36th Annual Report 2023-24
Ready for
the next leap
In FY24, PNB Housing Finance made significant progress in parameters such as loan growth, asset quality, liability mix, liquidity, credit rating and profitability.
Just as birds migrate in response to inclement weather, we at PNB Housing Finance adapted our strategies to navigate both internal and external challenges. We shifted our focus to the retail sector, reduced our corporate exposure, invested in digitalisation to enhance our internal processes and created a superior customer journey.
A year of growth
`17,583 crore
Disbursements
17.5%
`65,358 crore
Loan asset
10.3%
`71,243 crore
AUM
6.9%
`17,798 crore
Deposits
Public 88% | ICD 12%
1.50%
GNPA
233 bps
0.95%
NNPA
181 bps
`2,516 crore
Net interest income
7.3%
2.20%
Return on assets
59 bps
10.90%
Return on equity
92 bps
3.68X
Gearing
29.26%
Capital adequacy ratio
Tier I 27.90% | Tier II 1.36%
`577*
Book value per share
*Post Rights Issue
YoY growth YoY decline
Redefined resilience for long-term growth
Evolving with excellence
High altitude flying bird
The bar-headed goose belongs to the Anatidae family. Primarily found in Central Asia, the barheaded goose moves towards Tibet, Mongolia, and Western China during summer months for breeding. They are known for undertaking one of the most challenging migrations, flying over the towering peaks of the Himalayas in order to reach their breeding region in Central Asia and wintering sites in South Asia. They can soar at altitudes of up to 7,000 meters (23,000 feet), enduring low oxygen levels and freezing temperatures.
Symbolising adaptability
Exemplifying the same spirit of adaptability, we, at PNB Housing Finance, are committed to adjusting our strategies and enhancing our offerings.
Did you Know?
90 kph
Flying speed of a bar-headed goose without wind assistance
Repeating success with precision
The Great Pink Voyage
Flamingos, the vibrant pink migratory bird, are known for travelling in large flocks usually in thousands. As winter approaches, these giant birds move out of their breeding regions in Africa, Southern Europe, and South Asia in search of warmth. They are known for their innate sense of direction as they cross thousands of kilometers each year, even sometimes travelling during the night to avoid predators and conserve energy.
In sync with teamwork
A parallel target-oriented story is also reflected in the core values of PNB Housing Finance as we work tirelessly to achieve our objectives and deliver the best results to our stakeholders.
Did you Know?
Flamingos are commonly spotted in Indian regions including the Rann of Kutch in Gujarat, the Pulicat Lake in Andhra Pradesh and Tamil Nadu, and the Chilika Lake in Odisha, among other locations.
About the Company
Fulfilling millions of aspirations
With over three and a half decades of experience, PNB Housing Finance is India’s third-largest housing finance company by loan asset, committed to offering tailored solutions to millions of customers nationwide. To cater to diverse customer segments, we introduced Roshni, a dedicated offering for the affordable housing finance sector, providing specialised services to meet the unique needs of this important and growing market. Further, from the beginning of FY25, we also carved out separate segment termed emerging markets to cater to tier 2 and 3 cities. Our portfolio includes retail housing and non-housing loans for prime customers, emerging market loans and affordable housing loans.
The Company at a glance
35+
Years of operating history
`65,358 crore
Loan book
`71,243 crore
AUM
5,00,000+
Active loan and deposit accounts
300
Branches/outreaches
14,000+
Active channel partners
Punjab National Bank
Promoter with 28.1% holding
5,500+
Employees
(PNBHFL and PHFL)
Performance metrics
Demonstrating
excellence
1 Retail segment contributed to 99% of the total loan disbursement in FY24
2 Retail segment contributed to 97% of the total AUM in FY24, whereas corporate segment contributed to 3%
* Principal outstanding including principal overdue
^ Indicates dates as on 31st March
MD and CEO’s Message
Ready to
leap beyond
Our newly launched vertical called ‘Emerging Markets’ is focused on tier 2 and 3 cities. We now have 50 branches in 12 target states in this segment, which can provide higher yields. Going forward, the Affordable and Emerging Markets segments are expected to contribute about 40% to 42% of the incremental business.
Girish Kousgi Managing Director and CEO
Strategic priorities
Making steadfast progress
At PNB Housing Finance, we designed our strategic priorities to drive sustainable growth and enhance stakeholder value. We are focused on expanding our retail portfolio, leveraging digital transformation to optimise operations, and enhancing customer experiences. By diversifying our funding sources and strengthening our asset quality, we aim to build a robust and resilient business model. Our commitment to innovation, efficiency, and customer centric solutions position us well for the future.
Read moreFocused on retail loan book growth
To fuel our loan book growth, we have concentrated on the retail segment over the past few years. Our management team, with deep retail business experience, has been focusing consistently to build a leading retail franchise.
Increased focus on Emerging Markets and Affordable segments, leveraging long experience of successful retail growth
14%
Growth in retail book in FY24
97%
Share of retail in total loan book in FY24
Expand affordable loan offering
Our focused strategy for the affordable segment led us to expand our Roshni branches to 160 during the year, up from 82 at the end of FY23. Backed by a robust brand, dedicated vertical with separate sales, credit, collections, and operations team, and a pan-India distribution channel, we achieved a loan book of `1,790 crore at the end of FY24, making us one of the fastest-growing company in the segment.
Moving towards high-yielding segments on an incremental basis
`1,653 crore
Disbursement under Roshni in FY24
160
Roshni branches in FY24
70%
In-house sourcing in FY24
Improve asset quality through robust underwriting and collection framework
We have implemented advanced technology to enhance our underwriting and collection processes.Additionally, we have verticalised the collection team based on resolution buckets to significantly improve asset quality. We are also using SARFARESI Act to drive collection and improve asset quality.
99.4%
Collection efficiency in FY24
1.50%
GNPA at the end of FY24
97%
Resolution in X-Bucket in March FY24
Diversify our funding mix
The successful completion of rights issue of `2,494 crore in May 2023, resulting in improved CRAR, followed by credit rating upgrade to AA+ by three rating agencies helped us to access debt market and borrow through Commercial Papers and Non-Convertible Debentures route. After a gap of 2 years, we availed NHB refinance, the rate for which is lower than other long term borrowings.
`55,057 crore
Total borrowing
3.68x
Gearing at the end of FY24
29.26%
CRAR at the end of FY24
Drive growth through digitalisation to drive efficiency
We are continuously investing in technology and analytics to strengthen core. To be a large digital player in the HFC ecosystem collaborating and partnering with fintech, banks, market aggregators among others, we are leveraging synergy and scale through platforms, offering personalised products and ease of services promoting high levels of adoption.
16%
Automated service request in FY24 using Salesforce CRM
63
Calls handled per agent per day in FY24 using Salesforce CRM
In recent times, financial institutions have increasingly recognised that their profit and loss statements are impacted by factors not traditionally captured on the balance sheet. These external factors, known as ‘sustainability/ESG’ issues, encompass economic, environmental and social dimensions. At PNB Housing, we embody the belief that ‘being responsible and mindful of our impact on both the present and future world is not only good corporate citizenship but also holds significant business value.
CONSERVE
Conserve resources and bolster climate health
RESPECT
Promote social equity and respect human dignity
PRACTICE
Practice sustainability as a way of life
People
People-first organisation
Since our inception, one of our organisation’s credos has been being ‘people-first’. Over the years, we have evolved our human capital philosophy to continuously deliver value in an ever-changing business and workplace environment while keeping employees at the centre of its purpose.
2,003
Employees
2.7 years
Average employee tenure
35 years
Average employee age
Community
Broadbasing our impact
We aim to uplift the marginalised communities through impactful projects, driving growth and prosperity. Pehel Foundation, our CSR wing, spearheads initiatives aimed at their holistic development. We are committed to extending our reach to empower underserved populations and enhance their quality of life.
2,057
Women directly benefited by the CSR projects
51,096
Students directly benefited
Governance
Upholding the highest standards
At PNB Housing Finance, we prioritise robust governance to ensure transparency, accountability and integrity across our operations. Our governance framework is designed to protect stakeholder interests, promote ethical practices and drive sustainable growth. Committed to the highest standards of corporate governance, we continuously strive to enhance our governance policies, ensuring compliance and fostering trust among our stakeholders.
60 years
Average age of Board members
33 years
Average experience of Board members
4.3 years
Average tenure in the Company
