What is ‘Seedhi Baat’?

We are what we do.We trust our actions

Our theme, Seedhi Baat, reflects our culture of honesty and transparency, underpinned by strong governance across all facets of business. We aim to provide the best solution to customers’ requirements backed by complete and unbiased information, ensuring customers make informed decisions and build a foundation of trust. Our core values of Fairness, Integrity and Transparency are the guiding principles to the way we conduct business since inception and we adhere to them in letter and spirit.

Key Highlights

(For the year ended March 31, 2020)

379,511 million

Assets Under Management

47,656 million

Net Worth

16.9% * 

Return on Equity

2.2% * 

Return on Assets

48,207 million

Total Income

10,072 million

Profit Before Tax and Exceptional Items

7,561 million

Profit After Tax (before exceptional items)

4,968 million

Profit After Tax (after exceptional items)

*Before impact of exceptional items including Covid related special provision of ₹ 2.1 billion (net of tax) and deferred tax assets reversal of ₹ 0.5 billion

13.27 

Earnings per Share

2.25 

Dividend per Share

2.31%   

Gross NPA

0.97%   

Net NPA

AA Stable  

Credit Rating by CRISIL

2,377  

Branches

18,569  

Happy Employees

Trust and transparency

IIFL Finance Limited

A reflection of trust and transparency

Building on the strength of over 25 years of expertise, IIFL Finance Limited (IIFL Finance) is one of India’s largest and most trusted financial services provider.

After the demerger of IIFL Securities Limited and IIFL Wealth Management Limited, IIFL Finance, along with its subsidiaries IIFL Home Finance and Samasta Microfinance, is focussed on consumer lending.

Its diverse product spectrum comprises Home Loans, Gold Loans, Business Loans including Loans against Property and MSME Financing, Microfinance, Construction and Real Estate and Capital Markets Finance.

With a strong foundation, retail focused strategy, and transparent and ethical business operations, the Company continues to deliver excellent service offerings and sustainable growth.

vision

To be the most respected financial services company in India. Not necessarily the largest or most profitable.

VALUES

Fairness

Fairness in our transactions with all stakeholders including employees, customers and vendors, bereft of fear or favour.

Inte grity

Integrity and honesty of utmost nature, in letter, in spirit and in all our dealings with people, internal or external.

Transparency

Transparency in all our dealings with stakeholders, media, investors and the public at large.

Our Strategy:

Retail Lending Digital Delivery

Our diversified offerings have been built on a sound understanding of customer needs.

Retail lending products have been recognised as the cornerstone of the Company’s long-term strategy. Our objective is to address the emerging financial requirements of the retail lending market with our diversified credit solutions and ability to deliver superior customer experience with leading-edge technologies.

A strong physical as well as digital footprint is very important in our business, as it increases reach and access to customers. Our pan-India branches function as the human interface of our brand and add the very essential human element to our digital delivery channel.

Based on our strategy, we have identified following products as focus for growth.

Core Products

Home Loans

Gold Loans

Business Loans

Microfinance

Besides, we have two products, which are no longer focus for growth now but have historically been synergistic to our home loan product and the Group company’s securities business.

Synergistic Products

Construction & Real Estate

Capital Markets

Deepening Outreach Across the Country

Our strong physical and digital infrastructure base enables us to serve our customers with the highest standards of services. Our physical branches remain an important way in which we serve our customers’ needs and drive financial inclusion. Through a pan-India network of branches and customer touch points backed by a robust digital infrastructure, we provide a comprehensive range of financial products and services to our customers.

  • South

    35%

  • North

    15%

  • East

    11%

  • West

    39%

2,377

Branches across India

430

New branches added during the year

85%

Branches in Tier-II and Tier III cities

25

States

600+

Towns/cities

  • South

    35%

  • North

    15%

  • East

    11%

  • West

    39%

Our Products

Our product portfolio comprehensively caters to the needs of all customer segments. We have, over the years, diversified into segments that are of greater relevance to the evolving business environment and customer needs and have incrementally been offering smaller ticket loans resulting in 88% of our portfolio being retail in nature as on March 31, 2020. Our diversified portfolio provides scale and diversifies risks across geographies, industries and collaterals.

Our growth focus is on our core products namely Home, Gold and Business loans, and Microfinance.

Our product offering evolution is depicted below:

AUM in ₹ Billion

  • Microfinance
  • Commercial Vehicle
  • Construction and Real Estate
  • Gold Loans
  • Home Loans
  • Capital Markets
  • Business Loans

HOME FINANCE

We offer small ticket loans for home purchase, renovation, construction and plot purchase. Through ‘Swaraj’ home loan, we cater to the financial needs of salaried and self-employed segment who have a micro business across tier-1 suburbs, tier-II and tier-III cities in India. In line with the ‘Housing for All’ initiative by the Government, our affordable loan products fulfils the dream of first time home buyers.

Key highlights for the year 2019-20

  • Retail home loans constituted 33% of the total AUM
  • Average ticket size of home loans reduced from ₹3.1 million in FY 2015-16 to ₹ 1.9 million in FY20
  • Over 38,000 customers were benefited with a subsidy of about ₹ 9 billion under the Pradhan Mantri Awas Yojana – Credit Linked Subsidy Scheme

GOLD LOANS

We offer loan against gold jewellery for personal and business needs of small businesses, vendors, traders, farmers and salaried segment. With a hassle-free, digital process, we ensure the best-in-class service through widespread branches across the country.

Key highlights for the year 2019-20

  • Gold loan AUM posted a growth of 47% Y-o-Y
  • Average ticket size was ₹ 60,000
  • Strong emphasis on collections and resolution resulted in negligible losses
  • In-house tablet application equipped to assess customer credibility and digital on-boarding ensured faster loan processing
  • Adherence to digitised security measures at branches optimised cost and reduced contingencies

BUSINESS LOANS

We primarily provide small ticket ‘Insta-loans’, cash flow backed business loans and loans against property. Our loan offerings fulfil the working capital and business expansion requirements of MSME customers in manufacturing, trading and service sectors.

Key highlights for the year 2019-20

  • Business loans constituted 21% of the total AUM
  • Average ticket size of business loans reduced from ₹ 8.9 million in FY 2015-16 to ₹ 1.8 million in FY20
  • 64% of the book is collateralised
  • 61% of loans disbursed were of small ticket size i.e. less than ₹ 2 million
  • Launched salaried personal loan product
  • Digital personal/working capital loans scheme launched in the period of pandemic to support existing customers

MICROFINANCE

We offer small ticket micro loans to self-employed women for income generating activities based on a joint liability group model. Through deep presence in rural and semi-urban areas, we promote well-being of communities through micro loans, credit linked insurance and group based savings account.

Key highlights for the year 2019-20

  • Microfinance constituted 9% of the total AUM
  • Average ticket size of microfinance loans stood at ₹ 20,000
  • Continued our growth trajectory during the year with a healthy AUM growth of 49% y-o-y
  • Crossed 1.5 million customers mark with total 561 branches in 17 states
  • Stood 7th amongst all NBFC MFIs in terms of total number of branches and coverage of districts

CONSTRUCTION AND REAL ESTATE

We provide loans to developers for construction and development of residential and mixed-use projects. As a part of our retail strategy, the Company has collaborated with developers for funding the property buyers under the retail home loan category. Our construction finance vertical provides retail loans under the approved project route.

Key highlights for the year 2019-20

  • Construction and Real Estate constituted 12% of the total AUM
  • Average ticket size of the loans stood at ₹ 279 million

CAPITAL MARKETS

We offer short term loans secured by pledge of listed equity shares, vested ESOPs, equity and debt mutual fund units, structured notes, bonds and debentures. Through these loans, we fulfil instant liquidity needs to meet any personal exigency or to seize an attractive business opportunity.

Key highlights for the year 2019-20

  • Capital Markets constituted 1% of the total AUM
  • Average ticket size of the loans stood at ₹ 9 million

Our Financial Scorecard

Income# (₹ billion)

# Net of interest expense

Profit after Tax (₹ billion)

Return on Equity(%)

Return on Average Assets(%)

Cost of Funds(%)

Loan Assets Under Management (₹ billion)

Capital Adequacy Ratio

Net Interest Margin (%)

On Balance Sheet Assets

Gross NPA(%)

Excluding assignment income


Tier I Capital Adequacy Ratio stood at13.1% against minimum requirement of 10%


  • ^ Before exceptional items of gain on divestment of commercial vehicle business of ₹ 944 million (net of tax) and goodwill write off ₹ 107 million
  • *Before impact of Covid related special provision of ₹ 2.1 billion (net of tax) and reversal of deferred tax assets of ₹ 0.5 billion

Our Enduring Value Creation Model

Our approach to value creation is based on our vision, which lays equal emphasis on creating value for our business and our stakeholders as well as on delivering broader economic benefits to the society.

Inputs

Financial Capital

Our pool of funds available to the organisation through financing (debt, equity), operations and investments in order to ensure a sustainable business

Physical Capital

Our wide network of physical outlets, touch points and digital platforms to ensure seamless delivery of financial services

Intellectual Capital

Our ef􀍤cient processes, deep knowledge, technologies and expertise to leverage business opportunities

Human Capital

Our engaged and motivated workforce to provide the best-in-class 􀍤nancial offerings and superior customer service

Social and Relationship Capital

Our commitment to building mutually bene􀍤cial partnerships with our communities, customers, distributors, government and regulators.

Our Business Activities

Providing loans to a broad customer base of retail and corporate clients under multiple product categories effectively covering all customer needs under one umbrella

Strategic Enablers
  • Granular product portfolio
  • Widespread physical network
  • Best-in-class digital technology
  • Well-diversified funding mix and well-managed liquidity
  • Robust credit assessment
  • Strong risk management and asset quality
  • Highly experienced management
Comprehensive Product offerings

Core Products

Home Loans

Gold Loans

Business Loans

Microfinance

Synergistic Products

Home Loans

Home Loans

Value created for the stakeholders

Shareholders and investors

  • Sustainable returns

ROE: 5YEAR AVERAGE 16.1%

ROA: 5 YEAR AVERAGE 2.0%

PAT: 5 YEAR CAGR 20%

DIVIDEND DECLARED: ₹ 2.25 PER SHARE

(PAT, ROA, ROE growth excludes impact of Covid related special provision in FY20)

Customers

  • Tailored financial credit to address changing needs
  • Access through various platforms
  • Digitised and faster loan processing
  • Excellent customer experience

Employees

  • Stimulating and rewarding work environment
  • Equal opportunity and diversity
  • strong culture of learning and development
  • high employee engagement

Community

  • Financial Inclusion through loan offerings and wide spread reach across the country
  • Skill development and livelihood opportunities
  • Education initiatives to empower children
  • Health awareness for better quality of life

Responsible tax payments

  • Ethical and transparent business practices
  • Compliance with the relevant regulations and guidelines
  • Contribution to the industry and regulatory working groups

Management Message

Chairman’s Message

Read more

The best strategy to seize the opportunity and fortify your company’s competitive position is to stick to your knitting- in terms of business as well as culture. Simple products, honest policies and straight talk or SeedhiBaat.

CEO's Message

Read more

Our strong foundation, differentiated strategy and an experienced leadership, enables us to deliver sustainable results even in competitive financial services arena. we have successfully navigated through many economic cycles with a clear strategy, determination and sharp focus.

Awards and Accolades

1 Received Golden Peacock Award for Risk Management from the Institute of Directors at Singapore Global Convention on Board Leadership & Risk Management
2 Ranked as India’s most trusted Non-Banking Financial Company (NBFC) in a select list of top 10 NBFCs to watch in 2019 by the Insights Success magazine
3 Won the ‘Best Fintech NBFC of the Year Award’ at the India NBFC Excellence Awards 2019
4 Recognised as one of the ‘Most Promising Brands’ in the BFSI segment by The Economic Times
5 The Economic Times recognised our Chairman Mr.Nirmal Jain, as one of the ‘Most Promising Business Leaders of Asia’ for demonstrating exemplary leadership qualities
6 Received the ‘Most Admired Service Provider in Financial Sector’ award at the ET Now World BFSI Awards
7 Received the ‘Great Place to Work’ certification
8 Received Tata Institute of Social Sciences and LeapVault Award for the ‘Best on the Job Training Program’ at the Chief Learning Officers Summit in Mumbai
9 Received the ‘Best ATL Campaign’ award at mCube Awards for ‘IIFL Bonds Campaign’
10 Received the ‘Best Communications Strategy of the Year’ award at the Corporate Communication and PR Summit
11 Wins two awards at TAVF 2019 a) IIFL Milan for the Best CSR Campaign b) IIFL Bonds Campaign for Campaign with the Best ROI
12 IIFL Finance legal team included in ‘The Legal 500’s GC Power list: India Teams 2019’
13 Featured among the top 25 companies in ‘India’s Best Workplaces in BFSI 2020’

Board of Directors

  • 1

    MR. NIRMAL JAIN

    (Chairman)
    • Mr. Nirmal Jain is the founder and Chairman of the Company. He holds a PGDM (Post Graduate Diploma in Management) from the Indian Institute of Management (IIM), Ahmedabad and is a rank holder Chartered Accountant and a Cost Accountant. He started his career in 1989 with Hindustan Unilever Limited. He founded IIFL Group in 1995. It started as an independent equity research company in India. Over the last 25 years, he has led the expansion of the group, while remaining focussed on financial services. The group through four listed entities, has leading presence in India’s wealth & asset management, consumer lending, securities trading & discount Broking spaces. With an impeccable track record of governance and growth, the group has attracted marquee investors and won accolades internationally.
  • 2

    MR. R. VENKATARAMAN

    (Managing Director)
    • Mr. R. Venkataraman, is the co-promoter and Managing Director of the Company. He holds a Post Graduate Diploma in Management from Indian Institute of Management (IIM), Bangalore and a Bachelors in Electronics and Electrical Communications Engineering from IIT Kharagpur. He joined the Company’s Board in July 1999. He has been contributing immensely in the establishment of various businesses and spearheading key initiatives of the group over the past 21 years. He previously held senior managerial positions in ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of US and Barclays – BZW. He worked as an Assistant Vice President with G E Capital Services India Limited in their private equity division. He has a varied experience of more than 29 years in the financial services sector.
  • 3

    MR. VIJAY KUMAR CHOPRA

    (Independent Director)
    • Mr. Vijay Kumar Chopra is a fellow member of the Institute of Chartered Accountants of India. He was the whole-time member of SEBI for two years; prior to that he has been a career banker and has held several top positions during his 36 years of experience in banking industry. Some of his accomplishments include being the Chairman and Managing Director in Corporation Bank and SIDBI, 3 years as an Executive Director in Oriental Bank of Commerce and 31 years in various capacities in Central Bank of India.
  • 4

    MR. NILESH VIKAMSEY

    (Independent Director)
    • Mr. Nilesh Vikamsey is a senior partner at Khimji Kunverji & Co LLP, an 82-year-old Chartered Accountants firm, which is a member firm of HLB International. He is presently Member of the Advisory Committee on Mutual Funds & Corporate Governance Committee of Securities and Exchange Board of India (SEBI), Risk Management Committee of Central Depository Services (India) Limited (CDSL), and Expert Advisory Committee of Institute of Chartered Accountants of India (ICAI). He is the Past President of ICAI. He was an observer on the Board of International Federation of Accountants and Member of IFAC’s Technology Advisory Group. He was a member of IRDA. He was the Chairman of SEBI’s Qualified Audit Report Committee and member of Corporate Governance Committee chaired by Uday Kotak, Primary Market Advisory Committee and Committee on Disclosures and Accounting Standards (SCODA). He is a Speaker/Chairman, at various seminars, meetings, lectures held by various Committees, Regional Councils, Branches & Study Circles of ICAI, Bankers Training College of the RBI, Comptroller & Auditor General of India (C&AG) and various other organisations.