PNB Housing Finance is aiming to lower its corporate loan book to below Rs. 10,000 crore by the end of this fiscal year in order to focus more on retail lending activities, according to a top company official. Corporate lending accounted for 15% of the company's Asset Under Management (AUM) at the end of the first quarter of 2021-22, with the latter reaching Rs 71,828 crore during the same time period. PNB Housing Finance's loan assets, on the other hand, fell to Rs. 60,438 crore at the end of June this year, down from Rs. 68,009 crore the previous year. The company's operation has been harmed by the second COVID wave, which was sponsored by the state-owned Punjab National Bank (PNB).
In terms of corporate debt, the bank was able to lower the book by around Rs. 800 crore this quarter (June 2021). According to Hardayal Prasad, Managing Director and CEO of PNB Housing Finance, "they would like to get it down to below Rs. 10,000 crore (by March 2022)." Since March 2020, the corporation has cut its corporate book by 25%. Prasad said the company would like to make a decision on the magnitude of corporate financing at some point, but that having some builder funding was critical. He said that the corporation has launched a major push for its retail book, with an emphasis on granular lending, resulting in a higher share of loans under Rs. 2 crore. The corporation announced a plan to grow its retail book in January. As a result, I'll continue to keep an eye on the promised deliverables. And it was stated very clearly in that strategy that they would pursue a retail-focused company. Retail, according to PNB Housing Finance, will be its growth engine, leveraging expertise in mass housing and the merchant category.
The lender would expand its ‘Unnati' portfolio in the affordable home category, focusing on average ticket sizes of Rs. 15 lakh. With greater presence in tier II and III cities, it will help strengthen the distribution network. In the most recent June quarter, PNB Housing Finance's net profit increased by 5% to Rs 243 crore. In the most recent June quarter, PNB Housing Finance's net profit increased by 5% to Rs 243 crore. Prasad said that the corporation has done "a reasonably excellent job," noting that net profit has increased by over 90% sequentially. The company's business and recovery process were harmed by over 45 days of lockdown in April-June this fiscal year owing to the second COVID wave and judicial orders, according to Prasad, who added that collection efficiency has improved lately. The collecting efficiency increased from 95% to over 98 percent in July.
In addition, the corporation has created the 'IGNITE' project, which aims to increase productivity while lowering costs. This project's diagnostic study is now complete. They have brought in one transformational leader with a proven (track) record to lead this endeavor. He is the driving force behind the IGNITE project, which will take care of practically everything.
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