Dear Stakeholders,
After a year of the unexpected in
2020, the year 2021witnessedthe
nation’s transitioning from the ‘New
Normal’ to the ‘Next Normal’; the
successive COVID-19 pandemic
waves felled by a massive nation wide vaccination drive; and
debottlenecking of the supply chain.
Altogether, we saw the economy
recovering from the adverse effects
of the COVID-19 pandemic – a
demonstration of our exceptional
abilities to pick up, dust off and
move on. This proved to be the year
that differentiated the resilient from
the weak – opening vast growth
opportunities for the stronger ones
who emerged even stronger from the
face of the pandemic.
As the negative effects of COVID-19
pandemic reduced at the beginning of
2021-22, along with the easing of the
lockdown and travel restrictions, we
witnessed a general boost in public
morale and spending sentiments.
India’s economy recorded a real
GDP growth of 8.7% in 2021-22, as
per latest Government estimates
announced in June 2022 making it
the world’s fastest-growing major
economy, bolstered by a vision of
becoming a USD 5 trillion economy
over the next 5 years. This growth
narrative resulted in a demand boost
for credit and further pushed the
need for infrastructure development.
A nation’s infrastructure has always been
considered foundational to its
growth. Therefore, it is imperative
to strengthen India’s backbone to
achieve the country’s growth story.
The cumulative impact of the
pandemic, the Government’s
support measures, ‘work from home’
culture, and increased internet
penetration across the country
have led to increased residential
demand, rapid urbanization, and the
need for affordable housing. At IIFL
Home Finance, our capabilities will
enable us to tap these opportunities
expected in the home financing and
affordable housing space.
It brings me great pleasure to inform
you that our Company demonstrated
exemplary agility and resilience
amid these uncertain circumstances
to deliver yet another robust
performance during the year. This
performance was multi-dimensional.
At one level, the Company witnessed
strong all-round growth in volume,
business levels as well as new
highs in profit and profitability and
maintained almost pre-pandemic
levels of asset quality. At another
level, execution of the broader
philosophies that have always
underpinned our Company including
financial inclusion, sustainable
development and affordable
housing. We were determined on our
strategic imperatives of expanding
our ‘Phygital’ edge, improving digital capabilities,
thereby facilitating faster
and substantive delivery to customers,
promoting Government’s ‘Housing
for All’ mission and advancing as a
responsible corporate citizen. During
2021-22, our Company reported total
revenue of ₹ 22,214 million, an increase
of 7% compared to last fiscal year, and
a net profit of ₹ 5,780 million, a growth
of 44% over the previous year. All these
without losing physical customer
connectivity.
For our Company, serving the
unserved and underserved by
meeting their financial needs in our
domain, has always been an article
of faith. The partnerships with the
State Governments and authorities
that have been carefully nurtured
by us, empowering us to extend
loans for affordable housing to first time home buyers, women buyers,
salaried professionals and informal
sector employees. During the year,
we inducted over 55,700 low income
customers into our family to benefit
through our home loans, accessing
government subsidies of over ₹ 13
billion. To counter the pandemic’s
adverse impact, we continued
providing top-up loans to our existing
customers along with additional
liquidity support under various
Government schemes to SMEs. We
also continued leveraging the RBI’s
new co-lending model. This helped us
to effectively expand our loan book at a lower risk exposure with stable fees
income and a leaner balance sheet.
Our company has the highest ratio
of offbook to onbook exposure in the
country. In this sense, our Company
has significantly catalysed home
credit flows, particularly to the lower
income and underprivileged groups
through its own loan generation and
securitization post seasoning; Co lending with banks; facilitating access
to Government subsidies through
effective and proactive coordination
with National Housing Bank (NHB)
and Government of India. All these in
a challenging external environment
but partially mitigated through
unwavering adherence to ‘Phygital’
model and abiding commitment to
customers displayed by the entire
staff of our Company.
In a pursuit to continue growing our
Company’s presence, we expanded
our branch network to 225 during
2021-22.Digitalization has been
integral to our growth, allowing us
to be the front runners in the home
financing and affordable housing
space. Our ‘Phygital’ edge and
digital infrastructure capabilities
supported us in expanding our
customer base while also increasing
productivity. Our enterprise-wide
digital integration includes paperless
client onboarding, loan processing,
disbursement and servicing, along
with tech-based credit underwriting
and e-learning platforms for our
employees. Further, our fintech
associations across the value chain
have also enabled us to deliver a
differentiated customer experience with a lower turnaround time. We have
also sought to leverage the IIFL Group
synergies to mutual advantage.
At IIFL Home Finance, employees are
the core of our organization. We strive
to keep them engaged and committed
and continuously organize digital and
physical meets. During the year, we
partnered with ‘CultFit’ to promote the
fitness and wellbeing of our people. We
have also been following all COVID-19
health and safety protocols to ensure
a healthy workforce. As in the previous
year, we ensured full business
continuity in our operations, thanks
to our employees and systems and
processes adopted. We take a holistic
approach to the overall development
of our people. From our E-learning
platform to rule-based performance
and rewards, we ensure a transparent and inclusive workplace for our
people. Caring and transparency -
seedhibaat are our leitmotifs in sync
with the IIFL Group values.
Our Company’s sustainability
initiatives are inextricably linked to
our success. We make conscientious
efforts to support long-term
sustainable projects through
our ‘Kutumb’ and ‘Green Value
Partner’ initiatives. We strive to be a
responsible corporate and focus our
concerted efforts on Green building
and sustainable construction.
The outlook for the Indian economy
looks relatively optimistic on
the back of reducing infection
rates and arguably the world’s
largest vaccination program with
more than 80% of the population
vaccinated. However, the global
geopolitical situation, impact on
macro-economics and the potential
outbreaks would pose challenges.
Notwithstanding, the overall
construction and infrastructure
development sectors, including
residential, housing finance, and
affordable housing space, are
expected to witness a significant
boost which should mitigate the
macro-challenges. With our strong
foundation, smart solutions and
sustainable approach, our Company
is well-positioned to leverage these
opportunities while expanding
sustainable development and
financial inclusion in India. In the end, I would like to express
my heartfelt gratitude to fellow
Board members, stakeholders,
and investors for their unwavering
support and belief in us. I also
sincerely thank all our bankers,
customers, and committed
employees who have empowered
us to reach where we are today.
At IIFL Home Finance, we are
committed to keeping a close
eye on the changing investment
landscape and grasping new
opportunities to create sustainable
value for all our stakeholders.
Thereby, helping create Solid,
Smart and Sustainable homes for
the numerous beneficiaries, we call
customers.
Best Wishes,
S. Sridhar
Chairman
