IIFL Finance (IIFL) Investor Presentation summary

Company overview

• Focuses on small-ticket loans for underserved individuals and businesses, with 98% of loan assets in retail and 69% in priority sector lending.

• Operates an extensive network of 4,810 branches and employs 34,357 people across India.

• Maintains a well-capitalized balance sheet with a CRAR of 35.19% and net gearing of 2.7x.

• Backed by marquee investors including Fairfax, ADIA, Capital Group, and BII.

• Group structure includes major subsidiaries in housing and microfinance, with diversified product offerings.

Strategic moats for sustained & resilient growth

• Diverse retail product portfolio with granular focus on home, gold, MSME, and microfinance loans.

• Strong asset quality, with consolidated GNPA at 2.35% and robust provisioning coverage.

• Low-risk, asset-light business model leveraging co-lending and direct assignment partnerships with banks.

• Conservative ALM and strong liquidity, with positive mismatches across all buckets and diversified funding sources.

• Robust risk management framework and experienced leadership with a distinguished board.

Regulatory update and business continuity

• RBI lifted gold loan restrictions in September 2024 after comprehensive compliance and remedial actions.

• Maintained workforce stability, customer trust, and timely repayments during the restriction period.

• Raised USD 152mn via rights issue and secured additional liquidity of USD 1.1bn.

• Credit rating remained strong (AA by CRISIL) throughout the period.