Climate Change Data

Environmental Metrics

Social Achievements

• Spent Rs.1.48 crore towards CSR initiatives.
• Conducted 3 in-house training programmes and employees were nominated for 5 external programmes.

Governance Achievements

• Complied with the guidelines, circulars and directions of National Housing Bank and Reserve Bank of India.
• Complied with the Companies Act 2013, guidelines, directions and circulars of MCA, SEBI etc.
• Appointed Ms. Shanthi Srikanth as its Chief Risk Officer.

Climate Goals & Targets

Environmental Challenges

• Slowing loan book growth.
• Large exposure to non-salaried segment.
• About 85% of the loan book comes from five south States and points to existence of significant concentration risk.
• High exposure to Tamil Nadu has resulted in greater susceptibility to State specific adverse developments.
• Credit rating of AA assigned by CARE Ratings would constrain company’s ability to optimize cost of market borrowings.
• Higher proportion of Stage-3 (NPAs) assets.
• There is a lot of scope for improvement as far as technology initiatives within the company is concerned.
• The stress of migration of performing assets to banks & other HFCs on account of takeovers may impact overall asset quality.
• The ongoing economic slowdown and persistent high interest rate for majority of corporates and small businesses could adversely impact the demand for housing and housing finance.
• The ongoing health crisis has cast a shadow of doubt on near term demand for housing and housing finance.
• The ongoing chain of events concerning the financial sector resulting in trust deficit and liquidity tightening, if not addressed soon could catapult to a bigger challenge for non-bank financial companies including HFCs.
• Company's ability to raise resources at competitive rates in these difficult times adverse scenario could impact profitability.
• Company's ability to hire and train manpower for achieving company's growth objectives outside south India.
• Sizeable exposure to non-salaried segment could exert pressure on the company's asset quality and increase credit cost in these challenging times.
• Inability of government to push through the envisaged reforms could result in significant opportunity cost.

Mitigation Strategies

• Efforts of last 3 years to lower exposure to non-housing loans (LAP) and to bring a balance between salaried and non-salaried loans have helped us in keeping the balance sheet quality robust.
• Rigorous credit appraisal keeps credit risk in check
• Operational risk is mitigated using various tools
• ALM policy to mitigate interest rate risk
• Short term investment policy to mitigate solvency risk
• Maintaining the quality of the Balance Sheet.
• Maintaining an optimal blend of non-salaried and salaried loans in the loan book.
• Maintaining the non- housing book at or below 20% with continued focus on small ticket loans.
• Endeavoring to diversify sources of borrowings and effectively manage borrowing cost as and when macroeconomic situation improves.
• Focusing on cross selling value additive products and earning fee based income.
• Maintaining control on operating costs and improve employee productivity.
• Focusing on improving the asset quality.
• Opened 2 asset recovery branches (ARBs) at Chennai and Bangalore and transferred some of the chronic Stage-2 & Stage-3 accounts.
• Offered moratorium to its customers based on the Board approved policy.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Data Security
• Responsible Business Model
• Digitization
• Human Capital Retention
• Corporate Social Responsibility

Social Achievements

• Revised pay scale for employees at all levels
• Introduced new quality-based training programs
• Improved employee satisfaction and productivity
• Implemented a dedicated customer service department to resolve grievances

Governance Achievements

• Adherence to corporate governance norms
• Implementation of stringent credit appraisal processes
• Improved collection mechanism

Climate Goals & Targets

Environmental Challenges

• Data security risks from cyberattacks
• Risky business model due to vulnerability of middle and lower-level customers
• Data security and customer privacy in digitization
• Retention of human capital
• Non-compliance of regulation 17 (1A) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Mitigation Strategies

• Following data security standards and implementing a Security Operation Centre (SOC)
• Implementing stringent credit appraisal processes and conservative Loan to value ratio
• Improved collection mechanism
• Implementing governance framework and high standard information security practices
• Implementing a new HR policy and processes
• Representation made to BSE Limited for withdrawal and refund of penalty

Supply Chain Management

Responsible Procurement

• Encouraging local procurement of stationary, supplies, and housekeeping requirements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: BRSR (Business Responsibility and Sustainability Reporting)

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Data Security
• Adoption of risky business model
• Enhancement in Digitization
• Retention of human capital
• Corporate Social Responsibility
• Environmental Sustainability
• Employee Well-being
• Human Rights
• Stakeholder Engagement
• Consumer Protection

Environmental Achievements

• Adopted energy-efficient measures such as using LED lights and air conditioners; reduced plastic and tissue paper usage

Social Achievements

• Implemented measures for employee well-being, including health insurance, accident insurance, and maternity benefits; revised pay scales and introduced new quality-based training programs; established a comprehensive grievance redressal mechanism; collaborated with NGOs and the Government through CSR initiatives

Governance Achievements

• Adheres to corporate governance norms; established a Security Operation Centre (SOC) to address cyber threats; implemented stringent credit appraisal processes; has an anti-corruption and anti-bribery policy; periodic review of all policies at least once in 3 years

Climate Goals & Targets

Environmental Challenges

• Safeguarding customer data from cyberattacks; most middle and lower-level segment customers lack proper documented income; ensuring data security and customer privacy during digitization; retention of trained and talented human capital

Mitigation Strategies

• Following data security standards; establishing a Security Operation Centre (SOC); implementing stringent credit appraisal processes and conservative Loan to value ratio; implementing a governance framework and high standard information security practices; implementing improved HR policies and processes

Supply Chain Management

Supplier Audits: Nil

Responsible Procurement

• Encourages value chain partners to adhere to statutory dues; encourages local procurement of stationary, supplies, and housekeeping requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: BRSR (Business Responsibility and Sustainability Reporting)

Certifications: Null

Third-party Assurance: Not Applicable

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed