Q4 FY18 Investor Update

Q4 FY18 Investor Update

LICHFL: A Journey of 29 Years 1994 1989 2002 2004 2009 IPO Incorporated 2011 AAA Rating 2012 GDR Issue Crossed Rs. 1000 cr profit & Rs 75,000 Cr assets 2013 Best HFC by CNBC TV 18 Construction Industry Award Crossed Rs. 50,000 Cr loan portfolio Crossed Rs. 500 crs profit Best HFC by ABP News 2014 2015 Crosses Rs 1 lakh cr in portfolio Best Housing Finance Co. by BFSI Awards Best data quality in HFC by CIBIL 2016 Business Today- Best CEO Award Business World - Most Respected Co Award Outlook Money-Best HFC Best HFC by ABP News Best Data Quality by CIBIL Asia Pacific Entrepreneurship Award Power Brands Awards by Franchise India 2017 Crosses 150,000 cr in assets Outlook Money-Best HFC Business Today BFSI Best CEO NSE for highest Debt Issuance 2

Executive Summary Q4 FY18 Q4 FY18 PAT at Rs 539.33 cr as against Rs 529.19 cr up 2% Q4 FY18 Revenue from operations up by 7 % to Rs 3901 cr Outstanding Loan portfolio up by 15 % to Rs. 166323 cr Individual Loan Portfolio up by 14 % to Rs 158270 cr Q4FY18 Loan Disbursements Rs 17402 cr against Rs 15192 cr up by 15% Home Loan Disbursements up by 17% Net Interest Income Rs 1004 cr against Rs 1040 for Q4FY17 Net Interest Margins 2.49% for Q4 FY18 as against 2.97% for Q4FY17 Gross NPAs at 0.78% as against 0.43% as on 31.03.2017 Net NPAs 0.43% as against 0.14% on corresponding dates Individual Loans Gross NPAs 0.42% as on 31.03.2018 Total Provisions at Rs 1249 cr as against total Gross NPAs of Rs 1304 cr 3

Update last 5 years Disbursement (Rs. Cr) CAGR 18% Loan Portfolio (Rs.cr) CAGR 16% 50000 40000 30000 20000 10000 0 49378 36151 41541 25271 30327 2014 2015 2016 2017 2018 150000 125000 100000 75000 50000 25000 0 144534 166363 125173 108361 91341 2014 2015 2016 2017 2018 Income (Rs. cr) CAGR 13% Profit After Tax (Rs. cr) CAGR 11% 15000 10000 5000 0 12485 14080 15073 10799 9335 2014 2015 2016 2017 2018 2500 2000 1500 1000 500 0 1317 1386 1661 1931 1990 2014 2015 2015 2017 2018 4

Update last 5 years Gross & Net NPAs Total Provisions* (Rs cr) 1% 0% 0.78% 0.67% 0.39% 0.46% 0.45% 0.43% 0.43% 0.22% 0.22% 0.14% 2014 2015 2016 2017 2018 1500 1249 Gross 1250 1038 1000 Net 707 820 704 750 500 250 0 2014 2014 2016 2017 2018 Operating Expense to Total Income Profit per employee (Rs. lacs) 100.00 87.00 87.29 96.23 105.34 94.62 5% 3.35% 3.46% 3.75% 4.34% 4.30% 50.00 0% 2014 2015 2016 2017 2018 0.00 2014 2015 2016 2017 2018 * Provisions Including Provisions on Std. Assets 5

Update last 5 years EPS (Rs) (Rs 2/- pd up) Book Value (Rs)(Rs 2/- pd up) 50 40 30 20 10 0 38.26 39.42 26.10 27.47 32.91 2014 2015 2016 2017 2018 300 200 100 0 251.49 219.49 149.00 154.94 181.25 2014 2015 2016 2017 2018 Return on Avg Equity Return on Avg Loan Assets 20% 19.00% 18.00% 20.00% 19.00% 17.00% 2% 1.56% 1.39% 1.44% 1.43% 1.30% 10% 1% 0% 2014 2015 2016 2017 2018 0% 2014 2015 2016 2017 2018 6

Large geographic presence Mumbai Vashi Panjim Amritsar Ludhiana Ambala Bhatinda Hisar Patiala Karnal Hubli Bengaluru Mangalore Kannur Thrissur Erode Kozhikode Palghat Ernakulam Kottayam Thiruvananthapuram Kollam Jalandhar Bellary Tirupati Hosur Chennai Mysore Vellore Hassan Nagercoil Warangal Visakapatnam Hyderabad Rajahmundry Gulburga Vijayawada Kurnool Kakinada Anantapur Guntur Salem Coimbatore Shimla Chandigarh Dehradun Noida Meerut Haldwani Tiruchirapalli Pondicherry Thanjavur Madurai Tirumangalam Nellore Corporate office Regional offices Back offices Operating offices Gurgaon New Delhi Faridabad Ghaziabad Gangtok Bareilly Bikaner Siliguri Jaipur Agra Gorakhpur Jodhpur Kota Ajmer Lucknow Udaipur Malda Kanpur Patna Gwalior Varanasi Dhanbad Ahmedabad Behrampur Allahabad Ranchi Durgapur Gandhidham Bhopal Jamshedpur Kolkata Rajkot Vadodara Indore Jabalpur Rourkela Bilaspur Surat Jalgaon Nagpur Raipur Vapi Durg-Bhilai Cuttack Nallasopara Aurangabad Bhubaneshwar Nasik Kalyan Thane Jogeshwari Pune Kolhapur Satara Belgaum Jorhat Guwahati Silchar Year 9 Regional Offices 23 Back Offices 249 Marketing Offices Rep offices in Dubai & Kuwait Coverage of more than 450 centres 2103 Employees Widening footprint improved efficiencies No of Marketing Offices No of Back offices No of Regional Offices No of Employees Lon Portfolio Rs cr 2003 105-6 870 7772 2008 125 14 6 985 21936 2013 194 16 7 1446 77812 2018 249 23 9 2103 166363 23 New Marketing Offices proposed to be opened in FY 2019 7

Distribution Network HOME LOAN AGENTS (HLAs) (Agents of LIC) 249 Marketing Offices Total No of Agents > 12500: growth of over 20% y-o-y DIRECT SALES AGENTS (DSAs) (Small Firms/Companies etc) CUSTOMER RELATIONS ASSOCIATES (CRAs) (Individual Agents of the Company) 49 branches of LICHFL Financial Services (100% subsidiary of LICHFL) 8

Origination Pattern & Average Ticket Size Customer Type (No.) 17% Originations by source 4% 9% 7% 83% 19% 61% Salaried Self Employed HLA DSA CRA DIRECT LICHFLFSL Incremental Ticket Size (Rs lacs) Top 7 cities & Others 24.0 23.0 22.0 21.0 55% 168 Offices 45% 81 Offices 20.0 19.0 18.0 FY17 FY18 Top 7 cities Others 9

Loan Book Composition Retail LAP/ other 14.3% Developer Loans 4.9% Retail Home Loans 80.8% 31.03.2018 O/s Portfolio Rs 166363 cr 31.3.2017 O/s Portfolio Rs 144534 cr 10

Individual Loans Portfolio Stats Pure Floating Rate Loans To Outstanding Portfolio As of FY16 47% As of FY17 70% As of FY18 74% Loan To Value Ratio On Incremental Sanctions For FY16 47% For FY17 45% For FY18 44% Prepayment Lump Sum/ opening book For FY16 11.9% For FY17 10.9% For FY18 11.0% Installment to Net Income Ratio On Incremental Sanctions For FY16 33% For FY17 32% For FY18 31% 11

Executive Summary Q4/FY18 Rs cr Var Q4 FY18 Q4 FY17 Var FY18 FY17 Interest Income on Individual Loans 5% 3631.47 3454.31 5% 14092.86 13359.36 Interest Income on Project Loans 39% 215.23 155.24 42% 733.10 517.36 Total 7% 3846.70 3609.55 7% 14825.96 13876.72 Processing Fees & Other Fees 63% 54.24 33.33 21% 133.69 110.23 Other Income 75% 33.17 18.98 21% 113.24 93.40 Gross Income 7% 3934.12 3661.86 7% 15072.90 14080.35 Interest Expenses 11% 2843.05 2569.92 9% 11124.65 10231.49 Net Interest Income (3%) 1003.65 1039.63 2% 3701.31 3645.24 Salary & Other Establishment Expenses 14% 224.19 196.54 6% 647.51 611.77 Net Provisions & Diminutions (68%) 28.13 89.29 (15%) 238.87 281.32 Profit before Tax 4% 838.74 806.10 4% 3061.87 2955.77 Income Tax Provision including Deferred Tax 8% 299.41 276.91 5% 1072.28 1024.72 Net Profit 2% 539.33 529.19 3% 1989.59 1931.05

Executive Summary Q4/FY18 Rs cr Var Q4 FY18 Q4 FY17 Var FY18 FY17 Disbursements Individual 8% 15136 13960 18% 45112 38334 Project 84% 2266 1232 33% 4266 3208 Total 15% 17402 15192 19% 49378 41541 Outstanding Portfolio Individual 14% 158270 139024 Project 47% 8093 5510 Total 15% 166363 144534 Net Interest Margins(%) 2.49% 2.97% 2.38% 2.70% Incremental Cost 7.55% 8.03% Incremental Yield 9.80% 10.80% Incremental Spreads 2.25% 2.77%

Financial Highlights FY2018 FY2017 Return on Average Equity (%) 17% 19.% Return on Average Assets for qtr (%) 1.3% 1.4% Earnings per share (on Rs 2 pd up) 39.42 38.26 Dividend per Share (on Rs 2 pd up) 6.80 6.20 Capital Adequacy Ratio Tier I Tier II Total Sept 2017 13.36 2.68 16.04 March 2017 13.35 2.29 15.64 14

Yield & Cost of Funds on portfolio 12.00% 2.80% 10.83% 10.00% 2.70% 10.12% 2.70% 8.59% 8.31% 2.60% 8.00% 2.50% 6.00% 2.38% 2.40% 4.00% 2.30% 2.20% 2.00% 2.10% 0.00% FY17 FY18 Yield on Advances on Portfolio 10.83% 10.12% Wtd Avg cost of funds on Total Borrowed Funds 8.59% 8.31% NIMs 2.70% 2.38% 2.00% 15

Liability Profile as on 31.3.2018 Source Wtd Avg Cost (%) Banks & Institutions 8.17% Outstanding Borrowings Rs. 145339 cr NHB 1% Sub Debt CP 2% 3% Deposits* 5% Bank 10% Non Convertible Debenture 8.37% National Housing Bank 8.13% Sub. Bonds & Upper Tier II 9.18% Commercial Paper 7.41% Deposits* 7.92% Total 8.31% NCD 79% During Q4FY18, Borrowings were Rs 27962 cr @ 7.76% * Includes Corporate Deposits of Rs 3352 cr 16

Q4FY14 Q4FY15 Q4FY16 Q4FY17 Q4 FY18 NIMs 3.00% 2.40% 2.47% 2.71% 2.97% 2.49% 2.00% 1.00% 0.00% NIMs (for the quarter) 17

Gross & Net NPAs 31.03.2018 31.03.2017 Gross NPA (Rs. cr) 1304 627 Gross NPA (%) 0.78% 0.43% Provisions for NPA (Rs. cr) 592 422 Net NPA(%) 0.43% 0.14% Provisions incl standard asset prov.(rs. cr) 1249 1038 Provisions cover incl standard asset prov.(%) 96% 166% 18

Q4FY14 Q4FY15 Q4FY16 Q4FY17 Q4FY18 Gross & Net NPAs 0.80% 0.78% 0.70% 0.67% 0.60% 0.50% 0.39% 0.46% 0.45% 0.43% 0.43% 0.40% 0.30% 0.20% 0.22% 0.22% 0.14% 0.10% Gross NPA Net NPA 19

Thank you DISCLAIMER This presentation is made purely for information. We have attempted to provide relevant information which we believe will help in knowing the Company. The users may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. While every care is taken to verify the accuracy of the information given in this presentation, neither the Company nor its officials would in any way be liable for any action taken or not taken by the viewers or the users of this presentation or for any claims, losses etc. 20