Pnb Housing Finance Limited · NSE:PNBHOUSING
Pnb Housing Finance — Q1 FY2025 Earnings Presentation
40 slides from Pnb Housing Finance's earnings presentation, Jul 25, 2024
Slide 1: Exchange filing cover letter for investor presentation
Ref: PNBHFL/SE/EQ/FY25/63 Date: July 25, 2024 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: PNB
Slide 2: Investor Presentation Quarter Ended June 2024
Investor Presentation Quarter Ended June 2024 25-July-2024 Public
Slide 3: Table of Content
Table of Content 1 Key Performance Highlights 2 Update on Government Scheme on Housing 3 Strategic Objectives 4 Business Update 5 Financial Performance 6 Annexure Public
Slide 4: Key Performance Highlights
Key Performance Highlights Business Highlights • In Q1’FY25, Retail Disbursement grew by 19.0% YoY to INR 4,363 crore; Affordable and Emerging Markets segments accounted for 33% of the Retail Disbursement. • As on 30th Jun 2024, Retail Loan Asset stands at INR 65,157 crore; Affordable and Emerging M
Slide 5: Key Performance Highlights
Key Performance Highlights Retail Segment Corporate Segment Total INR 4,363 Crore (Q1 FY25) INR 34 Crore (Q1 FY25) INR 4,398 Crore (Q1 FY25) (19.0% YoY | -21.3% QoQ) (80.5% YoY | 3.4% QoQ) (19.3% YoY | -21.1% QoQ) Disbursement Prime: INR 2,937 crore Emerging: INR 840 crore Affordable: INR 586 crore
Slide 6: Key Performance Highlights
Key Performance Highlights AUM Loan Assets Deposits Net NPA Spread INR 18,103 Crore 0.92% (30-Jun-24) vs INR 72,540 Crore INR 66,986 Crore 2.11% (Q1FY25) (7.7% YoY | 1.8% QoQ ) (10.9% YoY | 2.5% QoQ) Public 88% | ICD 12% 0.95% (31-Mar-24) | ( -51 bps YoY | 1 bps QoQ) 2.59% (30-Jun-23) NIM ROA Capita
Slide 7: Update on Pradhan Mantri Awas Yojana Scheme
Update on Pradhan Mantri Awas Yojana Scheme Pradhan Mantri Awas Yojana (PMAY - U) progress Pradhan Mantri Awas Yojana (PMAY - U) – 2.0 – existing scheme (as announced in Budget on July 23, 2024) 118.64 lacs 114.33 lacs ❖ Housing needs of 1 crore urban poor and middle- Houses Sanctioned Houses Ground
Slide 8: Strategic Objectives
Strategic Objectives Retail Loan Asset Grow retail book including high yielding Emerging market segment Affordable Book Grow Affordable book especially in Tier 2 and 3 Asset Quality Leverage underwriting and collection efficiencies to have best-in class asset quality in the industry Strategic Borrow
Slide 9: Retail strategy ramping up well
Retail strategy ramping up well Retail Growth strategy and objectives… Management team New strategy Leverage strong Continue growth Focus on higher Tech focus with deep retail focused on building parentage and best trajectory in yielding emerging for operational business leading retail in class liab
Slide 10: 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 11: Retail Business Focus Areas
Retail Business Focus Areas 189 300 303 LOAN BOOK (INR crore)* 31-Mar-23 31-Mar-24 30-June-24 Prime 45,671 49,828 50,825 Emerging Markets 9,662 11,688 11,971 Affordable 138 1,790 2,361 No of Branches Prime 70 90 93 Emerging Markets 37 50 50 Affordable 82 160 160 Map not to scale. All data, informati
Slide 12: Growth in Retail segment (Prime + Emerging)
Growth in Retail segment (Prime + Emerging) Disbursement (INR crore) Loan Asset (INR crore) 3,439 3,790 3,705 4,896 3,777 56,610 57,726 58,979 61,516 62,796 25% 25% 25% 26% 26% 29% 28% 28% 28% 28% 75% 75% 75% 74% 74% 71% 72% 72% 72% 72% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 30-Jun-23 30-Sep-23 31-Dec-2
Slide 13: Affordable Segment Strategy
Affordable Segment Strategy Jan-23: Jul-23: Nov-23: Dec-23: Mar-24: Jun-24: Started with INR 5 crore Reached disbursement Loan Asset crossed INR 1,000 Expanded presence to 100 Total footprint of 160 locations; Total footprint of 160 locations; disbursements in run-rate of INR 100 crore crore, one of
Slide 14: Affordable Segment Customer Profiles
Affordable Segment Customer Profiles • Applicant is working as teacher in a Govt. primary for last 10 years. Formal Salaried • Applicant’s monthly salary is INR 62,168 and her spouse, Co-applicant is Govt. Primary teacher also working in a Private firm. PEDDAPURAM, ANDHRA • Assessment based on the f
Slide 15: Ramp-up in Affordable segment
Ramp-up in Affordable segment Affordable Segment Distribution Network Distribution Network Disbursement (INR crore) 160 160 645 586 32% 29% 100 374 406 88 89 25% 32% 228 28% 68% 71% 75% 68% 72% Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Disbursement 11.5% 11.4% 11.6% 11.6%
Slide 16: Asset Quality
Asset Quality Overall Retail Corporate GNPA (INR Crore) 2,270 1,416 854 1,086 1,079 984 906 1,018 1,005 916 906 68 74 68 0 30- 30- 31- 31- 30- 30- 30- 31- 31- 30- 30- 30- 31- 31- 30- Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 3.76% 2.49%
Slide 17: Well Diversified Borrowing Profile
Well Diversified Borrowing Profile Borrowing Mix Cost of Borrowing 9.2% 9.1% NHB Refinance Term Loans 7.97% 8.00% 7.99% 7.87% 8.07% 7.83% 7.98% 7.93% 7.92% 7.75% 40.2% 39.4% ECBs Deposits 2.6% 2.6% NCDs 32.3% 32.5% CPs 7.98%* 9.6% 9.3% 6.0% 7.1% 31-Mar-24 30-Jun-24 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25
Slide 18: Tech Transformation Update
Tech Transformation Update: focused on core tech transformation for business acceleration The objective is to upgrade our legacy systems, digitize processes and be cloud ready for scale and performance Partners Launched new cloud-based CRM platform by Salesforce for improving customer service capabi
Slide 19: Business benefits of Tech Transformation
Business benefits of Tech Transformation Transformation KPIs PNBHFL Technology Landscape 85% 5,500+ Cloud based workloads Users across functions Reduction in TAT from login to Submission Decrease in manual data 303 #4 entry fields by employees Locations supported Digitally integrated partnerships 15
Slide 20: Business Update
Business Update Public 19 19
Slide 21: Wide Distribution Network
Wide Distribution Network Loan Asset – Geographical Breakup Affordable 88 160 branches & outreaches 34% 32% 303 30% 33% 198 105 36% 35% 30-Jun-23 30-Jun-24 Disbursement - Geographical Break-up 30-Jun-23 30-Jun-24 Branches/outreaches 35% 36% 36% 38% 14,000+ Channel Partners for loans & deposits 29% 2
Slide 22: Loan Asset Mix and Disbursement
Loan Asset Mix (INR Crore) Segment Mix Retail Product Mix Retail Profile Mix 60,395 65,358 66,986 5.7% 3.1% 2.7% 28.5% 28.1% 27.8% 40.7% 39.2% 38.8% Loan Asset 94.3% 96.9% 97.3% 71.5% 71.9% 72.2% 59.3% 60.8% 61.2% 30-Jun-23 31-Mar-24 30-Jun-24 30-Jun-23 31-Mar-24 30-Jun-24 30-Jun-23 31-Mar-24 30-Jun
Slide 23: Expected Credit Loss (ECL) Provisions
Expected Credit Loss (ECL) Provisions Particulars (INR Crore) 30-Jun-24 31-Mar-24 30-Jun-23 Gross Stage 1* 63,996 62,430 56,119 Gross Stage 1 as % to Loan Asset 95.54% 95.52% 92.92% ECL Provision Stage 1 481 565 499 ECL Provision % Stage 1 0.75% 0.90% 0.89% Gross Stage 2* 2,084 1,944 2,006 Gross Sta
Slide 24: Financial Performance
Financial Performance Public 23 23
Slide 25: Financial Highlights – Quarter on Quarter
Financial Highlights – Quarter on Quarter (INR Crore) Revenue Expense 1,777 1,752 1,812 1,829 1,225 1,252 1,246 1,287 1,704 1,197 1,702 1,748 1,048 1,057 1,087 1,070 1,097 1,676 1,718 1,681 70 110 81 150 168 166 176 190 28 59 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Inte
Slide 26: Financial Ratio Analysis – Quarter on Quarter
Financial Ratio Analysis – Quarter on Quarter Average Yield Average Cost of Borrowing 10.58% 10.48% 10.29% 10.08% 10.59% 10.50% 10.19% 10.08% 7.97% 7.97% 7.99% 7.99% 8.07% 7.98%* 7.98% 7.98% 10.03% 10.03% 7.92% 7.92% Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 *In Q3FY24, t
Slide 27: Financial Ratio Analysis
Financial Ratio Analysis Average Yield Average Cost of Borrowings Spread Net Interest Margin 10.28% 10.35% 10.03% 8.01% 7.92% 2.81% 3.73% 3.74% 3.65% 9.42% 7.30% 7.47% 2.34% 2.12% 2.11% 2.80% FY22 FY23 FY24 Q1FY25 FY22 FY23 FY24 Q1FY25 FY22 FY23 FY24 Q1FY25 FY22 FY23 FY24 Q1FY25 Gross Interest Margi
Slide 28: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (INR Crore) Q1 FY25 Q1 FY24 YoY Q4 FY24 QoQ FY24 FY23 FY22 Interest Income 1,739.1 1,666.9 1,692.9 6,742.2 6,199.1 5,822 Add: Net gain on fair value changes 8.8 9.2 9.0 35.0 34.1 111 Add: Income on derecognized (assigned) loans - - - - 10.9 - Less: Fi
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (INR Crore) 31-Mar-24 31-Mar-23 31-Mar-22 Particulars (INR Crore) 31-Mar-24 31-Mar-23 31-Mar-22 LIABILITIES ASSETS 1 Financial Liabilities 1 Financial Assets (a) Derivative financial instruments - (a) Cash and cash equivalents 2,142 3,678 5,066 (b) Debt Securit
Slide 30: Key Takeaways
Key Takeaways Focus on Retail Loan Growth Grow Affordable Segment Asset Quality including Emerging Markets Segment Augmented Collections efforts led to Continued focus on Retail Segment incl. high Expanded presence to 160 locations to improvement in Gross and Net NPA to yielding emerging business su
Slide 31: Annexure
Ghar Ki Baat Annexure
Slide 32: Shareholding Pattern
Shareholding Pattern Shareholding as on 30-Jun-24 Top 10 Shareholders 6.6% 8.8% 28.1% • Promoter (PNB) 5.9% • Carlyle 7.6% • Ares SSG Capital • General Atlantic Singapore Fund 32.7% 5.1% • Tata Mutual Fund • Pioneer Investment Fund 5.2% • Vanguard • Nippon Mutual Fund Promoters Quality Investment Ho
Slide 33: 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 34: 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 35: 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 36: 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 37: ESG Dashboard
ESG Dashboard Environment Social Governance ~2.30 GJ/revenue (in crores) 340+ Women 3000+ 80%+ Women 50% Energy Intensity Employees Beneficiaries of recently Applicants/Co-Applicant** Independent Directors inaugurated Drinking water facilities in Rajasthan ~0.45 Ton/revenue (in 1 Women Director cror
Slide 38: Glossary
Glossary Ratios Formulas Used Average Yield (%) (Interest Income + Assignment Income) on Loans / Average Loan Assets NIM (%) Net Interest Income including assignment income / Average Earning Assets Operating Expenditure(Employee Cost + Other Expenses + Depreciation - Acquisition Cost + ESOP cost + C
Slide 39: 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 40: Thank You
Thank You Company: PNB Housing Finance Limited CIN: L65922DL1988PLC033856 Ms. Deepika Gupta Padhi (Head-Investor Relations & Treasury) Phone: +91 11 23445214 Investor.relations@pnbhousing.com www.pnbhousing.com Public 39
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