Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q3 FY2025 Earnings Presentation
53 slides from Pnb Housing Finance's earnings presentation, Jan 21, 2025
Slide 1: Exchange filing cover letter for investor presentation
Ref: PNBHFL/SE/EQ/FY25/114 Date: January 21, 2025 The BSE Limited The National Stock Exchange of India Limited Listing Department, Listing Department Phiroze Jeejeebhoy Towers, “Exchange Plaza” Dalal Street, Bandra Kurla Complex, Mumbai – 400001 Bandra (E), Mumbai – 400051 Scrip Code: 540173 Symbol:
Slide 2: Investor Presentation Quarter Ended December 2024
Investor Presentation Quarter Ended December 2024 21-January-2025 Public
Slide 3: Table of Content
Table of Content 1 Key Performance Highlights 2 Business Update 3 Segment Update – Prime 4 Segment Update – Emerging Markets 5 Segment Update – Affordable 6 Asset Quality 7 Technology Update 7 Financial Performance 8 Annexure Public
Slide 4: Key Performance Highlights
Key Performance Highlights • In Q3 FY25, Retail Disbursement grew by 31% YoY to INR 5,380 crore; Affordable and Emerging Markets segments accounted for 38% of the Retail Disbursement Business Highlights • As on 31st Dec 2024, Retail Loan Asset grew by 17.5% YoY at INR 70,676 crore; Affordable and Em
Slide 5: Key Performance Highlights
Key Performance Highlights Retail Segment Corporate Segment Total 5,380 (Q3 FY25) 5,380 (Q3 FY25) (30.9 % YoY | 0.7 % QoQ) NIL (Q3 FY25) (29.9% YoY | 0.7% QoQ) • Prime: 3,355 (15.2% YoY) • Emerging Markets: 1,105 (39.4% YoY) 34 (9M FY25) 15,118 (9M FY25) Disbursement • Affordable: 920 (126.8% YoY) (
Slide 6: Key Performance Highlights
Key Performance Highlights AUM Loan Asset Deposits Net NPA Spread 2.29% (Q3FY25) INR 17,275 Crore 0.80% (31-Dec-24) vs ( +17 bps YoY | +8 bps QoQ) INR 76,840 Crore INR 71,917 Crore (12.1% YoY | 2.8% QoQ ) (15.4% YoY | 3.5% QoQ ) Public 87.3% | ICD 12.7% 0.84% (30-Sep-24) | 2.21% (9M FY25) 1.14% (31-
Slide 7: Overall Business Update
Overall Business Update Public 6 6
Slide 8: Loan Asset and Disbursement Mix
Loan Asset Mix (INR Crore) Segment Mix Retail Product Mix Retail Profile Mix 62,337 69,501 71,917 3.5% 3.5 2.2% 2.2 1.7% 28.2% 27.8% 27.8% 39.5% 38.5% 38.7% Loan Asset 96.5% 97.8% 98.3% 71.8% 72.2% 72.2% 60.5% 61.5% 61.3% 31-Dec-23 30-Sep-24 31-Dec-24 31-Dec-23 30-Sep-24 31-Dec-24 31-Dec-23 30-Sep-2
Slide 9: Wide Distribution Network
Wide Distribution Network 305 Loan Asset – Geographical Breakup 33% 32% 212 93 32% 34% 35% 34% 31-Dec-23 31-Dec-24 Disbursement - Geographical Break-up 31-Dec-23 31-Dec-24 Branches/outreaches 35% 36% 37% 37% 14,000+ Channel Partners for loans & deposits 28% 27% 9MFY24 9MFY25 Top 5 State share in the
Slide 10: Well Diversified Borrowing Profile
Well Diversified Borrowing Profile Borrowing Mix Cost of Borrowing 8.2% 11.9% 8.07% NHB Refinance 7.83% 7.98% 7.93% 7.92% 7.75% 7.84% 7.82% 7.83% 7.82% Term Loans 39.1% ECBs 40.4% Deposits 2.3% NCDs 2.8% CPs 31.0% 28.8% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 9.9% 9.8% Reported COB Incremental COB 9.5% 6
Slide 11: Strategic Objectives
Strategic Objectives Retail Loan Asset Grow Retail Loan Asset including high yielding Emerging Markets segment Affordable Asset Grow Affordable Loan Asset especially in Tier 2 and 3 Asset Quality Leverage underwriting and collection efficiencies to have best-in class asset quality in the industry St
Slide 12: Retail strategy ramping up well
Retail strategy ramping up well Retail Growth strategy and objectives… Tech focus New strategy Leverage strong Management team Continue growth Focus on higher for operational focused on building parentage and best with deep retail trajectory in yielding Emerging efficiency; Salesforce leading retail
Slide 13: Leveraging Prime segment experience to grow Emerging Markets and Affordable
Leveraging Prime segment experience to grow Emerging Markets and Affordable Moving down the affordability pyramid… Experience brings advantages… Average Ticket size Yield 8-9% Super Prime Strong brand recall Pan India presence 35L 9-10% Trusted brand with long history and 30+ years of experience Pri
Slide 14: Retail Business Focus Areas
Retail Business Focus Areas LOAN Asset (INR crore)* Q3FY25 Q2FY25 Q3FY24 Change (YoY) Prime 53,669 52,466 48,234 11% Emerging Markets 13,169 12,545 10,746 23% Affordable 3,838 2,959 1,149 234% • Retail Segment classified as Total 70,676 67,970 60,129 18% Prime, Emerging Markets and Affordable Segmen
Slide 15: Segment Update – Prime
Segment Update – Prime Public 14 14
Slide 16: Prime Segment Update
Prime Segment Update Loan Asset (INR crore) Loan Asset by Product (%) Loan Asset by Profile (%) 52,466 53,669 49,828 50,825 48,234 28.3% 28.1% 27.7% 27.5% 27.3% 41.6% 41.3% 40.9% 40.5% 40.4% 71.7% 71.9% 72.3% 72.5% 72.7% 58.4% 58.7% 59.1% 59.5% 59.6% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24
Slide 17: Segment Update – Emerging Markets
Segment Update – Emerging Markets Public 16 16
Slide 18: Emerging Markets Segment Update
Emerging Markets Segment Update Loan Asset (INR crore) Loan Asset by Product (%) Loan Asset by Profile (%) 12,545 13,169 11,688 11,971 10,746 27.1% 27.1% 27.1% 27.7% 28.4% 29.7% 29.5% 29.0% 28.7% 28.7% 72.9% 72.9% 72.9% 72.3% 71.6% 70.3% 70.5% 71.0% 71.3% 71.3% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3F
Slide 19: Segment Update – Affordable
Segment Update – Affordable Public 18 18
Slide 20: Roshni Business: Key Milestones
Roshni Business: Key Milestones Jan-23 Jul-23 Nov-23 Dec-23 Mar-24 May-24 Oct-24 Dec-24 Reached disbursement Loan Asset at Loan Asset at Started with Expanded presence to Total footprint of Loan Asset run-rate of Loan Asset at INR INR 5 Crore INR 1,000 100 branches 160 locations; Loan crossed INR IN
Slide 21: Affordable Segment Distribution Strategy
Affordable Segment Distribution Strategy Distribution Network Disbursement Channel Mix – 9M FY25 OUR ROSHNI OFFICE NETWORK 160 160 160 161 100 33.0% 89 In House DSA 67.0% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Geographic Presence Loan Asset Geographical Breakup % of Loan Asset State # Branches 31
Slide 22: Ramp-up in Affordable Segment
Ramp-up in Affordable Segment Sanction (INR crore) Disbursement (INR crore) 920 1,202 1,120 950 645 892 630 37.3% 586 623 31.4% 28.6% 35.2% 406 31.6% 68.4% 68.6% 71.4% 64.8% 62.7% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Non Housing Loan Individual Housing Loan Loan Asse
Slide 23: Affordable Segment Portfolio Matrix
Affordable Segment Portfolio Matrix Loan Asset by Product Loan Asset by Profile Loan Asset by Profile – Formal/Informal 40.2% 24.0% 29.2% 55.0% 59.8% 16.2% 70.8% 4.8% Individual Housing Loan Salaried SAL - Formal SAL - Informal Non Housing Loan Self Employed SE - Formal SE - Informal Loan Asset by T
Slide 24: Asset Quality
Asset Quality Public 23 23
Slide 25: Credit Underwriting Process Flow
Credit Underwriting Process Flow Login Credit appraisal Collateral Disbursement Digital intervention at each step Customer provides all data Assessment of three C’s: Verification of valuation and Hassle free disbursement digitally (eKYC, Financials, Credibility title of collateral post customer’s ac
Slide 26: Retail Portfolio Highlights
Retail Portfolio Highlights Sustainable growth Improved credibility Quarter on quarter improvement in sourcing Total of 41,348 logins were booked in Q3 FY25 as quality; 84% of the loans booked in Q3 FY25 against 41,373 logins in Q2 FY25 had bureau score of more than 700 Focussed approach Consistent
Slide 27: Retail Collection Strategy
Retail Collection Strategy Collections supported by Technology, Data & Analytics Analytics based case allocation Geo-allocation Real Time Field Force Tracking Delinquency Prediction Modelling Verticalization of Collection Team to Improve Asset Quality X-Bucket Resolution Emphasis on Recovery on Pre-
Slide 28: Retail Collections Update
Retail Collections Update Collection Efficiency Write off Recovery Dedicated team to focus on bucket X, pre-NPA and NPA resolutions Dedicated team is handling the written off cases with the help of legal to get maximum recovery through settlement 53 49 48 28 10 99.2% 99.2% 99.0% 99.9% 99.5% Q3 FY24
Slide 29: Asset Quality: GNPA & NNPA
Asset Quality Overall Retail Corporate 74 GNPA (INR 1,005 68 1,079 Crore) 984 906 865 857 916 906 865 857 0 0 0 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 1.73% 1.67% 3.35% 3.31% 1.50% 1.45% 1.39% 1.35% 1.24% 1.27% 1.21% 1.
Slide 30: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Particulars (INR Crore) 31-Dec-24 30-Sep-24 31-Dec-23 Gross Stage 1* 68,652 66,688 59,302 Gross Stage 1 as % to Loan Asset 95.46% 95.95% 95.13% ECL Provision Stage 1 373 503 579 ECL Provision % Stage 1 0.54% 0.75% 0.98% Gross Stage 2* 2,407 1,948 1,956 Gross Sta
Slide 31: Technology Update
Technology Update Public 30 30
Slide 32: Technology Vision and Foundations
Technology Vision and Foundations Tech Vision PNBHFL to be a large Digital player in the HFC ecosystem collaborating and partnering with fintech, banks, market aggregators etc., leveraging synergy & scale through platforms, offering personalised products and ease of services promoting high levels of
Slide 33: IT Landscape: Overall Flow and Applications
IT Landscape: Overall Flow and Applications Public 32
Slide 34: IT Landscape: Overall Flow and Applications
IT Landscape: Overall Flow and Applications Core system (LMS) Upgrade successfully completed: - Upgraded core Loan Management System to the latest version with up to date technology components - Numerous bulk transaction capabilities and features introduced for branches and centralized operations te
Slide 35: Financial Performance
Financial Performance Public 34 34
Slide 36: Retail and Corporate Profit & Loss Statement – Quarterly
Retail and Corporate Profit & Loss Statement (Consolidated) –– Quarterly Retail Corporate Total Particulars (INR crore) Chg Chg Chg Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 Q3 FY25 Q3 FY24 (YoY%) (YoY%) (YoY%) Net Interest Income 667 568 17.4% 29 54 -46.3% 696 622 11.8% Non fund based income 89 75 18.8% 1 0
Slide 37: Retail and Corporate Profit & Loss Statement – 9M FY25
Retail and Corporate Profit & Loss Statement (Consolidated) –– 9M FY25 Retail Corporate Total Particulars (INR crore) 9M FY25 9M FY24 Chg (YoY%) 9M FY25 9M FY24 Chg (YoY%) 9M FY25 9M FY24 Chg (YoY%) Net Interest Income 1,910 1,699 12.4% 105 184 -42.9% 2,015 1,883 7.0% Non fund based income 263 168 5
Slide 38: Financial Ratio Analysis – Quarter on Quarter
Financial Ratio Analysis – Quarter on Quarter Average Yield Average Cost of Borrowing 10.29%* 10.08% 10.03% 10.05% 10.12% 10.19% 10.08% 10.03% 10.05% 10.12% 8.07% 7.98%* 7.98% 7.98% 7.92% 7.92% 7.84% 7.84% 7.83% 7.83% Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 Q3FY24 Q4FY24 Q1FY25 Q2FY25 Q3FY25 *In Q3FY24,
Slide 39: Financial Ratio Analysis - Annual
Financial Ratio Analysis - Annual Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.28% 10.35% 10.07% 8.01% 7.86% 2.81% 3.73% 3.74% 3.67% 9.42% 7.30% 7.47% 2.34% 2.12% 2.21% 2.80% FY22 FY23 FY24 9M FY22 FY23 FY24 9M FY22 FY23 FY24 9M FY22 FY23 FY24 9M FY25 FY25 FY25 FY25 Gross I
Slide 40: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q3 FY25 Q3 FY24 YoY Q2 FY25 QoQ 9MFY25 9MFY24 YoY FY24 FY23 FY22 Interest Income 1,848 1,680 10% 1,780 4% 5,368 5,049 6% 6,742 6,199 5,822 Add: Net gain on fair value changes 5 2 161% 7 -23% 21 26 -20% 35 34 111 Add: Income on derecognized
Slide 41: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 30-Sep-24 31-Mar-24 31-Mar-23 31-Mar-22 Particulars (INR Crore) 30-Sep-24 31-Mar-24 31-Mar-23 31-Mar-22 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments 29 - - - (a) Cash and cash equivalents 2,064 2
Slide 42: Key Takeaways
Key Takeaways Focus on Retail Loan Growth Grow Affordable Segment Asset Quality including Emerging Markets Segment Expanded presence to 161 locations to Continued focus on Retail Segment incl. high support growth Augmented Collections efforts led to yielding Emerging Markets business improvement in
Slide 43: Annexure
Ghar Ki Baat Annexure
Slide 44: Shareholding Pattern
Shareholding Pattern Shareholding as on 31-Dec-24 Top 10 Shareholders 9.6% 8.8% 28.1% • Promoter (PNB) • Carlyle • GIC Singapore • HSBC Mutual Fund 18.3% • Birla Sun Life Mutual Fund 10.4% • Morgan Stanley 15.4% • Nippon Mutual Fund 9.0% • Tata Mutual Fund • HDFC Mutual Fund Promoters Quality Invest
Slide 45: Distinguished Board of Directors
Distinguished Board of Directors Chandrasekaran Atul Kumar Goel* Sunil Kaul Non-Executive Nominee Director Non-Executive Nominee Director Ramakrishnan Independent Director Nilesh Shivji Vikamsey Tejendra Mohan Bhasin Sudarshan Sen Independent Director Independent Director Independent Director Neeraj
Slide 46: Experienced and Professional Management Team
Experienced and Professional Management Team Girish Kousgi Vinay Gupta Amit Singh Managing Director and CEO Chief Financial Officer Chief People Officer Ajay Kumar Mohanty Anujai Saxena Jatul Anand Head - Internal Audit and Chief of Chief Credit & Collections Officer Internal Vigilance Business Head
Slide 47: Governance
Governance Governance Regulations Good Practices Policies Key Features of Governance • RMC of the Board oversees the company’s Risk Management practices and approve the Risk Risk Based Management Framework of the Strategy Report Performance company Management • Executive RMC Comprising of senior mem
Slide 48: Overarching ESG Framework
Overarching ESG Framework Our Motivation Ghar ki Baat Through Strong ESG, A Board ESG Oversight at Governance Dedicated ESG team Level Agenda Leadership CONSERVE RESPECT PRACTICE Empowered by our ESG Conserve Resources & Promote social equity & Practice Sustainability strategic areas as a “Way of li
Slide 49: ESG Dashboard
ESG Dashboard Environment Social Governance ~2.80 GJ/revenue (in 16.5%+ Women AI based Smart Vision 80%+ Women ESG Policy released crore) Energy Intensity Employees glasses Loan Applicants/Co- support for the visually Applicants** impaired 1st Comprehensive ~0.55 Ton/revenue (in 14.5%+ Women crore)
Slide 50: Awards and Accolades
Awards and Accolades pending Public 49
Slide 51: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Book NIM (%) Net Interest Income including assignment income / Average Earning Assets Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost + ESOP cost + CSR
Slide 52: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by PNB Housing Finance Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation, directly or indirectly, in any man
Slide 53: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi National Head-Investor Relations & Treasury Phone: +91 124 6030500 Investor.relations@pnbhousing.com www.pnbhousing.com Public 52
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