Investor Presentaiton

5 furtisments HELYEL Home First Finance Company India Ltd. HDFC securities 20 Click. Invest. Grow. YEARS Credit underwriting process: HFFC has created a robust underwriting process. It incorporates advancements in technology, data aggregator and analytics to make the outcome consistent, accurate and cost effective. The underwriting spans across three levels: evaluation at the branch level, validation against digital databases, centralised underwriting at the head office level at the time of loan approval and centralised validation of all the previous processes at the time of disbursal of the loan. A single loan passes through at least 5 different pairs of eyes internally and 2 different pairs of eyes externally before the disbursement is initiated. Strong capitalization level and diversified funding mix The company continues to have adequate capitalization levels backed by healthy internal accruals and regular equity infusions in the past. The capital adequacy ratio remains strong with Tier 1 and overall CAR of 55.2% and 56.4% respectively as of Q1FY22. This is one of the best in class. This shows that HFFC has enough capital to fund the loan growth and strategy of aggressive branches expansion without any external capital infusion in the foreseeable future. Also, it gives the company a competitive advantage over peers as strong capital buffer could provide cushion for absorbing any asset-side shocks. It also has robust ALM profile ensuring sufficient liquidity buffers (Cumulative Positive flows across all the time buckets). The company strengthened its asset liability profile through various strategies, which includes diversified the funding mix, broad-based the lender mix and consciously resisted the mobilization of commercial paper. It has also constantly tried to reduce dependence from bank's funding. Further, being an affordable housing financier, major part of the portfolio qualifies for priority sector lending. This opens up additional source of fund raising via assignment. It has a well-diversified funding mix from 18 financiers. As of Q1FY22, banks contribute 45%, assignment contributes 22%, NHB refinancing contributes 26%, NBFC contributes 1%, and NCDs contribute 6%. 120% 100% 80% 60% 40% 20% 0% Borrowing Mix and COB (%) Q1FY22 DA NCD NHB NBFC Bank COB (RHS) 10% 9% 9% 8% 8% 7% 7% 6% RETAILRESEA RETAILRESEARCH

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