PNB Housing shares rise after affordable housing biz achieves ₹1,000 cr loan book
State-owned mortgage lender PNB Housing Finance has said that its affordable housing segment Roshni has achieved ₹1,000 crore loan book. The housing finance company, a subsidiary of public sector lender Punjab National Bank (PNB), reached this milestone in less than a year of the launch of Roshni home loans by offering low ticket-size loans ranging from ₹5-35 lakh for home buying, plot purchases, construction and renovation.
“We are thrilled and proud to have achieved this milestone of ₹1,000 crores loan book under Roshni within a year, reflecting the trust and confidence that consumers have placed in us,” says Girish Kousgi, MD and CEO, PNB Housing Finance.
“There is a strong demand of affordable housing in the country, owing to the rapid rate of urbanisation, growing younger population, increasing per capita income and higher demand of housing units beyond the metro cities. We are aligned with the government’s mission of Housing for All, and are committed to fulfilling the home ownership dreams of individuals from all walks of life,” he adds.
Boosted by the development, shares of PNB Housing Finance rose as much as 1.6% to hit an intraday high of ₹797 on the BSE. Early today, the PSU stock opened lower at ₹782.05, extending losses for the third straight session, against the previous closing price of ₹784.55. However, the stock soon pared losses and rebounded 2.2% from day’s low of ₹780.05.
At the time of reporting, the midacp stock was up 1.2% at ₹794.20, with a market capitalisation of ₹20,620 crore. The stock touched its 52-week high of ₹824.55 on November 20, 2023, more than doubled from its 52-week low of ₹347.84 hit on December 12, 2022.
At the current level, PNB Housing Finance shares have delivered 120% returns in the last one year, while it has risen 67% in the calendar year 2023. In the past six months, the counter jumped 45%, while it added 8% in a month. PNB Housing, which made its debut on stock exchanges in November 2016, has given a muted return of 4% since its listing on domestic bourses.
PNB Housing Finance recently inaugurated its 100th Roshni branch in India and plans to strengthen its distribution network by opening 60 more branches in tier 2 & 3 cities, taking the total number of Roshni branches to 160 by the end of FY24.
The mortgage lender also plans to expand its presence in the ‘Prime’ retail loans offering with a total of 138 branches by FY24. With this, the company is expected to have close to 300 branches to cater to the growing retail segment, including affordable and prime by the end of the financial year.
In December last year, PNB Housing launched Roshni, a low-cost home loan programme with a focus on financial inclusion by offering low ticket-size loans to individuals, focusing on the salaried class and self-employed, along with new-to-credit applicants. Individuals may apply for loans under this scheme ranging from ₹5 lakh to ₹35 lakh. Under this scheme, the company provides tailored financial products to meet the unique needs of individuals seeking affordable housing finance solutions. It has set up dedicated sales, credit and underwriting teams to ensure enhanced efforts to grow this segment.
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