Dear Stakeholders,

I am pleased to present the IIFL Home Finance Limited’s Integrated Annual Report for the FY 2022-23.

During this critical year, we effectively reaffirmed our dedication to empowering individuals from diverse walks of life to fulfil their aspirations of homeownership. In doing so, we have witnessed significant growth across all aspects of our operations. As an affordable home finance company, we have continued to solidify our position through impressive achievements such as substantial growth in assets under management, a robust loan book, strong financial performance, and impactful sustainability initiatives that bring about positive transformations in people’s lives. Our commitment to financial inclusion and creating a meaningful societal impact remains resolute.

Upon reflection, a notable highlight of the year emerged as the substantial investment of ₹ 2,200 Crore, signifying a 20.41% stake in our Company, made by the esteemed Abu Dhabi Investment Authority (ADIA). This strategic investment further propels our expansion strategy in new markets and addresses the escalating demand for home loans in India’s affordable housing finance sector. It stands out as one of the largest equity investments in this segment, showcasing the confidence of our investors in our potential and prospects. With this substantial infusion of capital, IIFL HFL is well-positioned for its next phase of growth, enabling us to leverage emerging opportunities.

In FY 2022-23, we gained significant traction from the resilient performance of the Indian economy, as it went on to achieve 7% plus growth and secured its position arguably as the world’s fastest-growing major economy. While inflationary challenges persisted, the Reserve Bank of India effectively implemented remedial measures, including interest rate hikes. Moreover, the Union Budget for FY 2023-24 has allocated an unprecedented amount of ₹ 79,000 Crore under the PMAY initiative which is 66% higher than the allocation for the previous year. This surge reinforces the Government’s focus to address the housing needs of the population, which translates into the construction of more affordable houses. The enhanced budgetary allocation will undoubtedly enhance accessibility to safe and decent living spaces for all individuals across India, allowing us to build momentum.

Our unwavering efforts to strengthen our position in the industry have yielded commendable results, as reflected in our robust performance. In FY 2022-23, we achieved a remarkable strong 23% revenue growth, reaching ₹ 2,731 Crore, alongside a 15% expansion in our loan book to ₹ 18,055 Crore. We also achieved a persistent growth of 21% in our AUM, reaching ₹ 28,512 Crore. Furthermore, our NII has grown 34% YoY driven by increase in PLR (broadly in line with RBI’s increase in Repo Rates), penetration in better yielding product (Shakthi) and investment from ADIA. These achievements underscore our resolute pursuit of strategic imperatives that drive progressive growth.

As we propel forward in our endeavour to reach new milestones, our focus remains on our commitment to serving the unserved and underserved segments of the population. We are steadfast in our dedication to meeting their financial needs within the domain in which we operate. Our partnerships with state governments and authorities have empowered us to extend affordable housing loans to first-time homebuyers, women buyers, salaried professionals, and employees in the informal sector. So far, cumulatively we have made 96,600 customers as proud home owners from the informal segment and provided government subsidies exceeding ₹ 17 billion to over 73,000 customers under CLSS.

In pursuit of our objective of expanding our physical presence, we have successfully expanded our branch network to 386 in FY 2022-23. Digitalisation has played a pivotal role in our growth, positioning us as an industry leader in digital delivery of finance for affordable homes. Our resilient and robust digital infrastructure has been instrumental in driving our growth, enabling us to expand our customer base and enhance productivity. By implementing cutting-edge technology for credit underwriting and deploying e-learning platforms for employee development, we have streamlined processes such as paperless client onboarding, loan processing, disbursement, and servicing. A testament to our exceptional service is Jhatpat Homes: our 30-Minutes story, showcasing our service prowess. Through fintech integrations, we have optimised our retail businesses with the under 30-Minutes Jhatpat loan process.

As we sprint ahead, we continue to foster an organisational culture that transcends the conventional employer-employee relationship. As we build a truly caring, empathetic and mutually reinforcing ecosystem across the organization, the impact on each employee is visible. We remain steadfast in our commitment to upskilling our employees, ensuring their knowledge and capabilities soar to new heights. Additionally, our comprehensive employee well-being initiatives are deeply embedded, prioritising the physical and mental health of our employees to enable them to make effective decisions.