PNB Housing Finance Limited — Investor Meet, 24-01-2025: Analysts/Institutional Investor Meet/Con. Call Updates

**Financial Performance:** PNB Housing Finance reported a robust performance with a 17.5% year-on-year increase in its retail loan book, now at Rs. 70,676 crore. Retail disbursements rose by 31% to Rs. 5,380 crore in Q3 FY25, while PAT surged 43% to Rs. 483 crore. Net Interest Income (NII) grew by 17% year-on-year, driven by improved asset quality, indicated by a declining gross NPA of 1.19%. The NIM has slightly increased to 3.7%, indicating effective cost management amid competitive pressure.

**Future Outlook and Growth Drivers:** The company aims to reach a retail loan book of Rs. 1 lakh crore by FY27, with significant contributions from the Affordable and Emerging segments. By focusing on the Affordable segment, which has seen a 234% year-on-year growth, and Emerging markets, expected to contribute significantly to disbursements and yield improvements, PNB Housing is positioned for sustainable growth.

**Order Book and Operational Updates:** The Affordable segment's loan book doubled in nine months to Rs. 3,838 crore, with plans to reach Rs. 5,000 crore by FY25's end. The company is expanding its branch network, opening 50 new branches by Q4 FY25 to solidify its presence in Tier 2 and Tier 3 markets.

**Analyst Q&A Insights:** Analysts probed the company on credit costs and market competition. Management reassured that asset quality remains strong, with no current red flags. They affirmed ongoing robust demand in the mortgage sector despite recent procedural challenges in various states.

**Strategic Focus Areas:** PNB Housing is pivoting towards higher-margin business segments and optimizing operational efficiency. The positive growth in asset quality and proactive recovery strategies underlie their confident outlook.

**Investor Insight:** The financial strength and growth trajectory suggest a favorable position for investors considering a ‘buy’ stance, driven by solid growth in retail loan placements and effective cost management as market conditions evolve.