The lender, the third-largest housing finance company in the country, expects to gain market share as its projected growth may surpass the industry average. The projection is well above the housing loan sector’s average growth of 10.5% year-on-year as of December, according to the latest available data.
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The deposit-taking housing finance company expects net interest margin at 3.55-3.65% in FY27, compared with 3.69% in the fourth quarter. It also plans to recover about ‘200 crore from its written-off loan pool, which it said would keep credit costs benign.
The lender aims to reach a loan book of ‘1 lakh crore by FY27. Managing director Ajai Kumar Shukla told ET the growth will be driven by affordable and emerging market segments, supported by branch expansion over the past two years.
“We are expecting 18-20% loan growth this fiscal with much higher growth from the affordable and emerging market segments. We will see a moderate 10% growth in the prime segment,” Shukla said.
ET BureauThird largest housing finance company in India aims to increase its market share as it outpaces average industry growth in the fiscal
PNB Housing Finance plans to increase the share of affordable and emerging segments to 50% of its loan book over the next two years from 40% currently. These segments typically offer higher yields than the prime housing segment.
The lender has 393 branches, having opened 37 in FY26 and 50 in FY25.
Shukla said the immediate focus will be to scale up operations at these new branches, with further expansion to be reviewed after the second quarter. He added that credit costs are expected to remain benign, aided by recoveries from a written-off loan pool of ‘825 crore. The company recovered ‘120 crore from retail and ‘212 crore from corporate written-off accounts in FY26. Its gross non-performing asset ratio stood at 0.93% at the end of March.