Value Proposition

BUILDING
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

ROA* (%)

ROE* (%)

*FY 18 and FY 19 financial numbers are on Ind AS basis.