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PNB Housing Finance Ltd (PNBHFL), a retail focused home loan provider, is eyeing a retail home loan book of ₹1 lakh crore by March 2027, its Managing Director & CEO Girish Kousgi has said.
Currently, the company’s retail book, which is growing at 17.5 per cent, stood at ₹70,767 crore. In March end 2024, the retail book stood at ₹63,306 crore.
Out of the target of ₹ 1 lakh crore, as much as ₹15,000 crore is expected to be accounted for by ‘affordable housing’ segment; ₹25,000 crore by ‘emerging’ segment and the rest ₹60,000 crore will be prime book, Kousgi told businessline here post the Q3 results announcement.
He also said that PNBHFL is aiming to grow its ‘affordable’ housing loan segment book to ₹5,000 crore by March 2025.
Housing segment
“We started our affordable housing business segment in January 2023. The assets under management reached ₹1,790 crore by March 2024. In the nine months this fiscal, the loan book has doubled to ₹3,838 crore. We are confident about its prospects in coming years”, Kousgi said.
In 2025, PNBHFL plans to ramp up the affordable book to ₹5,000 crore; retail growth of over 17 per cent and the company becoming more “profitable” with dependency on corporate is now very less , he added.
For the current fiscal, PNBHFL expects to close with a net profit of over ₹1,800 crore. In the first nine months this fiscal, the company had recorded net profit of ₹1,386 crore. Last fiscal, the company had recorded net profit of about ₹1,500 crore.
In the recent December 2024 quarter, the company’s consolidated net profit came in at ₹483 crore.
For the current fiscal, Kousgi expects net interest margin (NIM) to come in at 3.6–3.7 per cent, higher than the guidance of 3.5 per cent.
Rate cuts
“There is no dearth of demand for mortgage loans. There is demand across the segments—super prime, prime, emerging and affordable. Just that we have exited super prime and by strategy we are growing prime book slower,” he added.
On the likely impact of any policy rate cut by the Central bank in February MPC meeting, Kousgi said that any reduction of policy rate by the Reserve Bank of India (RBI) will not drastically change the NIM. “If cut happens, we are expecting a 25 basis point cut. Even then our NIM will be stable”, he added.
Every passing quarter’s contribution to profit margins from ‘emerging’ and ‘affordable’ segment is growing and this will help the overall NIM growth of the company, he added.
Asked about budget expectations, Kousgi said there is need for the budget to come up with tax sops for developers of affordable housing projects. “Most developers today are focusing on luxury and super luxury (housing) and not getting into affordable as it is not viable. If there is any tax holiday or tax reduction in tax slabs, that could help developers to look at affordable given the backdrop of government focus on housing for all. Tax sops will help developers come out with more affordable projects”, Kousgi said.
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Published on January 22, 2025
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