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PNB Housing Finance MD and CEO Ajai Shukla said the recent rate hike by the Reserve Bank would lead to a marginal improvement in net interest margin (NIM). After a gap of almost four years, the Reserve Bank raised its benchmark lending rate by 25 basis points to 5.5 per cent, making borrowing from the central bank costlier to contain inflation fuelled by the West Asia crisis. "Some benefit will go to the lender because all of the borrowing of the lender is not on the repo rate. It is a combination of Marginal Cost of Funds-based Lending Rate (MCLR), commercial paper, refinance from National Housing Bank and non-convertible debentures," Shukla told PTI. Asked about the quantum jump in margin improvement for the mortgage firm, he said the benefit will not be 25 basis points immediately on the book, but it may be 5-8 basis points. Talking about the demand for housing finance, Shukla said, "We have seen some good traction...Momentum is already there. Usually the mortgage business start
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
HDFC Standard Life Insurance Co on Tuesday bought shares of PNB Housing Finance worth Rs 90 crore through an open market transaction. According to the block deal data available on the BSE, HDFC Standard Life Insurance Company Ltd purchased a little over 10 lakh shares or 0.4 per cent stake in PNB Housing Finance. The shares were picked up at an average price of Rs 900 apiece, taking the transaction value to Rs 90 crore. Meanwhile, a foreign investor Asia Opportunities V (Mauritius) Ltd trimmed its stake by offloading shares of PNB Housing at the same price. After the transaction, Asia Opportunities V holding in PNB Housing has come down to 0.94 per cent from 1.34 per cent. Shares of PNB Housing Finance rose 2.33 per cent to close at Rs 922.80 apiece. In August this year, Asia Opportunities V (Mauritius) offloaded a 3 per cent stake in PNB Housing Finance for over Rs 676 crore. Before that, in May, Asia Opportunities V (Mauritius) and General Atlantic divested a cumulative 4.46 p