Dewan Housing Finance Corporation Chairman's Speech > Engineering - Heavy > Chairman's Speech from Dewan Housing Finance Corporation - BSE: 511072, NSE: DHFL
Dewan Housing Finance Corporation
BSE: 511072|NSE: DHFL|ISIN: INE202B01012|SECTOR: Finance - Housing
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Chairman's Speech (Dewan Housing Finance Corporation) Year : Mar '15
Dear Members,
 DHFL was established with a profound sense of responsibility and
 optimism towards enabling home ownership and a better lifestyle to the
 lower and middle income (LMI) segment of the country. As your Company
 enters the fourth decade of its operations, its purpose is further
 fortified with the immense trust and conviction of its stakeholders and
 custodians. Let me take this privilege to share with you my thoughts on
 opportunities for growth and the path we have defined to move ahead.
 The National Aspiration
 The most remarkable story of our Nation has been the growth and
 valuations of Online Retail business, followed by a whole range of
 online businesses relating to property, housing, used cars, insurance
 and many more. This clearly is a single major gain of demographic
 dividend we have been talking about for quite some time, which mirrors
 the aspirations, consumption style and purchasing power of the real
 India. To see in it an urban centricity or a class segment is to
 completely misread the falling barriers between urban and rural India.
 It is the real market that is spreading like wild fire and policy
 makers will do well to align with this trend rather than seeing in it a
 threat to traditional markets. Financial Sector players, such as banks
 and retail lenders like us, will have larger opportunities to grow
 through product customisation and strategic alliances in the online
 We started the year on the backdrop of widespread enthusiasm and
 optimism after a strong mandate for the Government at the centre. Right
 or wrong, a sense of urgency for action has crept in the air. This
 calls for concerted steps on the policy front with focus on areas which
 can create wider and faster impact. The ''Make in India'' campaign is an
 important call and so are the initiatives on Defence productions,
 Railways related manufacturing and leasing of Mines. I feel there are
 opportunities to bring momentum to this move for some visible gains.
 For example, by upgrading few languishing industrial parks with quick
 fix requirements or setting up manufacturing hubs by diverting a part
 of large tracks of land held by non performing SEZs, we can gain some
 pace while working side by side on a consensus on the Land Acquisition
 Act. Another area is the retrospective enforcement of taxation law or
 its interpretation which has been a major dampener on investment
 sentiment. There is unanimity that it goes against the grains of a
 modern society. The sooner we show our resolve to firmly put an end to
 it, better it will be.
 The year under review
 The greatest action of India''s economic growth continues to be nested
 within this rapidly expanding and dynamic lower and middle income
 segment. With a keen understanding of this consumer segment, your
 Company has achieved significant milestones and has chalked a robust
 roadmap ahead. The campaign ''Ghar Jaisa Loan'' with Shah Rukh Khan as
 the brand ambassador is aimed to reinforce our connect with the growing
 aspiration of the neo LMI segment.
 The Company laid down the ground work of forming a team of experienced
 professionals, creating a holistic product portfolio and enhancing its
 credit and risk policies for scalability and profitability. While the
 retail home loan business vertical was fortified to capitalise on new
 opportunities in the expanding affordable home loan segment, the
 Company also launched the SME vertical to tap the large self employed
 group in the small and medium enterprises. Retail Liability was also
 given a renewed focus as a business vertical to strengthen the resource
 diversification strategy.  We would like to be known in the market for
 our deposits offering and the launch of Wealth2Health an innovative
 deposit product with liquidity to meet medical emergency is the
 beginning of such a positioning.
 DHFL demonstrated superior performance on all operational and financial
 parameters. Revenues showed a robust growth of 20.41% at Rs. 5,981.64
 crore. Operational profits (net) stood at Rs. 621.29 crore, up by 17.45%.
 Outstanding loan portfolio stood at Rs. 51,039.65 crore as on March
 31,2015. Your Company''s credit rating was also upgraded to the highest
 order of rating ''CARE AAA''
 (Triple A) by CARE.
 Energising people power
 DHFL is a very people-focussed and a proficient enterprise, operating
 in a multi-cultural environment. To achieve competitive superiority and
 scalable growth, your Company has aligned competencies of its human
 capital in line with its business strategies, empowered them with
 relevant trainings and behavioural improvements. Your Company''s
 single-minded aim behind this is to improve its organisational
 capability and vitality. I am pleased to inform you that we have
 appointed a new CEO, Harshil Mehta, who will support me in driving
 DHFL''s ambitious plans and prepare the organisation for the future,
 while maintaining growth rate and excellent portfolio quality.  Your
 Company is also making significant investment into its IT
 infrastructure to advance to the next-generation scalable and flexible
 technology landscape. This will help us to improve productivity and
 sustain growth.
 Ensuring long term value
 In a key development, your Company successfully concluded a qualified
 institution placement and raised Rs. 809.61 crore. The issuance witnessed
 overwhelming response from marqueed, long term global investors,
 reflecting the confidence enjoyed by your Company as a long term value
 creator. DHFL will remain conscious of this trust and constantly
 endeavour building its business capabilities and strategies with sound
 skills in risk management and capital preservation, to earn the respect
 of Investors, Lenders, Regulators and Partners.
 Enabling synergies for growth
 Your Company forayed into life insurance through DHFL Pramerica Life
 Insurance Co. Ltd., a joint venture (JV) with Prudential Financial Inc.
 of USA, a leading multinational in the life insurance business in
 FY2014. Making this JV profitable in the very first full year of
 operation, has come as a big confidence booster in recognising our
 potentials as a multi product retail financial service provider. Taking
 this understanding forward, your Company has also entered into
 definitive agreements with Pramerica Asset Managers Pvt. Ltd. and
 Pramerica Trustees Pvt. Ltd., entities of Pramerica Mutual Fund. This
 will enable DHFL to include the Mutual Fund products into our retail
 offerings. General Insurance is yet another area we are bringing as a
 value addition to our home loan borrowers, initially under a
 distribution arrangement. Your Company is thus clearly on the path to
 strengthen its existing customer relationships and to further entrench
 itself and emerge as a one-stop- shop within the financial services
 landscape of India. This gives your Company the confidence on building
 a loyal retail franchise and be equipped to perform the role of a
 full-fledged bank, whenever that opportunity is given.
 Going forward
 DHFL is indeed well poised to enter a new growth trajectory going
 forward - by customer category, region and an expanding product
 portfolio. Led by the fundamentals of integrity, commitment to
 performance and innovation our faith remains unflinching on financial
 inclusion from where your Founder started the journey.  Your Company
 will continue to drive innovation in India''s housing finance space as
 it stands firm in its commitment to build a sustainable business,
 deliver value to all stakeholders and serve India''s vibrant economy.
 Kapil Wadhawan
 Chairman & Managing Director
Source : Dion Global Solutions Limited
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