PNBHOUSING

April 27, 2021 The BSE Limited, National Stock Exchange of India Limited, Listing Department, Listing Department Phiroze Jeejeebhoy Towers, “Exchange Plaza” Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Scrip Code: 540173 Symbol: PNBHOUSING Dear Sirs, Sub: Investor Presentation Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Please find attached herewith the Investor Presentation of the Company for the quarter and year ended March 31, 2021. A copy of the same is placed on the website of the Company www.pnbhousing.com You are requested to take note of the above and arrange to bring this to the notice of all concerned. Thanking You. For PNB Housing Finance Limited Sanjay Jain Company Secretary & Head Compliance Membership No.: F2642 Regd. Office: 9th Floor, Antriksh Bhavan, 22 Kasturba Gandhi Marg, New Delhi – 110 001 Phone: 011 – 23736857, E‐mail: loans@pnbhfl.com, Website: www.pnbhfl.com CIN: L65922DL1988PLC033856 Investor Presentation Q4/FY ended March 2021 27-April-2021 Contents A Progress on the New Agenda Strategy Monitorables Business & Financial Performance B Shareholding and ESG Snapshot Key Takeaways Growth in Housing Finance Sector 2 New Agenda set by the Company Strengthening the Core Drive Efficiency Accelerate Growth Capital Cost Retail Focused Grow Affordable Management Position Risk Management Management Digital Drive Lending Housing “Unnati” • Strengthen leadership • Improve capital and • Leverage advance • Rationalize • Accelerate digital • Leverage expertise in • Building higher yielding team with internal gearing analytics and new operating model transformation across mass housing and Unnati portfolio promotions & external age technologies with focus on the value chain merchant category hires • Build significant profitability • Focus on Average • On boarded senior provision • Automate credit • Increase use of AI, • Increase fee income ticket size of ~INR 15 talent in appraisal journey with • Optimize cost and ML, RPAs to through cross sell, lakh Collections, • Option to raise capital human touch productivity augment business, upsell and co-lending Information across different underwriting and • Strengthen distribution security, Affordable modes • Strengthen EWS to • Improve accelerate • Retail to be the network with increased Housing and improve collection accountability efficiencies engine of growth presence in Tier 2 and Internal Audit efficiencies across organization 3 cities • Advanced analytics • Augment Risk & data • Remedial • Product and for portfolio analytics team Management Group segment level management, risk, to focuson resolution monitoring collection • Introduced incentive of corporate book plan to retain talent • Building Super app to strengthen digital • Focus on upgrading platform skill sets 3 Strengthening the Core – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 Remarks Key roles hired at senior level 5 hires and 2 promotion Further strengthen management team Management Introduced incentive plan to retain RSU Allotment done Introduced RSU for critical positions Team talent Reduce Leverage* 8.53x 6.72x With reduced share of Corporate Book Adjusted fordeposit made with Improve CRAR* 17.98%** 18.73% companies in same group, CRAR is 20.61% Maintainadequate Total Provision 2.61% 4.09% Net worth to NNPA is 5.9x to Total Asset* Capital Position Tier 1 Capital In process Capital Raise process ongoing % of loans sanctioned within Leveraging digital interventions to 85% 84% stipulated TAT enhance efficiencies Risk Improve Collection Efficiencies 98.5% 96.8% Strengthened bucket wise resolutions Management * As on last day of the period **As per IGAAP 4 Drive Efficiency – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 Remarks Cost rationalisation measures Maintain Cost to Income Ratio 16.9% 15.1% undertaken Reduce incremental Cost of Incremental COB for Q4FY21 has 8.47% 6.80% Borrowing dropped to 6.26% Cost Implement Transformation Focus on business repositioning, Project ‘IGNITE’ initiated journey strengthen u/w, & collections, digital and Management cost efficiencies Increase in digital sourcing 9% 22% Increased focuson digital sourcing Automate underwriting for Vendors identified Expected to go live by Sep’21 Straight through Processing Analytics across the organisation through integration and data Advance stages of vendor identification Implementation from Sep’21 Digital Drive warehousing 5 Accelerate Growth – Key Monitorables Pillars to Agenda Monitorables FY20 FY21 Remarks Disbursements higher by 50% Reduced Grow Retail Book (YoY) -6% -5% lending rates Focus on building Granular book 87.2% 92.3% Focus on lower ticket asset sourcing (disbursement) Retail Focussed INR 14,614 crore INR 11,786 crore Sell down/accelerated paymentof INR Reduction in Corporate book* 18% of AUM 16% of AUM 1,880 in FY21 Lending Create separate vertical and open Locations identified for opening new Existing branches Separate vertical created lean branch infrastructure branches Grow Affordable Housing Grow Unnati book* INR 2,607 crore INR 2,985 crore Focus on building Unnati book “Unnati” * As on last day of the period 6 Performance Highlights INR 10,445 Crore*/ Total Provision/ Disbursement 4.09% INR 4,103 Crore# Total Assets 4.44% on Loan Assets Asset Under Management INR 74,469 Crore GNPA 3.95% on AUM Retail Loans 84% of the AUM NNPA 2.43% Deposits INR 17,129 Crore Write-offs since Inception** 15 bps Gross Margin* 3.33%* / 3.69%# Book Value Per Share INR 530 Capital to Gearing Ratio 6.72x 18.73% Risk Asset Ratio Data as on 31-Mar-21 *For FY21 / #Q4 FY21 **On cumulative disbursements 8 Update on FY21 Guidance FY20 Actual FY21 Guidance FY21 Actual Achieved INR 18,626 Crore Focus on lower risk weighted retail INR 10,445 Crore Disbursements 92% of disbursements in Retail segment and Unnati segment 96% of disbursements in Retail AUM Retail 82% of Total AUM Retail >85% of Total AUM Retail 84% of Total AUM Unnati to be 10-15% of IHL Unnati is 10% of IHL disbursements; UnnatiSegment Unnati is 10% of IHL disbursements disbursements Yield of ~11.1% Spread 246 bps 210-220 bps 277 bps Gross Margin 321 bps 300-315 bps 333 bps Opex 7% reduction on absolute basis 5-10% reduction on absolute basis 18% reduction on absolute basis ROA 80 bps 140-160 bps 123 bps 9 Business Trends - Quarter on Quarter No. of Logins No. of Sanctions 99,986 70,550 73,548 50,454 25,473 19,201 22,943 16,232 20,165 14,226 17,063 11,733 • 50% growth in retail disbursements in 5,071 3,288 Q4 FY21 (YoY) Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 • Improving collection Disbursement (INR Crore) Collection Efficiency (%) efficiencies on account of various 18,626 10,445 98.47% 96.83% measures undertaken 4,103 98.78% 98.30% 195 96.72% 96.98% 3,203 95.42% 2,826 48 222 2,444 149 3,908 3,156 2,604 2,296 xx FY20 694 20 674 xx FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Corporate Retail 10 Business Update (INR Crore) Asset AUM CAGR +6% 84,722 83,346 • AUM reduced by 11% YoY 74,469 62,252 o Retail 9% o Corporate 19% 74,023 57,014 67,571 62,255 • Retail AUM is 84% of the total 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 AUM AUM Loan Assets Disbursement • 96% of the total disbursements in FY21 were 36,079 33,195 made to the retail segment 18,626 • Retail disbursements in Q4 FY21 increased by 50% YoY 24,083 26,449 10,445 17,111 10,034 FY18 FY19 FY20 FY21 Corporate Retail 11 Asset Under Management Product-wise Break-up AUM Mix Individual Housing Loan 16% 16% 20% 21% 18% 4% Retail Loan Against Property 58% Retail Non-residental 22% Premises Loan Corporate Loan 84% 82% 80% 79% Segment-wise Breakup Retail 84% Corporate 16% Salaried 45% 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 Self Employed Corporate Retail 39% Data as on 31-Mar-21 12 Retail Loan Book – Key Attributes INR Lakhs Average Ticket Size Weighted Average Loan to Value 52 51 47 44 69% 71% 71% 72% 31 31 47% 49% 49% 49% 29 27 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 IHL LAP IHL LAP Salaried vs Self-Employed Under construction vs Completed Individual Housing Loan Individual Housing Loan Loan Against Property 17% 18% 19% 20% 26% 24% 19% 17% 68% 70% 72% 70% 83% 82% 81% 80% 74% 76% 81% 83% 32% 30% 28% 30% 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 Salaried Self Employed Salaried Self Employed Under Construction Completed ATS and LTV at Origination 13 Retail Loan Book – Average Ticket Size Range Individual Housing Loan Retail Loan Against Property 0.1% 0.1% 0.1% 0.1% 1.9% 0.6% 1.6% 0.4% 1.4% 0.3% 1.1% 0.2% 3.0% 2.5% 1.9% 1.6% 6.7% 6.2% 5.0% 4.6% 4.2% 4.5% 3.3% 2.5% 12.0% 12.9% 12.0% 13.5% 15.1% 13.9% 15.8% 16.6% • Focus on granular 17.5% 18.6% book resulting in higher 19.4% 20.4% 33.7% proportion of less than 35.6% INR 2 crore loans 37.7% 20.2% 37.8% 20.4% 20.0% 19.6% • LTV in LAP maintained 19.9% below 50% 18.2% 17.4% 16.8% 48.2% 44.8% 36.3% 38.2% 26.4% 22.6% 21.0% 23.8% 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 >15 Crore 10-15 Crore 5-10 Crore 2-5 Crore 75 Lakh -2 Crore 30-75 Lakh Upto30 Lakh Data on Outstanding Loan Asset 14 Corporate Book Exposure Continues to Scale Down % of Total 21.1% 17.5% 17.7% 17.6% 17.0% 15.8% AUM -34% 17,922 -19% 14,614 14,808 14,331 13,227 11,786 11,152 10,356 10,453 10,352 9,636 8,637 3,678 3,092 3,052 3,126 2,955 2,677 2,243 1,206 1,229 1,024 914 906 Mar-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Construction Finance Corporate Term Loan Lease Rental Discounting Average Ticket Size City Concentration Geographical Distribution (Unique Corporate Houses) (Mar’21) 13% Product ATS Segment (INR Crore) 24% Construction 167 87% Finance 56% 19% CorporateTerm Top7Markets Others 98 Loan Top 3 markets MMR: 39% Lease Rental 84 NCR: 19% Discounting Bangalore: 13% North South West 15 Corporate Book Performance • 78% of the book is good which continues to be in Stage 1; majority backed by Tier 1 Developers 42% of the Construction Finance Book • Company identified 5 accounts for voluntary SICR having total outstanding of INR 875 comprises completed and near crore (7% of the book) which otherwise would have been classified as Stage 1 completion projects • On DPD basis 83% of the book is Zero DPD 18% • Down Sell / Accelerated pre payment of INR 1,880 crore in FY20-21 58% 24% • Deleveraging Top 20 developers' book; reduced by ~ 12% as on 31-Mar-21 as compared to 31-Mar-20. Completed Near Completion • Weighted average security coverage of the book is over 2x as on 31-Mar-21 Under Construction • Stage 3 provision coverage ratio is 60% • Overall provision coverage is 14% of Corporate book 16 Corporate Book Remedial Actions Resolutions Underway on few Resolutions Achieved Final Stages of Resolution NPA Accounts • Vipul Ltd with O/s of INR 353 crore is in • IREO Pvt Ltd with O/s of INR 150 crore • Radius with O/s of INR 259 crore; working the finalstages of resolution with co-lender on resolution. with nil haircut o Tulip Group to takeover the Project along with its liabilities includingPNBHFLdebt • Windlass Developers with O/s of INR 30 • Supertech Ltd. with O/s of INR 244 crore; o PNBHFL has given its in-principle NOC Company has started construction of crore through SWAMIH investment for the transaction, which is expected to launched part of Project; progress for consummatedin Q1 FY22 outright sale of unlaunched phase of the Project to pare down debt. • Pate Developers with O/s of INR 20 crore o NPAstatus as on 31-Mar-21 with nil haircut. • Ornate Pvt. Ltd. with O/s of INR 181 crore; • 3 other NPA accounts with O/s of INR 4 under NCLT proceeding, EOI received from various developers; RP appointed to crore with nil credit loss resolve queries of developers; resolution plan expected to be received in H1 FY22. 17 Gross Non-Performing Assets % of Loan Asset Gross NPA 0.33% 0.48% 2.75% 4.44% Net NPA 0.23% 0.38% 1.75% 2.43% As on 31-Mar-21 INR Crore INR Crore 4,500 4.1% 4.5 4,000 4.0 Gross NPA 2,762 3,500 3.5 3,000 2.6% 3.0 2,500 2.5 ECL Provision 2,544 2,000 1,491.2 2.0 1,500 1.5 0.8% 0.8% 1,195.4 Regulatory provision 1,000 1.0 863 (as per NHB) 1,271.1 500 0.5 29.9 660.9 165.7 20.4 325.0 0 0.0 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 Total Provision (as a % of assets) Retail GNPA Corporate GNPA • The increase in GNPA in FY21 is primarily on account of COVID-19 pandemic; Company has created adequate provisions in the book • Incremental provision of INR 778 crore created in FY21; total provision to total asst of 4.1% • Higher provisions created during the year resulting in further strengthening of the Balance Sheet Figures as on 31-Mar-21 unless mentioned 18 Expected Credit Loss (ECL) Provisions – Overall Classification of theAssets based on the ECLcomputation under IndAS: Particulars (INR Crore) 31-Mar-21 31-Dec-20 31-Mar-20 Gross Stage 1 & 2 59,492 61,696 65,715 % portfolio in stage 1 & 2 95.6% 95.5% 97.3% ECL Provision Stage 1 & 2 1,295 1,107 1,093 Net Stage 1 & 2 58,198 60,589 64,622 ECL Provision % Stage 1 & 2 2.2% 1.8% 1.7% Gross Stage 3 (GNPA) 2,762 2,887* 1,856 % portfolio in Stage 3 (GNPA%) 4.4% 4.5% 2.8% ECL Provision Stage 3 1,249 1,136 672 Net Stage 3 1,513 1,751 1,183 Coverage Ratio % Stage 3 45.2% 39.3% 36.2% Total Assets 62,255 64,583 67,571 % portfolio 100.0% 100.0% 100.0% ECL Provision 2,544 2,243 1,766 Net Stage 59,711 62,340 65,805 Total ECL Provision % 4.1% 3.5% 2.6% Total Provision 2,544 2,243 1,766 Total Provision / Total Assets (%) 4.1% 3.5% 2.6% Provision Coverage Ratio (%) 92.1% 77.7% 95.0% *includes Proforma NPA in Stage 3 Stage 3 Provision Coverage Ratio increased to 45.2% compared to 36.2% as on 31st March 2020 19 Expected Credit Loss (ECL) Provisions – Retail Particulars (INR Crore) 31-Mar-21 31-Mar-20 Gross Stage 1 46,624 50,730 % portfolio in stage 1 92.4% 95.8% ECL Provision Stage 1 251 234 Net Stage 1 46,372 50,496 As on 31-March-21 ECL Provision % Stage 1 0.6% 0.5% • Provision Coverage ratio of 71% Gross Stage 2 2,574 1,566 % portfolio in stage 2 5.1% 3.0% • Identified accounts for voluntary ECL Provision Stage 2 288 173 SICR having total outstanding of INR 667 crore (1.3% of the book) Net Stage 2 2,286 1,393 which otherwise would have been ECL Provision % Stage 2 11.2% 11.1% classified as Stage 1 Gross Stage 3 (GNPA) 1,271 661 • Loans of INR 1,386 crore % portfolio in Stage 3 (GNPA%) 2.5% 1.3% restructured under the RBI guidelines related to Covid ECL Provision Stage 3 359 168 Net Stage 3 912 493 Coverage Ratio % Stage 3 28.2% 25.4% Total Assets 50,469 52,957 ECL Provision 898 575 Net Stage 49,571 52,382 Total ECL Provision / Total Assets (%) 1.8% 1.1% 20 Expected Credit Loss (ECL) Provisions – Corporate Particulars (INR Crore) 31-Mar-21 31-Mar-20 Gross Stage 1 9,129 12,505 % portfolio in stage 1 77.5% 85.6% ECL Provision Stage 1 396 432 As on 31-March-21 Net Stage 1 8,733 12,073 ECL Provision % Stage 1 4.3% 3.5% • Provision Coverage ratio of 110% Gross Stage 2 1,166 914 % portfolio in stage 2 9.9% 6.3% • Identified 5 accounts for voluntary SICR having total outstanding of ECL Provision Stage 2 359 254 INR 875 crore (7% of the book) Net Stage 2 807 660 which otherwise would have been classified as Stage 1 ECL Provision % Stage 2 30.8% 27.8% Gross Stage 3 (GNPA) 1,491 1,195 • Loans of INR 337 crore restructured under the RBI % portfolio in Stage 3 (GNPA%) 12.7% 8.2% guidelines related to Covid ECL Provision Stage 3 890 505 Net Stage 3 601 690 Coverage Ratio % Stage 3 59.7% 42.2% Total Assets 11,786 14,614 ECL Provision 1,646 1,193 Net Stage 10,141 13,421 Total ECL Provision / Total Assets (%) 14.0% 8.2% 21 Well Diversified Resource Profile (INR Crore) 6.5% 8.5% 7.4% 10.9% 7.7% 2.5% 18.2% 24.4% • ~70% of the total resource is 22.2% 19.5% floating; giving opportunity for 5.7% replacement & repricing 6.7% 8.3% 17.2% 17.5% 19.6% 9.6% 23.7% 0.5% 1.6% 22.5% 37.5% 28.0% 16.5% Credit Rating 18.8% 16.9% 12.9% • Fixed Deposit: “FAA+” by CRISIL 8.8% and “AA” by CARE. 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 • Commercial Paper: “A1(+)” by CARE & CRISIL • Non-Convertible Debentures: “AA” NHB Refinance Loan from Banks ECBs Deposits by CARE, India Ratings, CRISIL CP NCDs Direct Assignment and ICRA • Bank Loans (Long Term): “AA” by CARE and CRISIL Borrowings 54,268 72,362 68,216 59,942 Total 59,506 83,061 83,991 72,157 Resource 22 Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 2,022 1,524 1,952 1,872 1,896 1,834 1,468 1,447 1,346 1,295 1,380 1,364 1,340 1,246 1,150 144 104 107 100 145 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Finance Cost Operating Expense Pre-provision Operating Profit Profit After Tax 313 575 550 257 539 232 122 428 405 127 -242 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 PAT Excluding COVID-19 Provisions Stable Financial Performance with reducing Operating Expenditure 23 Financial Ratio Highlights – Quarter on Quarter Average Cost of Borrowing Average Yield 10.52% 10.42% 11.30% 10.62% 10.39% 8.03% 8.13% 8.01% 7.72% 7.60% 10.26% 10.32% 10.69% 10.43% 10.03% Q4YF20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Yield Yield (Excl. Securitisation income) Spread Net Interest Margin 3.29% 3.52% 3.29% 2.90% 3.18% 2.79% 2.49% 2.29% 2.61% 2.66% 2.68% 2.71% 2.43% 2.23% 2.19% Q4YF20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Spread Spread (Excl. Securitisation income) Maintained Spread and Margins in falling Interest Rate Scenario Ratios are calculated on Monthly Average 24 Margin Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.2% 10.4% 10.7% 10.7% 7.7% 8.0% 8.2% 7.9% 2.5% 2.5% 2.8% 3.2% 2.9% 3.0% 3.2% 2.4% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Gross Interest Margin Opex to ATA Ratio Return on Asset Return on Equity 17.4% 3.5% 0.7% 1.6% 1.6% 3.3% 3.2% 3.3% 0.6% 0.6% 14.2% 0.5% 1.2% 10.9% 0.8% 8.1% FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Ratios are calculated on Monthly Average Gross Margin is net of acquisition cost 25 Capital Position (INR Crore) Provisions Capital to Risk Asset Ratio Stage 3 18.7%** 28.4% 20.9% 36.2% 45.2% Coverage ratio 18.0% (%) 16.7% 3.2% 4,000 5 2.8% 4.1% 3,500 4 3.9% 3,000 14.0% 2.6% 2,544 3 2,500 3.0% 2,000 1,766 2 1,500 0.8% 0.8% 1 1,000 594 432 0 500 15.2% 15.5% 0 -1 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 12.8% Total Provision (as a % of assets) Total Provision 11.0% Gearing (x) 9.6 8.3 8.5 6.7 31-Mar-18* 31-Mar-19* 31-Mar-20* 31-Mar-21# Tier 2 Tier 1 **Adjusted for deposits with companies in same group, which gets deducted from Net owned Funds, the CRAR would have been 20.6%. 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 De-leveraged Balance Sheet with enhanced Provisions Ratio is calculated on Monthly Average *Based on IGAAP #Based on IND-AS 26 Consolidated Profit & Loss Statement Particulars (INR Crore) Q4 FY21 Q4 FY20 YoY Q3 FY21 QoQ FY21 FY20 YoY Interest Income 1,670 1,803 1,758 7,190 7,688 Add: Net gain on fair value changes 39 63 43 162 159 Add: Income on derecognized (assigned) loans 35 3 35 71 336 Less: Finance Cost 1,150 1,380 1,246 5,100 5,875 Net Interest Income 594 488 21.7% 590 0.7% 2,323 2,308 0.6% Net Fees and other Income 81 82 59 190 298 Gross Income 675 570 18.4% 649 4.0% 2,513 2,606 -3.6% Operating Expenses Less: Employee Benefit Expenses 53 35 43 211 233 Less: Other Expenses 69 93 42 173 245 Less: Depreciation and Amortisation 14 14 14 59 66 Operating Profit 539 428 25.9% 550 -2.0% 2,069 2,062 0.3% Less: Impairment on financial instruments & Write-offs (Expected Credit 351 755 256 862 1,251 Loss) Profit Before Tax 188 -327 - 294 -36.1% 1,207 811 48.8% Less: Tax Expense 61 -85 62 277 165 Net Profit after Tax 127 -242 - 232 -45.3% 930 646 44.0% Add: Other Comprehensive Income 40 -82 6 -21 -55 Total Comprehensive Income 167 -324 239 909 591 EPS (Basic) 7.6 -14.4 13.8 55.3 38.5 27 Consolidated Balance Sheet Particulars (INR Crore) 31-Mar-21 31-Mar-20 Particulars (INR Crore) 31-Mar-21 31-Mar-20 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments 51 - (a) Cash and cash equivalents 6,969 8,514 (b) Debt Securities 11,461 17,837 (c) Borrowings (Other than Debt Securities) 29,746 32,328 (b) Loans 60,645 66,628 (d) Deposits 16,746 16,132 (c) Investments 2,045 2,076 (e) Subordinated Liabilities 1,439 1,439 (d) Other Financial Assets 952 872 (f) Other financial liabilities 1,764 1,776 Sub Total -Financial Assets 70,610 78,090 Sub Total -Financial Liabilities 61,208 69,512 2 Non -Financial Assets 2 Non-Financial Liabilities (a) Tax Assets (Net) 430 347 (a) Current Tax Liabilities 63 - (b) Provisions 18 19 (b) Property, Plant and Equipment 82 105 (c) Other non-financial liabilities 1,180 1,401 (c) Right of use assets 78 120 Sub Total -Non-Financial Liabilities 1,261 1,420 (d) Other Intangible assets 21 25 3 EQUITY (e) Other non-financial assets 35 35 (a) Equity Share capital 168 168 (f) Assets held for sale 136 207 (b) Other Equity 8,755 7,830 Sub Total -Non -Financial Assets 782 839 Sub Total -Equity 8,923 7,998 TOTAL –EQUITY & LIABILITIES 71,392 78,930 TOTAL -ASSETS 71,392 78,930 28 Employee Efficiency (INR Crore) Disbursement / Employee Asset under Management / Employee 28.99 58.43 54.37 52.78 24.88 50.65 11.80 7.10 FY18 FY19 FY20 FY21 31-Mar-18 31-Mar-19 31-Mar-20 31-Mar-21 Profitability / Employee Total Revenue / Employee 5.30 5.38 5.19 0.82 4.79 0.73 0.63 0.40 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 Calculated on average number of employee for the year Average no. of employee for FY21: 1,470 29 Experienced Management Team MANAGING DIRECTOR & CEO • Years of Experience: 36+ • Years with PNBHF: 8 Months CHIEF CENTRALIZED ED & CHIEF CREDIT OFFICER CHIEF FINANCIAL OFFICER CHIEF PEOPLE OFFICER OPERATIONS & TECHNOLOGY • Years of Experience: 30+ • Years of Experience: 24+ • Years of Experience: 30+ • Years of Experience: 35+ • Years in Mortgage: 23+ • Years in Mortgage: 11+ • Years in Mortgage: 12+ • Years in Mortgage: 25+ • Years with PNBHF: 8 • Years with PNBHF: 3 • Years with PNBHF: 9 • Years with PNBHF: 9 COMPANY SECRETARY & COMPLIANCE HEAD CHIEF RISK OFFICER BUSINESS HEAD –RETAIL CREDIT HEAD –RETAIL • Years of Experience: 30+ • Years of Experience: 17+ • Years of Experience: 18+ • Years of Experience: 19+ • Years in Mortgage: 25+ • Years in Mortgage: 17+ • Years in Mortgage: 15+ • Years in Mortgage: 18+ • Years with PNBHF: 25 • Years with PNBHF: 7 • Years with PNBHF: 9 • Years With PNBHF: 7 HEAD –REMEDIAL MANAGEMENT HEAD –CUSTOMER SERVICE & HEAD –DEPOSIT AND CROSS GROUP HEAD –COLLECTIONS OPERATIONS SALES • Years of Experience: 14+ • Years of Experience: 22+ • Years of Experience: 23+ • Years of Experience: 17+ • Years in Mortgage: 14+ • Years in Mortgage: 15+ • Years in Mortgage: 14+ • Years in Mortgage: 8+ • Years with PNBHF: 2 • Years with PNBHF: 6 Months • Years with PNBHF: 4 • Years with PNBHF: 8 HEAD –INVESTOR RELATIONS • Years of Experience: 18+ • Years in Mortgage: 4+ • Years with PNBHF: 4 30 Shareholding Shareholding as on 31-Mar-21 Top Shareholders 0.2% 2.1% 6.3% 2.1% SSG Capital, General Atlantic Singapore Fund, Franklin Templeton 32.6% MF, Malabar Investments, Vanguard, Blackrock (ETFs), United 24.5% India Insurance, Edelweiss Trusteeship MF, Reliance Capital MF, Dimensional Fund Advisors Inclusions in MSCI Indices 32.2% Index Since Promoters Quality Investment Holdings Foreign Inst. Investors MSCI Emerging Markets IMI ESG Screened Index Mar-21 Mutual Funds Public & Others Bodies Corporates MSCI ACWI IMI ex Controversial Weapons Index Mar-21 Financial Institutions / Banks MSCI ACWI IMI Climate Change Index Mar-21 MSCI Global Small Cap Index Nov-18 Outstanding Shares –16,82,68,123 shares 31 ESG Snapshot Environment Social • Over 95% reduction in usage of paper for customer communication • Covid-19: Supported scientific research and health initiatives, contributed towards PM Relief • 99% EMI collections through digital mode • Conducted skill development for 5,000 construction workers and ensured holistic • Encouraging adoption of cloud computing technology, virtualisation, data care to 3,000 children of construction workers centre energy optimisation among others • Continued strengthening various education initiatives – supported operational and infrastructure support to 9 schools • Introduced ACE for digital customer onboarding and launched Homie a sales Chat Bot to minimize physical interface • Invested in healthcare programs with an aim to upgrade primary and tertiary health facilities across the country • Over 55% customers on mobile app • Ensuring livelihood to resource poor women through two projects in Rajasthan and MP • Team of 1,391 employees as on 31st March 2021 • Diversified & highly experienced Board of 11 members with 5 • Young organization with average age of 35 years independent directors • 18% women employees • Systems in place to address stakeholder’s grievances viz • Learning & development (FY21): customers, shareholders’, vendors etc. • 1,532 unique employees trained • Strong and well experienced senior management team with • 1,561 number of training programme conducted extensive industry experience • Over 90% of customer requests resolved within TAT Human Capital Governance 32 Key Takeaways Continue to operate in Robust and scalable Hub and Spoke model Created Remedial Operating leverage mass housing and Improve collection Strengthening digital management playing out, thereby merchant segment efficiencies through presence across the Leverage advance Group to focus on improving Cost to predictive analytics, value chain analytics and digital resolution and Income Ratio Focus on affordable automated workflow, tools to automate credit management of housingincluding high digital tools etc appraisal journey corporate accounts yielding Unnati segment Robust Underwriting Augment Collection Resolutions in Corporate Improving Strong Thrust on Focus on Retail Segment Processes efficiencies Book Cost-to-Income Ratio Digitization 33 Growth of Housing Finance Sector Portfolio Growth of HFCs Portfolio Composition of HFCs* 2% 31% 32% 19% 26% 25% 25% 21% 22% 21% 20% 20% 19% 21% 20% 22% 15% 12% 11% 15% 8% 11% 3% 9% 16% 3% 6% 63% 4% 3% 3% Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21E Mar-22E Home Loans LAP Construction Finance Others Other Loans Overall Portfolio Home Loans HFCs Share Total HFC Loans 6.4 7.7 9.6 10.8 11.3 11.3 (INR trillion) 24.5% 25.3% 25.7% 27.2% 27.5% 23.9% 4.2% 9.5% 1.7% 5.0% 1.7% 5.9% 1.6% 6.9% 1.7% 6.0% 1.8% 5.7% 6.2% 1.9% 10.7% 11.5% 8.5% 6.2% HDFC PNBHF 19.5% 19.6% 18.8% 17.4% 18.0% 18.6% LICHF Can Fin IBHF 40.5% 38.5% 37.8% 37.6% 39.9% 42.8% Others Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Dec-20 Source:ICRA Reports *As on Dec-20 % Change is YoY 34 Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income)on Loans / Average Loan Assets Cost to Income (%) Operating Expenditure(Employee Cost + Other Expenses + Depreciation -Acquisition Cost –ESOPcost -CSR cost) / (Net Revenue-Acquisition Cost) NIM (%) Net Interest Income including assignment income / Average Earning Assets Operating Expenditure(Employee Cost + Other Expenses + Depreciation -Acquisition Cost –ESOP cost -CSR cost) / Average Total Assets as per Opex to ATA (%) Balance sheet PCR (%) ECL Provision as a % of GNPA AI Artificial Intelligence GNPA Gross Non-Performing Asset ATA Average Total Assets HFCs Housing Finance Companies ATS Average Ticket Size LAP Loan against Property AUM Asset Under Management LRD Lease Rental Discounting BVPS Book Value per Share ML Machine Learning C/I Cost to Income NCDs Non-Convertible Debentures CRAR Capital to RiskAsset Ratio NIM Net Interest Margin CP Commercial Paper NNPA Net Non-Performing Asset CTL Corporate Term Loan NRPL Non-Residential Premises Loans DPS Dividend per Share PAT Profit After Tax DSA Direct Selling Agents PCR Provision Coverage Ratio ECB External Commercial Borrowing ECL Expected Credit Loss ROA Return on Asset EPS Earning Per Share ROE Return on Equity EWS Early Warning Signals RPA Robotic Process Automation 35 Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offeringdocument containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentationis expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, natural calamities, inflation, deflation, the performance of the financial markets in India and globally, changes in Indian laws and regulations, including tax, accounting and housing finance companies regulations, changes in competition and the pricing environment in India, and regional or general changes in asset valuations, the Company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsiblefor such third party statements and projections. 36 Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com 37