Q2 FY16 Investor Update

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• Promoted by the LIC of India in 1989

• IPO in1994, GDR in 2004

• Listed on BSE, NSE & Luxembourg SE

• Profit making & dividend paying since 1990

• Highest ratings (AAA) since 2002

• More than 18 lakh customers serviced till date

• Market capitalization more than Rs. 24000 cr

• Total loan assets more Rs. 1,14,000 cr

• 97% of loan assets in retail category

• Cumulative Disbursements Rs.1.83 lakh cr since inception

Shareholding Pattern- Sept’15

1989

1994

2002

2004

2009

2011

2012

2013

Incorporated

IPO

AAA Rating

GDR Issue

Crossed Rs. 500 crs profit

Crossed Rs. 50,000 Cr loan portfolio

• Best HFC by CNBC TV 18• Construction Industry Award

•Crossed Rs. 1000 cr profit & Rs 75,000 Cr assets

2015

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2014• Best HFC by ABP

News

•Crosses Rs 1 lakh cr in portfolio •Best Housing Finance Co. by BFSI Awards• Best data quality in HFC by CIBIL

A Journey of 26 Years…

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Q2 FY16 PAT at Rs 411.73 cr as against Rs 341.35 cr up 21% Q2 FY16 Revenue from operations up by % to Rs 3026 cr Outstanding Loan portfolio up by 17 % to Rs.114069 cr

Individual Loan Portfolio up by 17% to Rs 111076 cr Q2FY16 Disbursements Rs 8390 cr against Rs 7196 cr up by

17% Net Interest Income Rs 717 cr up by 35% Net Interest Margins % for Q2 FY16 as against % for Q2FY15 Gross NPAs at 0.60% as against 0.63% as on 30.9.2014

Net NPAs 0.32% as against 0.33% on corresponding dates

Individual Loans Gross NPAs 0.33 % down from 0.38% as on 30.9.2014

Total Provisions at Rs 779 cr as against total Gross NPAs of 683 cr

Executive Summary – Q2/FY16

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Disbursement (Rs. Cr) CAGR 13%

Profit After Tax (Rs. cr) CAGR 9%

Income (Rs. cr) CAGR 22%

Loan Portfolio (Rs.cr) CAGR 21%

Update – last 5 years

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Gross & Net NPAs

Operating Expense to Total Income

Total Provisions* (Rs cr)

Profit per employee (Rs. lacs)

* Provisions Including Provisions on Std. Assets & Teaser Loans

Update – last 5 years

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EPS (Rs) (Rs 2 pd up)

Return on Avg Equity

Book Value (Rs)(Rs 2 pd up)

Return on Avg Loan Assets

Update – last 5 years

*FY 2015 PAT before DTL considered

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• 7 Regional Offices

• 16 Back Offices• 234 Marketing Offices• Rep offices in Dubai & Kuwait• Coverage of more than 450 centres• 1756 Employees

Back offices

Operating offices

Regional offices

Corporate office

Nagercoil

ThiruvananthapuramKottayam

Ernakulam

Kozhikode

Thrissur

Tirumangalam

MaduraiThanjavur

PondicherryTiruchirapalli

CoimbatoreSalem

Vellore

ChennaiHosurMysore

MangaloreBengaluru

Panjim

Vashi

Mumbai

NelloreHubliTirupati

BellaryAnantapur

Kurnool

GunturKakinada

Vijayawada

Hyderabad Rajahmundry

VisakapatnamWarangal

Bhubaneshwar

Kolkata

Silchar

GuwahatiSiliguri

Gangtok

Patna

ShimlaJalandharAmritsar

LudhianaChandigarh

Dehradun

HaldwaniKarnal

BareillyGhaziabadNew Delhi

AgraLucknow

Kanpur

JaipurAjmer

Gwalior

Bikaner

Jodhpur

Rajkot

Udaipur

Ahmedabad

Vadodara IndoreBhopal

Allahabad

Jabalpur

Varanasi

RanchiJamshedpur

RourkelaBilaspur

RaipurNagpurJalgaonSuratVapi

AurangabadNasikKalyanThaneJogeshwari

Pune

Kolhapur

Belgaum

Gulburga

Nallasopara

Kota

Hassan

Erode

Kannur

Kollam

Palghat

Gandhidham

Satara

Durg-Bhilai

Gorakhpur

Meerut

Behrampur

Cuttack

DhanbadDurgapur

Jorhat

Malda

GurgaonFaridabad

Noida

AmbalaBhatinda

HisarPatiala

Geographic Presence

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HOME LOAN AGENTS (HLAs)(Agents of LIC)

DIRECT SALES AGENTS (DSAs)

(Small Firms/Companies etc)

CUSTOMER RELATIONSASSOCIATES (CRAs)

(Individual Agents)

234Marketing Offices

37 branches of LICHFL Financial Services(100% subsidiary of LICHFL)

Distribution Network

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Origination Pattern

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Average Ticket Size- Individual

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Loan Book Composition

Category O/s Portfolio % Var

Individual(Including LAP)

111076 17%

Developer 2992 25%

Total 114068 17%

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Installment to Net Income Ratio

On Incremental Sanctions

For FY 14 34.72%

For FY15 33.86%

For Q1FY16 33.24%

For H1FY16 32.16%

Loan To Value RatioOn Incremental Sanctions

For FY 14 54.52%

For FY15 50.94%

For Q1FY16 49.29%

For H1FY16 48.09%

Pure Floating Rate LoansTo Outstanding Portfolio (See Note

below)

As of FY 14 42%*

As of FY15 37%*

As of Q1FY16 31%*

As of H1FY16 35%*

PrepaymentLump Sum/ opening book

For FY 14 9.3%

For FY15 8.4%

For Q1FY16 9.8%

For H1FY16 11.0%

*Excludes floating rate products like Advantage -5, Super 3, Super Choice, Bhagyalakshmi etc which are floating rate products with initial fixed rate

Individual Loans – Portfolio Stats

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Executive Summary-Q1/FY16

Rs in Cr        % Var Sep-15 Sep-14 % Var H1 FY16 H1 FY15

Q2FY16 Q2FY15    Income        Individual 18% 2936.24 2491.84 18% 5765.34 4893.09Project -14% 89.79 104.24 -4% 178.09 185.58Interest on Housing Loan 17% 3026.03 2596.08 17% 5943.43 5078.67

       Processing Fees & other fees 23% 38.61 31.49 16% 67.09 58.03

       Other Income -21% 24.72 31.12 -32% 44.28 65.58

       Gross Income 16% 3089.36 2658.69 16% 6054.80 5202.28Interest Expense 12% 2309.09 2064.27 13% 4567.62 4040.63

       Net Interest Income 35% 716.94 531.81 33% 1375.81 1038.04

       Salary & Other Establishment Exp 10% 105.98 96.47 14% 189.53 166.38

       Profit before Provisions & Taxation 35% 674.29 497.95 30% 1297.65 995.27

       Provisions for NPA/Std Assets 30.58 -15.68 74.61 -3.01

       Profit before Tax 25% 644.23 516.99 22% 1223.25 1005.15Tax Expenses 32% 232.50 175.63 26% 429.39 341.48Net Profit 21% 411.73 341.35 20% 793.86 663.66

Executive Summary-Q1/FY16

% Var Sep-15 Sep-14 % Var H1 FY16 H1 FY15Disbursements  Q2FY16  Q2FY15    Individual 13% 7944 7046 11% 13887 12521Project 198% 322 150 167% 503 235Total 17% 8390 7196 14% 14389 12756

       Outstanding Portfolio        Individual 17% 111077 95130    Project 25% 2992 2399    Total 17% 114069 97528    

       Outstanding Liabilities 15% 101640 88225    

       Net Interest margins(%) 2.56% 2.23% 2.47% 2.20%

       Borrowings during the period (Rs.cr) 10335 11554    

       

Incremental Cost(i.e for the year to date) 8.92% 9.63%

   

Incremental Yield(overall, annualised) 10.92% 10.92%

   

Incremental Spreads 2.00% 1.29%

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H1 FY2016 H1FY 2015

Return on Average Equity (%) 19.3% 18.5%

Return on Average Assets for qtr (%)

1.5% 1.4%

Earnings per share (on Rs 2 pd up)

15.73 13.15

Capital Adequacy Ratio Tier I

Tier IITotal

March 201511.82 3.4815.30

March 201412.19 4.1916.38

Financial Highlights

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Outstanding Borrowings –Rs.101640.32 cr

Source Wtd AvgCost (%)

Banks 10.29%

Non Convertible Debenture

9.13%

LIC- Term Loan 6.82%

National Housing Bank 8.86%

FCNRB Loans 9.28%

Sub. Bonds & Upper Tier II

8.90%

Commercial Paper 8.06%

Deposits 9.24%

Total 9.29%

as on 30.9.2015

Liability Profile

During H1FY16, Borrowings were Rs 17748 cr @ 8.92%

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Change in Liability Mix- last 5 yrs

Wtd. Avg. cost of Funds

Bank funding has reduced from 32% in FY12 to 25% in FY14. Retail Deposits increased to 2.2%

9.29% 9.38% 9.48 9.75% 9.76% 9.77%

Bank Funding down from 32% in FY12 to 15% in Q2FY16

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NIMs

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Yield & Cost of Funds on portfolio

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30.9.2015

30.9.2014

Gross NPA (Rs. cr) 683 611

Gross NPA (%) 0.60% 0.63%

Provisions for NPA (Rs. cr)* 314 294

Net NPA(%) 0.32% 0.33%

Provisions incl teaser loan prov & std asset prov.

779 704

Gross & Net NPAs

*Excluding provisions on standard assets/teaser loans

Provisions cover incl teaser loan prov & std asset prov.

114% 115%

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Gross & Net NPAs

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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.

Thank you