PNB Housing Finance is targeting a disbursement of Rs 1,000 crore in affordable housing loans by December, following a robust demand. The company has disbursed Rs 700 crore between April and Today, after venturing into the sector eight months ago. The average loan size stands at Rs 15 lakh, and the firm has grown its loan book size to Rs 750 crore, aiming to reach the first Rs 1,000 crore loan book within a year.
The company has opened 100 branches in a year, including its first all-woman branch and the 100th branch for affordable housing loans. It plans to open an additional 60 branches in tier 2-3 cities. The loans offered range from Rs 5-35 lakh at competitive rates.
CEO Girish Kousgi predicts significant growth in the affordable housing market, projecting its potential expansion from 30% to 50% of India’s Rs 27-lakh-crore housing finance market. This forecast aligns with PNB Housing Finance’s anticipated shift in its product mix to a ratio of 60:40 prime to affordable housing loans by H1FY24.
The firm also expects a substantial increase in business contribution from the affordable segment. By March 2024, it anticipates this segment will contribute to 21% of its total loan book size, currently standing at Rs 60,800 crore.
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