131096 cr 10 Individual Loans – Portfolio Stats Pure Floating Rate Loans* Loan To Value Ratio To Outstanding Portfolio (See Note below) On Incremental Sanctions As of FY15 37% For FY15 50.94% As of FY16 47% For FY16 46.61% As of 9MFY17 62% For 9MFY17 46.07% Prepayment Installment to Net Income Ratio Lump Sum/ opening book On Incremental Sanctions For FY15 8.4% For FY15 33.86% For FY16 11.9% For FY16 33.25% For 9MFY17 10.7% For 9MFY17 32.98% *Excludes floating rate products like Advantage -5, My Choice-Fixed, Super Choice,11 which are floating rate products with initial fixed rate Executive Summary-Q3FY17 Rs in Cr % Var Dec-16 Dec-15 % Var 9M FY17 9M FY16 Q3FY17 Q3FY16 Interest Income on Individual Loans 13% 3384.81 3005.01 13% 9905.04 8770.36 Interest Income on Project Loans 32% 127.72 96.74 32% 362.12 274.83 Total Interest Income 13% 3512.53 3101.75 14% 10267.16 9045.19 Processing Fees & other fees (59%) 15.41 37.47 (27) 76.90 105.46 Other Income 19% 20.79 17.48 20% 74.43 61.77 Gross Income 12% 3548.72 3156.70 13% 10418.49 9211.52 Interest Expense 10% 2597.15 2354.88 11% 7661.57 6922.50 Net Interest Income 23% 915.38 746.87 23% 2605.59 2122.69 Salary & Other Establishment Exp 16% 140.70 121.37 34% 415.22 310.90 Provisions for NPA/Std Assets/Investments 31% 45.27 34.43 76% 192.03 108.83 Profit before Tax 19% 765.60 646.02 15% 2149.67 1869.28 Tax Expenses 17% 266.34 227.12 14% 747.81 656.51 Net Profit 19% 499.26 418.90 16% 1401.86 1212.77 12 Executive Summary-Q3FY17 Rs cr % Var Dec-16 Dec-15 % Var 9M FY17 9M FY16 Disbursements Q3FY17 Q3FY16 Individual 8555 8067 24374 21953 Project 1129 354 1975 981 Total 9684 8421 26349 22935 Borrowings during the period 13967 11603 37419 29351 Net Interest margins 2.75% 2.58% 2.67% 2.51% Incremental Cost(i.e for the YTD) 8.19% 8.75% Incremental Yield(overall,annualised) 10.69% 10.85% Incremental Spreads 2.50% 2.10% Outstanding Portfolio Individual 130878 114305 Project 4488 3091 Total 135366 117396 Outstanding Liabilities 119428 103816 Financial Highlights 9M FY2017 9M FY2016 Return on Average Equity (%) 19% 19% Return on Average Assets (%) 1.5% 1.4% Earnings per share (on Rs 2 pd up) 27.78 24.03 Capital Adequacy Ratio Sept 2016 Sept 2015 Tier I 13.99 12.46 Tier II 2.65 3.04 Total 16.63 15.51 14 Liability Profile as on 31.12.2016 Outstanding Borrowings – Rs. 119428 cr Source Wtd Avg Cost FCNRB Loans 0.4% (%) NHB CP 0.7% Banks 9.50% 2.4% Bank 9.2% Deposits Non Convertible Debenture 8.75% 4.3% Deposits 8.37% Sub. Debt & National Housing Bank 8.57% Upper Tier II 2% FCNRB Loans 9.66% Sub. Debt & Upper Tier II 9.18% Commercial Paper 6.83% Total 8.80% NCD 80.7% During Q3FY17, Borrowings were Rs 13967 @ 7.84% 15 Change in Liability Mix BankBank funding Funding has down reducedfrom from32% in FY12 to 32%9.2 in %FY in12 Q to3 FY17. 25%Retail in FY 14Deposits. have Retailalso Deposits increased in the increasedsame periodto 2.2% Wtd. Avg. cost 8.80% 8.94% 9.08% 9.14% 9.48 of Funds 16 Yield & Cost of Funds on portfolio 17 NIMs 18 Gross & Net NPAs 31.12.2016 31.12.2015 Gross NPA (Rs. cr) 759 682 Gross NPA (%) 0.56% 0.58% Provisions for NPA (Rs. cr) 398 308 Net NPA(%) 0.27% 0.32% Provisions incl standard asset prov.(Rs. cr) 969 788 Provisions cover incl standard asset prov.(%) 128% 116% 19 Gross & Net NPAs 20 Thank you DISCLAIMER This presentation is made purely for information. We have attempted to provide relevant information which we believe will help in knowing the Company. The users may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. While every care is taken to verify the accuracy of the information given in this presentation, neither the Company nor its officials would in any way be liable for any action taken or not taken by the viewers or the users of this presentation or for any claims, losses etc. 21.