PNB Housing Fin eyes ₹1,000 crore affordable housing loan book
In an interview with CNBC-TV18, Girish Kousgi, MD & CEO of PNB Housing Finance, shared the company's future plans following a strong second quarter show.
PNB Housing Finance is setting a brisk pace in the affordable housing segment, with ambitions to become one of the fastest Housing Finance Companies (HFCs) to reach the ₹1,000 crore mark. This goal aligns with the company's broader strategy to expand its footprint in the affordable housing market, a sector that has recently seen significant traction.
“As of September, we reached a book close to ₹750 crore and hopefully this quarter (third quarter of FY24) we should be able to hit ₹1,000 crore and we will be one of the fastest housing finance companies to reach the first ₹1,000 crore area,” Girish Kousgi, the Managing Director and CEO said in a chat with CNBC-TV18.
The company plans to open more branches dedicated to affordable housing. Kousgi's vision for PNB Housing Finance is not just about expansion but also about maintaining a balanced portfolio. He emphasised that the corporate book will consistently remain below 10%, with a primary focus on the retail segment.
Financial stability is a key aspect of PNB Housing Finance's strategy. Kousgi expects the Net Interest Margin (NIM) and spreads to remain stable over the next few quarters. This stability is partly attributed to a marginal decline in the cost of funds.
Kousgi also projected a zero gross non-performing asset (GNPA) in the corporate sector by March 2023. PNB Housing Finance is adopting an aggressive approach to collections in the retail segment, with the gross NPA ratio expected to be among the best in the industry in the coming quarters.
“Every quarter we would see GNPA on retail would keep coming down. There is no guidance for that but in the next 3-4 quarters our GNPA, at the enterprise level, would be comparable with some of the best companies in the industry,” Kousgi added.
The company is also expanding its physical presence. Kousgi shared plans to establish another 87 branches before March 2024, with 60 of them dedicated to the affordable housing segment.
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The Punjab National Bank subsidiary reported its September quarter results on October 23. The financier's net profit rose nearly 46% year-on-year (YoY) to ₹383 crore from ₹262.6 crore. The total revenue was at ₹1,777.8 crore, a 5.5% growth from ₹1,684.4 crore a year ago.
The net interest income (NII) improved 2% YoY and 5% quarter-on-quarter (QoQ) to ₹661 crore. In the same quarter last year, there was a one-off of ₹160 crore related to assigned loans due to benchmark rate resets. Excluding this one-off, the net interest income for the September quarter this year was up about 35% YoY.
For more details, watch the accompanying video
(Edited by : Shweta Mungre)
First Published: Nov 15, 2023 8:22 PM IST
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