homefinance NewsPNB Housing CEO sees traction in affordable segment, expects cost reduction in coming quarters
PNB Housing CEO sees traction in affordable segment, expects cost reduction in coming quarters
On January 24, PNB Housing Finance reported a 26% YoY rise in net profit to ₹338.44 crore for the third quarter of the financial year 2023-24.
Girish Kousgi, MD & CEO of PNB Housing Finance, on Thursday, January 25, said that the company has seen traction in the affordable housing segment, having launched it just over a year ago. The company has built a book size of ₹1,100 crore in this space, Kousgi told CNBC-TV18.
"The focus remains on Tier-II and Tier-III cities, where we aim to create a higher yield compared to prime locations," he said.
Addressing the financial aspects, Kousgi mentioned that despite marginal reductions, the cost has decreased for PNB Housing Finance.
The recent upgrade by India Ratings from AA to AA+ and the sanction of ₹3,000 crore from the National Housing Bank (NHB) will contribute to further cost reduction.
KOusgi anticipates a gradual decline in cost over the next two to three quarters.
PNB Housing Finance is gearing up to explore emerging markets, adding another high-yield portfolio to its offerings.
"This strategic move aligns with the company's objective to diversify its product portfolio and tap into new opportunities for growth," Kousgi said.
In light of recent challenges in the corporate sector, Kousgi revealed that PNB Housing Finance has taken a cautious stance on running down its corporate book.
The company experienced a contraction in the corporate book and faced one-off impacts in the third quarter. Despite these challenges, PNB Housing Finance remains optimistic about maintaining a net interest margin of 3.5%.
On January 24, PNB Housing Finance reported a 26% YoY rise in net profit to ₹338.44 crore for the third quarter of the financial year 2023-24.
The Gross Non-Performing Assets (NPA) have shown an improvement, standing at 1.73% as of December 31, 2023, compared to 4.87% in the same period the previous year.
The company's retail gross NPA is at 1.67%, witnessing a decline from the previous year.
Corporate gross NPA has also improved, dropping to 3.35% as of December 31, 2023, compared to a high of 26.61% in the same period of 2022.
ALSO READ | PNB Housing Block Deal: Shares rise after 9.9% equity changes hands in ₹2,141 crore deal
(Edited by : Vijay Anand)
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