PNB Housing Finance conducted a conference call on 24 January 2024 to discuss its financial results for the quarter ended December 2023. Girish Kousgi, MD&CEO of the company addressed the call:

Highlights:

The share of retail loan book has moved up to 96.5% and corporate book was at 3.5%.

The company has received a sanction of Rs 30b from NHB and has drawn down Rs 8b in Q3FY24.

The company expects the retail loan growth at 15% for FY24, while the growth is expected to accelerate to 17% in FY25.

There has been an improvement in collection efficiency, while the company expects credit costs at 31-32 bps in FY24 and at steady levels of 30-35 bps in FY25 and FY26.

The company expects the NIM at 3.5% and fee income at 30 bps.

The company expects to improve RpA above 2% and leverage to increase to 6 times in few years.

The company expects spreads to improve going forward driven by decline in the CoB with a credit rating upgrade and NHB borrowings.

India Ratings has the credit rating of the company to AA+.

The company expects its yield on Roshni scheme to improve from 11.5% to 12.5% from April 2024 onwards.

The company has good pool of written off account at Rs 1700 crore in the corporate segment and Rs 500 crore in retail segment. The company expects the write-backs from corporate as well as retail to continue for next 3-4 quarters.

The company is planning o added 40-50 emerging-market branches focusing on higher yield business.

The company is focusing on growing its deposits base, which has low cost.