Value Proposition
BUILDING
SUSTAINABLE VALUE
SUSTAINABLE VALUE
The focus is on enduring value creation for all those
who have a stake in the Company’s progress. PNB
Housing is committed to building a scalable business,
which is geared to participate in a thriving market and
drive robust margins and free cash flow.
WHAT SETS US APART
Significant market
opportunity
- Sustained economic growth and urbanisation with a commensurate improvement in affordability and aspirations of citizens
- Housing shortage in urban areas estimated at 18.76 million dwelling units [Source: Ministry of Housing and Urban Affairs]
- India’s mortgage market is significantly underpenetrated, as compared to that of other large economies
KEY PERFORMANCE INDICATORS
- One of the largest and fastest growing housing finance companies
- 40% growth in disbursement in the last four years
- 49% growth in AUM in the last four years
Strong and scalable
business model
- Unique operating model that works through hubs and spokes to maximise efficiency in processes
- Strategic distribution network, offering a robust repertoire of products
- ISO-certified central operations
- Economies of scale, low incremental costs, faster decision making and operational synergies across the network
- Well-balanced growth across products
- Surplus liquidity of `5,000-7,000 crores, leveraging long term funds and securitisation, to overcome market concerns and correct ALM profile
WHAT SETS US APART
Comprehensive
credit underwriting
SPECIALISATION
- Professionally qualified with vast mortgage experience
- Veteran cadre of hub heads and other senior personnel
- Distinguished roles with collective decision-making
OTHER MITIGATING MEASURES
- Mark-to-market policies with tailormade offerings
- Multiple checks and balances with maker-checker approach and IT support
3C APPROACH: COUNSEL, COLLECT AND CURE
- Periodic portfolio scrub for early-warning signs
- In-house contact centre with payment gateway integration
- Special cadre of professionals for legal resolution
- On-the-go collections for effective supervision
KEY PERFORMANCE INDICATORS
- Strong asset quality, with one of the lowest two-year lagged non-performing assets
The HFCs’ data has been sourced from CRISIL report.
Strong margin-accretive
position
- Stable liquidity management with a well-diversified funding mix and prudent utilisation of alternative funding
- Seamless customer experiences with value-added services
- Durable banking relationships, product knowledge and technical expertise
- Time-tested sales process and go-to-market approach
- Differentiation with technology, innovation and data-led insights
- Average yield is 10.35%
- Average borrowing cost is 8.00%
- Raised `3,324 crores through external commercial borrowings, fully hedged for five years
- Securitised `7,337 crores through direct assignment
- Received refinance sanction of `3,500 crores from the National Housing Bank (NHB)
- Operating leverage playing out with better return profile
*FY 18 and FY 19 financial numbers are on Ind AS basis.