Leverage strengths of both organisations to further penetrate home loans
Mumbai, January 02, 2020: Bank of Baroda, India’s second largest public sector bank, has entered into a strategic co-lending agreement with JM Financial Home Loans Limited (“JMFHL”), the housing finance arm of JM Financial Group, for offering retail loans to home buyers.
The association will create an effective lending model synergising the expertise of both Bank of Baroda and JMFHL to provide a seamless experience to retail home loan customers.
Speaking on the partnership, Mr. Vikramaditya Singh Khichi, Executive Director at Bank of Baroda said, “There is huge potential in the retail home loan space that can be tapped through co-lending partnerships between large organisations like Bank of Baroda and finance players like JM Financial Home Loans. With the Bank’s expertise in mortgage loan processing and low cost of funds, we are confident that this partnership will accelerate credit delivery to homebuyers, thus boosting the home buying segment.”
Speaking on the announcement, Mr. Vishal Kampani- Managing Director, JM Financial Group said, “We are extremely pleased to enter into a partnership with Bank of Baroda to mutually benefit from co-lending activities. We are proud of our existing relationship with Bank of Baroda and this co-lending partnership will further boost our relationship. There is a lot of complementarity in our franchisees which will help in providing a compelling offering to the retail home loan customers.”
Mr. Manish Sheth, CEO, JM Financial Home Loans Ltd said, “We are excited that India’s second largest best public sector bank has chosen us as one of their co-lending partners. We believe co-lending will enable us to penetrate deeper into the home loan market. The alliance will create value for both businesses and customers.”
About Bank of Baroda
Bank of Baroda (“The Bank”) established on July 20, 1908 is a State-owned banking and financial services organization, headquartered in Vadodara (earlier known as Baroda) in Gujarat, India.
Bank of Baroda is India’s third largest bank with a strong domestic presence supported by self- service channels. The Bank’s distribution network includes 9,500+ branches, 13,400+ ATMs and 1,200+ self-service e-lobbies. The Bank has a significant international presence with a network of 100 branches/offices of subsidiaries, spanning 21 countries. The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.), BOB Capital Markets and Baroda Asset Management India Ltd. Bank of Baroda also has joint ventures for life insurance viz. India First Life Insurance and India Infradebt Ltd., engaged in infrastructure financing. The Bank owns 98.57% in The Nainital Bank. The Bank has also sponsored three Regional Rural Banks namely Baroda Uttar Pradesh Gramin Bank, Baroda Rajasthan Gramin Bank and Baroda Gujarat Gramin Bank.
About JM Financial Home Loans Limited:
JM Financial Home Loans Limited, a subsidiary of JM Financial Products Limited, represents the group’s foray into the housing finance business. JM Financial Home Loans Limited primarily focuses on affordable housing segment, catering to low and mid income customer segments in tier 1 and tier 2 towns. We endeavour to cater even to those home buyers who lack sufficient income proofs. The Company leverages on JM Financial Group’s expertise in the real-estate lending segment and uses superior technological capabilities to provide a diverse range of highly customised products and services to home buyers.
About JM Financial Group
JM Financial is an integrated and diversified financial services group. The Group’s primary businesses include (a) Investment banking, wealth management and securities (IWS) which includes fee and fund based activities for its clients (b) Mortgage Lending which includes both wholesale mortgage lending and retail mortgage lending (home loans, education institutions lending and LAP) (c) Distressed credit which includes the Asset Reconstruction business (d) Asset Management includes the mutual fund business.
The Group is headquartered in Mumbai and has a presence across 356 locations spread across 123 cities in India. The equity shares of JM Financial Limited are listed in India on the BSE and NSE.
Tel.: +91 22 6630 3475
MD & CEO – JM Financial Home Loans Limited
Tel.: +91 22 5075 5010
Forward looking statement (Compliance)
This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions. The Companies assumes no responsibility to publicly amend, modify or revise any statements, on the basis of any subsequent developments, information or events.
JM Financial FY 16 consolidated revenue up by 20% to Rs.1,685 crore and consolidated profit up by 21 % to Rs.400 crore. The Board of Directors recommends a final dividend of Re. 0.85 per share.
Mumbai, May 13, 2016: The Board of Directors of JM Financial Limited, at its meeting held today, considered and approved the audited financial results for the year ended March 31, 2016. The Board recommended final dividend of Re. 0.85 for each equity share of the face value of Re.1/- each. The total dividend for the financial year 2015-16 would be Rs. 1.45 per share including interim dividend of Re. 0.60 paid by the Company.
Q4 - FY 16 compared to Q4 - FY 15
(Rs. in crore)
March 31, 2016
March 31, 2015
Profit before tax
Net profit after tax and
before minority interest
Net profit after tax, minority
interest and share of
FY 16 compared to FY 15
(Rs. in crore)
March 31, 2016
March 31, 2015
Profit before tax
Net profit after taxand
before minority interest
Net profit after tax, minority
interest and share of
The Earnings per share and Diluted Earnings per share, for FY 16 is Rs. 5.08 and Rs.5.04 respectively. The consolidated net worth as at March 31, 2016 stands at Rs. 2,804 crore and the debt equity ratio is 2.4 times. The net debt equity ratio is 2.1 times.
Commenting on the results and financial performance, Mr. Nimesh Kampani, Chairman, JM Financial Group, said,
“In the context of the long term sustained growth objective of the government, the focus on infrastructure and rural sectors in the budget was a step in the right direction. The decision of rate cut by the Reserve Bank of India in its bi-monthly monetary policy was also a welcome step to incentivise the economy.
India is projected to become the world's fastest growing economy by 2017 and is expected to sustain such growth over foreseeable timeframe.. Therefore despite the uncertainty in emerging and global markets, Indian markets will still offer tremendous wealth creation opportunities for the Investors.
We delivered sound results this year as well. Looking at the performance for the full year, the fund based businesses and asset management business have done reasonably well. It reflects our ongoing strategy to build platforms for growth while continuing focus on maintaining leadership in the advisory business. We also remain focused on maintaining prudent risk profile and building on our core values.
As we enter into the next financial year, while our priorities remain the same with an addition of focus to leverage on evolving opportunities in technology backed platforms that can be complimentary to our businesses.”
Investment banking and securities business:
Investment Banking business continues to grow with a robust deal pipeline and several mandated transactions under execution. The business saw closure of long running transactions during this quarter. Given our in-depth understanding of the industry and Capital Markets, we continue to lead in the industry with customised advisory solutions.
During the quarter our Investment banking team executed the following deals:
Our Institutional Equities business continued to focus on strengthening our client relationships across geographies and adding new clients. Our international offices in New York, Singapore and Mauritius have clearly helped deepen our relationships with marquee global funds.
During the quarter, the Institutional Equities business hosted its 6th annual investor conference in New York in March 2016. The conference was extremely well received with strong participation from both leading corporates and large institutional investors.
The business also continues to expand and deepen its research product across a wide spectrum of sectors and companies and latest technology enhancements across functions.
Investment Advisory and Distribution business offers wealth management, equity brokerage and Independent Financial Distribution services.
Wealth management business offers wealth management services to High Net worth, Ultra High Net worth & Corporate clients and follows model of asset allocation and custody services. Open product architecture through combination of in-house offerings and third party products positioned JM Financial as “Unbiased trusted advisor” to the clients. We follow a hub and spoke model where the smaller cities are covered by the team based in our offices in 7 major cities.
The AUM of our wealth management business stood at over Rs. 26,958 crore as on March 31, 2016. We have presence in 7 major cities in India (Mumbai, New Delhi, Bangalore, Hyderabad, Kolkata, Ahmedabad and Pune) with team of more than 50 experienced wealth advisors catering to Ultra High Net worth families, High Net Worth families and corporate treasuries.
Our Equity brokerage business offers equity sales and trading services to HNIs, Corporates and Retail clients. This group is supported by technical and fundamental research teams who generate Investment and derivative strategists who generate Investment and Trading ideas.
We have presence in 260 locations spread across 111 cities through a network of branches and franchisees.
In the distribution business, we have a large network of over 8,300 active Independent Financial Distributors (IFDs) who distribute various financial products across the country. During the quarter, we helped corporates mobilise more than Rs. 930 Crore in fixed deposit schemes and fixed income products.
Mutual fund mobilization was to the tune of Rs.30,846 crore and IPO distribution was to the tune of Rs.2,922 crore during the quarter.
Fund based business:
The overall lending book stood at Rs. 7,214 crore as on March 31, 2016 as against Rs.5,388 crore as on March 31, 2015. Out of the total lending book, the real estate lending was Rs.5,629 crore whereas the non-real estate lending was Rs.1,586 crore. The treasury book as on March 31, 2016 for the fixed income securities stood at Rs. 257 crore. We continued our efforts of diversifying our sources and maturities for our borrowing profile. Our long term borrowing as a proportion of total borrowing stood at approximately 37 % on March 31, 2016. Our commercial real estate funding focus is on Tier - 1 cities, viz., Mumbai, Pune, Bangalore and Chennai. We plan to selectively enter into new geographies to expand our business. The Budget proposal to extend the recovery powers to NBFC’s under the SARFESI Act will help our risk mitigation and recovery processes.
During the quarter, the asset reconstruction business actively participated in several NPA auction processes and also initiated discussions with banks for acquiring non-performing assets. This was a good quarter in terms of acquisition. We closed nineteen deals – nine fresh acquisitions and ten deals as part of debt aggregation. Focused efforts were made towards resolution of our acquired portfolio and majority of the recovery came from restructured accounts.
Recognising the role of Asset Reconstruction Companies (ARCs) in dealing with high level of stress in the Indian banking system, the Budget also addressed a long standing demand from the ARCs to enable sponsors to hold up to 100% stake in an ARC. In addition, the Budget has also allowed 100% FDI in ARCs through automatic route. These provisions will open up avenues for ARCs and facilitate them to strengthen the capital base and effectively participate in the huge NPA market in India. Allowing non-institutional investors to invest in SRs and removing the 74% investment cap in each scheme of SRs for FPIs will lead to increase in the depth of Security Receipts market. The budget also provides clarity on taxation in the hands of Trusts set up by ARCs and confers a pass-through status to the Trusts. Passing of the Bankruptcy Law is another positive development towards NPA resolution.
With persistent high level of NPAs, improving economic scenario and increasing recognition for the role of ARCs, the outlook for the business looks promising. We will continue to focus on acquisition of accounts with revival potential and restructuring & resolution of our acquired portfolio.
Alternative Asset Management:
At the end of the quarter, the combined AUM/AUA of our private equity and real estate funds stood at around Rs. 770 crore.
Both the private equity fund and real estate fund continue to work closely with its portfolio companies to seek exit opportunities.
The Private Equity Fund returned an aggregate 74.90% of the capital contribution received from its Investors in Indian Rupee terms.
The domestic scheme of the Real Estate Fund returned an aggregate 54% of the capital contribution received by it and the offshore scheme returned 49% of its capital contribution both in Indian Rupee terms.
We offer a bouquet of 17 mutual fund schemes across the risk-return spectrum that cater to the specific needs of both institutional and non-institutional investors. Our risk and fund management framework allows us to effectively manage risk while generating high quartile returns across the product categories that we offer.
The average AUM of our Mutual Fund schemes during the quarter ended March 31, 2016 stood at Rs. 16,161 crore. Out of this AUM, the AUM in the equity schemes was at Rs. 7,114 crore, under the Arbitrage scheme at Rs 2,966 crore and the AUM of the debt schemes stood at Rs. 6,081 crore.
The audited financial results are attached. Both, the press release and audited financial results are available on our website www.jmfl.com
About JM Financial
JM Financial is an integrated financial services group offering a wide range of capital market services to its corporate and individual clients. The Group’s businesses include investment banking, institutional equity sales, trading, research and broking, private and corporate wealth management, equity broking, portfolio management, asset management, commodity broking, fixed income broking, non-banking finance products, private equity and asset reconstruction. For more information, log on to www.jmfl.com or contact:
Tel.: +91 22 6630 3475
Group Chief Financial Officer
Tel.: +91 22 6630 3460
Forward - Looking statements
This press release (‘document’) containing JM Financial Group’s activities, projections and expectations for the future, may contain certain forward-looking statements based upon the information currently available with the Company or any of its subsidiaries and associate companies. The financial results in future may vary from the forward-looking statements contained in this document due to uncertainties and unforeseen events that may impact the businesses of the JM Financial Group. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events.
This document is for information purposes only and any action taken by any person on the basis of the information contained herein is that person’s responsibility alone and neither JM Financial Group nor any of their directors or employees will be liable in any manner for the consequences of such actions.