PNB Housing Finance is Expecting to Have 17% Loan Growth in FY25

We are discussing PNB Housing Finance is Expecting to Have 17% Loan Growth in FY25:

PNB Housing Finance is an Indian housing finance company that aims to grow by 17% next fiscal year by increasing branch networks and affordable housing loans. The finance company had opened over 100 branches to expand the business, including the affordable loading segment. A report by PTI mentioned that the Managing director of PNB Housing Finance, Girish Kousgi, said the company has enough capital to achieve this target.  

The company raised capital through the right issue last year, so it will not need capital for 2-3 years. PNB Housing also reported a loan book of Rs 63,000 crore and is aiming to grow by 17%, focusing on the affordable segment. In just 5 months, the affordable housing loan book reached Rs 1,790 crore. Meanwhile, Finance’s corporate loan book decreased by 46% in FY24.

After three years of break, the company will increase corporate lending this year. The 100 branches PNB previously opened will also help the company expand its business with affordable segments. PNB Housing Finance now owns over 300 branches across the Country. During the current Fiscal year, 50 more branches will be added to focus on the affordable loan market. 

PNB Housing Finance has assets under management of Rs 65,000 crore, with Rs 2,000 crore related to corporate lending. As the company is aiming for an affordable loan market, the PNBHFL is reported to have plans to open 50 new branches to focus on this segment. Girish Kounsi mentioned focusing on an emerging vertical that was started this year. In an interview with Businessline, the company mentioned that this year’s main focus area is scaling up affordability, followed by emerging and prime. PNB Housing Finance reported a 57.27% increase in consolidated net profit for the March  2024 quarter at ₹439.25 crore. In the December 2023 quarter, consolidated net profit stood at ₹338.44  crore. 

FAQ’s

What is PNB Housing Finance’s loan growth projection for FY25?

PNB Housing Finance expects a 17% growth in its loan book for FY25.

What strategic initiatives are driving PNB Housing Finance’s growth?

The company’s growth is driven by enhanced customer reach, digital transformation, focus on affordable housing, diversified loan portfolio, and strengthening partnerships.

How is PNB Housing Finance enhancing its customer reach?

PNB Housing Finance is expanding its geographical footprint by opening new branches and strengthening its digital presence.

What role does digital transformation play in PNB Housing Finance’s strategy?

Digital transformation is crucial for streamlining operations, enhancing customer experience, and improving efficiency through digital platforms for loan processing, customer service, and repayment options.

What is the company’s approach to affordable housing?

PNB Housing Finance offers attractive loan schemes for affordable housing projects to align with the Indian government’s emphasis on affordable housing.

Conclusion

PNB Housing Finance aims to grow by 17% next fiscal year by increasing branch networks and affordable housing loans. The finance company had opened over 100 branches to expand the business, including the affordable loading segment. After three years of break, the company will increase corporate lending this year. The 100 branches PNB previously opened will also help the company expand its business with affordable segments. PNB Housing Finance now owns over 300  branches across the Country.

During the current Fiscal year, 50 more branches will be added to focus on the affordable loan market. PNB Housing Finance has assets under management of Rs 65,000 crore, with Rs 2,000 crore related to corporate lending. As the company is aiming for an affordable loan market, the PNBHFL is reported to have plans to open 50 new branches to focus on this segment. The company focuses on scaling up affordability, followed by emerging and prime for this fiscal year. The managing director of PNB Housing Finance, Girish Kousgi, said the company has enough capital to meet this target.