LIC Housing Finance : Q-4 FY 22-23_Top concentration & LCR

Concentra on of Public Deposits, Advances, Exposures and NPAs Posi on as at March 31, 2023

1. Concentra on of Public Deposits

Par	culars			As at March 31, 2023
Total Deposits of twenty largest	3,505.28
Public depositors
Percentage	of Deposits	of
twenty largest Public depositors	29.73%
to	Total	Deposits of	the

Company

(₹ in crore)

As at March 31, 2022

1,329.77

28.94%

2. Funding Concentration based on significant counterparty (both deposits and borrowings)

Sr No.	Par culars	Number of Significant	Amount	%	of	Total	% of	Total
Counterpar es	(₹ in crore)	deposits			Liabili es
1	Deposits	Nil	Nil	Nil				Nil
2	Borrowings	20	1,66,240.15	NA				66.15%
Note : Considered counterpar es which are > 1% of total liabili	es
3. Top 20 Large Deposits:
				(₹ in crore)
Particulars			Amount		Percentage	of
							Total
							Deposits
Total of top 20 large deposits		4,172.08		35.89%
*Including Corporate deposit
Top 10 borrowings:
					(₹	in		crore)
					Percentage	of	Total
Par	culars		Amount		Borrowings*
Total of top 10 borrowings		1,25,738.34		53.93%
*Excludes Deposit

4. Funding Concentration based on significant instrument/product.

			(₹ in crore)
Sr	Name of the instrument/product	Amount	% of Total Liabili es
No.
1	Banks and Other Financial Ins tu ons	83,089.07	33.06%
2	NHB Refinance	11,303.18	4.50%
3	Non-Conver ble Debentures	1,23,446.39	49.12%
4	Tier II bonds	1,795.77	0.71%

Sr	Name of the instrument/product	Amount	% of Total Liabili es
No.
5	Commercial Papers	13,513.59	5.38%
6	Deposits	11,626.21	4.63%
	Total Borrowings	2,44,774.21	97.40%
	Total Liabili es	2,51,311.67

5. Stock Ratios

	Particulars	As at March 31,
Sl. No.	2023
a	Commercial Paper as a % of Total Public Fund	5.52%
b	Commercial Paper as a % of Total Liabilities	5.38%
c	Commercial Paper as a % of Total Assets	4.85%
	Non-Convertible Debentures (Original maturity of less than one
d	year) as a % of Public Funds	Nil
	Non-Convertible Debentures (Original maturity of less than one
e	year) as a % of Total Liabilities	Nil
	Non-Convertible Debentures (Original maturity of less than one
f	year) as a % of Total Assets	Nil
g	Other short-term liabilities as a % of Total Public Fund	2.53%
h	Other short-term liabilities as a % of Total Liabilities	2.46%
i	Other short-term liabilities as a % of Total Assets	2.22%

Note : Total Public funds consist of NCD, CP, Bank Loan, LOC & Subordinate Debt.

6. Institutional set-up for liquidity risk management

Measuring and managing liquidity needs are vital for effective operation of the Company. By assuring Company's ability to meet its liabilities as they become due, liquidity management can reduce the probability of an adverse situation developing. The importance of liquidity transcends individual institutions, as liquidity shortfall in one institution can have repercussions on the entire system.

Liquidity Risk implies the risk of not having sufficient funds to discharge the liabilities. Various situations can give rise to liquidity risk such as higher than estimated disbursements, stress on systemic liquidity due to CRR hikes, higher government borrowing program, advance tax outflows, etc. Therefore it is imperative to anticipate the net cash outflows correctly, as well as to have a contingency plan in case of any unforeseen outgo of funds. Another aspect of liquidity management is avoiding retention of too much of excess liquidity than what may be required, as the same would result in sub-optimal returns on investment. So the Company has to strike a balance between the above two factors and manage the liquidity position actively / effectively.

The liquidity risk management framework of the Company includes the Risk Management Committee (RMC) of the board which has been constituted by the Board of Directors of the Company. The Risk Management Committee (RMC), which is a committee of the Board, is responsible for evaluating and monitoring the integrated risk management system of the

Company including liquidity risk The RMC reviews the liquidity risk position in line with policies and procedures to manage liquidity risk in accordance with limits approved by the Board of Directors.

The ALCO is entrusted with ensuring adherence to the board approved Asset Liability Management (ALM) policy and other regulatory guidelines, including Structural Liquidity, Dynamic Liquidity, Interest Rate Sensitivity, etc,. The ALM Policy is reviewed periodically in accordance with regulatory guidelines.

Q-42023-24 LCR Disclosures

LIC HOUSING FINANCE LIMITED

	LCR Disclosure (Rs. In Cr)	Q4 FY 2022-23
		Total Unweighted	Total Weighted
Sr.No.	Particulars	Value (average)	Value (average)
	High Quality Liquid Assets
1	Total HQLA*	4926.29	4473.9
	Cash Outflows
2	Deposits	1096.64	1261.14
3	Unsecured Wholesale Funding	908.04	1044.25
4	Secured wholesale funding	5613.48	6455.50
5	Additional requirements, of which	0
	Outflows related to derivative
	exposures and other collateral
(i)	requirements	0
	Outflows related to loss of funding
(ii)	on debt products	0
(iii)	Credit and liquidity facilities	0
	Other contractual funding
6	obligations	1261.44	1450.66
	Other contingent funding
7	obligation	126.67	145.67
8	Total Cash Outflows	9006.27	10357.21
	Cash Inflows
9	Secured Lending	0

	Inflows from fully performing
10	exposures	5107.44	3830.58
11	Other cash inflows**	8610.66	6458.00
12	Total Cash Inflows	13718.1	10288.575
13	Total HQLA	4926.29	4473.90
14	Total Net Cash Outflows	2251.57	2589.30
15	Liquidity Coverage Ratio		172.78%

HQLA includes G-Secs held for LCR purpose, G-Secs held for Statutory Liquid

• Ratio (SLR) with a hair-cut of 20% and Balance maintained in current accounts.

	Other cash inflows includes, undrawn borrowing facility and Mutual Fund
**	placements