PNB Housing Revives Commercial Mortgage Biz as Affordable Loans Drive Growth
PNB Housing Finance is reviving its commercial mortgage business as affordable housing loans drive growth, offering yields of 12.6%.
Pnb HousingAffordable HousingCommercial MortgageRetail LoansHousing FinanceReal Estate NewsSep 14, 2024
The lender is looking to bulk up its commercial portfolio, even if marginally, to make up for the reduction in high-ticket lending to individuals (retail borrowers) as it shifts its focus to smaller housing loans.
Affordable housing loans fetch PNB Housing the highest interest rates, offering yields of 12.6%, higher than 10.2-10.3% from the emerging market segment and 9.5% from the prime loans segment, managing director and chief executive Girish Kousgi told Mint in an interview.
Frequently Asked Questions
What is PNB Housing's strategy for growth?
PNB Housing is focusing on growing its affordable housing loans segment, which offers higher yields, and reviving its commercial mortgage business.
What is the current size of PNB Housing's affordable housing loans portfolio?
PNB Housing's affordable housing loans portfolio stands at ₹2,361 crore as of June 2024.
What is the expected growth rate of PNB Housing's retail book?
PNB Housing's retail book is expected to grow at 17% in FY25, driven by growth in affordable housing loans.
What is the current size of PNB Housing's corporate loan portfolio?
PNB Housing's corporate loan portfolio stands at ₹1,829 crore as of June 2024, with zero non-performing assets.
What is the outlook for the affordable housing finance industry?
The affordable housing finance industry is expected to grow by 22-24% in the current financial year, driven by demand for affordable housing loans.
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