MUMBAI, Dec 3: PNB Housing Finance is setting its sights on the affordable housing market, targeting an increase in its loan portfolio to Rs 5,000 crore by the conclusion of the current financial year.
The lender’s affordable housing segment, known as ‘Roshini’, reached a loan book total of Rs 3,000 crore by the end of Q2 FY’25.
Girish Kousgi, MD and CEO of PNB Housing Finance, announced to reporters, “Our goal is to grow our affordable housing loan book to Rs 5,000 crore by this year-end, aiming for Rs 15,000 crore by March 2027.”
This loan growth will be supported by the rollout of the Pradhan Mantri Awas Yojana-Urban 2.0 (PMAY 2) and further branch expansion.
Kousgi added that the company will introduce a new ‘Loan Against Property’ vertical starting next financial year.
To facilitate a loan growth of 17%, PNB Housing Finance plans to raise between USD 100-125 million through External Commercial Borrowings (ECBs) in this fiscal year, with the board already approving a raise of USD 125 million.
The company’s objective is to achieve a loan assets milestone of Rs 1 lakh crore by March 2027, up from around Rs 70,000 crore currently.
Additionally, PNB Housing Finance intends to expand its distribution network by launching 40 new branches by the end of the fiscal year.
Having entered the affordable housing loan sector in FY23, the company rapidly surpassed Rs 1,000 crore in loan bookings within a year of launching, closing FY24 with a loan book of Rs 1,790 crore.
The most recent figure for the loan book stood at Rs 3,000 crore as of October this year.
Furthermore, the company aims to raise its non-housing portfolio to 30% of its retail product offerings by enhancing its loan against property (LAP) services, incorporating flexible repayment options and higher loan limits to cater to changing financial needs.
It has also introduced ‘Micro LAP’, a new product aimed at the affordable segment, allowing individuals to gain greater financial autonomy.
To symbolize hope and positivity, the company debuted its first brand mascot ‘Roshni’ and introduced a special scheme for women financial applicants, providing exclusive fee and rate concessions on affordable housing loans. (PTI)
