PNB HF aims to close FY25 with loan book of Rs 5k cr in affordable segment

With focus on the affordable segment, PNB Housing Finance aims to expand its loan book size to Rs 5,000 crore by the end of the current financial year.

The mortgage lender closed the loan book under the affordable segment called 'Roshini' at Rs 3,000 crore at the end of the second quarter of FY'25.

"We hope to expand our loan look under the affordable housing segment to Rs 5,000 crore by this year-end to touch Rs 15,000 crore by March 2027," PNB Housing Finance MD and CEO Girish Kousgi told reporters here.

The loan growth will be helped by implementation of Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY 2) and branch expansion.

He also said the housing finance company plans to set up a new vertical for 'Loan Against Property' beginning next financial year.

To fund loan growth of 17 per cent, he said, the housing finance company plans to raise USD 100-125 million through External Commercial Borrowings (ECBs) this fiscal. The board has already given approval for raising USD 125 million through ECBs.

PNB Housing company plans to touch a loan assets milestone of Rs 1 lakh crore by March 2027, as against about Rs 70,000 crore at present.

The company is also aiming to expand its distribution network by opening 40 new branches by the end of the current fiscal.

It entered the affordable housing loans segment in FY23 and was one of the fastest growing companies to cross Rs 1,000 crore loan book within a year of its launch, and closed FY24 with a book of Rs 1,790 crore.

The last reported number for the book had stood at Rs 3,000 crore as of October this year.

The company targets to take its non-housing portfolio to 30 per cent of its retail product mix, enhancing its loan against property (LAP) offerings with features such as flexible repayment options and increased loan limits to meet evolving financial needs.

It has also extended its LAP offerings to the affordable segment with a new product 'Micro LAP', thus enabling them to achieve greater financial independence.

The company launched its maiden brand mascot 'Roshni' to represent hope and positivity, and also a special scheme for women financial applicants offering special fee and rate concessions on affordable housing loans.