PNB Housing Finance Limited

Rs.2,494 crore

all. First of all, thank you very much. We completed a rights issue in Quarter 1 to the extent of Rs.2,494 crores and thank you so much for longstanding support to the company. Issue was subscribed 1.21 times.

rs,

longstanding support to the company. Issue was subscribed 1.21 times. All the four top shareholders, namely PNB, Carlyle, Ares SSG and General Atlantic, they participated in the rights issue and this

8%

one well on most of the parameters. On retail disbursements, on a Y-o-Y we have shown a growth of 8%. Market is quite robust. There was a bit of cyclical low aspect in quarter one. But yes, we have

66%

try. And we saw a lot of traction in affordable space, we were able to grow our disbursement by 66%. In quarter one, we did Rs.228 crores, and the previous quarter was Rs.137 crores. We see a lot o

Rs.228 crore

raction in affordable space, we were able to grow our disbursement by 66%. In quarter one, we did Rs.228 crores, and the previous quarter was Rs.137 crores. We see a lot of traction, and that was really, real

Rs.137 crore

grow our disbursement by 66%. In quarter one, we did Rs.228 crores, and the previous quarter was Rs.137 crores. We see a lot of traction, and that was really, really, you know, good for us. Public

11%

have to look at the login numbers just to give you a data point, login numbers on a Y-o-Y grew by 11% and sanction value by 15%. On the loan book, on the retail side, we were able to grow by 11% and

15%

numbers just to give you a data point, login numbers on a Y-o-Y grew by 11% and sanction value by 15%. On the loan book, on the retail side, we were able to grow by 11% and this happens to be the h

5%

his happens to be the highest ever book growth in the last 15 quarters. Overall loan book grew by 5% on a Y-o-Y basis. Sequentially loan book grew by 2% and retail loan book grew by 3%. We are on

2%

e last 15 quarters. Overall loan book grew by 5% on a Y-o-Y basis. Sequentially loan book grew by 2% and retail loan book grew by 3%. We are on track in terms of our guidance for book growth which i

3%

book grew by 5% on a Y-o-Y basis. Sequentially loan book grew by 2% and retail loan book grew by 3%. We are on track in terms of our guidance for book growth which is about 17% to 18% and disburs

17%

ail loan book grew by 3%. We are on track in terms of our guidance for book growth which is about 17% to 18% and disbursement growth of 22%+ for the year. In spite of our conscious strategy in terms

“We are on track in terms of our guidance for book growth which is about 17% to 18% and disbursement growth of 22%+ for the year.”

“So typically, when you see quarter 1, quarter 1 will be muted A) in terms of growth, B) in terms of asset quality improvement.”

“Currently, we are at 88, and we will reach about 100 branches in the quarter or two.”

“So, there will be a lot of traction in the coming quarters on the affordable side.”

“And in terms of guidance, I think we had mentioned the Spread of 2.5%, NIM of 3.5% and credit cost for this Public year, it will be 0.6%, and from next year onward, it will be 0.4%.”

“So now considering that, we have raised capital to the tune of Rs.25 billion in May, so of course, there will be a positive impact on the borrowing side in coming quarters.”

“When you say that, full year NIM will be at 3.5% versus more than 3.8% now?”

“Actually, in terms of guidance, spread and NIM, this is the threshold.”

“So, we will be able to sustain what NIM is seeing now, which is about 3.75% or so, but the guidance on a long- term steady state is going to be 3.5%.”

“I know you have 40 basis points guidance of fiscal ‘25, but how do you feel about this?”

Girish Kousgi

41

Moderator

13

Ravi Naredi

9

Onkar Ghugardare

9

Manish Maheshwari

9

Deepika Gupta Padhi

7

Ashwini Agarwal

7

Kushan Parikh

7

Vinay Gupta

5

Pratik Chheda

4

Deepika Gupta Padhi

Thank you, Aman. Good evening and welcome everyone. We are here to discuss PNB Housing Finance Q1 FY24 results. You must have seen our business and financial numbers in the presentation and press release shared with the Indian Stock Exchanges and is also available on our website. With me we have our entire management team across verticals sitting over here led by Mr. Girish Kousgi, Managing Director and CEO. We'll begin this call with the performance update by the Managing Director and CEO followed by an interactive Q&A session. Please note this call may contain forward-looking statements which exemplify our judgment and future expectations concerning the development of our business. These forward-looking statements involve risks and uncertainties that may cause actual developments and results to differ materially from our expectations. PNB Housing Finance undertakes no obligation to publicly revise any forward-looking statement to reflect future events or circumstances. A detailed dis

Girish Kousgi

Good afternoon and welcome to all the investors to Quarter 1 Earnings Call. First of all, thank you very much. We completed a rights issue in Quarter 1 to the extent of Rs.2,494 crores and thank you so much for longstanding support to the company. Issue was subscribed 1.21 times. All the four top shareholders, namely PNB, Carlyle, Ares SSG and General Atlantic, they participated in the rights issue and this apart, I think a lot of institutional investors they participated. Proceeds of the rights issue are being utilized for disbursements. Quarter 1 was very, very eventful for us and as a Company we have done well on most of the parameters. On retail disbursements, on a Y-o-Y we have shown a growth of 8%. Market is quite robust. There was a bit of cyclical low aspect in quarter one. But yes, we have been trying to do a lot of things to de-risk the book what we are going to build in future. For example, our focus was more on salaried. Our focus was more on home, our focus was also more o

Renish

Yes, Hi team. Congrats on a good set of numbers. So just one question on the margin side. Okay. So now considering that, we have raised capital to the tune of Rs.25 billion in May, so of course, there will be a positive impact on the borrowing side in coming quarters. Given this quarter, there is an impact of only one month and given the portfolio mix is going to shift towards affordable and prime, which is a high yielding book. So, for what is the reason, we are still guiding for a lower NIM in coming quarters. When you say that, full year NIM will be at 3.5% versus more than 3.8% now?

Girish Kousgi

No. Actually, in terms of guidance, spread and NIM, this is the threshold. So, we will be able to sustain what NIM is seeing now, which is about 3.75% or so, but the guidance on a long- term steady state is going to be 3.5%. That is the threshold, what I mentioned.

Renish

Okay. And so, maybe next couple of quarters, there is a fair amount of chance that, NIM could sustain it around this level, considering the fundraising and the book mix change?

Ashwini Agarwal

Yes, thank you. Congratulations to the team for the pretty good numbers. So, two or three questions. One is, how do you feel about the retail GNPA numbers, considering the kind of mix you're pursuing? Do you think in a couple of years, we should be looking at industry level NPAs, which are GNPA ratios somewhere in the handle of 1.2% to 1.4% and a credit cost in the ratio of 20 basis points to 30 basis points. I know you have 40 basis points guidance of fiscal ‘25, but how do you feel about this?