PNB Housing Finance to start LAP vertical from April 2025: MD & CEO

PNB Housing Finance will start Loan Against Property (LAP) as a separate segment from April 2025, said Girish Kousgi, MD & CEO, PNB Housing Finance, on Tuesday.

 

“The LAP vertical, we are going to start from April 2025. This will be the new vertical, which again would help us on profitability because LAP would come at a higher business and this vertical actually cuts across all the segments,” Kousgi said.

 

LAP will be a part of the retail business, which includes the prime, affordable, and the emerging housing segments.

 

He also said, “I think since the last more than 20 years, we have been into the LAP business. We do LAP in all the three segments, but we want to set up a dedicated vertical for LAP because that is yield accretive. Currently, LAP is about 28-29 per cent of the overall portfolio.”

 

The company said that it is keen to beef up its non-housing portfolio to 30 per cent of its retail product mix, enhancing its LAP offerings with customer-friendly features such as flexible repayment options and increased loan limits to meet evolving financial needs.

 

Currently, the non-housing loan book of the company stands at 27.8 per cent of the total retail mix, which they aim to grow to 30 per cent.

 

In Q2 FY25, retail disbursements of the company grew by 28 per cent year-on-year (Y-o-Y) to Rs 5,341 crore, which the company plans to increase to Rs 1 trillion by FY27. The corporate segment, which reduced by 35.7 per cent from the year-ago period to Rs 1,531 crore, will grow to Rs 7,000 crore to Rs 8,000 crore by FY27.

 

“Out of Rs 1 lakh crore, Roshni will be Rs 15,000 crore. Roshni is the affordable, emerging book, which would be about Rs 25,000 crore, and the balance Rs 60,000 crore would be the prime segment. So now what we are doing is trying to moderate the growth rate on prime, trying to grow the emerging business faster, and the affordable business very fast,” Kousgi said.

 

On the fundraising front, Kousgi said that PNB Housing Finance will raise $100 million to $150 million each through two external commercial borrowings (ECB) by the end of the current financial year.