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Problems affecting the largest number of people has the least attention paid to it<br />-Aristotle<br /><br />
It has been exactly the same <br />in the Indian housing context<br /><br />
The total housing requirement of the country is 200-225 million units <br /><ul><li>Current status: Available 170 million ...
In next 15-20 years, additional 70 millions houses would be required</li></ul>Year 2020 - 100 million additional houses re...
<ul><li>Returns from realty in India are at an average of 14% annually. Merrill Lynch forecast India real estate sector to...
% share of urban population has up from 10.8% in 1901 to 27.8% in 2001 and it is expected to grow faster than rural. In 20...
By 2015, 20% (222 million) of total population will reach the 22 early 30 age bracket. Keeping 0.89% mortality rate and av...
Housing shortage in India: Total housing shortage for period       2007-12, 73.96 million out of which rural housing short...
Segmentation of Indian Households<br /><br />
Segmentation of Indian Households<br /><br />Source: National Council of Applied Economic Research, 2005<br />DHFL’S Prim...
Factors affecting housing demand<br />Growth in economy<br />Population Growth<br /><ul><li>Population > 1 billion people,...
Population growth has been 1.5% in  2000-2010.</li></ul>Nuclearisation<br /><ul><li> Primarily due to employment related  ...
It  reduces the area per household but increases the  overall household formation</li></ul>Housing <br />Demand<br />Movem...
Availability of finance: Increasing housing finance  penetration with low interest rates  drives the  boom in house purchase
Tax benefits: Principal & Interest repayment attracts  customers for housing finance.</li></ul>Urbanization<br /><ul><li>S...
Urbanisation reduces the area per household but leads  to increasing number of nuclear families resulting in formation of ...
Market Scenario<br /><br />
<br />India still underleveraged <br />India’s Mortgage/GDP ratio is lowest amongst Asian peers:<br /><ul><li>India’s mor...
China @ 10%, Philippines @ 12%, Thailand @ 16%, Hong Kong @ 48%, Singapore @ 61%</li></ul>Ascending Housing Finance penetr...
Disbursements in the last 3 years account for ~71% of the total outstanding portfolio
Penetration is expected to go up to 41% in urban India and to 11% in rural India by FY ’12</li></ul>Data Source: CRISIL, I...
The housing dreams of theIndian middle & lower income groups<br />a challenge for the system<br /><br />
The Challenge<br />Accessibility<br />Affordability<br /><ul><li>Increasing average cost of housing
Increasing interest rates
Regulatory issues (ULCA, Rent Control Act, Stamp Duty, etc)
Arranging own contribution
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DHFL Corporate Profile

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Dewan Housing Finance is a 25 Year Old Company which has continually striven to reach out the vast majority of Indians to provide them Financial Access to make a home of their own.

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Transcript of "DHFL Corporate Profile"

  1. 1. Problems affecting the largest number of people has the least attention paid to it<br />-Aristotle<br /><br />
  2. 2. It has been exactly the same <br />in the Indian housing context<br /><br />
  3. 3. The total housing requirement of the country is 200-225 million units <br /><ul><li>Current status: Available 170 million house, a shortage of approx 30-55 million.
  4. 4. In next 15-20 years, additional 70 millions houses would be required</li></ul>Year 2020 - 100 million additional houses required.<br /><br />The Housing Requirement<br />
  5. 5. <ul><li>Returns from realty in India are at an average of 14% annually. Merrill Lynch forecast India real estate sector to grow from $12 billion in 2005 to $90 billion in 2015. Housing is expected to account for nearly 90% of real estate sector.
  6. 6. % share of urban population has up from 10.8% in 1901 to 27.8% in 2001 and it is expected to grow faster than rural. In 2001 more than 5000 centers identified as urban centers – 2001 census.
  7. 7. By 2015, 20% (222 million) of total population will reach the 22 early 30 age bracket. Keeping 0.89% mortality rate and average size of household equal to 3, 68 million household will require independent housing—age demographic effect. Taking 30-49 age group, total demand will be much more.
  8. 8. Housing shortage in India: Total housing shortage for period 2007-12, 73.96 million out of which rural housing shortage 47.43 million. </li></ul><br />Facts<br />Source: NHB<br />
  9. 9. Segmentation of Indian Households<br /><br />
  10. 10. Segmentation of Indian Households<br /><br />Source: National Council of Applied Economic Research, 2005<br />DHFL’S Prime Customer<br />Figures in brackets indicate annual household income<br />Source: Business world, NCAER<br />1 US$ = Rs 44<br />
  11. 11. Factors affecting housing demand<br />Growth in economy<br />Population Growth<br /><ul><li>Population > 1 billion people, 191 million households in 2001.
  12. 12. Population growth has been 1.5% in 2000-2010.</li></ul>Nuclearisation<br /><ul><li> Primarily due to employment related migration
  13. 13. It reduces the area per household but increases the overall household formation</li></ul>Housing <br />Demand<br />Movement in interest & home loan rates<br />Movement in housing price index<br />Affordability<br /><ul><li>Income growth: With increasing incomes the per capita floor space area increases
  14. 14. Availability of finance: Increasing housing finance penetration with low interest rates drives the boom in house purchase
  15. 15. Tax benefits: Principal & Interest repayment attracts customers for housing finance.</li></ul>Urbanization<br /><ul><li>Share of urban population has increased to 27%.
  16. 16. Urbanisation reduces the area per household but leads to increasing number of nuclear families resulting in formation of more number of households</li></ul><br />Financial savings<br />
  17. 17. Market Scenario<br /><br />
  18. 18. <br />India still underleveraged <br />India’s Mortgage/GDP ratio is lowest amongst Asian peers:<br /><ul><li>India’s mortgage debt in FY ‘07 stood at 6% of GDP ~USD 60 Billion on a GDP of ~USD 1 Trillion
  19. 19. China @ 10%, Philippines @ 12%, Thailand @ 16%, Hong Kong @ 48%, Singapore @ 61%</li></ul>Ascending Housing Finance penetration in both urban (currently 35%) and rural (currently 7%) India due to:<br /><ul><li>Growth in branch network, increasing incomes, evolving demographic profile, and increasing acceptability of loans amongst customers due to high rise in property prices
  20. 20. Disbursements in the last 3 years account for ~71% of the total outstanding portfolio
  21. 21. Penetration is expected to go up to 41% in urban India and to 11% in rural India by FY ’12</li></ul>Data Source: CRISIL, Industry Reports<br />
  22. 22. The housing dreams of theIndian middle & lower income groups<br />a challenge for the system<br /><br />
  23. 23. The Challenge<br />Accessibility<br />Affordability<br /><ul><li>Increasing average cost of housing
  24. 24. Increasing interest rates
  25. 25. Regulatory issues (ULCA, Rent Control Act, Stamp Duty, etc)
  26. 26. Arranging own contribution
  27. 27. Credit risks : no pay slips, no tax returns, uncertain cash flows
  28. 28. Absence of Clear titles
  29. 29. Higher transaction costs</li></ul>An under-serviced segment finding the gap between desire & reality wider<br /><br />
  30. 30. Every Indian must have <br />Access to affordable, good quality Housing<br /><br />The DHFL Mission<br />
  31. 31. The DHFL Action<br />Purpose<br />Enabling access to home ownership<br />Target Segment<br />The low and middle income household<br />Strategy<br />Reach out to larger number of customers with smaller loans instead of servicing a small number of customers with large loans.<br /><br />
  32. 32. Creating a Customer Centric Organization<br />EMPLOYEE<br />Technology<br />PROCESS<br /><br />
  33. 33. <br />Our Core Customers<br />The low & middle<br />Income segments<br />Comprising of groups who do not ‘fit’ into the formal frameworks of normal banks and HFC’s considered ‘risky’ by them<br />They may have financial handicaps, but they have integrity & self worth<br />
  34. 34. <br />Our Process<br />Focus is on forging relationships with our customers<br />Direct contact with customers at every stage<br />business generation<br />property verification<br />collection and recovery<br />Relationship officers in charge of every account<br />Predictability of service as well as Speed of service<br />
  35. 35. <br />Our Technology<br />Regular up gradation of technology to ensure systems and processes deliver on time<br />Integrated loan management system to service customers<br />Enabling capture and retrieval of a large number of customer variables<br />Facilitates building of predictive models for understanding credit behavior<br />
  36. 36. <br />Our Employees<br />Ordinary people who do extraordinary work<br />All fired by the values of Company mission<br />Periodic training & skill up-gradation in conjunction with our customer profile<br />Emphasis on quality, timely delivery and resolution of consumer issues<br />A robust performance appraisal system with prime focus on motivating, and career planning <br />well Recognized & well Rewarded<br />
  37. 37. <br />Our Products<br />Developed & designed to meet the requirements of our customers : <br /><ul><li>Plots
  38. 38. Construction
  39. 39. Purchase of flats
  40. 40. Extension & Improvement Loans
  41. 41. Project Loans</li></ul>Commercial loans including<br /><ul><li>Lease Rental Financing
  42. 42. Mortgage Loans
  43. 43. Non Resident Property Loans</li></ul>Built in protection plans offering<br />Cover for loss of job <br />Life cover against accidents and untimely demise<br />Property cover against natural calamities<br />1st Housing Finance Company in India to offer reverse mortgage to senior citizens <br />
  44. 44. Our Reach<br />An Extensive Pan–India Network<br />300 locations across the country<br />DHFL’s captive distribution network covers 190 locations<br />Tie-Ups with Public Sector Banks provide reach to an additional 85 locations<br />Acquisition of the housing finance arm of ING Vysya bank covering 25 locations<br /><br />
  45. 45. Alliances<br />Tie-ups<br />Punjab & Sind Bank (“PSB”)<br />Established in 1908, the Punjab & Sind bank has 905 branches / extension counters spread across India <br />DHFL is presently addressing 45 locations with PSB in the states of Punjab, Haryana, Himachal Pradesh, and Jammu & Kashmir in Northern India<br />DHFL intends to scale up the location coverage to 200 with PSB<br />United Bank of India (“UBI”)<br />Formed out of the amalgamation of four small banks of Bengal in December 1950, the Bank presently has ~1,500 branches<br />UBI played a significant role in the spread of banking services in different parts of the country, more particularly in Eastern and North-Eastern regions of India<br />DHFL is presently addressing 40 locations with UBI across the Kolkata and Howrah regions DHFL intends to scale up the location coverage to 500 with UBI<br /><br />UAE Exchange<br />Tie – up with UAE Exchange, Abu Dhabi to reach out to the vast NRI population in the UAE & GEC Countries <br />
  46. 46. Trust Repaid<br />DHFL is the second largest housing finance company in the Indian private sector<br />Over 2,00,000 families<br />From a modest beginning in 1984, <br />Fulfilling the housing needs<br />Asset<br />NPA levels<br />INR 6394.51Crs<br /><br />levels lowest in the industry at 1%<br />
  47. 47. Trust Repaid<br />DHFL is the second largest housing finance company in the Indian private sector<br />Over 2,00,000 families<br />From a modest beginning in 1984, <br />Fulfilling the housing needs<br />Asset base<br />NPA levels<br />Over US $ 1 billion<br /><br />levels lowest in the industry at 1%<br />
  48. 48. Future Plans<br />Boost Network<br />New Products<br />New Segments<br />Improve Margins<br />Alliances<br />This is also expected to help in regional diversification of DHFL’s asset book<br />DHFL is looking at cross selling of innovative consumer finance products to existing creditable borrowers<br />DHFL plans to come up with various products for the self employed segments that have largely remained unaddressed by most financial institutions<br /><ul><li>Better capital management to reduce funding costs
  49. 49. Technology to support scalability and operational efficiency</li></ul><br /><ul><li>Diversification of regional portfolio concentration
  50. 50. Ready customer base which can be exploited via cross selling initiatives and value added services</li></li></ul><li>Business Performance<br /><br />
  51. 51. Key Growth Parameters<br />Net Interest Income<br />Top Line<br />Net Interest Income has grown at CAGR of 34.5%.<br />Top line has grown at CAGR of 42.2% .<br />Fig. in INR Mn<br /><br />
  52. 52. Key Growth Parameters (contd.)<br />Sanctions have grown at CAGR of 36.5%.<br />
  53. 53. Key Growth Parameters (contd.)<br />Sanctions have grown at CAGR of 36.5%.<br />Sanctions have grown at CAGR of 36.16%.<br />
  54. 54. Key Growth Parameters (contd.)<br />Disbursements have grown at CAGR of 35.8%.<br />
  55. 55. Key Growth Parameters (contd.)<br />
  56. 56. Key Growth Parameters (contd.)<br />PAT has grown at CAGR of 32.7%.<br />Book Value has grown at CAGR of 22.1%.<br />Asset Book has grown at CAGR of 38.4%.<br />Borrowings have grown at CAGR of 38.7%.<br />
  57. 57. With changing Indian scenario and more dreams in their eyes, our target audience is having aspirations stoked to fever pitch.<br />The <br />Journey<br />Has just begun<br />
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