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Informist, Tuesday, Sep 3, 2024

By Kshipra Petkar

MUMBAI – PNB Housing Finance plans to expand its corporate loan book from current levels but maintain it below 10%, Managing Director Girish Kousgi has said. "We plan to enter corporate in a very small way. In the next few months, we'll be starting. It would always be less than 10%," he said. As on Jun 30, the corporate loan book contributed 2.7% to the housing finance company's total loan book.

On growth in the company's retail book, Kousgi said that he expects a growth of 17% on year. "Last year, (it) was 14.1%. It is 17% as we are changing segments. We are moving from low-yielding segments to high-yielding segments," he said. As on Jun 30, the retail book contributed 97.3% to the total loan book, as per the company's investor presentation. 

He also said that the company plans to expand in the emerging market and the affordable segment and move away from the prime and the super prime segments. The housing finance company also expects growth of 18-20% in the emerging market segment. 

"We have vacated super prime. We are slowly reducing prime and getting into emerging and affordable (segments)," he said. In Apr-Jun, retail disbursements grew 19.0% on year to 43.6 bln rupees, while the affordable and emerging markets segments accounted for 33% of the retail disbursements.

The emerging market book was at 119.7 bln rupees as on Jun 30, higher than 116.9 bln rupees a quarter ago. Kousgi said that going forward, the company will add more and more branches, which would largely be in the affordable and emerging market space.

On market borrowing, Kousgi said that the company won't need any equity fund-raising for the next two to three years, having raised 24.9 bln rupees through a rights issue a year ago. The company will continue to tap the debt market through non-convertible debentures and commercial papers, he added.

PNB Housing Finance, for the quarter ended June, reported a net profit of 4.39 bln rupees, up 24.4% on year. Assets under management rose 7.7% on year to 725.40 bln rupees as on Jun 30. In terms of asset quality, the gross non-performing asset ratio fell to 1.35% as of Jun 30 from 1.50% a quarter ago. The net non-performing asset ratio fell to 0.92% as of Jun 30 from 0.95% a quarter ago.

The Reserve Bank of India allowed housing finance companies to hedge their underlying exposures by participating in currency future exchanges. RBI has also allowed non-deposit taking housing finance companies, with asset size of 10 bln rupees, to participate in currency options exchanges. On this, Kousgi said that they are not looking at these options in the near future.
 

"It all depends on what the cost is. So, if it works well, I think HFCs (housing finance companies) will look into that option," he said. On the National Stock Exchange, shares of PNB Housing Finance closed 2.9% higher at 1,002.80 rupees today.  End

Edited by Aditya Sakorkar

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