A Motilal Oswal Group Company
ASPIRE Home Finance Corporation Limited (AHFCL)
A New Beginning in Indian Home Finance Industry
Corporate Presentation
ASPIRE Home Finance Corporation Limited
Contents
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. Products and Services
8. Robust Business Processes
9. AHFCL Branch Network
10. Business Performance: As of March 31, 2015
11. Audited Financials
ASPIRE Home Finance Corporation Limited
Indian Mortgage Market Overview
Mortgage as a % of GDP
100%
81%
75%
50%
25%
8%
17%
20%
26%
29%
32%
39%
41%
88%
48%
Indian Mortgage Market Space is on solid footing
given strong demand drivers
1. Favourable Demographics: Rising Working Age Population
2. Increased Migration to cities and towns: Urbanization &
0%
Nuclearization
3. Rising Affordability: Increase in disposable income
Consequently, Mortgage/GDP ratio is expected to increase, thereby offering a significant value proposition
Affordable Housing: The Key Growth Driver
Genesis of AHFCL
Affordable housing would be driving the demand in Indian housing sector forming a
• More than 95% of housing shortage in India is due to
demand supply mismatch in low cost and affordable housing
major portion of required 88.78 million housing units
• While of late, builders and developers have evinced interest in
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
player
HIG
>10 Lakhs
>1200
>50 Lakhs
Premium
purchase of affordable housing units
Source: Industry Research, IMF, European Mortgage Federation
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
specializing
in
providing
finance
towards
ASPIRE Home Finance Corporation Limited
Our Journey in FY’2014-15
• 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
Apr 2014
May 2014
FY’13-14
• Loss at Rs.27.5 lacs
• Total staff: 6 employees
• Approval from NHB
Awaited
• Cumulative inwards
cross 450 files
• Rs.10 crs disbursed
in a month
Jun 2014
Jul 2014
• Cumulative sanctions
cross 150 files
• First disb. booked
from Akola branch
• 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
Aug 2014
Sep 2014
• Tie up with Life, Non
Life and Health
insurance partners
finalized
• Rated “A/Stable” by
CRISIL for Rs.100 crs of
NCDs
• Rs.50 crs of NCDs
issued
• Loans to 1000 families
Oct 2014
Nov 2014
• Cumulative inwards
cross Rs.175 crs
• Cumulative
sanctions cross
Rs.115 crs
• Rated A1+ by ICRA
for Rs.50 crs of CPs
• Rs.50 crs of CPs issued
• First term loan
drawdown
Dec 2014
Jan 2015
• Mumbai region
crosses Rs.50 crs of
cumulative
disbursements
Feb 2015
Mar 2015
• Cumulative inwards cross
Rs.500 crs
• Cumulative sanctions cross
Rs.371 crs
• Loans extended to more
than 2500 families
ASPIRE Home Finance Corporation Limited
About Us
Focus on
Affordable
Housing
• 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
• AHFCL operates in an income segment which is underserved by financial institutions
Niche
Operations
• 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
• 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
Experienced
Management
• 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
ASPIRE Home Finance Corporation Limited
Target Market
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
Target
Customer
Segment
Target
Geographies
• 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 Limited
Board Overview
Mr. Motilal Oswal
Chairman
Mr. Raamdeo Agarawal
Joint MD, MOFSL
Mr. Anil Sachidanand
MD & CEO
• Mr. Motilal Oswal is the Chairman and
• Mr. Raamdeo Agarawal is the Jt. Managing
• AHFCL is professionally managed by Mr. Anil
Managing Director of Motilal Oswal
Director of Motilal Oswal Financial Services
Sachidanand who is a practitioner of over 25
Financial Services Ltd. (MOFSL)
Limited (MOFSL)
years in home finance business
• 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. 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
• 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
ASPIRE Home Finance Corporation Limited
Senior Management
• 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
Mr. Satish Kotian
Chief Operating Officer
• 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 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. S Y Sankhe
Company Secretary & Legal Head
• 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 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 Ojha
Chief Financial Officer
• 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 Limited
Senior Management
• 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
Mr. Sudhir Menon
Head Credit
credit-underwriting, business development, and international experience - working in Dubai and India
• 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
Mr. Kalpesh R Dave
Head Corporate Planning
budgeting, identification and evaluation of new business opportunities and managing operational
improvement initiatives
• 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.
Mr. Tahir Shah
Head Technology
• 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 Limited
Senior Management
• 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,
Mr. Raj Rai
Head Operations
client relationship management, process re-engineering, risk management and system implementation
• 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
Mr. Subodh Kuckian
RBH - Mumbai & Maharashtra
• 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 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
Mr. Shakir Sheikh
RBH - Madhya Pradesh & Gujarat
• Prior to joining AHFCL, Mr. Shakir was with India Shelter Finance Corporation Limited as legal head
ASPIRE Home Finance Corporation Limited
Products and Services
Products
Aspire
Property
Services
Home loans (New Purchase / Resale)
Home Extension loans
Plot loans
Home Improvement loans
Construction loans
AHFCL Saral Ghar loans
Composite loans
Mahila Awaas Loan from Aspire (MALA)
Residential
(Retail)
Property search (purchase / resale / rent / sale / lease), market intelligence, finance
assistance
Commercial
(Developers)
Property market research, project planning & execution, deal negotiations, legal
advisory, tenant sourcing, end to end corporate advisory for space requirements
(leasing)
Consultancy
Due diligence on real estate transactions, strategic advisory for real estate portfolio,
valuation services (land, projects, portfolio and retail)
ASPIRE Home Finance Corporation Limited
Robust Business Processes
End to End Processing through Core Lending Suite
1.
At AHFCL
Branches
4.
At AHFCL
Head Office
Sourcing of home loan
applications through
• In House team: Relationship
Officers, Assistant Sales
Managers and Sales Managers
• Supplemented by Business
Associates
2.
Screening by the appraisal officer
through
a. Income verification
b. Employer / business verification
c. Residence verification
d. Personal discussion
Output: Credit Appraisal Report
• 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
5.
3.
Screening of property and
related documents
a. Legal evaluation
Output: Legal Appraisal
Report
a. Technical evaluation
Output: Technical
Appraisal Report
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
Collection through Post Dated Cheque / ECS / ACH
Periodic 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
ASPIRE Home Finance Corporation Limited
AHFCL Network
AHFCL currently covers 35 locations in Maharashtra, Madhya Pradesh, Gujarat and Telangana
Gujarat
Maharashtra
Pune 01
Talegaon
Pune 02
Nashik 01
Pimpri
Nashik 02
Chakan
Akola
Daund
Nagpur
Satara
Amrawati
Ahmednagar
Kolhapur
Mumbai
Ahmedabad
Rajkot
Chandkheda
Himmatnagar
Surat 01
Narol
Kadi
Bhavnagar
Surat 02
Naroda
Ankleshwar
Madhya Pradesh
Indore
Virar
Titwala
Kalyan
Pen
Telangana
Panvel
Naigaon
Hyderabad
Palghar
Bhopal
ASPIRE Home Finance Corporation Limited
Business Performance: As of July 31, 2015
Year to Date
Inwards
Sanctions
Disbursements
Number of
Accounts
5,679
3,980
3,309
Amount
(In Rs. crs)
Portfolio Split
2%
17%
670.11
446.03
341.39
Region
wise
34%
11%
Rest of Maharashtra
Madhya Pradesh
Gujarat
Portfolio Details
36%
Loan Outstanding (In Rs. crs)
691.72
Average Ticket Size (In Rs. Lakhs)
10.12
Salaried : Self Employed (No of Customers)
59 : 41
Average Loan Tenure
Mumbai
19.37
Average Loan to Value Ratio
71.00%
Average Instalment to Income Ratio
43.37%
Hyderabad
1%
1%
13%
Product
wise
New Purchase
Resale
10%
Composite
75%
Home Extn
Home Impvt
ASPIRE Home Finance Corporation Limited
Audited Financials
Balance Sheet Statement
Profit and Loss Statement
In Rs. Crs.
FY’2013-14
FY’2014-15
Q1 FY’15-16
Interest Income
0.00
10.30
14.23
Interest Expense
0.00
4.30
9.19
Net Interest Income
0.00
6.00
5.04
Other Income
0.00
13.61
6.45
Total Income
0.48
19.61
11.49
Operating Expenses
0.43
4.80
1.77
2.44
1.35
Business Sourcing Expenses
In Rs. Crs.
Mar 31, 2014
Mar 31, 2015
June 30, 2015
Equity
15.00
150.00
177.50
Reserves & Surplus
-0.28
1.90
5.26
Total Net Worth
14.72
151.90
182.76
Long Term Borrowings
0.00
150.55
440.55
Long Term Provisions
0.00
1.50
2.34
Short Term Borrowings
0.00
22.00
55.01
Short Term Provisions
0.00
2.34
1.19
Other Liabilities
0.05
72.10
31.60
14.77
400.39
713.46
Net Tangible Assets
0.02
0.97
1.32
Deferred Tax Assess
0.00
0.29
0.56
Loans and Advances
0.47
360.83
550.23
0.01
21.67
115.18
Manpower Expenses
0.32
6.86
2.61
Depreciation and Amortization
0.00
0.23
0.14
Provisions
0.00
1.43
0.79
Total Expenses
0.75
15.76
6.66
-0.28
3.85
4.83
Other Assets
0
1.68
1.46
Cash and other Balances
14.27
16.63
46.16
-0.28
2.17
3.37
Total Application of Funds
14.77
400.39
713.46
Profit Before Tax
Tax
Profit After Tax
Total Sources of Funds
THANK YOU
Success 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