Can Fin Homes Ltd. ..

at a Glance

31 years of vision, passion and progress

Offering home loans since 1987….. and it is just a beginning

Information to Investors
3QFY19 ended December 2018

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 About us

▪ 31 year old institution registered as a deposit taking HFC with NHB

▪ Promoted by Canara Bank in the year 1987 with the shareholding of 30%
Legacy ▪ Listed in 1991. Carries a legacy of an uninterrupted dividend payment since inception
▪ Dominance in South ( 72% of Loan Book) as at December 2018

▪ To promote ownership in home lending across India, with a motto of friendship finance and good
service - with focus on retail lending
Focus ▪ To focus on Housing loan to Individuals (@ Dec 2018: 89.9% of loan book for Housing; 10.1% Non
Housing)
▪ To have strong fundamentals with ethical & transparent practices and prudent underwriting

▪ Headquartered in Bangalore with 5 Clusters (Bangalore, Chennai, Hyderabad, Delhi & Mumbai)
Reach ▪ Pan-India presence with 154 branches, 21 Affordable Housing Loan Centers & 14 Satellite Offices as
on date; spread across 21 States / Union Territories
▪ Added 138 branches/ Satellite Offices in the last Five years

▪ Last Five Year Growth /CAGR (Mar 13 ~ Mar 18) :

Financials ▪ Fresh Approvals: +22%, Disbursements: +23%, Loan Book: +31%
▪ Net Interest Income: +40%, Operating Profit: +45%, PAT: +41%
▪ AAA / A1+ ratings for Loans/ NCDs/ CP

▪ To reach the loan book size of Rs.40,000 Crore by March 2022 (CAGR of 26%) with
Vision high asset quality, transparent & best ethical practices and prudent risk management practices.

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 Board of Directors

Name of the Director Designation Occupation

Smt. Bharati Rao Chairperson Former Dy. Managing Director

(Independent) State Bank of India

Shri Sarada Kumar Hota Managing Director General Manager

Canara Bank
(On Deputation to Can Fin Homes)

Smt P.V.Bharathi Director Executive Director

(Canara Bank Nominee) Canara bank

Shri G Naganathan Director Practicing Chartered Accountant

(Independent)

Shri Shreekant M Bhandinad Dy Managing Director Dy General Manager

Canara Bank
(On Deputation to Can Fin Homes)

Dr. Yeluri Vijayanand Additional Director Former Dy. Managing Director, State
(Independent) Bank of India

Shri S Subramanian Additional Director General Manager

(Canara Bank Nominee) Canara Bank

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 Performance Highlights - Q3 FY19

 Disbursements during 9m of FY19 amounted to Rs.3,925 crore

Q3 FY19: 1318Cr, Q2FY19 : 1443 Cr, Q1FY19: 1164 Cr

 Loan Book Growth in FY19: Rs. 1,826 crore (vs Rs.1745 crore in 9m of FY18)

 Loan Book reached Rs.17568 crore with a clientele base of 1.40 lakh

 Y-o-Y Loan Book growth of 16.67% despite a sluggish growth in our home state.
Minus Karnataka, Fresh approvals: +6%, Disbursements: +11%, Loan Book: + 22%

 PBT & PAT for Q3FY19 rose by 11% & 13% resp (Y-o-Y); For Q3: PBT +16%, PAT +21%

 NIM: 3.18%, RoAA*:1.88%, RoE*: 21.43% and EPS: Rs.17.46 * Annualised

 Cost to Income Ratio: 14.04% contained below 15% (vs 15.29% at Dec’17 & 15.21% at Mar’18)

 Gross NPA & Net NPA at 0.71% and 0.51% as against 0.63% & 0.42% at Sep’18

 88% of fresh loan approvals during 9m of FY19 were for Housing & 12% for Non-Housing

 66% of fresh loan approvals were to Salaried & Professionals while 34% were to SENP segment

 72% of the outstanding loan book as at Dec’18 comes from Salaried & Professionals; 90% from HL

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 Performance Highlights – Q3 FY19

Amount in Rs. Crore

QUARTER ENDED 9 MONTHS ENDED

Sl. No. Particulars
DEC’18 (3m) SEP’18 (3m) DEC’17 (3m) DEC’18 (9m) DEC’17 (9m)
1 New Approvals 1483 1521 1547 4214 4307

2 Disbursements 1318 1443 1321 3925 3821

17578
3 Outstanding Loan Book 16935 15068 17578 15068

4 Interest Income 437.61 414.19 378.41 1248.17 1104.24

7 Fees & Other Income 11.77 8.85 12.00 28.39 29.90

6 Total Income 449.38 423.04 390.41 1276.56 1134.15

7 Interest Expenditure 301.50 283.81 250.70 855.37 725.50

8 Other Expenditure 21.56 17.64 21.42 59.15 62.50

9 Total Expenditure 323.06 301.45 272.13 914.52 788.00

10 Profit Before Tax & Provisions 126.31 121.59 118.28 362.04 346.15

11 Net Interest Income 136.11 130.39 127.71 392.79 378.34

Cost to Income Ratio (%)

12 14.04 13.75 15.29 14.04 15.29
(excluding Bad debts)

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 Performance Highlights – Q3 FY19

Amount in Rs. Crore

QUARTER ENDED 9 MONTHS ENDED

Sl. No. Particulars
DEC’18 (3m) SEP’18 (3m) DEC’17 (3m) DEC’18 (9m) DEC’17 (9m)

13 Profit Before Tax & Provisions 126.31 121.59 118.28 362.04 346.15

14 Provision for SA & NPA -- -- 9.23 -- 21.34

15 Profit Before Tax 126.31 121.59 109.06 362.04 324.81

16 Provision for Taxation & DTL 45.96 44.76 42.88 129.61 118.62

17 Profit After Tax 80.35 76.83 66.18 232.43 206.18

Other Comprehensive
18 1.62 0.76 -0.21 0.75 -0.32
Income (net of tax)
Total Comprehensive
19 78.73 77.59 66.40 231.68 206.50
income

20 Earnings per share* 5.92 5.37 4.97 17.39 15.50

21 Gross NPA 124.95 107.29 68.82 124.95 68.82

22 Gross NPA Ratio (%) 0.71 0.63 0.46 0.71 0.46

23 Net NPA 89.08 71.43 37.51 89.08 37.51

24 Net NPA Ratio(%) 0.51 0.42 0.25 0.51 0.25

www.canfinhomes.com * EPS for Jun’17 adjusted to Face Value of Rs.2/- per Equity Shares (Subdivision with effect from 13/10/2017) 6
 Reconciliation of PAT @ Dec’17 (GAAP ~ Ind AS)

Amount in Rs. Crore

9 MONTHS
Sl. No. Particulars ended
DEC 31, 2017
1 Net Profit reported as per erstwhile Indian GAAP
226.31
2
Amortisation of processing fees
a.
Impact due to amortisation of processing fee over term of loan -13.53
b.
Deemed Interest Income due to fair valuation of Security Deposits 0.16
c.
Lease Expenses due to straightlining of Lease Expenses -0.12
d.
Reversal of Lease Rent due to discounting of Security Deposits -0.06
e.
Reversal of transaction costs on non-covertible debentures -0.88
f.
Recognition of interest on non-convertible debentures as per EIR 0.00
g.
Interest income recognised as per EIR 0.00
h,
Reclassification of actuarial gains and losses to OCI -0.49
i.
Deferred tax on Ind AS Adjustments -5.21
Total
-20.12
3
Net Profit as per Ind AS 206.19
4
Other Comprehensive Income
a. 0.49
Reclassification of actuarial gains and losses to OCI
b.
Deferred Tax on OCI -0.17
5
Total Comprehensive Income 206.50
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 Key Financial Ratios – Q3 FY19

Amount in Rs. Crore

PERIOD ENDED
Sl. No. Particulars
DEC’18 SEP’18 DEC’17

1 Return on Avg Assets (Annualised) 1.88 1.88 1.95

2 Return on Equity (Annualised) 21.43 20.74 23.43

3 Earning Per Share* (Rs.) 17.39 11.43 15.50

4 Net Interest Margin (%) 3.18 3.17 3.58

5 Yield (%) 10.06 9.99 10.39

6 Cost (%) 7.89 7.83 7.73

7 Spread (%) 2.17 2.16 2.66

8 Avg Business Per Branch (Rs. Crore) 108.41 119.11 106.58

9 Avg Business per Employee (Rs. Crore) 23.03 22.67 23.92

10 Cost Income Ratio (%) 14.04 13.75 15.29

11 DER (%) 10.05 10.19 10.64

12 Capital Adequacy Ratio (%) 19.39 19.07 19.17

13 of this Tier I Ratio (%) 17.53 17.16 16.98

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 Lending Basket
Category-wise Product-wise Distribution of Loan Book

Sl . Category/Product Dec-17 Mar-18 June-18 Sep-18 Dec-18

No.
O/s Amt. O/s Amt. O/s Amt. O/s Amt. O/s Amt.
1 Salaried & Professionals

i) Housing Loans 10,195 10,665 10,915 11,294 11,624

ii) Top-up Personal Loans 304 338 346 369 388
iii) Mortgage Loans/ Flexilap 376 369 359 370 371
iv) Loans for Sites 132 131 127 130 138
v) Others 66 24 36 38 38
Sub Total 11,073 11,527 11.783 12,201 12,559
(As a % to total) 74% 73% 73% 72% 71%
2 Non Salaried Class- Self Employed & Non Professionals
i) Housing Loans 3,264 3,493 3,673 3,939 4,169
ii) Top-up Personal Loans 148 163 174 193 208
iii) Mortgage Loans/Flexi Lap 442 439 440 463 485
iv) Loans for Sites 51 49 50 54 59
v) Others 59 54 55 58 59
Sub Total 3,964 4,198 4392 4,707 4,980
(As a % to total) 26% 27% 27% 28% 28%
3 Builder Loans 2 0.37 7 10 12
(As a % to total) 0.01% - 0.04% 0.06% 0.06%
4 Staff Loans 19 18 17 17 17
Grand Total 15,058 15,743 16,199 16,935 17568

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 Funding Basket

Funding Mix @ DEC 2017 (as %) Funding Mix @ DEC 2018 (as %)

DEP Market DEP

Market 2% Borrowings 1%
Borrowings 38%
58% BANKS
22%

BANKS
48%

NHB NHB
18% 13%

• Backed by strong AAA ratings for our borrowing/NCD & A1+ for CP programs
• Commercial Papers as on 31.12.2018 constituted 12% of total borrowings.
• Cost of borrowings contained at 7.89% ( vs 7.70% at Mar’18 and 7.73% at Dec’17)

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 Liquidity Position

Amount in Rs. Crore

Particulars For Q4FY19 For Q1FY20 For Q2FY20

ending Mar.19 ending Jun.19 ending Sep.19
Un-availed limits as on 31/12/2018
2486.85 1335.58 1361.31
(Opening Balance)

Add: Collections 1350.00 1700.00 1700.00

Less: Interest and principal

2651.27 1224.27 606.06
repayment on borrowings

Less: Disbursements 1500.00 1800.00 1800.00

Add: Future borrowings 1650.00 1350.00 800.00

Surplus/(Deficit) – (Closing
1335.58 1361.31 1455.25
Balance)

Apart from the above we have permitted borrowing limits of Rs.6,000 crore under NCDs (un-availed) and Rs.4,500 crore
under Commercial Paper (un-availed Rs.2,250.00 crore).

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 Branch network
(154 branches + 21 AHLCs + 14 Satellite Offices)

Punjab – Jalandhar Tamilnadu - Hosur, Chennai (9 branches) , Madurai,

Namakkal, Trichy, Coimbatore, Salem, Erode,
Chandigarh
Vellore, Thiruchengode, Dindigul, Karur,
Rajasthan – Alwar, Jaipur, Virudhunagar, Tirunelveli, CBE- P N Palyam, Tirupur,,
Mansarovar, Kota, Udaipur, Ajmer, Kumbakonam, Thoothukudi, Gobichettipalayam,
Jodhpur, Jhotwara, Jagatpura Thirumangalam, Batlagundu.

Gujarat - Ahmedabad, Vadodara, Goa

Surat, Rajkot, Jamnagar, Bhavnagar
Pondicherry
MP - Bhopal, Gwalior, Indore,
Mandideep, Jabalpur, Pithampur, Sagar, West Bengal - Durgapur
Rewa Uttar Pradesh - Lucknow, Meerut, Noida,
Chhattisgarh - Raipur, Bilaspur, Greater Noida, Agra, Varanasi,
Bhilai Allahabad, Kanpur,Ghaziabad , Jhansi,
Uttarakhand – Dehradun, Haridwar
Maharashtra – Kolhapur, Navi Mumbai,
Mumbai, Nagpur, Panvel, Kalyan, Pune, Andhra Pradesh – Bhimavaram, Kadapa,Nellore,
Nashik, Boisar, Chakan, Hinjewadi, Ongole, Tirupathi, Guntur, Kakinada, Vizag,
Aurangabad, Vijayawada, Vizag-Steel Plant, Rajahmundry,
Karnataka - Bengaluru (21 branches), Kurnool, Vizianagaram, Gollapudi, Tenali , Eluru,
Belgaum, Davanagere, Hubli, Mysore, Mangalagiri
Mangalore, Mandya, Shimoga, Tumkur,
Udupi, Hassan, Doddaballapur, Telangana - Hyderabad (8 branches), Siddipet,
Ramanagaram, Attibele, Thanisandra, Warangal, Karimnagar, Khammam,
Whitefield, Dharwad. Sangareddy,Ghatkesar,
A S Rao Nagar.
Kerala - Calicut, Kochi,
Thiruvananthapuram, Thrissur, Shoranur, Delhi - Nehru Place, Pitampura
Neyyattinkara
Haryana - Gurgaon, Manesar, Sonepat,
Odisha - Bhubaneshwar, Berhampur Faridabad, Dharuhera, Rewari, Karnal, Ambala,
Jharsuguda Rohtak, Palwal
Bihar - Patna

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 Strategic Initiatives

 Affordable Housing Loan Centres (AHLCs) .. 21 as of now ..

Upcountry outlets dedicated to cater to Affordable Housing Segment – (GRHS / LUH / CLSS-PMAY) .. opened by
upgradation of erstwhile satellite offices

 Introduction of Centralised Processing Centre (CPC) and Centralised Collection Centre (CCC) at Bangalore
Better risk management in big ticket loans @CPC: Better control over collections @CCC; Higher employee productivity

 Induction of Specialist Officers (CA/CS/Legal/IT Professionals) & Management Trainees (MBAs)

HR initiative for Competency building in key functional areas and Succession Plan

 Introduced ‘Annual Resetting of Rate of Interest’

Customer benefit measure aimed at improved retention level

 Foray in to distribution of Insurance Products, both Life and General, through Corporate Agency
Maiden initiative for alternate source of income apart from de-risking the portfolio

 Initiatives taken to improve IT infrastructure of the company

Strengthening of network connectivity and revamping of the company’s website being undertaken

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 Strategic Initiatives

 Branch expansion focus on Tier II/III Growth Centres .. Pan India

Network increased from 41 branches as at Mar’11 .. to 140 at Mar’16 .. to 189 now (175Br/AHLCs + 14 SOs)
Of this Non- South network increased from 18 branches at Mar’11 .. to 40 at Mar’16 .. to 69 now

 41 branches & 21 AHLCs opened since FY17 .. incl. 2 branches in Q3FY19

Of this, 27 branches & 6 AHLCs are in non-south growth centres

 Contribution of Non-South units to New Business/ Approvals increased from 23% for FY16 to 31% for 3Q FY19
Share of these branches in Total Loan Book increased from 24% at March 2016 to 28% as at December 2018

 As a strategic shift in our expansion plan, we have rapidly grown to non-metro Tie II/III growth centres

Growth in metro suffered due to increased competition from Banks and balance transfers.

No of Branches Share in Sanctions Share in Loan Book YoY Gr for FY19

Pop Group
Mar.16 New Add Dec.18 Mar.16 Dec.18 Mar.16 Dec.18 Loan Book

Metro 54 12 66 72% 61% 77% 68% 11%

Non Metro 56 53 109 28% 39% 23% 32% 30%

 Actions afoot to open 30 more branches in potential Tier III/IV centres during FY20

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 Recognition

FE India’s Best Bank Awards - Runner-Up in NBFC Category FY 17

Award received by Managing Director on 10th January 2019

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 Future Outlook

Vision 2022 :

 Loan book size of Rs.40,000 Cr by the end of FY2022 (CAGR of 26%)

Business Budget for 2018-19 (Revised):

 Loan book size of Rs.18,500 Cr vs Rs.15,743 Cr at Mar’18 (+17.5%)

.. as against Rs 19,500 envisaged at the beginning of the year

Branch Expansion Plan for 2019-20:

 30 New Branches in Tier II/III Growth Centres & Rationalization of existing branches in Metros

 Total Network (Branch/AHLC & SOs) - ahead of 200 mark by Mar’19 (189 as on 31.12.18)

 Focus on Affordable Housing Loans and Non-Housing loans

 Salaried & Professional class would continue to be our niche segments

 Raising of fresh equity upto Rs.1000 Crore through Rights Issue/QIP / Pref Share

Being expressed during Investor/ Analyst Meet, TV Interviews, Press Releases, one-to-one interactions etc.

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 The forward looking statements and projections, if any, contained in this presentation are predictions and involve
known and unknown risks, uncertainties and other factors including the future changes or developments, the
competitive environment, ability to implement the strategies and initiatives, technological changes, political,
economic, regulatory and social conditions in India etc. that may cause the actual results, performance and
achievements of CFHL to be materially different from any future results, performance or achievements
expressed or implied by such forward looking statements or other projections.

Thank You

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