Q2 FY16 Investor Update

2 Promoted by the LIC of India in 1989 IPO in1994, GDR in 2004 Listed on BSE, NSE & Luxembourg SE Profit making & dividend paying since 1990 Highest ratings (AAA) since 2002 More than 18 lakh customers serviced till date Market capitalization more than Rs cr Total loan assets more Rs. 1,14,000 cr 97% of loan assets in retail category Cumulative Disbursements Rs.1.83 lakh cr since inception Shareholding Pattern- Sept’15

Incorporated IPO AAA Rating GDR Issue Crossed Rs. 500 crs profit Crossed Rs. 50,000 Cr loan portfolio Best HFC by CNBC TV 18 Construction Industry Award Crossed Rs cr profit & Rs 75,000 Cr assets Best HFC by ABP News Crosses Rs 1 lakh cr in portfolio Best Housing Finance Co. by BFSI Awards Best data quality in HFC by CIBIL A Journey of 26 Years…

4  Q2 FY16 PAT at Rs cr as against Rs cr up 21%  Q2 FY16 Revenue from operations up by % to Rs 3026 cr  Outstanding Loan portfolio up by 17 % to Rs cr  Individual Loan Portfolio up by 17% to Rs cr  Q2FY16 Disbursements Rs 8390 cr against Rs 7196 cr up by 17%  Net Interest Income Rs 717 cr up by 35%  Net Interest Margins % for Q2 FY16 as against % for Q2FY15  Gross NPAs at 0.60% as against 0.63% as on  Net NPAs 0.32% as against 0.33% on corresponding dates  Individual Loans Gross NPAs 0.33 % down from 0.38% as on  Total Provisions at Rs 779 cr as against total Gross NPAs of 683 cr Executive Summary – Q2/FY16

5 Disbursement (Rs. Cr) CAGR 13 % Profit After Tax (Rs. cr) CAGR 9%Income (Rs. cr) CAGR 22% Loan Portfolio (Rs.cr) CAGR 21% Update – last 5 years

6 Gross & Net NPAs Operating Expense to Total Income Total Provisions* (Rs cr) Profit per employee (Rs. lacs) * Provisions Including Provisions on Std. Assets & Teaser Loans Update – last 5 years

7 EPS (Rs) (Rs 2 pd up) Return on Avg Equity Book Value (Rs)(Rs 2 pd up) Return on Avg Loan Assets Update – last 5 years *FY 2015 PAT before DTL considered

8 7 Regional Offices 16 Back Offices 234 Marketing Offices Rep offices in Dubai & Kuwait Coverage of more than 450 centres 1756 Employees Geographic Presence

9 HOME LOAN AGENTS (HLAs) (Agents of LIC) DIRECT SALES AGENTS (DSAs) (Small Firms/Companies etc) CUSTOMER RELATIONS ASSOCIATES (CRAs) (Individual Agents) 234 Marketing Offices 37 branches of LICHFL Financial Services (100% subsidiary of LICHFL) Distribution Network

10 Origination Pattern

11 Average Ticket Size- Individual

12 Loan Book Composition CategoryO/s Portfolio% Var Individual (Including LAP) % Developer299225% Total %

13 Installment to Net Income Ratio On Incremental Sanctions For FY % For FY % For Q1FY % For H1FY % Loan To Value Ratio On Incremental Sanctions For FY % For FY % For Q1FY % For H1FY % Pure Floating Rate Loans To Outstanding Portfolio (See Note below) As of FY 14 42%* As of FY15 37%* As of Q1FY16 31%* As of H1FY16 35%* Prepayment Lump Sum/ opening book For FY % For FY15 8.4% For Q1FY16 9.8% For H1FY % *Excludes floating rate products like Advantage -5, Super 3, Super Choice, Bhagyalakshmi etc which are floating rate products with initial fixed rate Individual Loans – Portfolio Stats

14 Executive Summary-Q1/FY16 Rs in Cr % VarSep-15Sep-14% VarH1 FY16H1 FY15 Q2FY16Q2FY15 Income Individual18% % Project-14% % Interest on Housing Loan17% % Processing Fees & other fees23% % Other Income-21% % Gross Income16% % Interest Expense12% % Net Interest Income35% % Salary & Other Establishment Exp10% % Profit before Provisions & Taxation35% % Provisions for NPA/Std Assets Profit before Tax25% % Tax Expenses32% % Net Profit21% %

Executive Summary-Q1/FY16 % VarSep-15Sep-14% VarH1 FY16H1 FY15 Disbursements Q2FY16 Q2FY15 Individual13% % Project198% % Total17% % Outstanding Portfolio Individual17% Project25% Total17% Outstanding Liabilities15% Net Interest margins(%)2.56%2.23%2.47%2.20% Borrowings during the period (Rs.cr) Incremental Cost(i.e for the year to date)8.92%9.63% Incremental Yield(overall, annualised)10.92% Incremental Spreads2.00%1.29%

16 H1 FY2016H1FY 2015 Return on Average Equity (%)19.3% 18.5% Return on Average Assets for qtr (%)1.5% 1.4% Earnings per share (on Rs 2 pd up) Capital Adequacy Ratio Tier I Tier II Total March March Financial Highlights

17 Outstanding Borrowings –Rs cr SourceWtd Avg Cost (%) Banks10.29% Non Convertible Debenture9.13% LIC- Term Loan6.82% National Housing Bank8.86% FCNRB Loans9.28% Sub. Bonds & Upper Tier II8.90% Commercial Paper8.06% Deposits9.24% Total9.29% as on Liability Profile During H1FY16, Borrowings were Rs %

18 Change in Liability Mix- last 5 yrs Wtd. Avg. cost of Funds Bank funding has reduced from 32% in FY12 to 25% in FY14. Retail Deposits increased to 2.2% 9.29% 9.38% % 9.76% 9.77% Bank Funding down from 32% in FY12 to 15% in Q2FY16

19 NIMs

20 Yield & Cost of Funds on portfolio

Gross NPA (Rs. cr) Gross NPA (%)0.60%0.63% Provisions for NPA (Rs. cr)* Net NPA(%)0.32%0.33% Provisions incl teaser loan prov & std asset prov Gross & Net NPAs *Excluding provisions on standard assets/teaser loans Provisions cover incl teaser loan prov & std asset prov.114%115%

22 Gross & Net NPAs

23 DISCLAIMER This presentation is made purely for information. We have attempted to provide relevant information which we believe will help in knowing the Company. The users may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. While every care is taken to verify the accuracy of the information given in this presentation, neither the Company nor its officials would in any way be liable for any action taken or not taken by the viewers or the users of this presentation or for any claims, losses etc. Thank you