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 customercentric solutions position us well for the future.

PRIORITY 1

Focused 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. Along with the focus on the Prime segment for growth, we are targeting highyielding emerging market segment and continuing our growth trajectory in the affordable segment. We are committed to improving our market position by capitalising on our strong parentage and best-in-class liabilities franchise. Additionally, our emphasis on technology will drive operational efficiency.

Increased focus on Emerging Markets and Affordable segments, leveraging long experience of successful retail growth

Loan disbursement

(` in crore)

  • FY2211,246
  • FY2314,965
  • FY2417,583

14%

Growth in retail book in FY24

97%

Share of retail in total loan book in FY24

PRIORITY 2

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.

`1,653 crore

Disbursement under Roshni in FY24

160

Roshni branches in FY24

70%

In-house sourcing in FY24

PRIORITY 3

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.

Analytics-based case allocation

Geo-allocation

Real-time field force tracking

Delinquency prediction modelling

99.4%

Collection efficiency in FY24

1.50%

GNPA at the end of FY24

Verticalisation of collection team to improve asset quality

X-Bucket resolution

X- Bucket resolution through

  • Contactless collections
  • Emphasis on tele-calling
  • Regular field visits

Pre-NPA resolution

Pre-NPA resolution through

  • Focus on rollback/stabilisation
  • Focus to limit forward flow

97%

Resolution in X-Bucket in March FY24

99.6%

Resolution in SMA-2 in March FY24

Consistent NPA reduction

  • Focused early bucket cash collection
  • Support from legal machinery and SARFAESI
  • One-time settlements
  • Auction and sale of properties

Emphasis on recovery on written-off pool

  • OTS and property sale of written-off pool
  • Auction and sale of property-auctioned 282 properties in FY24 (98 in FY23)

Retail gross NPA reduced to

1.45%

as on 31st March 2024

Recovery of

`68 crore

from written-off pool in FY24

PRIORITY 4

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

PRIORITY 5

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.

Our IT 2.0 strategy: Embracing disruptive digital, data power and changing customer preferences

16%

Automated service request in FY24 using Salesforce CRM

63

Calls handled per agent per day in FY24 using Salesforce CRM