These efforts have allowed us to make a meaningful and sustainable impact in the lives of these deserving individuals while contributing to the growth of the affordable housing sector in the country. By aligning our objectives with environmental consciousness and utilising technology to enhance efficiency, we continue to push boundaries and advance towards our vision of providing affordable and green housing solutions to all.

As of March 31, 2023, IIFL Home Finance has been actively contributing to the realisation of the Government’s “Housing for All” initiative and bolstering the MSME sector through our home loan and Shakthi loan initiatives, respectively. Through our home loan initiatives, we have had the privilege of fulfilling the dreams of 114,952 households and catering to 213,700 first-time home buyers. Our commitment to affordable housing is further demonstrated by our active participation in the credit-linked subsidy scheme under the PMAY initiative, which facilitated ₹ 17 Billion, supporting affordable housing for over 73,000 beneficiaries.

Moreover, in FY 2022-23, our Shakthi loan initiative empowered over 25,400 micro-businesses by disbursing credit worth ₹ 1,170 Million, contributing significantly to their growth and economic empowerment. This step reinforces our dedication to strengthening the MSME sector, playing a vital role in India’s economic progress and the “Make in India” dream.

With a branch network of 386 branches spread across 16 states and 2 union territories, we have successfully established a robust branch footprint that enables us to effectively reach and serve a larger audience, particularly in Tier 3 and 4 cities. Our continuous efforts in expanding our sales team further enhance our capabilities to meet the needs of our growing customer base and align with the country’s vision of inclusive growth and economic prosperity.

Our sustained commitment to empowering individuals from different strata of society to achieve their dream of owning a home remains at the forefront of our mission. We believe that homeownership creates a sense of belonging, stability, and pride, and we strive to make it accessible to everyone. In line with this vision, we have strengthened our lending profile through the co-lending model, partnering with banks to enhance access to credit for marginalised segments of society at affordable interest rates. This collaboration aligns with the Government’s agenda of ‘Housing for All’ and enables us to reach the remotest areas of the country. In the FY 2022-23, we co-lent home loans of over ₹ 2,740 Crore with multiple banks.

Our partnership with the Asian Development Bank (ADB) through the Technical Assistance Program has been instrumental in strengthening our position as a leading provider of affordable housing solutions, particularly with a focus on empowering women. In FY 2022-23, our commitment to social impact and Corporate Social Responsibility (CSR) activations remained strong as we dedicated our resources and efforts to uplift communities and make a meaningful difference in people’s lives. The Mission of IIFL Home Finance Ltd. Social Impact and CSR Activations is to support communities’ access to healthy and sustainable housing, facilitating financial inclusion amongst the economic weaker section (EWS) and lower income groups (LIG), while also fostering social transformation through the encouragement of diversity, education, health, and awareness through Propagation, Technology, and Innovation. Our initiatives, including Disha, Sakhiyon ki Baadi, Chauras, and Smart Shaala, have effectively driven positive change and empowered our communities in the areas of housing, financial inclusion, and social transformation.

During FY 2022-23, we accomplished a marquee investment by securing a capital infusion of ₹ 2,200 Crore from Abu Dhabi Investment Authority in exchange for a 20.41% stake in the Company. This notable achievement stands as one of the largest equity investments in the affordable housing finance segment in India, a testament to the credibility of IIFL Home Finance Limited. The decision of Abu Dhabi Investment Authority to invest in our company highlights the trust and recognition of our capabilities. With this substantial capital injection, we are well-positioned to meet the burgeoning demand in India’s large, underserved, and fast-growing affordable housing finance market, enabling us to expand our reach and further strengthen our impact on the housing finance sector.

Looking at our financial performance, we are delighted to report substantial growth in revenue and net interest income (NII), showcasing our commitment to financial prudence and performance. In the FY 2022-23, on a standalone basis, we achieved an impressive 37% growth in profit before tax (PBT) and profit after tax (PAT), amounting to ₹ 1,023 Crore and ₹ 790 Crore, respectively. Our return on equity (ROE) stood at 18.2%, and our return on assets (ROA) was at 4.0%. With a healthy capital-to-risk assets ratio of 47.3% that is boosted by capital infusion from ADIA we have maintained a robust balance sheet. Our gross stage 3 assets stood at 2.1%, with net stage 3 assets at 1.5% and overall PCR on the loan book of 126.5%. Despite significant investments in manpower and branches/infrastructure, we have been able to maintain our cost-to-income ratio at 23.6%. These financial indicators exemplify our dedication to delivering strong returns to our investors and effectively allocating capital to drive growth and success.

As a digitally native organisation, we continuously explore new developments in best-in-class technology, which plays a pivotal role in improving efficiency and providing a seamless customer experience. Our technological prowess not only drives our financial success but also supports our business strategy. In FY 2022-23, we achieved a remarkable milestone by conducting 99% of customer onboarding digitally, showcasing our dedication to delivering a streamlined digital experience. This integration of technology has proved transformative, significantly enhancing the performance of our sales and credit teams, reaffirming our commitment to efficient credit processing and ensuring exceptional customer service throughout our operations.

At IIFL Home Finance, our core values revolve around fostering inclusive growth for our business, our people, and the communities we serve. Our sustainable strategy, ‘Complete Profitability - An ESG Initiative’, forms the DNA of our organisation, reflecting our impact-driven approach across four pillars of success: Employees, Organisation, Society, and Environment. Moving forward, we continue to invest in expanding our branch network, enhancing our digital capabilities, and nurturing our talent pool to seize the vast opportunities within the Indian housing industry while remaining socially and environmentally responsible.

We recognise the importance of consolidation and product efficiency to ensure our business remains resilient. Alongside this, we prioritise the well-being of our human resources by fostering empathy and employee sensitivity in our organisation. Taking care of our ground staff and frontline workers is not only crucial for maintaining operational excellence but also for showing genuine concern for their welfare. We understand the challenges they face and are committed to providing the necessary support and understanding. Moreover, we acknowledge the industry consolidation taking place and seize this opportunity to reimagine our business. By staying ahead of the herd, we continuously strive for professional operational excellence, enabling us to adapt, innovate, and thrive in these dynamic times while ensuring that our employees feel valued, respected, and supported throughout the journey.

In conclusion, I would like to express my heartfelt appreciation once again for your unwavering support and trust. To our exceptional team, it has been a privilege to work alongside you as you consistently demonstrate immense motivation and commitment toward achieving our shared organisational objectives. We are committed to nurturing this partnership for the long term, and together, we will continue to accomplish even greater feats in the days ahead.

With warm regards, Monu Ratra Chief Executive Officer (CEO)