Now Reading: PNB Housing Finance targets Rs 1 lakh crore AUM by Q3 FY27
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PNB Housing Finance targets Rs 1 lakh crore AUM by Q3 FY27
PNB Housing Finance expects to cross Rs 1 lakh crore in assets under management in the third quarter of FY27, up from the current Rs 93,000 crore, managing director Ajai Shukla said…
PNB Housing Finance expects to cross Rs 1 lakh crore in assets under management in the third quarter of FY27, up from the current Rs 93,000 crore, managing director Ajai Shukla said in an interview. The company has changed its disbursement accounting from cheque-handover to cheque-realisation to better align business recognition with interest income.
Shukla said quarterly borrowing stands at about Rs 4,000 crore, implying FY27 borrowing of around Rs 16,000 crore or slightly more. External commercial borrowings account for about 7% of total funding. The lender has entered the micro-housing segment in Q2 with an average ticket size of Rs 12 lakh and a target book of Rs 100 crore by FY27-end.
PNB Housing has completed Rs 146 crore of direct assignments and will explore further opportunities through Q4. The company expects technology-led productivity gains to support roughly 20% business growth with only 7-10% additional manpower. Shukla said PNB Housing remains in the NBFC upper layer and does not expect the classification to materially change its operations.
Indian Opinion Analysis
PNB Housing Finance, majority-owned by the government-run Punjab National Bank, has been steadily growing its affordable housing portfolio even as larger private-sector peers face margin pressure. The shift to cheque-realisation accounting aligns it with standard banking practice and will make quarter-on-quarter disbursement comparisons difficult for investors until the transition settles. The micro-housing push targets a sliver of the market where formal credit penetration remains low, but ticket sizes of Rs 9-20 lakh mean thin margins that require tight cost control. The company's diversified funding mix, with only 7% from ECBs, limits foreign-currency risk exposure relative to peers. The Reserve Bank's continued classification of PNB Housing in the upper layer of NBFCs subjects it to tighter prudential norms, but the MD expects no material operational impact. Investors will watch Q2 disbursement numbers under the new accounting method for the first clean read of underlying growth.
Source: bfsi.economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above.
