ASPIRE Home Finance Corporation Limited (AHFCL)

A New Beginning in Indian Home Finance Industry

A Motilal Oswal Group Company

Company Presentation

September 2017

ASPIRE Home Finance Corporation LimitedContents

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 Sept 30, 2017

11. Financials

ASPIRE Home Finance Corporation LimitedIndian Mortgage Market Overview

Source: Industry Research, IMF, European Mortgage Federation

Indian Mortgage Market Space is on solid footing given strong demand drivers

Mortgage as a % of GDP

Consequently, Mortgage/GDP ratio is expected to increase, thereby offering a significant value proposition

• More than 95% of housing shortage in India is due to demand

supply mismatch in low cost and affordable housing

• While of late, builders and developers have evinced interest in

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

player specializing in providing finance towards

purchase of affordable housing units

Genesis of AHFCLAffordable Housing: The Key Growth Driver

Affordable housing would be driving the demand in Indian housing sector forming a

major portion of required 88.78 million housing units.

1. Favourable Demographics: Rising Working Age Population

2. Increased Migration to cities and towns: Urbanization &

Nuclearization

3. Rising Affordability: Increase in disposable income

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

HIG >10 Lakhs >1200 >50 Lakhs Premium

ASPIRE Home Finance Corporation LimitedAbout Us

• 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

Focus on Affordable Housing

• AHFCL operates in an income segment which is underserved by financial institutions

• 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

Niche Operations

• 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

• 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

Experienced Management

• 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 LimitedTarget Market

Target Customer Segment

Target Geographies

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

AHFCL Journey Till Date

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

May 2014Commencement of Business operations from 22nd May post receiving Certificate of Registration from the National Housing Bank

Oct.-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

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

Oct.-Dec. 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 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

• Q1 profit at Rs.13.40 crs

July-September 2016• Awarded “Most

Admired Brand for Affordable Loans of the year” by 24 MRC Network

• Presence at 74 locations. Staff of more than 700

• Loan book of Rs.3,066 crs and 32,177 accounts

• H1 PAT at Rs.36.53 crs

• Launched “Aspire Customer App.”

Oct-Dec. 2016• Presence extended to 84

locations with staff count of more than 600

• Loan book of Rs.3,320 crs and 35,942 live accounts

• Launched “Aspire Sales App and Credit App.”

• 9M PAT at 53.5 crs

January-March 2017• Launched “ASPIRE SMART

TRACK and ASPIRE Vendor Management APP.”

• MD & CEO Awarded “Entrepreneur of the Year (Finance) Award” by 24MRC Network

• Takes strong step towards having National Presence by expanding to 6 new states

• Presence across 121 locations with staff count of 1049 people

• Provided subsidy to 1348 customers cumulatively under CLSS scheme of PMAY

• Loan book of Rs.4,165 crs with 46,142 live accounts

• FY 16-17 PAT at Rs. 82.7 crs

April -June 2017• Second prize for

“Best Performing PLI under PMAY by MHUPA

• Winner “Best NBFC” and Runner up “Eco-Tech Savvy NBFC” at MSME Excellence Awards

• Loan book of Rs.4314.10 crs with 48,418 live accounts

• PAT at 14.1 crs

July-Sept. 2017• Awarded “Best

Prestigious Brands 2017 by BARC Asia.

• Winner of “Business Excellence in Housing Finance 2017” –Jalgaon Branch

• Loan book of Rs.4817.93 crs with 54,933 live accounts

• PAT at 36.5 crs

ASPIRE Home Finance Corporation LimitedBoard Overview

Mr. Motilal OswalChairman

• 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 is the Chairman of AHFCL

Mr. Raamdeo Agrawal Joint MD, MOFSL

• 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

Study since 1996

• He was also conferred with the ‘Special contribution to Indian Capital Market Award’ by Zee Business in 2011

Mr. Anil SachidanandMD & CEO

• Mr. Anil Sachidanand is a practitioner of over 28 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 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 LimitedBoard Overview

Mr. Hemant KaulIndependent Director

• 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

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

Mrs. Smita GuneIndependent Director

• 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

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

Mr. Sanjaya KulkarniIndependent Director

• 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

• He is an engineer from IIT Mumbai and has done MBA from IIM Ahmedabad

ASPIRE Home Finance Corporation LimitedKey People

Mr. Satish KotianChief Operating Officer

• 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

• Prior to Joining AHFCL, Mr. Satish was with DHFL as Sr. VP (IT & Operations)

Mr. Kalpesh OjhaChief Financial Officer

• Mr. Kalpesh Ojha, ACA, CS, MFM, has over 20 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’s last stint was with Reliance ADA Group as Sr. Vice President

Mr. Sudhir MenonHead Credit

• Mr. Sudhir Menon has 20 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

credit-underwriting, business development, and international experience - working in Dubai and India

ASPIRE Home Finance Corporation LimitedKey People

Mr. Kalpesh R DaveHead Corporate Planning

• Mr. Kalpesh R Dave has 12 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 budgeting,

financial modeling, identification / evaluation of business opportunities and managing operational

improvement initiatives

Mr. Rajaram ManianRisk Head

• Mr. Rajaram Manian brings in 18 years of dedicated experience in risk, credit and finance domain in

financial services space

• He has been instrumental in setting up entire risk solutions for IDFC Bank in his erstwhile stint

• He has completed his post graduation in finance and carries B.Com degree from Bharathiar University,

Coimbatore

Mr. Sachin KotkarInsurance Head

• Mr. Sachin Kotkar is an astute & result oriented marketing professional with 15 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

various levels

ASPIRE Home Finance Corporation LimitedKey People

Mr. Tahir ShahHead Technology Support

• Mr. Tahir Shah brings in 19 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

staff gearing them up for optimal use of the technology platform

Mr. Shakir SheikhRegional Business Head

• 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

• Prior to joining AHFCL, Mr. Shakir was with India Shelter Finance Corporation Limited as legal head

ASPIRE Home Finance Corporation LimitedKey People

Mr. Sandeep KadamABH - Pune

Mr. Ashok JasaniABH - Gujarat

Mr. Girish BhatSBH - Karnataka

Mr. Rajesh GopinathSBH - Tamil Nadu

Mr. Amit SarinSBH - Rajasthan

Mr. Giri Babu M. S.SBH – AP / TEL

ASPIRE Home Finance Corporation LimitedProducts and Services

Products

Aspire PropertyServices

Home loans (New Purchase / Resale)

Plot loans

Construction loans

Composite loans

Home Extension loans

Home Improvement loans

Mahila Awaas Loan from Aspire (MALA)

Residential (Retail)

Commercial (Developers)

Consultancy

Property search (purchase / resale / rent / sale / lease), market intelligence, finance assistanceProperty 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)

InsuranceServices

Providing assistance to the customers for Life, Non-Life and Health insurance cover across all branches

ASPIRE Home Finance Corporation LimitedRobust Business Processes

Collection through Post Dated Cheque / ECS / ACHPeriodic 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

At AHFCL Branches

Screening of property and related documentsa. Legal evaluation

Output: Legal Appraisal Report

a. Technical evaluation Output: Technical Appraisal Report

At AHFCL Head Office

• 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

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

3.

4. 5.

End to End Processing through Core Lending Suite

Screening by the appraisal officer througha. Income verificationb. Employer / business verificationc. Residence verificationd. Personal discussionOutput: Credit Appraisal Report

2.Sourcing of home loan applications through • In House team: Relationship

Officers, Assistant Sales Managers and Sales Managers

• Supplemented by Business Associates

1.

ASPIRE Home Finance Corporation LimitedAHFCL Network : As of Sept 30, 2017

Physical presence across 9 states through 120 locations

Maharashtra (38)

Mumbai (14)

Gujarat (24)

Rajasthan (8)

Karnataka (9) Tamil Nadu (9)

AP (3)

Madhya Pradesh (11)

Telangana (1)

Chhattisgarh (3)

ASPIRE Home Finance Corporation Limited

Portfolio Split

Business Performance: As of Sept 30, 2017FY’17-18 – Q2 Inwards Sanctions Disbursements

Number of Accounts 29,060 15,315 11,948

Amount (In Rs. crs) 3001 1,312 958

Portfolio Details

Loan Outstanding (In Rs. crs) 4,817.93

No of Live Accounts 54,933

Average Ticket Size (In Rs. Lakhs) 9

Salaried : Self Employed (No of Customers) 52 : 48

Average Loan to Value Ratio 58.33%

Gross NPA (%) 2.84%

Net NPA (%) 2.40%

Region wise

Product wise

ASPIRE Home Finance Corporation LimitedFinancials P&L Statement (In Crs.) FY'15-16 FY’16-17 H1‘16-17 H1‘17-18 % chg.

Net Interest Income 47.6 125.9 53.9 98.9 83%

Fee Based Income 63.3 95.1 45.5 37.9 -17%

Total Income 110.9 221 99.4 136.8 38%

Operating Expenses 14.3 35.5 15 23.9 59%

Manpower Expenses 16.3 36.2 17.3 28.6 65%

Business Srcng. Expenses 10.5 8 6 6.1 2%

Depreciation 1 3.3 1.1 3 173%

PBT Before Provisions 68.8 138 60 75.2 25%

Provisions 7.5 12.3 4.8 19.3 302%

PBT After Provisions 61.3 125.7 55.2 55.9 1%

Tax 21.3 43.6 19 19.4 2%

PAT 40 82.1 36.1 36.5 1%

B/s (In crs.) Mar 31, 2016 Mar 31, 2017 Sept 30, 2017

Equity 307 509 611

Res and Surplus 42 124 162

Borrowings 1794 3798 3972

Sources of Funds 2143 4431 4744

Gross Assets 5 16 22

Depreciation 1 5 8

Net Assets 4 11 14

Loans and Advances 2089 4142 4,819

Others 11 27 20

Net Current Assets 40 250 (109)

Appln. of Funds 2143 4431 4744

THANK YOUSuccess 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