The third largest pureplay housing finance company PNB Housing Finance Ltd anticipates to grow its retail loan book to ₹1 trillion by FY27, chief executive Girish Kousgi said on Tuesday (3 December 2024), as the non-bank lender focusses on the affordable housing segment in search of better profitability.
The company is targeting a threefold growth in its affordable housing loan book to Rs 15,000 crore by FY27. The company expects the loan book to scale past Rs 5,000 crore by the end of FY2025.
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“With a vision to take our affordable housing loan book to Rs 5,000 crore by FY25 and Rs 15,000 crore by FY27, we are expanding our network to 200 branches by FY25 and 500 branches across segments by FY27,” Girish Kousgi, the managing director of PNB Housing Finance, told reporters in Mumbai on Tuesday.
“Affordable housing is the cornerstone of our growth strategy. We are committed to making home ownership more inclusive and accessible for all by leveraging innovative products and schemes, expanding our presence, and prioritising customer-centric solutions,” he added.
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Of the ₹1 trillion estimated portfolio, the lender plans to have about 15% in affordable housing loans, 25% to the emerging segment and the remaining 60% to prime customers. While the loan size in the affordable housing segment is ₹13-14 lakh, the emerging and prime segments have ticket sizes of ₹25 lakh and ₹35 lakh, respectively.
The home loan provider has a network of over 300 branches now, primarily offering loans under the PM’s housing scheme.
The mortgage lender also launched a special affordable housing loan scheme for women financial applicants and new brand mascot Roshni to offer customer-centric solutions.
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Lenders classify borrowers on the basis of their credit scores and those at the top of the pyramid are termed super-prime while those a notch below are called prime. Since super-prime customers are seen to have the lowest chance of defaulting on loans, they can bargain for a finer (cheaper interest) rate from lenders than those with lower credit scores. A finer pricing means limited income for lenders when compared to lending to riskier segments.
