IndoStar Capital Finance Limited

rs,

ICFL/LS/0045/2023-24 27 May 2023 BSE Limited Listing Department, 1st Floor, P J Towers, Dalal Street, Fort, Mumbai - 400 001. National Stock Exchange of India Limited Exchange Plaza, C

₹ 7,813

Key Performance Highlights – FY23 AUM Disbursements Gross Stage 3 Net Stage 3 CRAR Branches ₹ 7,813 crs FY22: ₹ 9,658 crs ₹ 2,099 crs FY22: ₹ 4,947 crs 6.8% FY22: 13.6% 3.2% FY22: 6.4% 31.5% CRAR

₹ 9,658

ghlights – FY23 AUM Disbursements Gross Stage 3 Net Stage 3 CRAR Branches ₹ 7,813 crs FY22: ₹ 9,658 crs ₹ 2,099 crs FY22: ₹ 4,947 crs 6.8% FY22: 13.6% 3.2% FY22: 6.4% 31.5% CRAR FY22: 25.8% 427

₹ 2,099

23 AUM Disbursements Gross Stage 3 Net Stage 3 CRAR Branches ₹ 7,813 crs FY22: ₹ 9,658 crs ₹ 2,099 crs FY22: ₹ 4,947 crs 6.8% FY22: 13.6% 3.2% FY22: 6.4% 31.5% CRAR FY22: 25.8% 427 Branches FY22

₹ 4,947

ents Gross Stage 3 Net Stage 3 CRAR Branches ₹ 7,813 crs FY22: ₹ 9,658 crs ₹ 2,099 crs FY22: ₹ 4,947 crs 6.8% FY22: 13.6% 3.2% FY22: 6.4% 31.5% CRAR FY22: 25.8% 427 Branches FY22: 404 Net Total

rs 6.8

ss Stage 3 Net Stage 3 CRAR Branches ₹ 7,813 crs FY22: ₹ 9,658 crs ₹ 2,099 crs FY22: ₹ 4,947 crs 6.8% FY22: 13.6% 3.2% FY22: 6.4% 31.5% CRAR FY22: 25.8% 427 Branches FY22: 404 Net Total Income

13.6%

Stage 3 CRAR Branches ₹ 7,813 crs FY22: ₹ 9,658 crs ₹ 2,099 crs FY22: ₹ 4,947 crs 6.8% FY22: 13.6% 3.2% FY22: 6.4% 31.5% CRAR FY22: 25.8% 427 Branches FY22: 404 Net Total Income PAT NIMs ₹

3.2%

3 CRAR Branches ₹ 7,813 crs FY22: ₹ 9,658 crs ₹ 2,099 crs FY22: ₹ 4,947 crs 6.8% FY22: 13.6% 3.2% FY22: 6.4% 31.5% CRAR FY22: 25.8% 427 Branches FY22: 404 Net Total Income PAT NIMs ₹ 599.4

6.4%

anches ₹ 7,813 crs FY22: ₹ 9,658 crs ₹ 2,099 crs FY22: ₹ 4,947 crs 6.8% FY22: 13.6% 3.2% FY22: 6.4% 31.5% CRAR FY22: 25.8% 427 Branches FY22: 404 Net Total Income PAT NIMs ₹ 599.4 crs ₹ 225.

31.5%

₹ 7,813 crs FY22: ₹ 9,658 crs ₹ 2,099 crs FY22: ₹ 4,947 crs 6.8% FY22: 13.6% 3.2% FY22: 6.4% 31.5% CRAR FY22: 25.8% 427 Branches FY22: 404 Net Total Income PAT NIMs ₹ 599.4 crs ₹ 225.2 crs

25.8%

2: ₹ 9,658 crs ₹ 2,099 crs FY22: ₹ 4,947 crs 6.8% FY22: 13.6% 3.2% FY22: 6.4% 31.5% CRAR FY22: 25.8% 427 Branches FY22: 404 Net Total Income PAT NIMs ₹ 599.4 crs ₹ 225.2 crs FY22: ₹ 634.8 crs

₹ 599.4

6% 3.2% FY22: 6.4% 31.5% CRAR FY22: 25.8% 427 Branches FY22: 404 Net Total Income PAT NIMs ₹ 599.4 crs ₹ 225.2 crs FY22: ₹ 634.8 crs FY22: ₹ -736.5 crs 6.1% FY22: 6.2% 3 IndoStar 2.0 “go-to”

“54 Experienced Management Team - HFC Krishanu Ray Chief Digital Officer o He has over 15 years of experience in Digital Lending, Automation, Program/Project Management, Business Analysis/ Solution Architecture, preferably in Banking/Financial.”

Household Income

2

Large CV Market

1

Sector Lending

1

Large CV Market

INR 5.6 Lakh Crores* Second-hand truck financing under-penetrated, ~60% with informal credit 8% 31% 61% Core focus of IndoStar CV business Pipeline for future business Market typically run by private financiers and money lenders who charge high interest rates 60% 40% CV Market Value CV Market Value 10+ Years 0.4 0-4 years 3.4 Informal Credit Formal Credit 5-10 years 1.7 31% of the market or 1.7 Lakh Crores is 5 -10 years old 336,521 270,553 279,903 331,486 391,544 450,416 516,089 19.4% 13.6% 3.6% 44.0% 12.3% 7.2% FY19 13.3% 14.2% 3.3% 47.5% 14.5% 7.2% FY20 11.2% 11.5% 2.5% 47.1% 18.8% 9.0% FY21 15.2% 11.7% 2.7% 14.9% 13.9% 3.0% 14.3% 14.5% 3.1% 13.8% 15.0% 3.2% 47.5% 44.5% 44.7% 45.1% 15.6% 7.3% FY22 14.9% 8.7% FY23E 14.3% 9.1% FY24E 13.7% 9.2% FY25E MHCV LCV MLCV CAR & MUV Tractor CE     Commercial vehicle market is growing every year with the annual market size pegged at Rs.5.60 lakh Cr which incl New, Used, WC and Term loan funding Similarly, Used vehicle financing expected to d

Household Income

Rs 3 Lacs AUM (RS Tn) Market Share Indian Mortgage Market Tier II and Below ~20 Mn Units Affordable Mortgage Market is expected to grow at over 10% in the next 5 years… …with AHFCs gaining market share in overall HFC market over the past few years Rs. 8 Tn 4.0 5.0 7.2 FY27E Mar-18 Mar-20 Dec-21 Rs. 5 Tn FY20 Under Penetratio n in Tier II and Below Market Financed Units Financed Units Financed Units 10 Mn 1,100 Mn / 220 Mn ~5% Significant room to grow Metros and Tier I 10 Mn 230 Mn / 46 Mn ~22% Housing Shortage  In 2022, housing shortage in India was 100 Mn units with LIG & EWS contributing 95% to the same  Incremental housing loan demand from above shortage is Rs 50-6- Tn indicating huge potential for growth Significant Tailwinds In Favour Of Affordable Housing Helping Affordable Housing Finance Companies (‘AHFC’) Gain Market Share Source: CRIF High Mark Report, ICRA, Prospectus of Listed Peers 9 Future Ready to Seize Affordable Housing Market Opportunity Management Team Geographical

Sector Lending

• Agriculture • Micro, Small & Medium Enterprises (MSME) • Export Credit • Housing loans of up to Rs. 35 lakh, for dwellings costing less than Rs. 45 lakh, are treated as priority sector lending (PSL) What is the RBI guideline for Banks around PSL? 1) Domestic commercial banks (excl. RRBs & SFBs) & foreign banks with 20 branches and above: 40% of • Adjusted Net Bank Credit (ANBC) or • Credit Equivalent of Off-Balance Sheet Exposure (CEOBE) 2) Small Finance Banks (SFB) 75% of ANBC as computed in para 6 below or CEOBE whichever is higher What is the qualifier to get an IndoStar loan tagged as PSL? Across the IndoStar portfolio, here are the criteria that is used to tag loans as PSL • CV: Udyam* (MSME) Registration • SME: Udyam* (MSME) Registration • Housing: All loans for housing units <45 Lakhs What is the advantage to IndoStar? 1) Given the RBI directive to banks to meet 40% of ANBC and 75% for SFBs as PSL, there is a clear market for high quality PSL books 2) It is in IndoStar’s inter