ASPIRE Home Finance Corporation Limited

(AHFCL)

A New Beginning in Indian Home Finance Industry

A Motilal Oswal Group Company

Corporate Presentation

ASPIRE Home Finance Corporation LimitedContents

1. Indian Mortgage Market Overview

2. Our Journey in FY’2014-15

3. About Us

4. Target Market

5. Board Overview

6. Senior Management

7. Key Differentiators

8. Robust Business Processes

9. AHFCL Branch Network

10.Business Performance: As of March 31, 2015

11.Audited Financials

ASPIRE Home Finance Corporation LimitedIndian Mortgage Market Overview

0%

25%

50%

75%

100%

8%17% 20% 26% 29% 32% 39% 41% 48%

81% 88%

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

Apr 2014

May 2014

Jun 2014 Jul 2014 Aug 2014

Sep 2014

Oct 2014 Nov 2014

Dec 2014

Jan 2015 Feb 2015

Mar 2015

ASPIRE Home Finance Corporation LimitedOur Journey in FY’2014-15

FY’13-14 •Loss at Rs.27.5 lacs •Total staff: 6 employees•Approval from NHB Awaited

•Cumulative sanctions cross 150 files•First disb. booked from Akola branch

•Tie up with Life, Non Life and Health insurance partners finalized

•Cumulative inwards cross Rs.175 crs•Cumulative sanctions cross Rs.115 crs

•Mumbai region crosses Rs.50 crs of cumulative disbursements

•Cumulative inwards cross Rs.500 crs•Cumulative sanctions cross Rs.371 crs•Loans extended to more than 2500 families

•Cumulative inwards cross 450 files•Rs.10 crs disbursed in a month

•Rated “A/Stable” by CRISIL for Rs.100 crs of bank loan facilities•Cumulative sanctions of Rs.90 crs•Loan book crosses Rs.50 crs

•Rated “A/Stable” by CRISIL for Rs.100 crs of NCDs•Rs.50 crs of NCDs issued•Loans to 1000 families

•Rated A1+ by ICRA for Rs.50 crs of CPs•Rs.50 crs of CPs issued•First term loan drawdown

•Rs.100 crs disbursed in a month•Loan book at Rs.357.36 crs with 3565 live accounts•Total staff: 160 employees

•May 19: Approval from NHB received•May 22: Business operations initiated

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 Operation

s• 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 appointed M/s B S R & Co (Member firm of the KPMG network), as its

statutory auditor

• AHFCL has been rated “CRISIL A+/Stable” by CRISIL 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 Geograph

ies

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

ASPIRE Home Finance Corporation LimitedBoard Overview

Mr. Motilal Oswal

Chairman• 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. Anil SachidanandMD & CEO• AHFCL is professionally managed

by Mr. Anil Sachidanand who is a

practitioner of over 25 years in

home finance business

• 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

• Mr. Anil is MD & CEO of AHFCL

Mr. Raamdeo Agarawal

Joint MD, MOFSL• Mr. Raamdeo Agarawal 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

ASPIRE Home Finance Corporation LimitedSenior Management

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 20 years

in the home finance industry

• Prior to Joining AHFCL, Mr. Satish was with Dewan Housing Finance

Corporation Limited (DHFL), Mumbai as Head - IT. Mr. Satish was responsible

for commission & execution of process improvement project at DHFL

Mr. S Y SankheCompany Secretary &

Legal Head

• Mr. S Y Sankhe has more than three decades of rich experience in Banking

(Union Bank of India for 8 years), Legal, Secretarial and Finance in reputed

listed companies. In his previous assignment, Mr. Sankhe was with DHFL as

Vice President - Company Secretary and Business & Corporate Legal

• Mr. Sankhe is a member of Bar Council of Maharashtra and Goa. He is also a

fellow member of Institute of Company Secretaries of India and Associate

member of Indian Institute of Bankers

Mr. Kalpesh OjhaChief Financial Officer

• Mr. Kalpesh Ojha 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’s last stint was with “Reliance ADA Group” as Sr. Vice President

• Mr. Kalpesh is a Chartered Accountant, Company Secretary and has done

MFM from JBIMS

ASPIRE Home Finance Corporation LimitedSenior Management

Mr. Sudhir MenonHead Credit

• Mr. Sudhir Menon has 18 years of experience in home loans industry (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

Mr. Kalpesh R DaveHead Corporate Planning

• Mr. Kalpesh R Dave has 8 years of experience in the field of finance, business

development and planning. Prior to joining AHFCL, he was working with

DHFL in corporate strategy group and later in retail liability business vertical

handling pan India sourcing network

• Mr. Kalpesh has expertise in setting and implementing business strategy

across functions, planning and budgeting, identification and evaluation of new

business opportunities and managing operational improvement initiatives

Mr. Tahir ShahHead Technology

• 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 has played a critical role in ongoing

enhancements of the lending suite and attuning the same as per business

requirements.

• 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.

ASPIRE Home Finance Corporation LimitedSenior Management

Mr. Raj RaiHead Operations

• Mr. Raj 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 management, client relationship management, process re-

engineering, risk management and system implementation

Mr. Subodh KuckianRBH - Mumbai &

Maharashtra

• Mr. Subodh Kuckian is a banking professional with 12 years of experience

• He has outstanding product and operational knowledge in housing finance

sector with an expertise in industry analysis, IT business processes, Key

Account Management, and Relationship Management

• Prior to joining AHFCL, Mr. Subodh was associated with IDBI bank as

Assistant General Manager & Center Head - Home Loans, Mortgage Loans,

Auto Loans and Educational Loans

Mr. Shakir SheikhRBH - Madhya Pradesh &

Gujarat

• Mr. Shakir Sheikh is a mortgage finance professional having 27 years of

experience in the industry

• His expertise covers areas of sales, credit and operations including the legal

aspects of home finance

• He has wide exposure in marketing, sales planning, credit risk assessment and

branch operations

• Prior to joining AHFCL, Mr. Shakir was with India Shelter Finance

Corporation Limited as legal head

ASPIRE Home Finance Corporation LimitedKey Differentiators

• AHFCL is a differentiated proposition in the market having innovative home loan

products tailoring to the needs of customers

• Customized product offerings and alignment of business processes towards the

requirements of customers provide the much needed flexibility throughout the loan life

cycle

• AHFCL policies and guidelines are designed to be enablers in making credit available

to deserving customers

• AHFCL underwriting philosophy is centred towards identifying the target customers

who have the ability and willingness to pay

• Leveraging on its team’s unparalleled experience in the industry, AHFCL offers a

bouquet of allied services: Property advisory & research, Technical consultancy &

Project management to individuals / builders / developers

• AHFCL provides third party insurance services, both life and non life to its customers

• AHFCL is the unique HFC in the mortgage market to offer Energy efficient housing

solutions, House to home solutions and Investment advisory services

Customized

Product Offerings

Focused Policies

and Guideline

s

End to End

Allied Services

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

b.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

AHFCL currently covers 34 locations in Maharashtra, Madhya Pradesh, Gujarat and Telangana

Maharashtra

Pune 01Ahmednagar

Pune 02 Nashik

Pimpri Akola

Chakan Nagpur

Daund Amrawati

Satara Kolhapur

MumbaiVirar Titwala

Kalyan Pen

Panvel Naigaon

Palghar

GujaratAhmedabad

Rajkot

Chandkheda

Mehsana

Surat 01 Narol SanandHimmatnagar

Surat 02Naroda

Kadi Bhavnagar

Madhya Pradesh

IndoreBhopal

TelanganaHyderabad

Portfolio Split

ASPIRE Home Finance Corporation LimitedBusiness Performance: As of March 31, 2015 Inwar

dsSanctio

nsDisburseme

nts

Number of Accounts

6,106 4,740 3,565

Amount (In Rs. crs)

698.07 522.09 358.64

Portfolio Details

Loan Outstanding (In Rs. crs) 357.36

Average Ticket Size (In Rs. Lakhs) 10.06

Salaried : Self Employed (No of Customers)

59 : 41

Average Loan to Value Ratio71.59

%

Average Instalment to Income Ratio

43.06%

Average FOIR46.36

%

36%

31%

14%

16%

3% MumbaiRest of Ma-harashtraMadhya PradeshGujaratHyderabad

Region wise

Product wise

73%

13%

12%1%1%

New Purchase

Resale

Composite

Home Extn

Home Impvt

ASPIRE Home Finance Corporation LimitedAudited Financials

Profit and Loss Statement

In Rs. Crs. FY’2013-14 FY’2014-15

Interest Income 0.00 10.30

Interest Expense 0.00 4.30

Net Interest Income 0.00 6.00

Other Income 0.00 13.61

Total Fee and Other Income

0.48 19.61

Operating Expenses 0.43 4.80

Business Sourcing Expenses 2.44

Manpower Expenses 0.32 6.86

Depreciation and Amortization

0.00 0.23

Provisions 0.00 1.43

Total Expenses 0.75 15.76

Profit Before Tax -0.28 3.85

Tax 0 1.68

Profit After Tax -0.28 2.17

Balance Sheet Statement

In Rs. Crs.Mar 31,

2014Mar 31,

2015

Equity 15.00 150.00

Reserves & Surplus -0.28 1.90

Total Net Worth 14.72 151.90

Long Term Borrowings 0.00 150.55

Long Term Provisions 0.00 1.50

Short Term Borrowings 0.00 22.00

Short Term Provisions 0.00 2.34

Other Liabilities 0.05 72.10

Total Sources of Funds 14.77 400.39

Net Tangible Assets 0.02 0.97

Deferred Tax Assess 0.00 0.29

Loans and Advances 0.47 360.83

Other Assets 0.01 21.67

Cash and other Balances 14.27 16.63

Total Application of Funds 14.77 400.39

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