MAS Rural Housing & Mortgage Finance Limited INFORMATION MEMORANDUM.

MAS Rural Housing & Mortgage Finance Limited

INFORMATION MEMORANDUM

SR. NO. SLIDE NAME SLIDE NO.

1 INTRODUCTION 3

2 VISION 4

3 MISSION 5

4 BOARD OF DIRECTORS 6

5 THE PRODUCT 7

6 THE JOURNEY SO FAR AND TAKING IT FORWARD 8

7 MARKET SCENARIO 9

8 NETWORKING 11

9 DEVELOPMENT STRATEGY 1210 ENABLERS 14

11 BUSINESS PLAN - MAS RURAL HOUSING & MORTGAGE FINANCE LIMITED 15

2

• MAS RURAL HOUSING & MORTGAGE FINANCE LTD. (MRHMFL) is the housing finance company registered with National Housing Bank. It is promoted by MAS FINANCIAL SERVICES LIMITED (MAS).

• MAS FINANCIAL SERVICES LIMITED (MAS) is a specialized Retail Financing NBFC in business for over two decades. The company focuses on Financial Inclusion of unserved and underserved customers by providing finance to middle and lower income group through a range of products –MSE (Micro and Small Enterprise) loans, Two Wheelers, Three Wheelers and Multi Utility Vehicle finance to Individual Borrowers.

• MRHMFL aims to cater to the funding requirement of the vast segment of the society in the rural, Semi urban areas and urban low & middle income group for their housing, extension, renovation and also acquiring of commercial property especially for their business use.

• MRHMFL currently carry on its operations in Gujarat, Maharashtra, Rajasthan and Madhya Pradesh

• The Company has 37 branches catering to 1000 centers with centralized credit and back office system.

INTRODUCTION

Together realize the dream of every individual to “OWN a HOME”

VISION

To be a very significant provider of financial services in the housing loan segment, thereby

being the catalyst in realizing the dreams of the millions of households, especially among the

LIG and MIG class in semi urban and rural areas and create value on a very large scale.

MISSION

BOARD OF DIRECTORS

• More than two decades of experience in the industryMr. Kamlesh GandhiFounder and Managing Director

• Chairman of Gujarat Finance Company Association & committee member of Finance Industry Development Council (FIDC). More than two decades of experience in the industry.

Mr. Mukesh GandhiCo founder and Director Finance

• Formerly associated with Gujarat Industrial Investment Corporation &Dean of ICFAI Business School Ahmedabad & presently with Shanti Business School, Ahmedabad.

Mr. Bala Bhaskaran Professional Director & Independent Director

• Former General Manager of Gujarat state Finance Corporation & director of Som Lalit Institute of Management, Ahmedabad

Mr. Jagdish JoshipuraProfessional Director

• More than 25 years of experience in Banking and Finance and a practicing Chartered Accountant

Mr. Chetan Shah Professional Director

Tenure

• Loans extended for tenure ranging from 3 to

20 years.

Loan Ticket Size

• ` 2 Lacs to ` 35 Lacs. Average ticket size is ` 5-

7 Lacs.

Mode of Repayment

• Mode of repayment through PDCs

irrespective of their current banking

arrangement. Clients not having bank accounts are

helped to open an account through tie-up

with various banks.

The Product

Various Products

Housing – New

Housing – Resale

Construction Extension & Renovation

Commercial Property –

New

Commercial Property –

Resale

For livelihood financing

• For Sustainable livelihood and Employment Generation

Housing Loan The Journey so far…….. 2009-2011

Taking it forward…. 2011–2015

The Impact.. 2009–2015

No. of clients *** 1,000 35,000 36,000

*** Belonging to MIG-LIG class of Rural, Semi Urban and Urban areas

The Journey so far….. And taking it forward…..

Total Estimated Housing Requirement

Rural47 Mn. Houses

Urban *24.7 Mn. Houses

Total71.7 Mn. Houses

HUGE

* Source : Report of the technical group. Government of India. 11th five year plan – 2007-12

Housing Market Size in India

• 6.7cr. Urban India House Hold• OpportunityIncome Group No of

House Hold% of House

HoldEstimated affordability of

House

< Rs.75,000/- - 1.00cr. 15% -Rs.75,000/- to Rs.1,50,000/- 1.68cr. 25% Rs.2.5lacs to Rs.5.00lacs

Rs.1,50,000/- to Rs.3,00,000/- 2.41cr. 36% Rs.5.00lacs to Rs.10lacs

Rs.3,00,000/- to Rs.5,00,000/- 1.00cr. 14% Rs.10lacs to Rs.16lacs

> Rs.5,00,000/- 0.67cr. 10% > Rs.16lacs

MAS Plays an important role in serving this sector. Proven track record – 3 Lacs customers 500+ Categories

Unorganised Sector

50% to 60%

Targeted segment in affordable housing

Source: Indicus Analytics low cost housing in urban India presentation.Note : Affordability defined as household which have EMI/MHI ratio of 45% of a home loan which has a 15% down payment and 12% interest carrying loan for 15 years.

Urban India Scenario and Market Size

Networking

Head Office: Ahmedabad Company is currently operating at 1000 centers through 26 branches in Gujarat, 6 branches in Maharashtra, 4 branches in Rajasthan and 1 Branch in Madhya Pradesh

Semi Urban : Talukas & Small towns

State No. of targeted Talukas approx.

Formal Housing

Informal Housing

Commercial Property for

livelihood

Project Funding

for affordable Housing

Total POS

Gujarat 100 30 195 40 35 300Maharashtra 50 20 120 20 20 180Rajasthan 15 5 40 10 5 60MP 15 5 40 10 5 60Total 180 60 395 80 65 600

• To create efficient distribution network at the taluka places.• Target – Approx. ` 600 Cr. by 2018.

Amt. ` in Cr.

Development Strategy

UrbanState No. of

targeted districts approx.

Formal Housing

Informal Housing

Commercial Property for

livelihood

Project Funding for affordable Housing

Total POS

Gujarat 20 20 125 25 20 190Maharashtra 10 10 70 15 15 110Rajasthan 7 5 25 5 5 40MP 7 5 20 5 5 35Total 44 40 240 50 45 375

• Focus on the informal class & affordable projects.

• Target - Approx. ` 375 Cr. by 2018.

Amt. ` in Cr.

Development Strategy

Enablers

• To leverage on the vast experience of nearly two decades of catering to the MIG and LIG segment of the society.

Experience :

• Customized loan products for the informal segment, especially in the semi urban and Urban areas.

• Customized credit screening and process designing to cater to the informal and the rural category of customers.

Understanding the segment :

• HugeMarket Size :

• Focus on rendering services to the villages, so far being the un-penetrated market. • Extensive distribution network especially in the underpenetrated semi urban areas.

Distribution Network :

• To leverage on the existing Customer, Developer & Referral base.• Concentrated efforts to increase the customer base through well trained team.• To develop the team by ensuring promising career through their empowerment.• To focus on creating quality portfolio by following • The basics : “Extending credit where it is due.” • Process : Adherence and adaptability.

• To sharpen the learning curve through self assessment and peer’s analysis from time to time.

Basic Fundamentals:

15STATUTORY AUDITOR : KALARIA & SAMPAT

BUSINESS PLANMAS RURAL HOUSING AND MORTGAGE FINANCE LTD.

INR Mn. FY13 FY14 FY15 FY16 FY17 FY18 Total Income 46 108 247 479 792 1196 Total Expenditure 38 92 210 397 648 970 PBT 8 16 37 81 143 226PAT 6 12 27 59 105 165 LIABILITIES Share Capital 144 144 144 244 394 544Reserve & Surplus 15 27 44 86 163 290Net Worth 159 170 187 330 556 833Secured & Unsecured Loans 250 972 2391 4344 6794 9981Current Liabilities 6 8 26 49 84 129Other Liabilities 2 3 6 11 18 26Total Liabilities 416 1153 2610 4734 7453 10969 ASSETS Fixed Assets 0 4 8 10 13 17Loan Portfolio 407 1082 2467 4515 7151 10558Other Current Assets 8 67 135 209 289 394Other Non Current Assets 1 0 0 0 0 0Total Assets 416 1153 2610 4734 7453 10969

Best Wishes