Results for the quarter ended September 30, 2012...

India Infoline Limited

Results for the quarter ended September 30, 2012

October 26, 2012

2

Unless otherwise mentioned, facts and figures in this presentation refer to those for the India Infoline Group (consolidated)

SECTION 1: Performance highlights

SECTION 2: Business review

SECTION 3: Finance and lending

SECTION 4: Corporate overview

Results for Quarter ended September 30, 2012

SECTION 5: Industry update

3

Overall consolidated financial performance

Income at `6,532 mn, up 12% qoq, up 59% yoy

PBT at `958 mn, up 17% qoq , up 172 % yoy

PAT* at `672 mn, up 27% qoq , up 199% yoy

Equities broking and related

Average daily equities turnover was `44 bn in Q2FY13 down 4% qoq and down 17% yoy

Average daily commodities turnover was `23 bn in Q2FY13 up 51% qoq and up 27% yoy

Financing and Investing

Total outstanding loan book stood at `78.5 bn in Q2FY13 as against ` 73.7 bn in Q1FY13

Loan assets are fully secured and constantly performing well resulting in net NPAs of less than 0.5%

Successfully raised `5,000 mn, by issue of subordinated debt, eligible as Tier II capital

Marketing and Distribution

Marketing and distribution income was `593 mn, up 24% qoq, up 41% yoy

Our product portfolio includes structured products, bonds, debentures, insurance and mutual funds


Performance highlights – quarter ended September 30, 2012

*Before providing for Minority interest, PAT after Minority interest is ` 658 mn

4

` Mn Q2FY13 Q1FY13 Q2FY12 Q-Q Y-Y

Equities broking and related income 1,340.0 1,250.2 1,388.8 7% (4%)

Financing and Investing income 4,578.7 4,082.6 2,284.9 12% 100%

Marketing and Distribution income 593.0 479.4 421.1 24% 41%

Other income 20.3 13.8 13.8 47% 47%

Total Income 6,531.9 5,826.0 4,108.6 12% 59%

A. Operating cost 843.8 731.9 579.7 15% 46%

B. Employee cost 1,392.4 1,246.9 1,078.9 12% 29%

C. Other expenses 1,170.6 927.2 838.9 26% 40%

EBITDA 3,125.0 2,920.0 1,611.1 7% 94%

Interest 1,965.3 1,908.2 1,068.9 3% 84%

Depreciation and amortization 201.9 191.0 189.4 6% 7%

Profit / (Loss) before tax 957.9 820.8 352.8 17% 172%

Provision for taxation 285.5 293.0 127.6 (3%) 124%

Profit/(Loss) after tax before minority 672.4 527.8 225.2 27% 199%

Minority Interest 14.0 5.7 4.5 148% 213%

Profit/(Loss) after tax 658.4 522.2 220.7 26% 198%

Performance for quarter ended September 30, 2012


5

Performance for half year ended September 30, 2012


` Mn H1FY13 H1FY12 Y-Y

Equities, Broking and related income 2,590.2 2,728.3 (5%)

Financing and Investing income 8,661.3 4,112.8 111%

Marketing and Distribution income 1,072.4 839.7 28%

Other income 34.1 23.3 46%

Total Income 12,357.9 7,704.1 60%

A. Direct cost 1,574.9 1,128.4 40%

B. Employee cost 2,639.3 2,038.9 29%

C. Administration expenses 2,097.8 1,532.0 37%

EBITDA 6,045.9 3,004.8 101%

Interest 3,874.3 1,887.2 105%

Depreciation and amortization 392.9 340.5 15%

Profit / (Loss) before tax 1,778.7 777.1 129%

Provision for taxation 578.5 268.4 116%

Profit/(Loss) after tax before minority 1,200.2 508.7 136%

Minority Interest 19.6 14.9 32%

Profit/(Loss) after tax 1,180.6 493.8 139%

6








7

Equities broking and related income was ` 1,340 mn for Q2FY13 up 7% qoq, down 4% yoy

Average daily turnover was at `44 bn in Q2FY13 down 4% qoq, down 17% yoy

Market share on NSE was at 3.8% in Q2FY13 as compared to 3.4% in Q1FY13

Present in over 2,000 business locations through branches and sub-brokers

Average Daily Turnover (` mn) Market share on NSE (in %)

Equities broking


52,342 52,125 51,812 54,278

45,307 43,546

Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12

Cash Vol F&O Vol Avg. Daily Volume

4.0%

3.6% 3.7% 3.8%

3.4%

3.8%

Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12

8

Over 250 stocks under coverage

Our in-depth, thematic research has been well received. Our recent research reports include:

India – Cement: A detailed report on mid-cap cement companies

India – Economics: Detailed report on India’s worsening external balance

Jubilant Foodworks : A detailed report on Jubilant Foodworks - best bet among consumer discretionary

Market Mantra, our daily comprehensive retail product covers market outlook, latest news, economy snapshot,

personal finance insights, event notes, management meets, research ideas

Research offerings – a few reports

Analysis of operational BOT road projects

Emergence of internet-based industries as India’s

internet user-base reaches a tipping point

Jubilant Foodworks - best bet among consumer

discretionary


Mid-cap cement companies –expect higher returns from

north-based ones

Research

Detailed report on India’s worsening external balance

A detailed report on Bharti Airtel - why we think the worst

is priced in

9

Average daily commodities turnover was at `23 bn in Q2FY13, up 51% qoq and up 27% yoy

Commodities market share increased to 3.8% in Q2FY13

Average daily currency turnover was `7 bn in Q2FY13

We have invested significantly to augment our research capabilities and online trading platform

Average Daily Turnover of Commodity (` mn) Average Daily Turnover of Currency (` mn)

Commodities and Currency broking


11,011

17,787

15,599 14,838 14,915

22,538

June 11 Sep 11 Dec 11 Mar 12 Jun12 Sep-12

5,384 5,701

7,019

5,395

6,294

7,216

Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13

10








11

Loan portfolio in Q2FY13 steadily increased to `78.5 bn as against `73.7 bn in Q1FY13

Loan book comprises secured lending with collateral of property, gold, medical equipment, shares etc.

As at September 2012, Gross NPAs are 0.6% and Net NPAs are 0.3%

Loan Portfolio (` bn) NPA break-up

Financing and lending

Loans from March 2012 include loans given in the form of debentures


39.2

50.4

62.2 67.5

73.7 78.5

Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12

0.4% 0.4%

0.3%

0.6% 0.5%

0.6%

0.3% 0.3%

0.3%

0.4% 0.4%

0.3%

Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13

Gross NPA % Net NPA %

12

India Infoline Finance Limited successfully completed its bond issue of Un-Secured Redeemable Non-Convertible Debentures, considered as Tier II capital

The issue received an overwhelming response; got subscribed over 2.36 times the base issue

The company raised a total of `5,000 mn

All categories oversubscribed and over 25,000 applications received from all over the country

The NCDs were rated ‘[ICRA]AA- (stable)’ by ICRA and ‘CRISIL AA-/Stable’ by CRISIL

Subordinate bond issue


13

100% 96%

57% 53%

4%

43% 47%

FY10 FY11 FY12 H1FY13

Established products New products

Portfolio growth driven by new products

IIFL Finance NBFC

Continued focus on asset backed lending

Multiple product lines helps mitigate single sector exposure risk

During the last 2 years asset growth has predominantly been on account of new products

The entire loan book is now secured


Established products include Mortgage loans and Capital market lending; New products constitute Gold loans and Healthcare financing

Breakup of financial assets H1FY13

35%

37%

9%

2%

17%

Mortgage Gold Capital Market Healthcare Liquid/Investments

14

Particulars (` Mn) FY 10 FY 11 FY12 H1FY13

Income from operations 2,225 4,698 9,085 7,969

Other income 114 497 451 217

Total income 2,339 5,195 9,536 8,186

Direct cost 550 451 622 791

Employee cost 451 690 1,093 828

Administration and

other expense 293 504 1,371 1,145

EBITDA 1,045 3,550 6, 450 5,422

Interest and finance

charges 268 2,193 4,798 4,008

Depreciation 12 17 150 107

Profit before tax 766 1,340 1,502 1,307

Provision for taxation 228 418 448 427

Profit after tax 537 922 1,054 880

IIFL Finance – consolidated P&L statement

Total Income (` mn)

Profit after Tax (` mn)

2,339

5,195

9,536

8,186


537

922

1,054

880

FY10 FY11 FY12 H1FY13 Note: H1FY13 numbers not comparable


(6 months)

(6 months)

15

IIFL Finance – consolidated Balance Sheet

Particulars (` Mn) FY 10 FY 11 FY12 H1FY13

Loans and advances 16,267 32,874 67,465 78,495

Total Assets 23,525 39,075 77,799 93,285

Secured loans 3,609 13,998 39,995 40,943

Unsecured loans 6,590 8,932 19,389 30,516

Total loan funds 10,199 22,930 59,384 71,459

Total liabilities 10,881 25,664 63,351 77,957

Share capital 237 2,371 2,372 2,372

Reserves and surplus 12,407 11,040 12,076 12,956

Networth 12,644 13,411 14,447 15,328

Total Liabilities and

Networth 23,525 39,075 77,799 93,285

Balance sheet size(` bn)

Networth (` bn)

24

39

78

93


13 13

14 15



16

IIFL Finance – consolidated Balance Sheet

Return on Assets

Return on Networth


0.8

1.7

4.1

4.7

FY 10 FY 11 FY12 H1FY13

Debt to Equity ratio

2.9%

2.2%

1.6%

2.1%

FY 10 FY 11 FY12 H1FY13

Net NPAs

4.3%

6.9% 7.6%

11.5%

FY 10 FY 11 FY12 H1FY13

0.5%

0.4%

0.4%

0.3%


17

IIFL Finance – strategy for growth

Liquidity

Management

Resources

Earnings

Asset liability management – a focus area for top management

Loan portfolio has healthy mix of both short and long tenure products

Keep unutilized bank lines to manage short term tightness

Judicious mix of products

to ensure healthy NIM Asset growth without

compromising on credit At Group level, diversify

sources of earnings Venturing into new

products and scaling up only after putting robust processes in place and testing them

Distinguished Board and experienced management team with relevant industry knowledge

Work extensively with renowned consultants to set up systems and processes before scaling up

Ability to diversify resource profile and mobilize long term debt

Experienced team in place to help raise resources

Regular interactions with lenders

Focus on asset backed secured lending, add product lines in a systematic way

Robust credit and underwriting processes to ensure creditworthiness along with in-built culture of audit

Maintain adequate margin of safety Raise subordinated debt, down sell

loan portfolio Raise equity whenever capital

markets are conducive

Asset quality

Capital adequacy


18








19

1995 Commenced operations as an Equity Research firm

1997 Launched research products of leading Indian companies,

key sectors and the economy

1999 Launched www.indiainfoline.com

2000 Launched online trading through www.5paisa.com

Started distribution of life insurance and mutual fund

2003 Launched proprietary trading platform Trader Terminal

2004 Acquired commodities broking license

Launched Portfolio Management Service

2005 Maiden IPO and listed on NSE, BSE

2006 Acquired membership of DGCX

Commenced the credit & finance

2007 Commenced institutional equities business under IIFL

Formed Singapore subsidiary, IIFL (Asia) Pte Ltd

2008 Launched IIFL Wealth

Transitioned to insurance broking model

2009 Acquired registration for Housing Finance

Obtained Venture Capital license

2010 Received membership of Colombo Stock Exchange

2011 Received SEBI final approval for IIFL Mutual Fund and

launched IIFL Nifty ETF

2012 Received registration for distribution of NPS from PFRDA

Evolution

Income (` mn)

Net Profit (` mn)

Networth (` mn)

10,236 8,775

11,239

14,739

18,865

12,358

FY08 FY09 FY10 FY11 FY12 H1FY13

1,599 1,448

2,320 2,111

1,321 1,181


14,892 15,447 16,049 16,644 17,542 18,809


20

• Institutional equities

• Derivatives • Investment banking

• Corporate debt

• Wealth management

• Financial advisory

• Financing

Retail Affluent

Institutional Corporate

CUSTOMER SEGMENTS

Our service offerings

Equities

Insurance

Credit & finance

Wealth management

Asset management

Investment banking

• Equities, commodities broking

• Mutual funds distribution

• Insurance distribution

• Loans

Business model


21

India Infoline Ltd. (Bloomberg: IIFL IN)

India Infoline Commodities

Ltd

India Infoline

Finance Ltd

IIFL Capital Ltd

IIFL (Asia) Pte Ltd

IIFL Wealth Management

Ltd

India Infoline Housing

Finance Ltd

India Infoline Distribution

Co. Ltd

IIFL Securities

Ceylon Ltd

IIFL Inc. US Investment

•The above chart does not cover all group companies

India Infoline

Insurance Brokers Ltd

IIFL Asset Management Company Ltd

Corporate structure


22

Vision and Strategy


Customer Strategy

2

Drive stickiness through high quality research & service

Maintain cutting-edge proprietary technology

Wide, multi-modal network serving as one-stop shop to customers

Business Strategy

1

Continuously assimilate, analyse and apply knowledge to power superior financial decisions

Focus on core competence in financial services

Ensure de-risked business through multiple products and diverse revenue streams

People Strategy

3

Attract exceptionally talented and driven people

Ensure conducive merit environment

Liberal ownership-sharing

Vision

“To become the Most Respected Company in the financial services space”

KNOWLEDE IS THE EDGE

23

Team with impeccable academic and professional credentials

Open door, transparent and performance oriented culture

Increasing level of employee ownership

Corporate Functions Verticals

Institutional Equities

Investment Banking

Consumer Finance

Retail Broking

Wealth Management

International Operations

H. Nemkumar

Pratima Ram

Prasanth Prabhakaran

Karan Bhagat

Bharat Parajia

Management Team

Finance

Compliance

Operations

Audit

Human Resources

Dhruv Jain

R Mohan

Narendra Jain

Kamal Ahuja

Pallab Mukherji

Offshore Asset Management Deepesh Pandey

Insurance Distribution Mukesh Kumar Singh

Chairman Nirmal Jain Managing Director R. Venkataraman

Risk Upendra Jaiswal

Nipun Goel

Management team


24

Eminent independent directors of group companies

Corporate governance


Joined State Bank in 1968 and became chairman in 2002. Became Chairman of SBI in 2002 and Indian Banks Association in the year 2005-06. Received CEO of the year’ and ‘Outstanding Achiever of the year’

award

Chartered Accountant and partner of Khimji Kunverji & Co. Part of the Managing Council and heading the Corporate Members Committee of

the Chamber of Tax Consultants (CTC)

Director and Chief Executive of LIC Housing Finance Limited -1998 to 2002. Concurrently was the MD of

LICHFL Care Homes. Served as Deputy President of Governing Council of Insurance Institute

Joined the ‘Indian Police Service’ in 1967. Worked as the chiefs of

the crime branch of Mumbai Police, State CID and Anti-

Corruption Bureau

Senior Director in the Carlyle Group. Has over 20 years of experience in

corporate and consumer banking and has served as President of Citibank

Japan’s corporate and retail banking operations

Managing Director of Hamblin Wasta Investment Counsel Limited. Serves

on the board of ICICI Lombard General Insurance Company Ltd and Fairbridge Capital in India, Ridley Inc

in USA and Zoomermedia Ltd in Toronto, Canada

Has over 35 years of experience in Banks. Was Chairman and Managing

Director in Corporation Bank and SIDBI. He was also Executive Director

in Oriental Bank of Commerce

Holds M.Sc., MBM, M Phil, Ph.D. degree. Was Economic Advisor to the Prime Minister of India. Experienced in formulation of macro-economic

policy for the Government tariff and taxation polices

Corporate Lawyer with an experience of over 30 yrs in the legal field. Held senior positions such as Chief General Manager

(Legal) in IDBI and Executive Director (Law) in SEBI

Management Consultant with an experience of over 30 years. Associated with renowned

organizations like HLL as Executive Director and RPG Group

as President

Former Chairperson and Managing Director of Central Bank of India.

Varied and rich experience of over 34 years in Banking Sector of LIC.

Handled varied assignments in 3 large Public Sector Banks

Rich experience of 37 years in Banking & Financial Services. Former Managing Director of State Bank of Mysore. Held senior positions in SBI

and State Bank of Travencore

A K Purwar Independent

Director

Nilesh Vikamsey

Independent Director

Kranti Sinha Independent

Director

M N Singh Independent

Director

Sunil Kaul Non Executive

Director

Chandran Ratnaswami Non Executive

Director

V K Chopra Independent

Director

Dr S Narayan Independent

Director

R S Loona Independent

Director

J H Mehta Independent

Director

Homai Daruwala

Independent Director

Pranab Pattanayak Independent

Director

25

• Promoted by first generation professional entrepreneurs

• Highly qualified and experienced Management team Managerial depth

• Group net worth of around `19 bn

• Significant unutilized capacity to leverage Well-capitalized

• Present at over 4,000 business locations across more than 900 cities in India

• Global footprint covers Colombo, Dubai, New York, Mauritius and Singapore Distribution reach

• The top management is driven by pride and reward of ownership

• To think and work like an owner is part of organization’s DNA Owner-mindset

• Uniquely placed with proprietary front, mid and back office software

• Effectively harnessed technology to provide superior customer experience Technology edge

• De-risked and diversified business model across multiple revenue streams

• Multiple products across all segments of financial services De-risked

How we differentiate ourselves


26

Recent awards and accolades

BEST EQUITY BROKER 2011 BEST BROKER -

INDIA, 2011

BEST BROKING HOUSE WITH

GLOBAL PRESENCE 2011 and 2012

BEST WEALTH MANAGEMENT HOUSE – INDIA 2011 and 2012

BEST COMMODITIES INVESTMENT 2012

BEST MARKET ANALYST 2009 and

2012


Amit Harchekar receives the award from Honourable President, then Finance Minister, Shri Pranab Mukherjee; Mr. Subhash Chandra on the right

Mr R Venkataraman received the award on behalf of IIFL at the D&B Equity Broking Awards, 2012

27

FLAME (IIFL’s Financial Literacy Campaign) update


Over 50,000 school students have evinced interest in FIN-LITES, the FLAME educational programme for school students

IIFL Holds Financial Literacy Workshop at Hindustan Unilever, Haridwar

Our book on financial literacy ‘108 Mantras for Financial

Success’ is available across 70+ cities at 400+ top-line retail

outlets across the country

28








29

Growth may remain below trend

Near term Inflation is coming off due to base effect

Source: Bloomberg, IIFL Research

Source: CMIE, IIFL Research, FY13 GDP data is Advance Estimate

Macro economy


5.5

4.0

8.1 7.0

9.5 9.6 9.3

6.7

8.4 8.4

6.5 5.6

FY0

2

FY0

3

FY0

4

FY0

5

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3ii

Real GDP growth (YoY %)

Monsoon is the key driver of near term growth

Source: CMIE, FAO, Govt of India, NDDB, IMD, IIFL Research

Until recently, widening current account deficit has generally meant faster growth

Source: CMIE, IIFL Research

-5%

-4%

-3%

-2%

-1%

0%

1%

2%

3% 2%

3%

4%

5%

6%

7%

8%

9%

10%

FY9

0

FY9

1

FY9

2

FY9

3

FY9

4

FY9

5

FY9

6

FY9

7

FY9

8

FY9

9

FY0

0

FY0

1

FY0

2

FY0

3

FY0

4

FY0

5

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

Real GDP growth (LHS) Current account deficit (RHS)

(3yr Cagr) (% of GDP, 3yr avg)

(25)

(20)

(15)

(10)

(5)

0

5

10

15

(20)

(15)

(10)

(5)

0

5

10

15

20

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

Agri GDP growth Monsoon deviation from average (rhs)

(YoY%)

(%)

-2%

0%

2%

4%

6%

8%

10%

12%

Ap

r-0

5

Oct

-05

Ap

r-0

6

Oct

-06

Ap

r-0

7

Oct

-07

Ap

r-0

8

Oct

-08

Ap

r-0

9

Oct

-09

Ap

r-1

0

Oct

-10

Mar

-11

Sep

-11

Mar

-12

Sep

-12

WPI - Overall Core WPI Inflation

YoY

30

Cash market volumes picking up again (` bn)

FAO market volumes (` bn)

Source: Exchange website, IIFL Research

Equities

Constant share of delivery and intra day


Steady share of options

86,490

73,946

83,640

77,186 78,725

75,679 74,772

Q4FY11 Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13 Q2FY13

FAO market volumes

10,007

8,728 8,677

7,154

10,224

7,455 7,882


Cash market volumes

27% 25% 24% 23% 26% 22% 22%

73% 75% 76% 77% 74% 78% 78%


Futures Options

40% 41% 41% 40% 41% 40% 44%

60% 59% 59% 60% 59% 60% 56%


Delivery Intra Day

31

Credit and Finance

Credit growth to nominal GDP has been relatively sluggish

Reserve ratios - CRR and SLR trend PSU banks steadily losing market share in the credit market

Loan–deposit ratio has structurally moved up

Source: CMIE, RBI, World Bank, Bloomberg, IIFL Research

0

10

20

30

40

50

60

70

80

90

100

FY9

1

FY9

2

FY9

3

FY9

4

FY9

5

FY9

6

FY9

7

FY9

8

FY9

9

FY0

0

FY0

1

FY0

2

FY0

3

FY0

4

FY0

5

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

PSUs

Private sector

Foreign

(%)

-

0.5

1.0

1.5

2.0

2.5

3.0

FY9

0

FY9

1

FY9

2

FY9

3

FY9

4

FY9

5

FY9

6

FY9

7

FY9

8

FY9

9

FY0

0

FY0

1

FY0

2

FY0

3

FY0

4

FY0

5

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

Credit growth relative to nominal GDP Average


0

10

20

30

40

50

60

70

80

90

Au

g-9

0

Au

g-9

1

Au

g-9

2

Au

g-9

3

Au

g-9

4

Au

g-9

5

Au

g-9

6

Au

g-9

7

Au

g-9

8

Au

g-9

9

Au

g-0

0

Au

g-0

1

Au

g-0

2

Au

g-0

3

Au

g-0

4

Au

g-0

5

Au

g-0

6

Au

g-0

7

Au

g-0

8

Au

g-0

9

Au

g-1

0

Au

g-1

1

Au

g-1

2

(%)

Investment-deposit ratio

Loan-deposit ratio

0

5

10

15

20

25

30

35

40

Mar

-9

3

Oct

-94

Jun

-96

Jan

-98

Sep

-99

Ap

r-0

1

Dec

-02

Jul-

04

Mar

-0

6

No

v-0

7

Jun

-09

Feb

-11

Sep

-12

%

SLR

CRR

32

Capital raising and fund flows

Capital raised through QIPs (` bn) Capital raised through IPOs (` bn)

FDI inflows (US$bn)

Source: Bloomberg, IIFL Research

Net FII flows (US$bn)

Source: Bloomberg, IIFL Research Source: Bloomberg, IIFL Research

Source: RBI, CMIE, IIFL Research


35

40

45

50

55

60

(6.0)

(4.0)

(2.0)

0.0

2.0

4.0

6.0

8.0

Jan-0

7

Apr-

07

Jul-07

Oct-

07

Jan-0

8

Apr-

08

Jul-08

Oct-

08

Jan-0

9

Apr-

09

Jul-09

Oct-

09

Jan-1

0

Apr-

10

Jul-10

Oct-

10

Jan-1

1

Apr-

11

Jul-11

Oct-

11

Jan-1

2

Apr-

12

Jul-12

Oct-

12

Net FII flows (US$bn) Average US$ rate (rhs)

(US$bn) (` per $)

0

5

10

15

20

25

30

35

40

45

FY08 FY09 FY10 FY11 FY12 FY13

4Q 3Q 2Q 1Q (US$bn)

50

257

2

380

246

22 6.7 -

2

4

6

8

10

-

100

200

300

400

500

FY07 FY08 FY09 FY10 FY11 FY12 FY13 YTD

Capital raised via QIP's Average Deal Size (rhs) (` bn) (` bn)

327

426

22

248

333

58 6

-

2

4

6

8

10

-

100

200

300

400

500

FY07 FY08 FY09 FY10 FY11 FY12 FY13 YTD

Capital raised via IPO's Average Deal Size (rhs) (` bn) (` bn)

33

Insurance and Mutual funds

APE growth YTD yoy (%) – Aug 2012 Modest increase in non banking system

Source: IRDA

Total AUM for the industry (` bn) – Sep 2012

Source: AMFI Source: AMFI

AUM by asset class (` bn)

Source: CMIE, RBI, World Bank, IIFL Research

3.4

(1.7)

18.8 3.4

(2.3)

5.1

4.3

27.6

(9.9)

(5.0)

2.4

(9.4)

(30) 20 70 120

SBI Life

Reliance Life

Bajaj Allianz

Birla Sunlife

Kotak Mahindra Old Mutual

Total private players

Tata AIA

Aviva

ICICI Prudential

Max Life

Insurance Industry

HDFC Standard

LIC (%)

(46)

7,037

7,475

7,174

6,876 6,990

6,709

7,538

Mar 11 Jun 11 Sep 11 Dec 11 Mar 12 Jun 12 Sep 12

(` bn)

28% 35% 36%

27% 23%

47%

51% 49% 50%

49%

22% 13% 13% 14%

20%

3% 1% 2% 10% 8%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FY09 FY10 FY11 FY12 H1FY13

Equity Income Liquid Gilt & Others Total AUM


16 16 15 16 15 15 15

2 4

6 4

6 5 4

FY06 FY07 FY08 FY09 FY10 FY11 FY12

Fixed income investments of insurance companies Fixed income AUM of mutual funds

(as % of banking assets)

34

Thank you

Published in October 2012 © India Infoline Ltd 20012-13. India Infoline Ltd. All rights reserved. Regd. Off: IIFL House, Sun Infotech Park, Road No. 16V, Plot No.B-23, Thane Industrial Area, Wagle Estate, Thane – 400604. Tel.: +(91 22)4007 7000 Fax: 2685 0451. This report is for information purposes only and does not construe to be any investment, legal or taxation advice. It is not intended as an offer or solicitation for the purchase and sale of any financial instrument. Any action taken by you on the basis of the information contained herein is your responsibility alone and India Infoline Ltd (hereinafter referred as IIL) and its subsidiaries or its employees or directors, associates will not be liable in any manner for the consequences of such action taken by you. We have exercised due diligence in checking the correctness and authenticity of the information contained herein, but do not represent that it is accurate or complete. IIL or any of its subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this publication. The recipients of this report should rely on their own investigations. IIL and/or its subsidiaries and/or directors, employees or associates may have interests or positions, financial or otherwise in the securities mentioned in this report.

Results for the quarter ended September 30, 2012...

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