Repco Home Finance Ltd.

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Housing Finance Company Repco Home Finance Ltd. Result Update Accumulate Asset quality deteriorates sharply; expect some pull back in QFY17 Institutional Research CMP (Rs) 2 Target (Rs) 7 Nifty:,72; Sensex: 2,1 Key Stock Data BSE Code 3322 NSE Code REPCOHOME Bloomberg REPCO IN Shares O/s mn (FV Rs1) 2. Market cap (Rsbn).1 2-week high/low 1/ 3-m daily avg vol. 1,72,7 Rel. Performance 1m 3m 12m REPCO (1.). 7.7 NIFTY 3. 7.. SENSEX 3. 7.. Shareholding Pattern Jun1 Sep1 Dec1 Promoter 37.1 37.1 37.1 FII 2. 27.3 2. DII 22.. 23. Others 13. 13. 1. Repco Home Finance Ltd (RHFL) posted net profit growth of % yoy at Rs.mn. RHFL s NII came at Rs mn (up 1% yoy) led by loan growth of % yoy. Other income for the quarter was muted at% yoy at Rs 7mn impacted by slower disbursement during the quarter. NIMs for the quarter declined by bps qoqat.2%. Spread has also declined by 1bps qoq driven by 1bps sequential fall in yield on advances at 12.1%, whereas cost of funds remained sequentially stable at.2%. During the quarter RHFL s loan book grew by % yoy at Rs.bn, on YTD basis growth was 12.% and % qoq. However, this growth was comparatively lower than Q2FY17 due to demonetization impact. During the quarter disbursement of RHFL declined by 1% yoy and Sanctioned declined by 2% yoy resulting into flat 1% growth in sanctions and disbursement on MFY17 basis. Management has also revised its loan book guidance from 2% yoy growth to % growth for FY17. However, we believe that delivering additional 7.% qoq growth in QFY17 will be difficult especially when competition is at its peak in housing finance market. We expect ~17% growth in FY17E considering ~7bn (22% down yoy) loan disbursement in QFY17. Loan book mix for RHFL broadly remained stable with ~7% Housing loan and % LAP. Further, customer segment mix also remained stable with ~% self employed customers and % salaried class customers. Asset quality of the RHFL deteriorates sharply during the quarter with rise in GNPA/NNPA by 2bps/bps qoq at 2.%/1.1% respectively. However, these NPAs are after taking NHB s dispensation for allowing days extension for loan below Rs 1mn. After removing this dispensation asset quality has worsened significantly with GNPA/NNPA at.2%/3.1% respectively. This rise in NPA is mainly due to impact of demonetization as bulk of its self employed segment had difficulties in paying EMI. Delinquencies in Self employed segment have increased to 3.% from 3% in Q2FY17 and in LAP segment it has increased to.3% from 3.% in Q2FY17. After removing NHB dispensation delinquencies in Self employed and LAP segment would have been.% and.2% respectively. However, management is confident that pulling back asset quality in QFY17 as Q being strong quarter for recovery. Management guided that by end of FY17 GNPA would be ~1.% after taking NHB dispensation and without NHB dispensation it would be higher. We believe that GNPA would be ~2% by FY17E as to pull back to 1.% level it need humongous recovery effort worth Rs 2bn which looks difficult considering average Q recovery of Rs.7bn to 1bn. Provisioning coverage ratio for the quarter declined from.3% in Q2FY17 to 3.% in Q3FY17. RHFL s cost to income ratio remained stable at 1.% after declining from last quarters mainly on account of flat other expenses growth. RoA/RoE of the company has increased on sequential basis at %/1.7% respectively as company has maintain its profitability by allowing its PCR to go down as it is well provided on individual buckets. At CMP, the stock trades at 3.x its FY1E ABV and 2.x FYE ABV. We maintain our positive stance on the company with Accumulate rating and TP of Rs 7 based on 3x FYE ABVPS. Margin declined by bps driven by fall in yield on advances RHFL s margin declined sequentially by bps at.2% along with sequential drop in spread by 1bps. This is mainly on account of sequential fall in yield on advances by 1bps at 12.1%, whereas cost of funds for RHFL remained sequentially stable at.2%. However, management guided that going ahead company plans to maintain its spread of 3% and the benefit of lower cost of funds will be passed on to customers by maintaining 3% spread. During the quarter RHFL has increased its share of NCD/CP borrowing from 13% in Q2 to 1% in Q3FY17 which has provided some cushion to cost of funds. RHFL s current incremental borrowing is sub % and considering its higher reliance on bank loans (3% of total borrowings) coupled with entire bank book linked to MCLR will allow RHFL to reprise its existing bank borrowing at current MCLR rate (~%-.2%). We believe that this incremental advantage of lower cost of funding will provide significant room for RHFL to cut down its lending rate to ~% and be competitive in market. We believe that going ahead company will maintain its spread of 3% and margin at.2% to.3%. Rakesh Shinde rakesh.shinde@amsec.in +1 22 33 11 Outlook and Valuation: We believe that current asset quality concerns will likely to overhang for next couple of quarters, we expect rising NPLs coupled with slower disbursement growth may impact RHFL s. However, we believe that considering RHFL s niche business model, high profitability with ability to improve return ratios, high capitalization, consistent execution, maintaining spread and experience of managing asset quality risk will provide cushion to company in delivering robust operating performance and continue to fetch premium valuation. At CMP, stock trades at 3.x its FY1E ABV & 2.x FYE ABV. We have revised our rating from BUY to Accumulate considering current asset quality risk overhang coupled with slower loan growth which will drag earnings in FY17 and partly in FY1 as well. We value the company 3x on FYE adj. BVPS to arrive target price of Rs 7 per share. Exhibit 1: Key Financials (Standalone) Exhibit 2: Key Indicators Y/E Mar (Rsmn) FY1 FY17E FY1E FYE Y/E Mar FY1 FY17E FY1E FYE NII 3, 3,2,2, Adj.BV (Rs) 1. 1. 1. 22. yoy 2.2 1.3 1.1 27.1 EPS (Rs) 2. 2.7 31.3 1.7 Other Income 2 323 3 7 Gross NPA 1.3 2. 1. 1.3 yoy 22.3 1. 1.. Net NPA. 1.1..7 Operating Profit 2,3 3,17 3,71,7 NIM Calc...2.1.3 yoy 3. 17. 17. 27. P/ABV (x).. 3. 2. PAT 1,1 1, 1, 2, PER (x) 2.7 2.. 1. yoy. 7. 22. 32. Avg. RoA 1. 1. 2.1 Net Worth, 1, 12, 1, Avg. RoE 17. 1.7 1. 1. Refer Disclosures & Disclaimer at the end of the report. Our reports are available on Bloomberg ASNM <GO>, ThomsonReuters, Factset and Capital IQ February 1, 17

Repco Home Finance Ltd. / Result Update Asset quality continues to deteriorate; GNPA at 2.% multi quarter high RHFL asset quality during the quarter further deteriorated taking its GNPA/NNPA ratio to 2.%/1.1% respectively (up by 2bps/bps qoq respectively). Its GNPA/NNPA has increased by 1%/17% qoq with further rise in self employed segment / LAP segment NPA from 3.1%/3.7% in Q2FY17 to 3.%/.3% in Q3FY17. However, these NPAs are after taking NHB s dispensation (worth Rs 1.37bn) for allowing days extension for loan below Rs 1mn. After removing this dispensation asset quality has worsened significantly with GNPA/NNPA at.2%/3.1% respectively. This rise in NPA is mainly due to impact of demonetization as bulk of its self employed segment had difficulties in paying EMI. Delinquencies in Self employed segment have increased to 3.% from 3% in Q2FY17 and in LAP segment it has increased to.3% from 3.% in Q2FY17. After removing NHB dispensation delinquencies in Self employed and LAP segment would have been.% and.2% respectively. Further, without NHB dispensation delinquencies in Salaried and Housing loan segment have also almost doubled to 2.%/3.7% respectively from 1.3%/2% in Q2FY17. However, management is confident of pulling back asset quality in QFY17 as Q being always strong quarter for recovery for entire industry. Management guided that by end of FY17 GNPA would be ~1.% after taking NHB dispensation and without NHB dispensation it would be higher. We believe that GNPA would be ~2% by FY17E as to pull back to 1.% level it need humongous recovery effort worth Rs 2bn in Q which looks difficult considering average Q recovery of Rs.7bn to 1bn. Provisioning coverage ratio for the quarter declined from.3% in Q2FY17 to 3.% in Q3FY17.However management plans to take its PCR to % level. We believe that PCR of % would be difficult as it needs either huge recovery or high amount of provisioning. We believe that RHFL would continue to see asset quality pressure in QFY17 as well; however there will be some pullback. The major concern will be slippages coming out of RHFL s NHB dispensation book of Rs 1.37bn, these loans would be completing their days in March and even %-% slips into NPA it will put further pressure on company s asset quality in Q as well as Q1FY1. Exhibit 3: Asset quality quarterly trend 3. 2. 2. 1. 1... 1. 32.1 2. 2. 1. 1. 1. 1.3 1..3.7 37.3. 3. 2. 2. 1. 1. 1. 1.3 1.3 2.. 1. 2.1... 2.3 3. 1. 1.3. 1.3 2.7 2. 1. 1.31 1.1. 3.. 1 7 3 1 GNPA NNPA PCR Exhibit : After taking NHB Dispensation Q3FY17 Q2FY17 Q3FY1 yoy qoq Salaried 1.3 1.3 1.3 - - Non-Salaried 3. 3.1 3. bps bps Housing 2. 2. bps bps LAP.3 3.7 3. 7bps bps Overall 2. 2. 2.3 3bps bps Exhibit : Without taking NHB Dispensation Q3FY17 Q2FY17 Q3FY1 yoy qoq Salaried 2. 1.3 1.3 11bps 11bps Non-Salaried. 3.1 3. 2bps 2bps Housing 3.7 2. 2. 17bps 17bps LAP.2 3.7 3. 2bps 2bps Overall.2 2. 2.3 bps 1bps February 1, 17 2

Repco Home Finance Ltd. / Result Update Loan book growth impacted by demonetization with % yoy growth and 12.% YTD growth led by sharp declined in sanctioned and disbursements RHFL s loan book during the quarter grew by % yoy and % qoq led by declined in sanctioned and disbursement by 1%/2% yoy and 7%/3% qoq respectively. However, on MFY17 basis sanctions and disbursement remained flat at 1% yoy growth. Management has also revised its loan book guidance from 2% yoy growth to % growth for FY17. However, we believe that delivering additional 7.% qoq growth in QFY17 will be difficult especially when competition is at its peak in housing finance market. We expect ~17% growth in FY17E considering ~7bn (22% down yoy) loan disbursement in QFY17. Further, on Tamilnadu issue where new registration of property without approved layout has banned, management guided that the hearing of the case is on 27 th Feb 17. If this issue is getting clarified then RHFL can released its Rs 2bn blocked sanctioned pipeline which will help company to achieve its revised loan book target. We believe that there would be some near term challenges to loan book growth as 3% of RHFL loan book is towards self construction houses and with new registration is banned in Tamilnadu and impact of demonetization would take toll on RHFL loan book growth. However, boost for affordable housing loan segment coupled with budgetary announcement to address supply side constraints will continue to drive demand. We expect loan book growth of ~17% in FY17 and % in FY1E. Con-call Highlights Management revised its loan book guidance from 2% to % for FY17E Management maintain FY1 loan guidance between % to 2% Management reiterate that going ahead loan book mix will remain same like % self employed customers and % salaried class customers. Home loan and LAP mix in loan book will also remain same at :. RHFL will continue to maintain spread of 3% and margin of %+. Hence any change in yield or cost of fund will be function of spread. In terms of profile of salaried segment, mostly are employed with private sector companies Management plans to take PCR at % level by FY17 Company has received Rs 12mn dividend income (Rs 7.mn FY1) from its subsidiary Repco Micro Finance Repco Micro finance has GNPA of less than 1% at.% and NNPA Nil and it has only presence in Tamilnadu RHFL has 11.7% yield in Housing loan and 1.7% in LAP loans against 11.%/1.% respectively in Q2FY17 Management guided that overall cash collection has come down post demonetization RHFL has prepayment rate of % to 1% in Housing and LAP book put together Average duration of bank borrowing is 1 years In Housing loan disbursement were Rs 3.bn and LAP disbursement were Rs 1.7bn in Q3FY17 and sanctioned of Rs.bn and 1.3bn respectively. Benefit of bank cutting MCLR rate will be reflected in Q as well Mid Jan onwards ground level activities has improved GNPA region wise after taking RBI forbearance into account ; AP - 3%, Telangana - 2.%, Gujarat - 1.2%, Karnataka - 3.3%, Maharashtra -.%, Tamil Nadu - 2.% and Tamil Nadu -.2% (without RBI forbearance) Company has bring down its average ticket size from Rs 1.mn to Rs 1.mn in Housing loan and from Rs mn to 1.mn in LAP segment Company does 1% of incremental disbursement in affordable housing segment Average cost of funding for H1FY17 is.2% and incremental borrowing is at %. RHFL maintains LTV of 7%-7% on housing loans, LTV on LAP is ~-2% and average LTV on loan book is 2%. RHFL originates ~% loans from loan camp through branches and ~3% from branch walk-ins and remaining 2% from DSA especially in newer territory like Gujarat and Maharashtra. In Self employed customer s profile of the customers are mostly retail traders. RHFL has ~2% of loans for under construction properties. February 1, 17 3

Repco Home Finance Ltd. / Result Update Exhibit : performance P & L (Rs mn) Q3FY17 yoy % qoq % MFY1 MFY17 yoy % Q2FY17 Q1FY17 QFY1 Q3FY1 Q2FY1 Operating Income 2. 1.1 3.,. 7,77.. 2.7 2,3.2 2,311. 2,. 2,3.7 Interest exp 1.7.2.3,2.7,2.2. 17. 1,. 1,. 1,11. 1,3.2 NII. 1.3. 2,12. 2,.2. 2.7 3.7. 77. 73. Other Income 7.3.7 (3.2). 23. 1.. 7. 1.1 3.7.2 Total Income 7.1 1. (2.) 2,32. 2,2...1. 3. 3.2.7 Opex 13. 1..1. 7. (2.) 13.3 1.7 13.2 1. 17.3 Employee Expenses 1..2. 31. 32.1 (2.). 7. 7.. 11.1 Depreciation 7. (1.) (11.) 2.2 2.3 (1.)..1 12.3.. Other Expenses 1. (7.) (.) 1. 1. (.). 2.7 3.. 1. PPoP.7 1.7 (3.) 1,3. 2,17. 27. 3. 77. 7. 2.. Provisions & Write Offs.3.3 () 2 2.. 127. 17.3 13. 2.3 7.1 PBT 71... 1,. 2,1. 22. 7. 1... 7.3 Tax 2 2.3 (1.3).. 23.7 23.2.3 17... PAT.. 1. 1,7.3 1,31.3 22.. 3.3 23. 3. 3. PAT Margin 7.7 bps 7bps.1. bps. 3...7 7. Cost to Income 1. (1bps) bps. 1. (1bps) 1.3 1.2.3..3 Loans Spreads 2. (bps) (1bps) 3. 3. - 3. 2. 3. 3. 3.1 Net Interest Margin.2 (bps) (bps)..3 (1bps)..3... YoA 12.1 (bps) (1bps) 12. 12.1 (bps) 1 1 1 12. 12. CoF.2 (3bps) -..2 (3bps).2.3.2.. Return on Assets (1bps) 7bps 2.3 (1bps) 2.1 2.3 1. 2.3 Return on Equity 1.7 bps 11bps 1.7 1.1 1bps 17. 1.1 1.7 1.7 1.1 CAR. (1bps) 1bps 2.. (1.)...7 2.. BVPS (Rs.) 1. 11.7.3 1.3 1. 11.7 1.7 12 1 1 12 Branches 13 1.3-11. 13. 1.3 13 11 1 11. 1. Loan Book (Rs mn) 1. 71,,1. 73 712 71 1 Disbursed (Rs mn) 1 (1.) (2.7),3,77 1.2 7 7 7 7 1 Sanctioned (Rs mn) 3 (27.) (.),,72 1. 11 73 32 2 3 Loan book profile 17.3 (3.7) (3.2) 3. 17.3 (3.7). 2.1 3. 3.. Salaried. (2bps) (3bps). (2bps).3. 1. 2. Non-salaried. 2bps 3bps 7.. 2bps.7.1. 7. 7. Home Loans 7. (1bps) 1bps. 7. (1bps) 7.3 7.... LAP. 1bps (1bps).. 1bps.7.1...2 Asset quality GNPA (mn) 22. 3. 13. 1,3. 2,2. 3. 11. 17. 1.7 1,3. 1,23. NNPA (mn) 122. 3.3 1. 2. 1,22. 3.3 11.. 3 2. 2. GNPA 2. 3bps 2bps 2.3 2. 3bps 2.37 2. 1.31 2.3 1. NNPA 1.1 1bps bps 1.3 1. 1bps 1.31 1.. 1.3. NPA - Home Loan 3bps bps 1. 3bps 2. 1. 1.2 1. 1.7 NPA -LAP.3 7bps bps 3..3 7bps 3.7 3.7 2. 3. 2. NPA -Salaried 1.3 - - 1.3 1.3-1.3 1.2.7 1.3 1.1 NPA -Non Salaried 3. bps bps 3. 3. bps 3.1 2. 1. 3. 2.3 Provision Coverage 3. 3bps (123bps). 3. 3bps.. 3... Funding Mix Banks 2.7 (33bps) bps 3. 2.7 (33bps) 2. 3. 72. 3.. NHB 1.7 bps (11bps) 1. 1.7 bps 1.1. 1. 1. 17. Repco Bank. (13bps) (23bps).. (13bps). 7.... CP/NCD 1. 11bps bps 13. 1. 11bps 13. 1.. 13. 7. Exposure AP &Telangana 1. (bps) (1bps) 11. 1. (bps) 11. 11. 11.2 11. 11.7 Tamilnadu 2. (1bps) (bps) 2. 2. (1bps) 2. 2. 2.7 2. 2. Karnataka 12.3 (bps) (bps) 12. 12.3 (bps) 12. 12. 12.3 12. 12. Kerla 3. 1bps - 3.7 3. 1bps 3. 3. 3. 3.7 3. Maharashtra.1 bps bps..1 bps...7.. Gujarat bps 1bps 2. bps 2.1 2.1 2. 2. 1. Others 2. bps 1bps 2. 2. bps 2.3 2.3 2.3 2.3 February 1, 17

Repco Home Finance Ltd. / Result Update Exhibit 7: Loan Book trend Quarter Loans (Rsbn) 3.2.. 2...1 3.. 71. 7. 7..7. growth yoy % 32.1 31. 3. 2. 27.3 2. 2.7 3. 3.1 27. 2. 23.7. growth qoq % 7. 7.. 7.1..3... 7. 3.. YTD %. 31.. 12. 1. 2.. 13.. 27. 3. 1.1 12. Sanctioned (Rsbn).....2.3...3.3. 1.. growth yoy % 1. 2.3 3. 1. 1..2 37. 3.. 11. 2.. -27. growth qoq % -.3. -1. 1.2 -.2.2 -.7 2.7-2.7. -27..2 -. YTD % 3. 2.3-1.. -2..2 -.7 2. -2. 11. -27. 12. -1. Disbursed (Rsbn)..1.1..7 7.. 7...... growth yoy % 7. 31. 27.1 7.1. 3. 3. 2.. 3. 12. -1. growth qoq %.2 1. -. 3. -12.3. -22.7 33. -23..2-33.2.1-2.7 YTD % 13. 31. -..7-7.2. -22.7 3. -.. -33.2.1-2.7 Exhibit : Region wise exposure Region wise AP &Telangana 12. 13. 12. 12.3 1 12 12 11.7 11. 11.2 11. 11. 1. Tamilnadu 3.7 3.3.1 3. 2. 2. 2. 2. 2.7 2. 2. 2. Karnataka 11. 12 11. 11. 12. 12. 12. 12. 12. 12.3 12. 12. 12.3 Kerla 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3. 3.7 3. 3. 3. 3. Maharashtra...1.2.....7...1 Gujarat.3. 1 1.2 1. 1. 1. 2 2 2.1 2.1 Others 3.3 2. 2 2.1 2.3 2.3 2.3 2.3 2. Exhibit : Quarterly asset quality trend Asset Quality GNPA(Rsmn) 77 1 2 1 71 1 123 13 1 177 11 2 growth yoy % -. 3.7. 2.2 2.7 1.3 1. 3.. 27. 2. 2.7 3. growth qoq % 3. -. 77. -2.2 2. -27.7 77.7-12.1 32. -3. 7. 13. 13. NNPA (Rs mn) 332 77 1 3 2 2 2 3 11 122 growth yoy % -27.1 -. 3. 13. 1. -1.2.7.3 1.7 23. 1. 77. 3.3 growth qoq %.2-3. 133.1 -. 1.7-3. 171. -23..2-1.7 1. 1.7 1. Financial Performance Improvement trend Exhibit 1: Margin and margin drivers movement Exhibit 11: Funding Mix trend 12. 12. 12. 12. 12. 12.7 12. 12. 12. 12. 12. 1 1 1 12.1..3..3.....7...2.3.2.2 7 1 1 3 3 2 2 2 22 3 7 17 13 1 1 1 13 1 7 7 7 1 17.7.7..7.....3....3.3.2 3 72 3 72 3 2 3 NIM YoA Bank Borrowing NHB Repco Bank CP/NCD Exhibit 12: Loan book growth trend Exhibit 13: Loan Sanctioned growth 1 2 3 32 32 31 3 27 2 3 31 3 2 2 2 37 3 7 2 3 72 77 7 3. 3. 2.. 1. 1... 12.3 1 1..2 3. 2. 2.3 3. 37. 1. 1... 11. 2. 2 7 7 1-27. 1...... -. -. Loans (Rs bn) growth yoy % Loans Sanctioned (Rs bn) growth yoy % February 1, 17

Repco Home Finance Ltd. / Result Update Exhibit 1: Loan Disbursement growth trend Exhibit 1: Borrowing trend 1.2 7. 7 37.1. 3. 3. 31. 27.1 2.. 7.1 3. 12. 3-1. 2 1 3 1...... -. -. 33. 3 2. 3. 32. 33. 31. 7 3 1 1 1 1 2.1 2.3 7. 3.1 7. 3. 3. 2.. 1. 1... Loans Disbursed (Rs bn) growth yoy % Exhibit 1: Loan Book Mix share Borrowing (Rs bn) growth yoy % Exhibit 17: Loan Book mix of customer segment 3 7 7 7 3 3 3 2 1 1 3 7 7 1 1 1 Housing Loan LAP Salaried Non Salaried Exhibit 1: Net profit growth trend Exhibit : NII growth trend 7 3 3 2 1 1 223 3 22 2 271 1 11 12 13 1 22 31 2 327 37 3 2 31 17 32 3 3 22 3 PAT (Rs mn) growth yoy % 7.... 3.. 1.. 1, 7 3 1 2 2 72 72 37 2 2 2 23 2 2 33 2 27 22 1 3 3 3 2 73 7 3 7 NII (Rs mn) growth yoy % 7.... 3.. 1.. Exhibit : RoA and RoE trend Exhibit : Cost to income and branch trend 2. 2.7 2. 2. 2. 2.3 2.1 2. 2.7 2.7 2.7 2.7 1..2. 2. 2. 2. 2. 1.7 1.1 1. 2.3 17.1 1.7 1. 17. 2.3 2.3 1. 1.3 1.2 1. 1.1 (%... 1. 17. 1. 1. 1 1 1 1 1 1 1 1 2 13 13 1 122 12 13 137 12 1 1 11 1 1 1 1 11 13 13 22.. 1. 1. 1. 12. 1. RoA RoE Branches (incl Satellite centres) COI February 1, 17

Repco Home Finance Ltd. / Result Update Financials Profit and Loss Statement Y/E March FY1 FY17E FY1E FYE Interest Earned,3,73 11,3 1,3 Interest expended,3,1,2,37 Net interest income 3, 3,2,2, Non-interest income 2 323 3 7 Fee Income 2 31 3 3 Others 12 13 1 1 Net total income 3,33 3,,72, Operating expenses 3 71 77 Employee expense 7 73 Other expense 23 22 27 33 Pre- provisioning profit (PPP) 2,3 3,17 3,71,7 Provision & Contingency 32 72 77 3 PBT 2,31 2,33 2, 3, Tax 27 1, 1,31 PAT 1,1 1, 1, 2, Balance Sheet Y/E March FY1 FY17E FY1E FYE Liabilities Equity Capital 2 2 2 2 Reserves,23 1,31 12,7 1,3 Networth, 1, 12, 1, Borrowings,22,3 72,72, Other Liabilities & Provisions 17,32,1 2,3 31,7 Total Liabilities 77,32,7 1,1,73 1,3,2 Assets Current assets,3,7 7,3,37 Investments 12 13 13 1 Advances 72,3,3 1,2,3 1,2, Fixed Assets 3 17 117 127 Total Assets 77,32,7 1,1,73 1,3,2 Growth matrix P&L Y/E March FY1 FY17E FY1E FYE Interest Earned 27. 13. 1.2 2. Interest expended 27.1 12.7 13.1 2. Net interest income 2.2 1.3 1.1 27.1 Non-interest income 22.3 1. 1.. Fee Income. 1.2 1.. Others 1. 1.7 1.. Net total income 27.7 1.3 1.3 2. Operating expenses 17.. 12.. Employee expense 2 2. 12. 22. Other expense 1.1 7. 1.1 1. Pre- provisioning profit (PPP) 3. 17. 17. 27. Provision & Contingency 2.7.3.7 7. PBT 23..7 22. 32. Tax 2. 3. 22. 32. PAT. 7. 22. 32. Growth matrix Balance Sheet Y/E March FY1 FY17E FY1E FYE Net-worth 17. 1. 1. 1. Borrowings 2. 1.2 22. 2. Advances 2. 1.. 23. (Rs mn) Ratios Capital Adequacy Ratios FY1 FY17E FY1E FYE CRAR.7.7 1.7 17. Tier I.7.7 1.7 17. RWA / Total Assets % % % % Asset quality FY1 FY17E FY1E FYE GNPA 1.3 2. 1. 1.3 NNPA. 1.1..7 Slippage Ratio. 1.2.. PCR (ex tech write offs) 3. 1.. Credit Costs. 1...7 Provisioning / avg assets...7. Other operating indicators FY1 FY17E FY1E FYE Yield on advances 12. 11. 11.1 11. Yield on int earning assets 12. 11. 11.1 11. Cost of Funds..7.2.3 NIM..2.1.3 Spread 3. 3. 3. 3.2 Cost to income.3 17. 1. 1. Interest income/total income 1. 1. 1. 1. other income/total income....1 CAR.7.7 1.7 17. Tier I.7.7 1.7 17. Debt Equity Ratio (X).3..7. Tax Rate 3. 3. 3. 3. Valuation Table Net profit (Rs mn) 1,1 1, 1,.1 2,.1 Shares in issue (bn) 2. 2. 2. 2. EPS (Rs) 2. 2.7 31.3 1.7 EPS growth.7 7. 22. 32. PE (x) 2.7 2.. 1. P/PPP (x) 1. 12. 1.. Book value (Rs/share) 12. 17. 3.2 2. P/BV (x).2 3. 3.1 2.7 Adj book value (Rs/share) 1. 1. 1. 22. P/ABV (x).. 3. 2. ROAA 1. 1. 2.1 ROE 17. 1.7 1. 1. Dividend Yield.3... DPS (Rs) 1. 2. 3. 3.3 Du pont Decomposition Yield on Assets 12.3 11. 11. 11.3 Less: Cost of Assets 7. 7.3. 7.1 Net Interest Income..2.1.2 Other Income.... Less: Operating Exp....7 Less: Provisions...7. Less: Tax 1.2 1. 1. 1.1 RoAA 1. 1. 2.1 Leverage 7..2.. RoE 17. 1.7 1. 1. February 1, 17 7

Repco Home Finance Ltd. / Result Update Recommendation rationale Sector rating Buy: Potential upside of >+1% (absolute returns) Accumulate: >+ to +1% Reduce: + to -% Sell: < -% Not Rated (NR): No investment opinion on the stock Overweight: Underweight: Neutral: The sector is expected to outperform relative to the Sensex. The sector is expected to underperform relative to the Sensex. The sector is expected to perform in line with the Sensex. Disclosures This Report is published by Asian Markets Securities Private Limited (hereinafter referred to as AMSEC ) for private circulation. AMSEC is a registered Stock Broker with National Stock Exchange of India Limited and BSE Limited in cash and derivatives segments. It is also having registration as a Depository Participant with CDSL and as Portfolio Manager. AMSEC is registered Research Analyst under SEBI (Research Analyst) Regulations, 1 having Registration Number as INH137. AMSEC has other business divisions with independent research teams separated by Chinese walls, and therefore may, at times, have different or contrary views on stocks and markets. AMSEC or its associates have not been debarred / suspended by SEBI or any other regulatory authority for accessing / dealing in securities Market. AMSEC, its associates or analyst or his relatives do not hold any financial interest in the subject company. AMSEC or its associates or Analyst do not have any conflict or material conflict of interest at the time of publication of the research report with the subject company. AMSEC or its associates or Analyst or his relatives hold / do not hold beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of this research report. AMSEC or its associates / analyst has not received any compensation / managed or co-managed public offering of securities of the company covered by Analyst during the past twelve months. AMSEC or its associates have not received any compensation or other benefits from the company covered by Analyst or third party in connection with the research report. Analyst has not served as an officer, director or employee of Subject Company and AMSEC / analyst has not been engaged in market making activity of the subject company. Analyst Certification:I, Rakesh Shinde,the research analysts and authors of this report, hereby certify that the views expressed in this research report accurately reflects my personal views about the subject securities, issuers, products, sectors or industries. It is also certified that no part of the compensation of the analyst(s) was, is, or will be directly or indirectly related to the inclusion of specific recommendations or views in this research. The analyst(s) principally responsible for the preparation of this research report and has taken reasonable care to achieve and maintain independence and objectivity in making any recommendations. 1. Name of the analyst: Rakesh Shinde 2. Analysts ownership of any stock related to the information contained: Nil 3. AMSEC ownership of any stock related to the information contained: None. Broking relationship with company covered: None. Investment Banking relationship with company covered: None February 1, 17

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