Slides
Page 1
Performance review Quarter ended Mar, 2025 (Q4FY25) Bloomberg: IIFL IN May 8, 2025
Page 2
2 Key Highlights 3 – 8 IIFL Finance Consolidated – Q4FY25 update 9 – 27 IIFL Finance Standalone – Q4FY25 update 28 – 33 IIFL Home Finance – Q4FY25 update 34 – 39 IIFL Samasta Finance – Q4FY25 update 40 – 45 Corporate Information 46 – 55
Page 3
KEY HIGHLIGHTS
Page 4
4 FY25 in Perspective – From setback to strength 431 338 (93) 82 251 26,081 23,354 14,738 10,194 10,797 15,044 21,022 Mar 4, 2024 Q4FY24 Q1FY25 Sep 19, 2024 Q2FY25 Q3FY25 Q4FY25 Consolidated PAT (₹ Cr) Gold Loan AUM (₹ Cr) We are back on track Compliance • Successfully met all compliance requirements of RBI - fully compliant & operational today • Strengthened governance, compliance, and digital risk management framework Business • Gold loan assets doubled in 6 months of embargo lifting, still lower by 10% y-o-y. • Rebounded with consolidated PAT trebling qoq to ₹251 Cr • Maintained liquidity buffer of ₹5,216 Cr • Protected AA/Stable credit rating Strategy • Pivoted focus to MSME - ₹9,430 Cr new disbursals in FY25 Trajectory improving in core businesses with acceleration visible in FY26 Gold loan embargo by RBI March 4, 2024 Embargo lifted September 19, 2024
Page 5
IIFL Finance (Consolidated): Quarter at a Glance 5 ₹ Cr Q4FY25 Q-o-Q Loan AUM 78,341 10% Disbursal (Core business) 19,700 12% Gross NPA % 2.2% (19 bps) Net NPA % 1.0% 4 bps PAT (pre NCI) 251 208% Cost to Income % 52.8% (3.0%) Opex to AUM % 4.0% (0.3%) ₹ Cr Q4FY25 Net Gearing 3.4x CRAR (Computed) 29.0% Liquidity 5,216 Branch Network 4,906 Customers 4.5 Mn ROA % 1.6% ROE % 7.0% Note: CRAR for IIFL Finance (Standalone) is 18.5%, for IIFL Home Finance 47.2% and IIFL Samasta Finance 32.4%. CRAR for IIFL Finance (Consolidated) of 29.0% is a computed figure.
Page 6
Strategy focused on collateral-backed, high-growth retail lending 6 Partnerships Strategic alliances with banks to source high-quality retail and PSL loans, complemented by fintech collaborations that accelerate customer acquisition and deliver superior user experiences. Phygital A robust network of ~4,900 branches powering origination, collection, and secure gold storage - integrated with advanced digital platforms that enhance cost efficiency, customer engagement, and credit underwriting. Two-pronged strategy Business Model Our Competitive Moat Deep Management Expertise Strong Balance Sheet & Financials Rigorous Risk, Compliance & Control Trusted Brand & Market Leadership Operational Excellence & technology leadership Uniquely Positioned for High-ROE, Scalable Growth in Retail Lending Focused on collateral-backed and cash flow-based retail loans across high-growth, resilient segments
Page 7
MSME Lending is the new growth engine 7 Tapping India’s vast MSME potential with Scalable, Digital Lending Market Opportunity Source: Crisil Research • MSME sector: ₹20-25 lakh crore of unmet credit demand • 80%+ of MSMEs remain outside formal credit—huge growth runway • Government initiatives (e.g., Credit Guarantee schemes) and robust digital infrastructure provide strong momentum • Group-wide network of 4,900+ branches ensures deep market penetration • Digital and AI-powered underwriting engines and early warning systems drive superior asset quality • Loans qualify for PSL, enabling strong bank partnerships and co-lending opportunities IIFL Strengths
Page 8
FY26 – Strategic priorities & Outlook 8 Management Estimates FY26 Loan book growth % yoy Home Loan 15 - 18% Gold Loan 25 - 30% MSME Loan 25 - 30% Microfinance 5 - 10% Average Interest Spread % 6.9 - 7.0% (FY25: 6.7%) Opex (% of avg AUM) 4.2 - 4.3% (FY25: 4.1%) Loan loss & provisions (% of avg loan book) 2.5 - 2.7% (FY25: 3.1%) ROE % ~16% (FY25: 3.4%) • Growth Strategy: We maintain a prudent approach to expanding balance sheet assets, while allowing relatively faster growth in risk-off assets, particularly within the Microfinance and Gold Loan businesses. • Business Mix: Leverage our distribution network and customer base to drive MSME growth, regain lost business, and sustain steady growth in gold and home loans. • Technology: Overhaul existing infrastructure and invest aggressively in AI to digitize and automate workflows and customer touchpoints. • Risk & Compliance: Ensure foolproof RBI compliance through multi-layered monitoring and robust control mechanisms. Off-balance sheet asset growth will be calibrated based on appetite and demand from bank partners and margins are expected to remain stable Note: Increase in tech cost by 40% for investment in AI / Digital.
Page 9
IIFL FINANCE (CONSOLIDATED)
Page 10
Note: (All figures unless specified is for FY25) 1. PPOP: Pre-provision Operating Profit, excluding gain/(loss) on fair value changes 2. NCI: Non-Controlling Interest 3. Return on Equity is calculated on Profit after tax post Non-Controlling Interest for FY25 4. Net gearing is calculated after reducing free cash/ liquid assets and securitized assets from the gross debt as per Ind AS accounting 5. Other abbreviations used: ROE: Return on Equity, ROA: Return on Assets, EPS: Earnings per share, BVPS: Book value per share ROA 0.9% ROE3 3.4% Net gearing4 3.4x Liquidity ₹5,216 Cr Basic EPS ₹9.1 BVPS (₹2 paid up) ₹286.0 IIFL Finance (Consolidated): Q4FY25 and FY25 Results snapshot ₹ Cr Q4FY25 Q3FY25 Q-o-Q Q4FY24 Y-o-Y FY25 FY24 Y-o-Y Loan AUM 78,341 71,410 10% 78,960 (1%) 78,341 78,960 (1%) PPOP1 651.2 534.3 22% 1,001.3 (35%) 2,572.8 3,679.2 (30%) PBT (before exceptional items) 309.5 101.0 206% 553.7 (44%) 1,293.5 2,571.9 (50%) Exceptional items - - - (586.5) - PBT (after exceptional items) 309.5 101.0 206% 553.7 (44%) 707.0 2,571.9 (73%) PAT (pre NCI2) 251.4 81.7 208% 430.6 (42%) 578.1 1,974.2 (71%) PAT (post NCI2) 207.7 40.7 410% 373.4 (44%) 378.8 1,763.5 (79%) Gross NPA % 2.2% 2.4% (19 bps) 2.3% (10 bps) 2.2% 2.3% (10 bps) Net NPA % 1.0% 1.0% 4 bps 1.2% (15 bps) 1.0% 1.2% (15 bps) 10
Page 11
₹ Cr Q4FY25 Q3FY25 Q-o-Q Q4FY24 Y-o-Y FY25 FY24 Y-o-Y Interest income 2,201.7 1,942.6 13% 2,195.0 0% 8,165.3 8,036.2 2% Interest expense (1,169.4) (995.7) 17% (1,062.8) 10% (4,169.5) (3,867.8) 8% Net interest income 1,032.4 947.0 9% 1,132.2 (9%) 3,995.8 4,168.4 (4%) Non-fund based income 355.5 335.1 6% 638.2 (44%) 1,540.3 2,317.5 (34%) Total income 1,387.9 1,282.0 8% 1,770.4 (22%) 5,536.1 6,485.9 (15%) Operating expense (736.6) (747.8) (1%) (769.1) (4%) (2,963.4) (2,806.7) 6% Pre provision operating profit 651.2 534.3 22% 1,001.3 (35%) 2,572.8 3,679.2 (30%) Loan losses & provision (348.7) (491.4) (29%) (235.6) 48% (1,498.0) (911.3) 64% Net Gain/(Loss) on Fair Value Changes 7.0 58.2 (88%) (212.0) (103%) 218.8 (196.0) (212%) PBT (before exceptional items) 309.5 101.0 206% 553.7 (44%) 1,293.5 2,571.9 (50%) Exceptional items1 - - - (586.5) - PBT (after exceptional items) 309.5 101.0 206% 553.7 (44%) 707.0 2,571.9 (73%) Profit after tax (pre NCI) 251.4 81.7 208% 430.6 (42%) 578.1 1,974.2 (71%) Minority Interest (43.7) (41.0) 7% (57.2) (24%) (199.4) (210.7) (5%) Profit after tax (post NCI) 207.7 40.7 410% 373.4 (44%) 378.8 1,763.5 (79%) Total Comprehensive Income (post NCI) 198.3 45.3 338% 367.7 (46%) 367.5 1,747.8 (79%) Book value per share (₹) 286.0 281.4 2% 244.2 17% 286.0 244.2 17% Earnings per share (₹ basic, not annualized) 4.9 1.0 410% 9.8 (50%) 9.1 46.3 (80%) IIFL Finance (Consolidated): Q4FY25 and FY25 Results 11
Page 12
₹ Cr Q4FY25 Q3FY25 Q-o-Q Q4FY24 Y-o-Y FY25 FY24 Y-o-Y Loan Book (Ind AS Balance sheet) 54,946 49,702 11% 50,833 8% 54,946 50,833 8% Assigned assets 12,789 12,472 3% 16,340 (22%) 12,789 16,340 (22%) Co-lending book 10,606 9,236 15% 11,786 (10%) 10,606 11,786 (10%) Loan Assets under management 78,341 71,410 10% 78,960 (1%) 78,341 78,960 (1%) Interest income 2,201.7 1,942.6 13% 2,195.0 0% 8,165.3 8,036.2 2% Interest expense (1,169.4) (995.7) 17% (1,062.8) 10% (4,169.5) (3,867.8) 8% NII at IndAS balance sheet loan book (A) 1,032.4 947.0 9% 1,132.2 (9%) 3,995.8 4,168.4 (4%) Income from Assigned Assets 152.1 69.4 119% 200.2 (24%) 511.7 980.2 (48%) Income from Co lending Assets 115.0 121.3 (5%) 243.4 (53%) 572.9 723.4 (21%) Other Income 88.4 144.5 (39%) 194.6 (55%) 455.8 613.9 (26%) Non-fund based income (B) 355.5 335.1 6% 638.2 (44%) 1,540.3 2,317.5 (33%) Total Income (A)+(B) 1,387.9 1,282.0 8% 1,770.4 (22%) 5,536.1 6,485.9 (15%) Fund based income 74% 74% 64% 72% 64% Non-fund based income 26% 26% 36% 28% 36% IIFL Finance (Consolidated): Income Analysis Note: 1. Co-lending includes Business Correspondence and Co-origination 2. Previous period figures have been regrouped/ reclassified to make them comparable with those of current period 12
Page 13
Consolidated balance sheet as at March 31, 2025 ASSETS (₹ Cr) LIABILITIES AND EQUITY (₹ Cr) 1 Financial Assets 1 Financial Liabilities (a) Cash and Bank Balances 4,192 (a) Payables 220 (b) Receivables 108 (b) Borrowings (c) Loan Assets 55,364 - Debt Securities 16,772 (d) Investments 4,438 - Borrowings (Other than Debt Securities) 31,059 (e) Other financial assets 1,193 - Subordinated Liabilities 3,237 (c) Other financial liabilities 2,044 Total Financial Assets (A) 65,295 Total Financial Liabilities (A) 53,332 2 Non-Financial Assets 2 Non-Financial Liabilities (B) 357 (a) Current & Deferred tax assets (Net) 655 3 Equity (b) Property, Plant and Equipment etc. 1,510 (a) Equity share capital 85 (c) Other non-financial assets 185 (b) Other Equity 12,327 Total Non-Finance Assets (B) 2,349 Shareholder’s Equity (C) 12,412 Non Controlling Interest (D) 1,543 Total Assets (A)+(B) 67,644 Total Liabilities and Equity (A)+(B)+(C)+(D) 67,644 13
Page 14
44,688 51,210 64,638 78,960 78,341 FY21 FY22 FY23 FY24 FY25 IIFL Finance (Consolidated): Key highlights 5.9% 6.5% 7.8% 7.9% 6.7% FY21 FY22 FY23 FY24 FY25 Asset quality Average interest spread AUM (₹ Cr) Cost to Income 2.0% 2.7% 3.3% 3.4% 0.9% 15.3% 20.6% 19.9% 18.4% 3.4% FY21 FY22 FY23 FY24 FY25 Return on Assets Return on Equity 761 1,188 1,608 1,974 578 FY21 FY22 FY23 FY24 FY25 Return on assets/equity Profit after tax2 (₹ Cr) 35.4% 39.5% 43.0% 44.6% 51.5% FY21 FY22 FY23 FY24 FY25 2.0% 3.2% 1.8% 2.3% 2.2% 0.9% 1.8% 1.1% 1.2% 1.0% FY21 FY22 FY23 FY24 FY25 GNPA % NNPA % 14 Note: 1. Previous period figures have been regrouped/ reclassified to make them comparable with those of current period 2. PAT CAGR excludes exceptional items
Page 15
IIFL Finance (Consolidated): Funding mix Off-book (₹ Cr, as % of AUM) 11,076 17,143 24,536 28,126 23,395 25% 33% 38% 36% 30% FY21 FY22 FY23 FY24 FY25 Off-book mix Net gearing 100% 83% 69% 59% 55% 17% 31% 41% 45% FY21 FY22 FY23 FY24 FY25 Direct Assignment Co-lending 4.8 4.2 3.5 3.7 3.4 FY21 FY22 FY23 FY24 FY25 Note: 1. Net gearing is calculated after reducing free cash/ liquid assets and securitized assets from the gross debt as per Ind AS accounting 2. Co-lending includes Business Correspondence and Co-origination 3. Borrowings is without INDAS adjustment 15 Borrowing (₹ Cr) Borrowing mix Cost of borrowing 44% 48% 54% 52% 41% 32% 27% 27% 23% 33% 10% 15% 15% 17% 13% 14% 9% 4% 9% 13% FY21 FY22 FY23 FY24 FY25 Securitization & others Refinance Debentures Term Loan 31,393 35,586 38,691 45,993 50,931 FY21 FY22 FY23 FY24 FY25 9.1% 8.7% 8.8% 9.1% 9.2% FY21 FY22 FY23 FY24 FY25
Page 16
Adequate liquidity, well covered to meet obligations and sustain growth (₹ Cr) 16 Asset Liability Match (ALM) - Surplus across all buckets Well covered Debt Repayment Schedule 1,029 2,506 4,361 7,537 11,096 19,234 37,825 51,038 73,664 4,391 7,347 11,235 15,057 20,873 31,031 49,850 56,280 73,664 14 days 1 month 2 months 3 months 6 months 1 year 3 years 5 years All 1,960 3,883 7,629 9,283 10,221 11,594 12,790 13,661 15,030 16,421 17,092 19,846 Principal Free Cash + undrawn lines = ₹5,216Cr Interest
Page 17
Over the last 5 years, we have made strategic shifts to focus on providing retail, secured credit to small businesses and homes 17 Loan AUM (₹ Cr) FY21 FY22 FY23 FY24 FY25 Q4FY24 Q3FY25 Q4FY25 Q0Q % YoY % Mix% FY21 Mix% Q4FY25 Yield Home Loan 14,439 17,727 21,800 27,438 31,588 27,438 30,318 31,588 4% 15% 32% 40% 10.97% Gold Loan 13,149 16,228 20,733 23,354 21,022 23,354 15,044 21,022 40% (10%) 29% 27% 17.83% MSME loan 7,101 6,691 8,195 12,021 14,185 12,021 13,903 14,185 2% 18% 16% 18% 19.05% a) MSME Secured 5,597 5,731 6,706 8,642 8,972 8,642 8,725 8,972 3% 4% 13% 11% 18.52% b) MSME Unsecured 1,504 960 1,482 2,969 4,444 2,969 4,477 4,444 (1%) 50% 3% 6% 21.16% c) Supply chain finance - 1 8 410 769 410 702 769 10% 88% 0% 1% 13.17% Microfinance 4,738 6,155 9,786 13,094 9,859 13,094 10,339 9,859 (5%) (25%) 11% 13% 24.35% Core Business 39,427 46,801 60,515 75,907 75,907 75,907 69,604 75,907 10% 1% 88% 98% 16.07% CRE 4,235 2,899 2,694 1,857 839 1,857 883 839 (5%) (55%) 10% 1% 15.80% Capital market finance 663 642 442 308 609 308 591 609 3% 98% 1% 1% 11.94% Personal loan 364 868 987 888 239 888 332 239 (28%) (73%) 1% 0% 24.65% Total 44,688 51,210 64,638 78,960 78,341 78,960 71,410 78,341 10% (1%) 16.06% Note: 1. Abbreviation: CRE - Construction & Real Estate Finance 2. Personal loan has been discontinued
Page 18
GNPA % Q4FY25 Q3FY25 QoQ Q4FY24 YoY Home Loan 1.41% 1.29% 0.12% 1.19% 0.22% MSME Loan 3.84% 3.99% (0.15%) 2.52% 1.32% a) MSME Secured 3.45% 4.05% (0.60%) 2.96% 0.50% b) MSME Unsecured 4.57% 4.32% 0.25% 2.53% 2.04% c) Supply Chain Finance 1.69% 0.83% 0.86% 0.08% 1.61% Gold Loan 0.54% 0.66% (0.11%) 3.83% (3.28%) Microfinance 4.81% 5.07% (0.26%) 1.91% 2.90% Core Business 2.20% 2.40% (0.20%) 2.17% 0.03% CRE 3.09% 2.04% 1.05% 3.15% (0.06%) Capital Market 0.00% 0.00% 0.00% 0.00% 0.00% Personal Loan 11.09% 10.11% 0.98% 9.69% 1.40% Total 2.23% 2.42% (0.19%) 2.32% (0.10%) NPAs impacted by macro trends in microfinance, unsecured lending and small-ticket LAP (1/2) 18 Note: 1. ₹941 Cr of MSME Secured sourced by IIFL Samasta and ₹1,350Cr of Unsecured MSME sourced by IIFL Samasta is booked under sourcing arrangement in IIFL Finance 1.98% 3.15% 1.84% 2.32% 2.23% 0.89% 1.83% 1.08% 1.20% 1.05% FY21 FY22 FY23 FY24 FY25 GNPA% NNPA% ➢ Provision coverage at 100%
Page 19
NPAs impacted by macro trends in microfinance, unsecured lending and small-ticket LAP (2/2) 19 Loan book (₹ Cr) Stage 1 Stage 2 Stage 3 Total Provision % Provision 0 dpd 1-30 dpd 31-90 dpd 90+ dpd Stage 1 Stage 2 Stage 3 As per RBI As per ECL Home Loan 91.0% 2.9% 4.7% 1.4% 19,815 0.4% 8.5% 33.8% 119 255 Gold Loan 97.3% 0.4% 1.8% 0.5% 14,002 0.6% 0.8% 22.7% 71 99 MSME Loan 85.4% 3.8% 7.0% 3.8% 12,413 0.8% 12.1% 56.4% 116 463 a) MSME Secured 80.4% 5.2% 11.0% 3.5% 6,083 1.0% 11.3% 29.9% 64 194 b) MSME Unsecured 89.9% 2.2% 3.3% 4.6% 5,561 0.6% 16.2% 77.5% 48 255 c) Supply chain finance 91.8% 4.6% 1.9% 1.7% 769 0.5% 0.4% 73.5% 4 13 Microfinance 90.7% 1.5% 2.9% 4.8% 7,029 1.1% 19.7% 70.5% 100 350 Core business 91.3% 2.3% 4.2% 2.2% 53,259 0.6% 10.1% 52.9% 406 1,167 CRE 95.4% 0.0% 1.5% 3.1% 839 0.4% 9.9% 51.7% 9 18 Capital Market 19.2% 72.8% 8.0% 0.0% 609 0.4% 1.9% 0.0% 2 3 Personal Loan 75.6% 6.4% 7.0% 11.1% 239 3.8% 33.3% 86.0% 4 36 Total 90.5% 3.0% 4.2% 2.2% 54,946 0.7% 10.1% 53.6% 421 1,224 Note: 1. CRE: Construction & Real Estate Finance 2. Personal loan has been discontinued
Page 20
IIFL Finance is listed holding NBFC with 2 major subsidiaries for housing & Micro-finance 20 IIFL Finance (Listed)~ 80% ~ 100% IIFL Samasta Finance IIFL Home Finance FY25 Performance : AUM: ₹ 39,732 Cr PAT: ₹ 976 Cr Customers: ~0.3 Mn Branches: 376 FY25 Performance: AUM: ₹ 27,508 Cr PAT: ₹ (410Cr) Customers: ~1.5 Mn Branches: 2,833 FY25 Performance : AUM: ₹ 11,101 Cr PAT: ₹ 20 Cr Customers: ~2.7 Mn Branches: 1,660 Note: 1. PAT is Profit after tax before Non-Controlling Interest for FY25 2. FY25 Standalone PAT was impacted due to embargo on gold loan business and one-time exceptional provision in Q2FY25 MSME Loan Gold Loan Other Retail Loans Microfinance MSME Secured Loan Home Loan
Page 21
49% 27% 15% 2% 1% 1% 0% 5% loans are for productive purposes 93% 10% 19% 56% 11% 3% 1% 0 to 1 lac 1 to 2 lac 2 to 3 lac 3 to 5 lac 5 to 10 lac >10 lac customers are from economically weaker section 86% branches in non-metro areas to cater to the underserved 84% 16% 29% 29% 26% Metro Urban Semi Urban Rural Loans by Loan purpose % Customers by Annual Income Buckets (₹) Branches by area category Note: Figures as on March 31, 2025 Data is consolidated for IIFL Finance, IIFL Home Finance and IIFL Samasta Finance 21 Serving Bharat: Productive Lending to Low-Income & Underserved Segments
Page 22
Robust Compliance, Risk & Governance Framework 22 Fully compliant with RBI Scale-Based Regulations (SBR) for Upper Layer NBFCs Independent Board Committees for Audit, Risk, Nomination & Remuneration, and CSR Quarterly stress-testing and scenario analysis across key portfolios Dedicated Chief Compliance Officer and Internal Audit reporting directly to the Board Automated rule-based compliance engine across 4,900+ branches Monthly monitoring of early warning signals (EWS) and collection trends Whistleblower Policy, Vigilance Mechanism, and Anti-Corruption Code in place Our Commitment to Strong Governance & Regulatory Compliance
Page 23
INDUSTRY UPDATE
Page 24
24 Housing Finance Industry Revised PSL Guidelines effective April 01, 2025 City Type; based on Population Loan Limit (INR Lakhs) Max. Dwelling Unit Cost (INR Lakhs) Old New Old New ≥ 50 lakh 35 50 45 63 10 to 50 lakh 25 45 45 57 < 10 lakh 25 35 35 44 - Recent Gudelines aimed improve credit flow to key economic segments, including housing, renewable energy, and education - PSL Targets Revised for Banks - Widened the definition of "Weaker Sections - Above changes are designed to reflect the rising cost of real estate across India and ensure better access to credit under PSL norms, especially for affordable housing. Change in loan limit to individuals for purchase/construction PMAY (U) 2.0 112.75 Lakh Houses Grounded 118.64 Lakhs Houses Sanctioned ₹8.07 Lakh Cr. Total Investment ₹ 1.69 Lakh Cr. Central Assistance Released ₹ 2 Lakh Cr. Central Assistance Committed 92.21 Lakhs Houses Completed Credit Risk Guarantee Fund (CRGF) Assessed Income Products of Banks First Residential Mortgage-Backed Security (RMBS) Deal - Increased guarantee cover for affordable home loans up to ₹20 lakhs up from ₹5 lakhs earlier for construction / purchase of first home - Corpus fund of CRGFT has been increased from ₹1,000 Cr to ₹3,000 Cr - Management of the fund will be transferred to National Credit Guarantee Company (NCGTC) from NHB.
Page 25
25 Microfinance Industry MFIN Guardrail 2.0 effective April 1, 2025 - Each MFI customer should have microfinance loans from a maximum of three lenders - Total Indebtedness including Microfinance loans and unsecured retail loans can be maximum of INR 2 Lakhs - Restriction on new loans to borrowers that are in the >= 60-days past due bucket and having an outstanding loan of >= INR3,000 - Board approved risk-based pricing policy - Processing fee to be capped maximum of 1.5%, excluding GST. - At the time of loan disbursement, no charges other than processing fees and credit life insurance premium should be deducted - No other third-party products, insurance policies etc. are to be sold with the loan - The calculation of loan repayment obligation to include: Bullet & Missing EMI tradelines - For credit bureau checks, Voter ID to continue as the primary ID with mandatory e-validation - Daily submission of data to the CICs to be done by all Regulatory Entities Steps intended to ensure Responsible Microfinance by being client centric and avoiding over-leverage - Risk Weight Adjustments for Microfinance Loans: The Reserve Bank of India (RBI) reduced the risk weight for microfinance loans categorized as consumer credit from 125% to 100%, easing capital requirements for banks - Non-Consumer Microfinance Loans: Loans meeting specific criteria can now be classified under the Regulatory Retail Portfolio (RRP) with a reduced risk weight of 75%, enhancing banks' lending capacity - Enhanced Transparency in Loan Disclosures: The RBI mandated the implementation of a standardized Key Facts Statement (KFS) for all retail and MSME term loans, including microfinance loans, to improve transparency and help borrowers make informed decisions. This directive is applicable to all new loans sanctioned on or after October 1, 2024 Regulatory & Policy Updates (Since March 2024)
Page 26
26 Gold Loan Industry Draft RBI Guidelines on Lending against Gold Loan collateral - Top-ups and renewals can be offered to borrowers classified as standard after fresh credit appraisal - Mandatory assessment of income, ability to repay, and end-use monitoring apart from standardising processes like valuation, auctions, etc. - Loans need to be classified into Consumption loan / Income generating loans. Further Income generating loans shall be classified - as per the end use - Quantum & tenor for income generating loans to be determined based on cash flows to be generated and not on collateral value - Tenure of consumption-based bullet loans capped at 12 months - LTV capped at 75% on all loans throughout the loan tenure (including accrued interest). Requirement of 1% additional provisions and restrictions on renewal of loan in the event of LTV breach Aims to harmonise gold loan regulations across banks/NBFCs and removes ambiguity in norms and processes - Operational Practice Reforms: The RBI identified irregular practices among gold loan lenders, including: ▪ Third-Party Involvement: Use of external agents for sourcing and appraising gold loans ▪ Inadequate Valuation: Not valuing gold in the customer's presence ▪ Insufficient Due Diligence: Lapses in customer verification processes. Lenders were given three months to rectify these issues to avoid supervisory action - Enhanced Transparency in Loan Disclosures: The RBI mandated the implementation of a standardized Key Facts Statement (KFS) for all retail and MSME term loans, including microfinance loans, to improve transparency and help borrowers make informed decisions. This directive is applicable to all new loans sanctioned on or after October 1, 2024 Regulatory & Policy Updates (Since March 2024)
Page 27
27 MSME Industry - Revised MSME classification enabling more MSME to avail of benefits - Credit Guarantee Cover Increased ▪ Micro & Small Enterprises: From ₹5 Cr to ₹10 Cr. ▪ MSME Loans: ₹1.5 Lakh Cr additional credit over 5 years - Startups & Exporters: ▪ Startups: Credit guarantee doubled from ₹10 Cr to ₹20 Cr. ▪ Exporter MSMEs: Term loans up to ₹20 Cr with enhanced guarantees Strategic focus of the government continues to be on bolstering MSME sector by increased credit access, entrepreneurial support and sector-specific initiatives Category Investment Turnover ₹ Cr Current Revised Current Revised Micro enterprises 1 2.5 5 10 Small enterprises 10 25 50 100 Medium enterprises 50 125 250 500 Recent budgetary announcements for MSME sector - Revised Priority Sector Lending (PSL) Guidelines effective Apr 1, 2025 ▪ Expanded Coverage: Inclusion of renewable energy and weaker sections under PSL ▪ Increased Loan Limits: Higher caps for sectors like housing and renewable energy ▪ Revised Targets: Urban Cooperative Banks' PSL targets raised to 60% of Adjusted Net Bank Credit. - Collateral-Free Lending Initiatives ▪ The RBI's Public Tech Platform for Frictionless Credit (PTPFC) facilitated MSME loans amounting to ₹3,640 crore as of March 31, 2024. This initiative aims to streamline credit access for MSMEs by leveraging technology - Working Capital Assessment Norms ▪ The government mandated that for borrower limits up to ₹5 crore, the computation of working capital requirements for Micro and Small Enterprises (MSEs) should be a minimum of 20% of the projected annual turnover. Regulatory & Policy Updates (Since March 2024)
Page 28
IIFL FINANCE (STANDALONE)
Page 29
₹ Cr Q4FY25 Q3FY25 Q-o-Q Q4FY24 Y-o-Y FY25 FY24 Y-o-Y Interest income 981.4 742.6 32% 830.0 18% 3,066.8 3,053.2 0% Interest expense (591.7) (432.5) 37% (472.7) 25% (1,848.7) (1,702.1) 9% Net interest income 389.7 310.0 26% 357.3 9% 1,218.1 1,351.2 (10%) Income from off-book assets 127.7 45.4 181% 312.1 (59%) 344.5 1,153.6 (70%) Other Income 29.1 41.0 (29%) 184.9 (84%) 163.2 275.8 (41%) Total income 546.5 396.5 38% 854.3 (36%) 1,725.6 2,780.6 (38%) Operating expense (326.8) (344.8) (5%) (360.5) (9%) (1,360.1) (1,430.6) (5%) Pre provision operating profit 219.8 51.7 325% 493.7 (55%) 365.5 1,350.0 (73%) Loan losses & provision (154.6) (59.8) 158% (108.1) 43% (456.5) (378.7) 21% Net Gain/(Loss) on Fair Value Changes (15.0) 29.1 (152%) (213.7) (93%) 126.7 (241.3) (153%) Profit before tax & exceptional items 50.2 21.0 139% 172.0 (71%) 35.7 730.0 (95%) Exceptional items - - - (586.5) - Profit before tax 50.2 21.0 139% 172.0 (71%) (550.8) 730.0 (175%) Profit after tax 38.4 16.0 141% 165.0 (77%) (409.6) 584.8 (170%) IIFL Finance (Standalone): Q4FY25 and FY25 Results Note: 1. Figures have been regrouped as per IIFL Finance Consol Financials 2. Previous period figures have been regrouped/ reclassified to make them comparable with those of current period 29
Page 30
343 745 806 585 (410) FY21 FY22 FY23 FY24 FY25 19,199 21,109 25,573 29,250 27,508 FY21 FY22 FY23 FY24 FY25 IIFL Finance (Standalone): Key highlights 25.4% 23.9% 20.4% 18.8% 18.5% FY21 FY22 FY23 FY24 FY25 Asset quality CRAR AUM (₹ Cr) Operating expenses to Avg AUM 1.5% 3.3% 3.5% 2.3% (1.4%) 8.8% 18.5% 17.6% 11.1% (6.9%) FY21 FY22 FY23 FY24 FY25 Return on Assets Return on Equity Return on assets/equity Profit after tax2 (₹ Cr) 4.2% 5.3% 5.6% 4.9% 6.2% FY21 FY22 FY23 FY24 FY25 2.4% 2.9% 1.3% 3.7% 1.9% 1.0% 1.6% 0.6% 1.9% 0.7% FY21 FY22 FY23 FY24 FY25 GNPA % NNPA % 30 Note: 1. Previous period figures have been regrouped/ reclassified to make them comparable with those of current period. Income is net of Interest Expense 2. PAT CAGR excludes exceptional items
Page 31
Note: 1. Yield is end of period portfolio yield, ATS is Portfolio average ticket size 2. Figures are as of March 31, 2025 unless specified 31 IIFL Finance (Standalone): Key business units Loan AUM (₹ Cr) FY21 FY22 FY23 FY24 FY25 Q4FY24 Q3FY25 Q4FY25 Q0Q % YoY % Yield ATS (₹ lakhs) Gold loan 13,149 16,228 20,733 23,354 21,022 23,354 15,044 21,022 40% (10%) 17.83% 0.85 MSME loan 1,662 1,016 1,524 3,653 5,479 3,653 5,355 5,479 2% 50% 19.05% 8.30 a) MSME Secured 158 56 35 275 266 275 176 266 51% (3%) 18.52% 453 b) MSME Unsecured 1,504 960 1,482 2,969 4,444 2,969 4,477 4,444 (1%) 50% 21.16% 7.92 c) Supply Chain Finance - 1 8 410 769 410 702 769 10% 88% 13.17% 17.11 Core business 14,811 17,244 22,258 27,007 26,501 27,007 20,399 26,501 30% (2%) 18.23% 1.10 CRE 3,362 2,355 1,887 1,047 159 1,047 145 159 10% (85%) 17.19% 2,333 Capital market finance 663 642 442 308 609 308 591 609 3% 98% 11.94% 446 Personal loan 364 868 987 888 239 888 332 239 (28%) (73%) 24.65% 1.30 Total 19,199 21,109 25,573 29,250 27,508 29,250 21,467 27,508 28% (6%) 18.08% 1.13
Page 32
Note: 1. ATS is Portfolio average ticket size 2. Figures are as of December 31, 2024 unless specified 32 IIFL Finance (Standalone): Business update Branches AUM distribution AUM mix Active customers (lakhs) 0.89 0.92 0.95 0.98 1.13 FY21 FY22 FY23 FY24 FY25 Average ticket size1 (₹ lakhs) Spread 18.7% 19.7% 18.4% 19.1% 19.5% 9.3% 9.1% 9.0% 9.1% 9.5% 9.4% 10.6% 9.4% 10.0% 10.0% FY21 FY22 FY23 FY24 FY25 Yield % COF % Spread % 68% 77% 81% 80% 76% 20%2% 4% 4% 3% 1%18% 11% 7% 4% 1% 3% 3% 2% 1% 2% FY21 FY22 FY23 FY24 FY25 Gold Loan MSME loan Personal loan CRE Capital Market Maharashtra, 16% Gujarat, 16% Karnataka, 8% Rajasthan, 6%West Bengal, 7% Delhi, 5% Telangana, 7% Uttar Pradesh, 6% Haryana, 5% Tamil Nadu, 5% Andhra … Others, 15% 13.0 16.5 20.0 20.6 14.6 FY21 FY22 FY23 FY24 FY25 1,881 2,359 2,653 2,775 2,833 FY21 FY22 FY23 FY24 FY25
Page 33
IIFL Finance (Standalone): Funding mix Off-book (₹ Cr, as % of AUM) 4,559 8,484 11,526 11,408 4,962 24% 40% 45% 39% 18% FY21 FY22 FY23 FY24 FY25 Off-book mix Net gearing 99% 85% 73% 60% 57% 15% 27% 40% 43% FY21 FY22 FY23 FY24 FY25 Direct Assignment Co-lending 2.7 2.2 3.0 3.4 3.6 FY21 FY22 FY23 FY24 FY25 33 Note: 1. Net gearing is calculated after reducing free cash/ liquid assets and securitized assets from the gross debt as per Ind AS accounting 2. Co-lending includes Business Correspondence and Co-origination 3. Borrowing is without IndAS adjustment Borrowing (₹ Cr) Borrowing mix Cost of borrowing 28% 35% 45% 51% 35% 44% 38% 38% 25% 43% 3% 11% 10% 8% 4%25% 17% 7% 15% 18% FY21 FY22 FY23 FY24 FY25 Securitization & others Refinance Debentures Term Loan 15,271 16,317 16,719 19,609 24,349 FY21 FY22 FY23 FY24 FY25 9.3% 9.1% 9.0% 9.1% 9.5% FY21 FY22 FY23 FY24 FY25 AA/Stable by CRISIL, ICRA & India Rating, AA+/ Stable by Brickwork, B+/Stable by S&P Global, Fitch
Page 34
IIFL HOME FINANCE
Page 35
₹ Cr Q4FY25 Q3FY25 Q-o-Q Q4FY24 Y-o-Y FY25 FY24 Y-o-Y Interest income 732.7 696.9 5% 700.2 5% 2,855.1 2,620.3 9% Interest expense (404.4) (377.6) 7% (361.2) 12% (1,512.5) (1,330.4) 14% Net interest income 328.3 319.3 3% 339.0 (3%) 1,342.6 1,289.9 4% Income from off-book assets 130.2 119.8 9% 106.5 22% 596.2 313.7 90% Other Income 70.5 70.9 (1%) 110.2 (36%) 248.8 377.3 (34%) Total income 529.0 510.0 4% 555.8 (5%) 2,187.6 1,980.9 10% Operating expense (167.4) (172.9) (3%) (167.5) 0% (673.7) (554.3) 22% Pre provision operating profit 361.5 337.1 7% 388.3 (7%) 1,514.0 1,426.5 6% Loan losses & provision (90.5) (82.6) 10% (15.9) 468% (274.4) (116.6) 135% Net Gain/(Loss) on Fair Value Changes 4.6 6.6 (31%) (16.4) (128%) 15.4 4.5 244% Profit before tax 275.7 261.2 6% 355.9 (23%) 1,255.0 1,314.4 (5%) Profit after tax (Pre NCI) 222.8 200.3 11% 276.9 (20%) 976.5 1,016.6 (4%) IIFL Home Finance: Q4FY25 and FY25 Results Note: 1. Figures have been regrouped as per IIFL Finance Consol Financials 2. Previous period figures have been regrouped/ reclassified to make them comparable with those of current period 35
Page 36
20,694 23,617 28,512 35,499 39,732 FY21 FY22 FY23 FY24 FY25 Note: 1. GNPA nos from FY22 onwards are reported after considering the impact of RBI circular IIFL Home Finance: Key highlights 23.0% 30.5% 47.3% 42.8% 47.2% FY21 FY22 FY23 FY24 FY25 Asset quality CRAR AUM (₹ Cr) Operating expenses to Avg AUM 2.7% 3.6% 3.9% 4.4% 3.8% 20.3% 24.9% 17.6% 16.9% 14.0% FY21 FY22 FY23 FY24 FY25 Return on Assets Return on Equity 401 593 768 1,017 976 FY21 FY22 FY23 FY24 FY25 Return on assets/equity Profit after tax (₹ Cr) 1.2% 1.2% 1.5% 1.8% 1.8% FY21 FY22 FY23 FY24 FY25 2.0% 3.1% 2.1% 1.5% 1.8% 1.2% 2.1% 1.5% 1.0% 1.3% FY21 FY22 FY23 FY24 FY25 GNPA % NNPA % 36
Page 37
37 IIFL Home Finance: Key business units Loan AUM (₹ Cr) FY21 FY22 FY23 FY24 FY25 Q4FY24 Q3FY25 Q4FY25 Q0Q % YoY % Yield1 ATS (₹ lakhs) Affordable home loan 14,439 17,727 21,800 27,438 31,588 27,438 30,318 31,588 4% 15% 10.97% 15.35 MSME secured loan 5,381 5,346 5,905 7,250 7,464 7,250 7,332 7,464 2% 3% 17.95% 11.83 Affordable housing project finance 873 544 807 810 680 810 738 680 (8%) (16%) 15.47% 694.89 Total 20,694 23,617 28,512 35,499 39,732 35,499 38,387 39,732 4% 12% 12.36% 14.89 Note: 1. Yield is end of period portfolio yield, ATS is Portfolio average ticket size 2. Figures are as of March 31, 2025 unless specified
Page 38
Note: 1. ATS is Portfolio average ticket size, 2. Figures are as of March 31, 2025 unless specified, 3. Salaried Formal includes customers with household income >50k per month/ >6 lakhs p.a. & Salaried Informal includes customers with household income <=50k per month/ <=6 lakhs p.a. 38 IIFL Home Finance: Business update Branches AUM distribution AUM mix Customer mix 20.36 20.48 15.60 14.26 14.89 FY21 FY22 FY23 FY24 FY25 Average ticket size1 (₹ lakhs) Spread 70% 75% 76% 77% 80% 26% 23% 21% 20% 19% 4% 2% 3% 2% 2% FY21 FY22 FY23 FY24 FY25 Home loan MSME Secured Construction finance Maharashtra, 20% Delhi, 10% Telangana, 9% Gujarat, 9% Uttar Pradesh, 8% Andhra Pradesh, 7% Madhya Pradesh, 7% Karnataka, 6% Rajasthan, 6% Haryana, 6% Tamil Nadu, 3% Others, 9% 125 225 386 389 376 FY21 FY22 FY23 FY24 FY25 13% 13% 13% 15% 17% 31% 37% 39% 37% 37% 56% 50% 48% 48% 46% FY21 FY22 FY23 FY24 FY25 Salaried - Formal Salaried - Informal Self-Employed 11.6% 11.2% 11.8% 12.5% 12.5% 8.4% 7.9% 8.0% 8.3% 8.4% 3.2% 3.3% 3.8% 4.2% 4.1% FY21 FY22 FY23 FY24 FY25 Yield % COF % Spread %
Page 39
IIFL Home Finance: Funding mix Off-book (₹ Cr, as % of AUM) 5,839 7,949 10,456 12,216 14,519 28% 34% 37% 34% 37% FY21 FY22 FY23 FY24 FY25 Net gearing1 5.6 4.6 2.4 2.7 2.5 FY21 FY22 FY23 FY24 FY25 39 Note: 1. Net gearing is calculated after reducing free cash/ liquid assets and securitized assets from the gross debt as per IndAS accounting 2. Co-lending includes Business Correspondence and Co-origination 3. Borrowing is without IndAS adjustment Borrowing (₹ Cr) Borrowing mix Cost of borrowing 56% 55% 56% 46% 43% 18% 22% 22% 24% 23% 22% 20% 21% 27% 28% 5% 4% 1% 3% 6% FY21 FY22 FY23 FY24 FY25 Securitisation & others Refinance Debentures Term Loan 12,705 14,061 14,776 17,481 19,531 FY21 FY22 FY23 FY24 FY25 8.4% 7.9% 8.0% 8.3% 8.4% FY21 FY22 FY23 FY24 FY25 Rating: AA/Stable by CRISIL, ICRA, & India Rating, AA+/Stable by Brickwork Off-book mix 100% 84% 67% 62% 59% 16% 33% 38% 41% FY21 FY22 FY23 FY24 FY25 Direct Assignment Co-lending
Page 40
IIFL SAMASTA FINANCE
Page 41
₹ Cr Q4FY25 Q3FY25 Q-o-Q Q4FY24 Y-o-Y FY25 FY24 Y-o-Y Interest income 429.3 470.7 (9%) 601.4 (29%) 2,027.6 2,200.7 (8%) Interest expense (183.0) (197.6) (7%) (241.1) (24%) (832.1) (880.4) (5%) Net interest income 246.3 273.1 (10%) 360.3 (32%) 1,195.5 1,320.3 (9%) Income from off-book assets 9.2 25.4 (64%) 24.4 (62%) 143.9 236.3 (39%) Other Income 55.9 75.9 (26%) 106.3 (47%) 279.2 294.4 (5%) Total income 311.4 374.4 (17%) 491.0 (37%) 1,618.6 1,851.0 (13%) Operating expense (222.5) (229.8) (3%) (239.0) (7%) (908.0) (814.5) 11% Pre provision operating profit 88.9 144.6 (39%) 252.0 (65%) 710.7 1,036.5 (31%) Loan losses & provision (103.7) (349.0) (70%) (111.6) (7%) (767.2) (415.9) 84% Net Gain/(Loss) on Fair Value Changes 16.3 21.3 (23%) 16.9 (4%) 72.2 36.6 97% Profit before tax 1.4 (183.1) (101%) 157.3 (99%) 15.7 657.1 (98%) Profit after tax (Pre NCI) 3.0 (136.0) (102%) 120.3 (98%) 20.4 503.0 (96%) IIFL Samasta Finance: Q4FY25 and FY25 Results Note: 1. Figures have been regrouped as per IIFL Finance Consol Financials 2. Previous period figures have been regrouped/ reclassified to make them comparable with those of current period 41
Page 42
4796 6484 10552 14211 11101 FY21 FY22 FY23 FY24 FY25 Note: 1. Previous period figures have been regrouped/ reclassified to make them comparable with those of current period. Income is net of Interest Expense IIFL Samasta Finance: Key highlights AUM (₹ Cr) 1.9% 0.9% 1.7% 5.0% 0.2% 11.8% 6.3% 11.4% 31.5% 1.1% FY21 FY22 FY23 FY24 FY25 Return on Assets Return on Equity Return on assets/equity 42 66 51 128 503 20 FY21 FY22 FY23 FY24 FY25 Profit after tax (₹ Cr) Asset quality CRAR Operating expenses to Avg AUM 5.50% 6.90% 7.20% 6.70% 7.17% FY21 FY22 FY23 FY24 FY25 1.8% 3.1% 2.1% 1.9% 4.7% 0.0% 0.8% 0.8% 0.3% 1.4% FY21 FY22 FY23 FY24 FY25 GNPA % NNPA % 18.5% 17.8% 17.1% 24.0% 32.4% FY21 FY22 FY23 FY24 FY25
Page 43
Loan AUM (₹ Cr) FY21 FY22 FY23 FY24 FY25 Q4FY24 Q3FY25 Q4FY25 Q0Q % YoY % Yield1 ATS1 (₹ lakhs) Microfinance 4,440 5,821 9,072 11,891 8,758 11,891 9,167 8,758 (4%) (26%) 24.24% 0.48 MSME Secured 58 329 767 1,118 1,242 1,118 1,217 1,242 2% 11% 22.56% 4.69 Dairy cattle loan 105 175 430 717 598 717 660 598 (9%) (17%) 24.26% 0.66 MSME Unsecured 193 159 283 486 503 486 511 503 2% 3% 26.31% 2.00 Total 4,796 6,484 10,552 14,211 11,101 14,211 11,556 11,101 (4%) (22%) 24.15% 0.54 Note: 1. Yield is end of period portfolio yield, ATS is Portfolio average ticket size 2. Figures are as of March 31, 2025 unless specified 43 IIFL Samasta Finance: Key business units
Page 44
Note: 1. Yield is end of period portfolio yield, ATS is Portfolio average ticket size 2. Figures are as of March 31, 2025 unless specified 44 IIFL Samasta Finance: Business update Branches AUM distribution AUM mix Active customers (lakhs) Average ticket size1 (₹ lakhs) Spread1 93% 90% 86% 84% 79% 1% 5% 7% 8% 11% 2% 3% 4% 5% 5% 4% 2% 3% 3% 5% FY21 FY22 FY23 FY24 FY25 Microfinance MSME Secured Dairy cattle loan MSME Unsecured Bihar, 23% Karnataka, 14% Tamil Nadu, 12% Uttar Pradesh, … West Bengal, 8% Rajasthan, 7% Odisha, 5% Madhya Pradesh, 4% Maharashtra, 3%Andhra Pradesh, 3% Telangana, 3%Others, 9% 16.2 17.5 23.5 30.0 27.3 FY21 FY22 FY23 FY24 FY25 618 807 1267 1648 1660 FY21 FY22 FY23 FY24 FY25 22.4% 21.9% 23.8% 24.4% 24.2% 10.4% 10.0% 10.0% 10.6% 10.5% 12.0% 11.9% 13.8% 13.8% 13.8% FY21 FY22 FY23 FY24 FY25 Yield % COF % Spread % 0.33 0.39 0.44 0.48 0.54 FY21 FY22 FY23 FY24 FY25
Page 45
IIFL Samasta Finance: Funding mix Off-book mix Note: 1. Net gearing is calculated after reducing free cash/ liquid assets and securitized assets from the gross debt as per IndAS accounting 2. Co-lending includes Co-origination 45 100% 100% 100% 100% 100% FY21 FY22 FY23 FY24 FY25 Direct Assignment/BC Co-lending Off-book (₹ Cr, as % of AUM) 679 448 2,554 4,503 3,91514% 7% 24% 32% 35% FY21 FY22 FY23 FY24 FY25 Net gearing 4.9 4.6 5.3 4.1 2.7 FY21 FY22 FY23 FY24 FY25 Borrowing (₹ Cr) Borrowing mix Cost of borrowing 74% 72% 72% 65% 57% 26% 11% 12% 17% 23% 17% 16% 16% 7% 0% 3% 14% FY21 FY22 FY23 FY24 FY25 Securitisation & others Refinance Debentures Term Loan 3,418 5,208 7,196 8,903 7,051 FY21 FY22 FY23 FY24 FY25 10.4% 10.0% 10.0% 10.6% 10.5% FY21 FY22 FY23 FY24 FY25 Rating: AA-/Stable by CRISIL & India Rating AA- /Stable by ACUITE
Page 46
CORPORATE INFORMATION
Page 47
Distinguished board of directors in the company & its subsidiaries 47IIFL Home Finance Board IIFL Samasta Finance BoardIIFL Finance Board*Denotes common directors on the board of parent and subsidiaries Former World Bank Consultant Mohua Mukherjee Independent Director Former CRO, HDFC Limited Mathew Joseph Independent Director ED, Accenture Mohan Sekhar Independent Director Former Chairman, NHB Srinivasan Sridhar Chairman & Non- Executive Director CEO, IIFL Home Finance Monu Ratra Executive Director ADIA Nominee Kabir Mathur Nominee Director Former Corporate Finance Head, Standard Chartered Venkataramanan Anantharaman Independent Director Co- founder, IIFL Group R Venkataraman* Joint Managing Director Former CEO, Shriram Capital Ramakrishnan Subramanian* Independent Director Former President, ICAI Nihar Niranjan Jambusaria* Independent Director LIC Nominee T S Ramakrishnan Non-Executive Nominee Director Founder, IIFL Group Nirmal Jain* Managing Director Fairfax Nominee Gopalakrishnan Soundarajan Non-Executive Director Partner, ANB Global Nirma Bhandari Independent Director Former COO, Titan Bijou Kurien Independent Director Former Chairman, NABARD Govinda Rajulu Chintala Chairman & Independent Director Former Chairman, SBI A K Purwar Chairman & Non- Executive Director Former MD & CEO, SBI-SG Sistla Uma Shanmukhi Independent Director MD, IIFL Samasta Finance N Venkatesh Managing Director CIO, IIFL Samasta Finance Shivaprakash Deviah Whole-time Director Former MD, Equifax Kalengada Mandanna Nanaiah Independent Director
Page 48
2007 2010 2016 2011 2022 Started credit business Shareholding Pattern % holding Promoters 24.9 Institutional Investors 48.8 Fairfax 15.2 Capital Group 5.9 Bank Muscat India Fund 3.3 Vanguard 3.0 Theleme 2.2 Ward Ferry 1.9 Abakkus 1.8 Bavaria Industries AG 1.7 Nomura 1.4 Blackrock 1.1 Public & Others 26.3 As of March 31, 2025 (Formerly Orient Global) (Formerly CDC Group) Since inception, marquee global investors have reposed faith in our business & management 48
Page 49
Experienced senior management with strong credentials 49 Monu Ratra CEO, IIFL Home Finance Qualified Architect, MBA N Venkatesh MD, IIFL Samasta Finance Leadership program in Microfinance at Harvard Kapish Jain Chief Financial Officer CA, CWA, CS Abhiram Bhattacharjee Chief Operating Officer PGDM-IIMB, ME – IIT, Kanpur Preeti Kannan Chief Human Resource Officer MBA-HR, MS-Psychotherapy & Counselling Rahul Sanklecha Head – Credit & Policy FRM, MBA, BE Pranav Dholakia Chief Risk Officer MBA, CA Gaurav Sharma Chief Technology Officer BE – IIT, Roorkee Experience of 25+ years HDFC, ICICI Bank, Indiabulls Housing Experience of 25+ years Founder, Samasta Microfinance prior to acquisition by IIFL Experience of 25+ years PNB Housing, AU, ICICI Pru Life, Deutsche Bank Experience of 29+ years Kotak Group, Morgan Stanley, E&Y, ICICI Securities Experience of 26+ years Kotak Bank, Bajaj Finance, Fujitsu, Oracle, Mindtree 16+ years of credit & policy experience Poonawalla Fincorp, Lendingkart, ICRA Experience of 25+ years Edelweiss Financial Services Experience of 29+ years L&T Finance, MaxLife Insurance, TCS (Founding TCS Bancs member) Nirmal Jain Managing Director PGDM-IIMA, CA, CWA R Venkataraman Joint Managing Director PGDM-IIMB, BE – IIT, Kharagpur Founded and led IIFL since 1995. Worked with Unilever for 5 years Co-founder of IIFL. Worked with ICICI Bank, Barclays Mayank Sharma Head – Internal Audit MBA, Leadership programs from IIMC, ISB Experience of 23+ years in wealth management, broking, insurance and lending in IIFL Group of companies Shivalingam Pillai Chief Compliance Officer CA, CWA, CS Experience of 25+ years Mahindra Finance, HDFC Sales Kirti Timmanagoudar Head - Co lending & Strategic Alliances MBA Experience of 23+ years Co-founder & Partner, BrickEagle Frost & Sullivan, Geojit, First Global
Page 50
Received Gold Level LEED Certification for our owned office in Gurugram. Adopted renewable energy in our Hubtown office, Mumbai through Tata Green Tariff scheme (since January 2023). Installed solar panels in our Gurugram office. Adopted access-based printing, default printing on both sides of the paper across all our offices and branches. Installed paper shredder machines across large offices and also engaged with vendors for safe disposal of waste paper. Pioneered Green Building concept in partnership with housing developers through "Kutumb" platform. It provides industry experts and housing developers, a platform to promote sustainable infrastructure. Installed rainwater harvesting system in our Registered office building during the year. Started recycling waste water as flush water & in watering plants in this office Installed sensors in taps to regulate water consumption in restrooms We measure our waste generation and aim to strengthen our waste management initiatives. Dry and wet waste is picked up by local municipal bodies. E-waste is given to authorized vendors for recycling. Adopting environmentally conscious solutions in our business initiatives as well IIFL has signed a US$ 68 million loan with Asian Development Bank (ADB) to improve funding to affordable green housing for lower-income groups in India. 80% will be earmarked for women borrowers and 20% for green-certified homes. Environment, Social & Governance - Environment 50
Page 51
IIFL is firmly committed to support economic activity and financial inclusion through its loan offerings while adapting to changes in the external environment ▪ 75% of the branches are located in non-metros, semi-urban and rural areas ▪ Small-ticket loans for purpose of income generation activities ▪ 27.29 lakhs+ families benefited in 22 states & UT with financial intervention ▪ 46,972+ dairy farmers supported through 10 cattle health centers in 3 States. ▪ 91.27% of the Unsecured MSME digital loans given are of less than ₹ 1 Million ▪ 73,000+ families benefitted under CLSS and 1750+ Cr. subsidy provided till date ▪ 1,59,897+ loans given to the informal segment ▪ 61% loans given to female owners/co-owners ▪ 2,97,529+ first time home buyers GOLD LOAN BUSINESS LOAN MICRO- FINANCE HOME LOAN Environment, Social & Governance - Social 51
Page 52
CSR projects continue with creative use of technology Environment, Social & Governance - Social 52 Intellectually disabled students learning in the IT Lab with aid of their teacher - Maharashtra Dharamshala at Govt. Hospital, Udaipur Patients undergone Cataract operation at Medical Camp – Uttar Pradesh ▪ IIFL Foundation, has been supporting the Annual Medical camp at Barsana, Dist – Mathura in Uttar Pradesh, since 2015. ▪ The Foundation extends its support to offer Free of Cost Cataract Surgeries, Eye check-up and Spectacles, Dental check- up, Treatments as Root Canal and preparing Dentures. ▪ The services are availed by pilgrims that visit Vrindavan from across Uttar Pradesh, Rajasthan, Haryana and other states. Annual Medical Camp – Uttar Pradesh Eye Check-up Dental Checkup & Treatment Free Glasses Food Services 1200 1200 520 1,935 ▪ In the massive gathering of Mahakumbh 2025 where pilgrims gathered by millions each day, IIFL Foundation took an active step to help the administration and the devotees, by offering live-saving services as follows : i. Emergency Medical Assistance Boats (with swimmers for rescue) ii. First Aid to pilgrims iii. Support to District Administration in Crowd Control iv. Assistance to the pilgrims / reuniting lost individuals (Esp. Elderly, Women and Children) ▪ Emergency Medical Assistance Boats ▪ The Foundation engaged volunteers from Hindustan Scout and Guides (Rajasthan), who offered service for a period of 30 days. Emergency Medical Assistance at Mahakumbh – Uttar Pradesh ▪ IIFL Foundation addressed critical structural weaknesses, outdated facilities, and sanitation issues, to ensure a safer and comforting environment for patients and their families at the Maharana Bhupal Government Hospital, Udaipur, Rajasthan. ▪ The facility was repaired and redeveloped by upgrading 6 Halls, 36 rooms and 31 washrooms. ▪ This Government Hospital is the most important medical facility that serves the individuals from lower income groups and marginalized communities (Scheduled Tribes) from Udaipur, Rajsamand, Bicchiwara, Rajsamand, Salumbar, Pratapgarh, Banswara and Chittorgarh district. Dharamshala Repair & Redevelopment (Govt. Hospital) - Rajasthan ▪ Development of E-learning center to empower learning for the intellectually disabled children, at Kolhapur, Maharashtra ▪ The facility has been upgraded with following technical equipment – Desktop Computers, Laptops, LED projectors & Screens and Android tablets ▪ The upgrade has helped the students with special needs to engage in interactive learning modules (Nursery, Primary, Pre-Vocational & Vocational), Quizzes & YouTube Learning Academy IT Equipment for Intellectually Disabled - Maharashtra
Page 53
Promote sound corporate governance practices, ethical standards, and compliance with the laws of the land. Disclose our strategy, key targets and goals to all key stakeholder groups (internal and external) and report our progress annually. Incorporate ESG aspects into our policies and practices, assess our performance through a robust internal ESG governance structure Corporate policies and guidelines: Board Diversity Policy, Whistle Blower Policy, CSR Policy, Interest Rate Policy, Grievance Redressal Policy, etc. Business ethics and compliance: Anti-Corruption Policy, Vigilance Policy & Code of Conduct. Establishing vision, mission and values and determining, reviewing the goals and policies of the Company from time to time Environment, Social & Governance - Governance 53 Corporate governance and ethical business conduct are one of the fundamental pillars of a successful business. We strive to maintain the highest standards of business ethics.
Page 54
Note: 1. *for Consolidated entity 2. Quarter results for the period ended March 31, 2025 3. Intergroup adjustments includes IIFL Open Fintech Private Limited 54 Reconciliation of reported consolidated results with group entities FY25 (₹ Cr) IIFL Finance Standalone IIFL Home Finance* IIFL Samasta Finance Intergroup adjustments IIFL Finance Consolidated Interest income 3,066.7 2,855.1 2,027.6 216.0 8,165.3 Interest expense (1,848.7) (1,512.5) (832.1) 23.7 (4,169.5) Net interest income 1,218.0 1,342.6 1,195.5 239.7 3,995.8 Non-fund based income 507.7 845.0 423.1 (235.4) 1,540.3 Total income 1,725.6 2,187.6 1,618.6 4.3 5,536.2 Operating expense (1,360.1) (673.7) (908.0) (21.7) (2,963.4) Pre provision operating profit 365.5 1,514.0 710.7 (17.4) 2,572.8 Loan losses & provision (456.5) (274.4) (767.2) - (1,498.0) Core Profit before tax (91.0) 1,239.6 (56.5) (17.4) 1,074.7 Net Gain/(Loss) on Fair Value Changes 126.7 15.4 72.2 4.5 218.8 Profit before tax (before exceptional item) 35.7 1,255.0 15.7 (12.9) 1,293.5 Exceptional items (586.5) - - - (586.5) Profit before tax (after exceptional item) (550.8) 1,255.0 15.7 (12.9) 707.0 Profit after tax (pre NCI) (409.6) 976.5 20.4 (9.2) 578.1
Page 55
Click here to download databook Click here to download databook Data reported across previous quarters is now continued to be reported in a Data Book, maintained in an excel format on our website. The Link for the data book is hosted below. 55 Link to databook
Page 56
Thank you Published in May 2025 IIFL Finance Ltd. All rights reserved. Regd. Off: IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane – 400604. This report is for information purposes only and does not construe to be any investment, legal or taxation advice. It is not intended as an offer or solicitation for the purchase and sale of any financial instrument. Any action taken by you on the basis of the information contained herein is your responsibility alone and IIFL Finance Ltd (hereinafter referred as IIFL) and its subsidiaries or its employees or directors, associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in checking the correctness and authenticity of the information contained herein, but do not represent that it is accurate or complete. IIFL or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this publication. The recipients of this report should rely on their own investigations. IIFL and/or its subsidiaries and/or directors, employees or associates may have interests or positions, financial or otherwise in the securities mentioned in this report. 56