PNB Housing Finance Limited’s Q2 and H1 FY25 Earnings Call Highlights:
Key Financial Highlights:
- Retail Loan Book Growth: Grew by 16.2% year-over-year, surpassing the 17% target.
- Affordable Housing Segment (Roshni): Reached a loan book of ₹3,000 cr, aiming for ₹15,000 cr by FY27.
- Disbursements: ₹5,341 cr in Q2 FY25, a 28.2% increase from last year.
- Profit After Tax (PAT): ₹470 cr, a 22.6% increase YoY.
- Net Interest Margin (NIM): Marginal rise to 3.68%.
- Cost of Borrowings: Reduced by 8 basis points to 7.84%.
Segmental Performance:
- Prime Markets:
- Disbursements grew by 22%, with the loan book crossing ₹52,000 cr.
- Emerging Markets:
- Fast growth in Tier 2 and Tier 3 cities, disbursements grew 31% YoY with a loan book of over ₹12,500 cr.
- Affordable Segment (Roshni):
- Remarkable 68.5% growth in disbursements, targeting ₹5,000 cr by FY25.
Corporate Business Plans:
- Relaunching Corporate Lending:
- Focus on lower ticket sizes (average ₹200 cr).
- Limit partnerships to reputable developers.
- Construction finance only strategy to minimize risk.
- Capping the corporate loan book at 10% of total portfolio.
Credit, Collections, and Technology Initiatives:
- Delinquency Management: Stronger controls and technology-driven collections.
- Technology Transformation:
- Core system upgrades and launch of digital channels like chatbots.
- Improved sales efficiency with mobile apps and data-driven decision-making.
Investor & Analyst Q&A:
Key topics discussed:
- Yield Improvement strategies.
- Guidance on NIM.
- Branch Expansion for the affordable segment.
- Reasons for an increase in cost of borrowing despite rating upgrades.
The earnings call outlined a strong performance for Q2 FY25, strategic growth plans, and the company’s focus on technology transformation and risk management.
| Subscribe To Our Free Newsletter |
