Corporate Presentation

A Motilal Oswal Group Company
ASPIRE Home Finance Corporation Limited (AHFCL)
A New Beginning in Indian Home Finance Industry
Company Presentation
June 2016
ASPIRE Home Finance Corporation Limited
Contents
1.
Indian Mortgage Market Overview
2. About Us
3. Target Market
4. Our Journey
5. Board Overview
6. Senior Management
7. Products and Services
8. Robust Business Processes
9. Branch Network
10. Business Performance: As of June 30, 2016
11. Financials
ASPIRE Home Finance Corporation Limited
Indian Mortgage Market Overview
Mortgage as a % of GDP
100%
75%
50%
25%
9%
17%
20%
26%
29%
32%
39%
81%
41%
88%
48%
Indian Mortgage Market Space is on solid footing
given strong demand drivers
1. Favourable Demographics: Rising Working Age Population
2. Increased Migration to cities and towns: Urbanization &
0%
Nuclearization
3. Rising Affordability: Increase in disposable income
Consequently, Mortgage/GDP ratio is expected to increase, thereby offering a significant value proposition
Affordable Housing: The Key Growth Driver
Genesis of AHFCL
Affordable housing would be driving the demand in Indian housing sector forming a
• More than 95% of housing shortage in India is due to
demand supply mismatch in low cost and affordable housing
major portion of required 88.78 million housing units.
• While of late, builders and developers have evinced interest in
Customer
Segment
Income
(Rs. p.a.)
Size of unit
(sq ft)
Cost of unit
(Rs.)
Housing Type
EWS / LIG
<1.5 lakhs
Up to 300
Up to 5.0 Lakhs
Low Cost / Affordable
LIG
1.5-4.0 lakhs
300-750
5.0-20.0 Lakhs
Affordable
MIG
4.0-10.0 Lakhs
750-1200
20.0-50.0 Lakhs
Affordable
player
HIG
>10 Lakhs
>1200
>50 Lakhs
Premium
purchase of affordable housing units
Source: Industry Research, IMF, European Mortgage Federation
this segment, retail as well as project level financing of
affordable housing still remains a big challenge
• The genesis of AHFCL is an effort to be a significant
specializing
in
providing
finance
towards
ASPIRE Home Finance Corporation Limited
About Us
Focus on
Affordable
Housing
• ASPIRE Home Finance Corporation Limited (AHFCL) is a professionally managed company focusing on
affordable housing segment, to fulfil the aspirations of lower and middle income (LMI) families
• AHFCL works on the business philosophy of financial inclusion of LMI families by providing them an access
to long term housing finance
• AHFCL operates in an income segment which is underserved by financial institutions
Niche
Operations
• AHFCL focuses exclusively on retail housing loans
• AHFCL has centralized set up with decision making at the Head office. Further, strong risk assessment
practices at every stage of loan processing ensures build up of quality loan book
• AHFCL is promoted by Motilal Oswal Financial Services Ltd (MOFSL) - a well diversified, financial services
company focused on wealth creation through knowledge. Mr. Motilal Oswal is the Chairman of AHFCL Board
Experienced
Management
• AHFCL is managed by a team of professionals having strong experience in Indian housing finance market and
headed by Mr. Anil Sachidanand, a veteran of over 25 years in Indian home finance industry
• AHFCL has been rated “CRISIL A+/Stable” by CRISIL and “[ICRA]AA-(Stable)” by ICRA for long term
borrowings and “ICRA A1+” by ICRA for short term borrowings
ASPIRE Home Finance Corporation Limited
Target Market
Positioning Brand ASPIRE
AHFCL Vision:
To enable home ownership amongst lower and middle income Indian families by providing hassle free housing
loan assistance towards acquiring affordable housing units thereby enhancing housing stock in India
Target
Customer
Segment
Target
Geographies
• Customers aspiring to own a home but are underserved by Banks / HFCs due to
challenges faced in income assessment and gauging repayment potential
• Exclusive focus on retail home loans with maximum loan size up to Rs.25 lakhs
• Extended suburbs of Metro & Mini Metro towns
• Underserved Tier II and Tier III locations
• Potential semi urban and rural housing locations
ASPIRE Home Finance Corporation Limited
Our Journey
May 2014
Commencement of
Business operations
from 22nd May post
receiving Certificate
of Registration from
the National
Housing Bank
October-January 2015
• Rated “A/Stable” by
CRISIL for Rs.100 crs of
NCDs. Issued Rs.50 crs of
NCDs
• Rated A1+ by ICRA for
Rs.50 crs of CPs. Rs.50 crs
of CPs issued
• First term loan drawdown
June-September 2014
• First disbursement booked
in June 2014 at Akola
branch
• Rated “A/Stable” by
CRISIL for Rs.100 crs of
bank loan facilities
• Loan book crosses Rs.50
crs
February-March 2015
• Presence across 14
locations
• Total staff: 160
employees
• Loan book at Rs.357
crs with 3565 live
accounts
• Year end PAT at 2.18
crs
April-June 2015
• CRISIL upgrades rating
for long term borrowings
from
"A/Stable"
to
"A+/Stable“
• Loan book crosses Rs.550
crs with 5,500 crs live loan
accounts
• Present at 23 locations
July-September 2015
• MALA program
launched
• Qualifies as PLI under
PMAY
• Awarded India‟s Most
Admired and Valuable
Housing Finance
Company at ILC 2015
October-December 2015
• Awarded Financial
Institution of the Year
by ASSOCHAM
• Receives “Agency
Innovation of the Year”
award at Brand
Excellence Awards
• Gets notified under
SARFAESI Act
January-March 2016
• Awarded “Finnoviti 2016”
• Rating Upgrade by ICRA
to AA• Loan Book at Rs.2,088 crs
with 20,935 live accounts
• Present at 51 locations
with Staff Count of ~500
• PAT for year at Rs.39.99
crs
Apr-June 2016
• Received Fast 50 Branch
2016 award by WCRC
• Presence extended to 62
locations with staff count
of more than 600
• Loan book of Rs.2,492 crs
and 25,134 live accounts
• First quarter profit at
Rs.13.40 crs
ASPIRE Home Finance Corporation Limited
Board Overview
• Mr. Motilal Oswal is the Chairman and Managing Director of Motilal Oswal Financial Services Ltd. (MOFSL)
• He is a Chartered Accountant and started the business along with co-promoter, Mr. Raamdeo Agrawal in 1987
• For his work and contribution to the capital markets, Mr. Motilal Oswal has been felicitated with several awards
Mr. Motilal Oswal
Chairman
• Mr. Motilal Oswal is the Chairman of AHFCL
• Mr. Raamdeo Agrawal is the Jt. Managing Director of Motilal Oswal Financial Services Limited (MOFSL)
• Mr. Agarawal is the man behind the strong research capabilities at MOFSL
• Mr. Agarawal specialises in equity research. He has been authoring the annual Motilal Oswal Wealth Creation
Mr. Raamdeo Agrawal
Joint MD, MOFSL
Study since 1996
• He was also conferred with the „Special contribution to Indian Capital Market Award‟ by Zee Business in 2011
• Mr. Anil Sachidanand is a practitioner of over 25 years in home finance business and is MD&CEO of AHFCL
• He has experience working in DHFL, IDBI Bank, HDFC Bank and Profolio Home Finance Company
(PHFC), US
Mr. Anil Sachidanand
MD & CEO
• Mr. Anil has rich experience in building infrastructure for home finance. He has a proven track record of
setting, managing and scaling up diverse business processes
ASPIRE Home Finance Corporation Limited
Board Overview
• Mr. Hemant Kaul brings in rich experience in banking and financial services industry having worked in
companies like Bajaj Allianz General Insurance Co Ltd (MD & CEO) and Axis Bank (Executive Director)
• As an independent management consultant, Mr. Kaul has worked with private equity firms to evaluate
Mr. Hemant Kaul
Independent Director
investments in the financial sector and has advised IDFC in their application process for a banking license
• He currently serves as a Non Executive Chairman of TCI Finance Ltd and is an Independent Director on the
Boards of Cigna TTK Health Insurance Company Ltd, Ashiana Housing Ltd
• Mr. Sanjaya Kulkarni has over 40 years of experience in banking and financial services industry
• He is presently an advisor and an investment committee member of the private equity funds and the real estate
funds of Motilal Oswal group
Mr. Sanjaya Kulkarni
Independent Director
• He is an engineer from IIT Mumbai and has done MBA from IIM Ahmedabad
• Mrs. Smita Gune is a finance professional with over 30 years experience in banking and financial services
industry having worked in Hinduja Hospital (Finance team), Tata Finance Ltd, ICICI Bank
• She was the nominee Director of Sakthi Sugars Ltd. and Arvind Brands Ltd and is currently the director of
Mrs. Smita Gune
Independent Director
business risk management at ANB A risk management consultancy
• Mrs, Gune is a member of Institute of Chartered Accountants of India and Institute of Internal Auditors
ASPIRE Home Finance Corporation Limited
Key People
• Mr. Kalpesh Ojha, ACA, CS, MFM, has over 15 years of experience in financial operations specializing
in funds raising, managing treasury, accounts, internal control and statutory compliance. He also has
expertise in managing short term borrowings through instruments like CPs / NCDs
Mr. Kalpesh Ojha
Chief Financial Officer
• Mr. Kalpesh‟s last stint was with Reliance ADA Group as Sr. Vice President
• Mr. Satish Kotian is a technically-sophisticated and business-savvy management professional with a
pioneering career reflecting strong leadership qualities coupled with vast experience & exposure of over
25 years in the home finance
Mr. Satish Kotian
Chief Operating Officer
• Prior to Joining AHFCL, Mr. Satish was with DHFL as Sr. VP (IT & Operations)
• Mr. Sudhir Menon has 19 years of experience with HDFC Ltd in diverse areas of work including staff
management, credit appraisal, legal documentation and handling clientele
• Mr. Sudhir has developed a multi-dimensional business perspective working in diverse roles across
Mr. Sudhir Menon
Head Credit
credit-underwriting, business development, and international experience - working in Dubai and India
ASPIRE Home Finance Corporation Limited
Key People
• Mr. Raj Kumar Rai has 14 years of experience in BFSI segment having worked with companies like
Vcustomer and Indiabulls group
• He is proficient in operations, collections process management, service delivery, vendor
Mr. Raj Kumar Rai
Head Operations
management, client relationship management, process re-engineering, risk management and system
implementation
• Mr. Vivek Guleria has 13 years of experience in legal domain and corporate practices. He has in-depth
knowledge of legal aspects relating to finance, insurance, real estate and recoveries portfolio
• In his last stint, Mr. Vivek was Associate Legal Claims Head in Reliance General Insurance.
Mr. Vivek Guleria
Legal and Portfolio Head
Previously, he has worked as Head - Legal initiation and recoveries at Mahindra Rural Housing Finance.
• Mr. Tahir Shah brings in 15 years of rich technological experience in his current role at AHFCL. He is
responsible for end to end implementation of AHFCL technology platform
• He plays a pivotal role in providing comprehensive training of the lending application to the AHFCL
Mr. Tahir Shah
Head Technology Support
staff gearing them up for optimal use of the technology platform
ASPIRE Home Finance Corporation Limited
Key People
• Mr. Rajesh Gopinath has 15 years of experience in housing finance industry. He has strong domain
knowledge and has leveraged it effectively in building traction, especially in retail housing finance
• His focus area at AHFCL is to build a solid business foundation across locations by establishing strong
Mr. Rajesh Gopinath
Head Business Development
sourcing network and effectively coordinating with the teams at the Head office and Branches
• Ms. Kavita Shrivastav as head of human resources and organizational development brings in 14 years
of dedicated experience, especially in retail domain
• In her erstwhile role, Kavita was HR business partner at Tata capital and its subsidiary companies. She
Ms. Kavita Shrivastav
Human Resources Head
has a post graduate degree in human resources and is a bachelor of commerce from Mumbai university
• Mr. Kalpesh R Dave has 9 years of experience in the finance, business development and planning. He
has done B.E. (Computers) from Mumbai university and MBA (Finance) from NMIMS
• Mr. Kalpesh has expertise in setting and implementing business strategy, planning and
Mr. Kalpesh R Dave
Head Corporate Planning
budgeting, financial modeling, identification / evaluation of business opportunities and managing
operational improvement initiatives
ASPIRE Home Finance Corporation Limited
Key People
• Mr. Sachin Kotkar is an astute & result oriented marketing professional with 14 years of dedicated &
rich experience in housing finance and insurance services industry
• He has worked with likes of ICICI prudential life insurance company and ICICI home finance across
Mr. Sachin Kotkar
Insurance Head
various levels
• Mr. Shakir Sheikh is a mortgage finance professional having 27 years of experience in the industry. He
is the Zonal head of Gujarat and Madhya Pradesh
Mr. Shakir Sheikh
Regional Business Head
• Prior to joining AHFCL, Mr. Shakir was with India Shelter Finance Corporation Limited as legal head
• Mr. Subodh Kuckian is a banking professional with 15 years of experience in housing finance sector
and is the Zonal head of Mumbai and Rest of Maharashtra
• Prior to joining AHFCL, Mr. Subodh was associated with IDBI bank as Assistant General Manager &
Mr. Subodh Kuckian
Regional Business Head
Center Head - Home Loans, Mortgage Loans, Auto Loans and Educational Loans
ASPIRE Home Finance Corporation Limited
Key People
• Mr. Ashok Jasani has 14 years of dedicated experience in housing finance domain. He is the Area
Business Head of Gujarat region
• Mr. Ashok‟s last stint was with DHFL as “Cluster Credit Manager”, where he was monitoring whole
Mr. Ashok Jasani
Area Business Head
Gujarat Credit Base consisting of 8 branches and 10 services centers
• Mr. Sandeep Kadam has 14 years of experience in housing finance industry with a deep understanding
of Maharashtra region, in particular. He is the Area Business Head of Pune region
• He has worked with Standard chartered, ICICI Bank, ING Vysya Bank and Fullerton India
Mr. Sandeep Kadam
Area Business Head
ASPIRE Home Finance Corporation Limited
Products and Services
Home loans (New Purchase / Resale)
Home Extension loans
Plot loans
Home Improvement loans
Construction loans
Mahila Awaas Loan from Aspire (MALA)
Products
Composite loans
Residential
(Retail)
Aspire
Property
Services
Commercial
(Developers)
Consultancy
Property search (purchase / resale / rent /
sale / lease), market intelligence, finance
assistance
Property market research, project planning &
execution,
deal
negotiations,
legal
advisory, tenant sourcing, end to end
corporate advisory for space requirements
(leasing)
Due
diligence
on
real
estate
transactions, strategic advisory for real estate
portfolio,
valuation
services
(land, projects, portfolio and retail)
Insurance
Services
Providing assistance to
the
customers
for
Life, Non-Life and
Health insurance cover
across all branches
ASPIRE Home Finance Corporation Limited
Robust Business Processes
End to End Processing through Core Lending Suite
1.
At AHFCL
Branches
4.
At AHFCL
Head Office
Sourcing of home loan
applications through
• In House team: Relationship
Officers, Assistant Sales
Managers and Sales Managers
• Supplemented by Business
Associates
2.
Screening by the appraisal officer
through
a. Income verification
b. Employer / business verification
c. Residence verification
d. Personal discussion
Output: Credit Appraisal Report
• Detailed evaluation by credit and operations team
• Preparation of evaluation summary
• Calculation of loan eligibility (amount and tenure) on the
basis
of
loan
specific
parameters:
LCR, LTV, IIR, FOIR, encumbrance search, structural
stability of the property and approval from competent
authorities
5.
3.
Screening of property and
related documents
a. Legal evaluation
Output: Legal Appraisal
Report
a. Technical evaluation
Output: Technical
Appraisal Report
Loan approval mechanism:
• Loans up to Rs.12 lakhs: Credit Head
• Loan above 12 lakhs: Level 1: Credit head; Level 2:
Chief Operating Officer
Operations team validates the completeness of
compliance requirements mentioned in credit, legal
and technical report before disbursement
Collection through Post Dated Cheque / ECS / ACH
Periodic internal and external audit of business operations at branches and head office
Performance tracking done through daily, weekly and monthly MIS. Monthly performance review of branches
ASPIRE Home Finance Corporation Limited
AHFCL Network: As on June 30, 2016
Physical presence across 62 locations in the states of Maharashtra, Gujarat, Madhya Pradesh and Telangana
Maharashtra (24)
Gujarat (16)
Pune 01
Talegaon
Nagpur
Pune 02
Satara
Akola
Pimpri
Kolhapur
Amrawati
Chakan
Latur
Buldhana
Daund
Ratnagiri
Jalgaon
Ahmednagar
Nashik 01
Hadapsar
Aurangabad
Nashik 02
Solapur
Wagholi
Yavatmal
Chandrapur
Ahmedabad
Rajkot
Mehsana
Himmatnagar
Mahuva
Surat 01
Narol
Kadi
Bhavnagar
Vapi
Surat 02
Naroda
Vadodara
Anand
Sanand
Madhya Pradesh (11)
Mumbai (10)
Virar
Vasai
Karjat
Palghar
Kalyan
Pen
Boisar
Titwala
Naigaon
Panvel
Adajan
Telangana (1)
Hyderabad
Indore
Pithampur
Ujjain
Khargone
Dewas
Gwalior
Bhopal
Guna
Indore 2
Jabalpur
Sagar
ASPIRE Home Finance Corporation Limited
Business Performance: As of June 30, 2016
Q1 FY’16-17
Inwards
Sanctions
Disbursements
Number of
Accounts
9,735
6,182
4,789
Amount
(In Rs. crs)
1,086
630
481
Portfolio Split
29%
Region
wise
No of Live Accounts
Average Ticket Size (In Rs. Lakhs)
Salaried : Self Employed (No of Customers)
Average Loan to Value Ratio
10%
Pune
Rest of Maharashtra
Madhya Pradesh
15%
Portfolio Details
Loan Outstanding (In Rs. crs)
Mumbai
16%1%
29%
2,492
Gujarat
Hyderabad
25,134
10.0
58 : 42
62.92
Gross NPA (%)
0.22%
Net NPA (%)
0.19%
21%
Product
wise
8%
3%
New Purchase
Resale
Composite
68%
Extn / Improvement
ASPIRE Home Finance Corporation Limited
Financials
Balance Sheet Statement
Profit and Loss Statement
In Rs. Crs.
Net Interest Income
FY’13-14
FY’14-15
FY’15-16
Q1 FY’16-17
0.00
7.14
47.60
21.73
In Rs. Crs.
Mar 31, 2014
Mar 31, 2015
Mar 31, 2016
June 30, 2016
Equity
15.00
150.00
305.72
394.86
Reserves & Surplus
-0.28
1.90
43.24
69.21
14.72
151.90
348.96
464.07
Other Income
0.00
12.44
63.34
16.91
Total Income
0.48
19.58
110.94
38.65
Long Term Borrowings
0.00
150.55
1600.00
2033.76
Operating Expenses
0.43
4.75
14.27
5.55
Long Term Provisions
0.00
1.50
8.97
11.10
2.44
10.55
2.88
Short Term Borrowings
0.00
22.00
29.50
309.62
Short Term Provisions
0.00
2.34
9.08
13.55
Other Liabilities
0.05
72.10
312.26
444.50
14.77
400.39
2,308.77
3,276.61
Business Sourcing Expenses
Net Worth
Manpower Expenses
0.32
6.86
16.29
7.24
Depreciation
0.00
0.23
1.02
0.43
Total Sources of Funds
Provisions
0.00
1.43
7.49
1.93
Net Assets
0.02
0.97
3.68
3.94
Total Expenses
0.75
15.71
49.62
18.03
Deferred Tax Assess
0.00
0.29
0.25
0.19
-0.28
3.87
61.32
20.62
Loans and Advances
0.47
360.83
2088.94
2,492.70
Other Assets
0.01
21.67
22.58
28.73
0
1.68
21.32
7.21
Cash and other Balances
14.27
16.63
193.32
751.05
-0.28
2.18
39.99
13.40
Total Application of Funds
14.77
400.39
2,308.77
3,276.61
Profit Before Tax
Tax
Profit After Tax
THANK YOU
Success is not magical; Success is not mysterious;
Success is the natural consequences of
consistently applying basic fundamentals of Good & Sound Governance
- at ASPIRE, we truly believe this