SRG Housing Finance Investors’ Presentation

Vision 2022 plan

The business strategies with respect to the period from the present to 2022 are set out in the investment presentation. This reads as follows:

(i) The company is looking forward to increase its Brand Value and shareholder’s wealth with its expansion plan. The management has proposed the strategy for its expansion plan including:

1. Increasing the scale of operations: Company wish to expand its Branch Network in North West Region of the Country. Focus areas of the company will be Tier II & Tier III Cities of Rajasthan, Maharashtra, Gujarat and Madhya Pradesh.

2. Expanding Resource Base: The Company has received refinance from National Housing Bank under its Refinance Scheme. Further the Company has already been sanctioned loans from many banks. Company is also planning to raise funds by way of various capital market instruments.

(ii) Key strenghts

(a) High Capital adequacy

(b) Ratio Diversified Products & Customer Profile

(c) Strong Asset Quality

(d) Adequate Internal Control System

(e) Strong MIS

(f) Experienced Promoters

(g) Brand Name of SRG in Rural Sector

(h) NHB Funding

(i) Understanding of Core Geographies

(j) Employee Productivity

(iii) Risk Mitigation:

•Credit polices are framed in line with the business strategy

•Portfolio performance is closely monitored. Portfolio monitoring is done through early warning signals and performance of policy caps

Credit Risk

•Asset liability Management Policy covers liquidity and interest risk related aspects

Market Risk

•Fraud is prevented through a fraud risk management policy within the organization

•Approved operational risk management frame work is in place and operational risks are monitored on an ongoing basis

(iv) Key Drivers of Our Business Model

(a) Growing demand of affordable housing

(b) Limited availability of housing finance for low-income customers

(c) Tax incentives for individuals

(d) Urbanization,

(e) growth of nuclear families, rising incomes etc.

(f) The government’s ‘Housing for All by 2022’ and the Pradhan Mantri Awas Yojna (PMAY) initiatives, the grant of infrastructure status to affordable housing, allowing additional investment limits to debt mutual funds to invest in housing finance companies (HFCs), and lower risk weights for smaller-ticket housing loans.