PNB Housing Finance expects 40% jump in disbursals this fiscal

The domestic housing finance sector is now witnessing robust demand after the pandemic and the country's fourth largest player, PNB Housing Finance, expects a strong growth of 40 per cent in disbursals this fiscal year, the company chief said.

During the COVID pandemic, housing shortage in the country increased because of mobility issues, but after that the demand kept quite well, Girish Kousgi, Managing Director and Chief Executive Officer PNB Housing Finance said.

"If you look at the real estate space, the pace started one and half years back and now we are just through the journey. So with the real estate boom coupled with economic activity in the country and high shortage of housing, opportunity is still very high. All these things put together, I feel that the demand is robust and we are witnessing this.

"I think this year, we will be able to show growth of 40 per cent on disbursements and loan book growth of close to 10 per cent," Kousgi told PTI in an interview.

In the first half ended September of the current fiscal year 2022-23, the city-based housing finance company posted a 49.3 per cent jump in its net profit at Rs 7,045 crore.

The top five housing finance companies (HFCs) are HDFC Ltd with a market share of 41.8 per cent as on end-March 2022, followed by LIC Housing Finance (18.5 per cent); Indiabulls Housing Finance Company (4.4 per cent); PNB Housing Finance (4.2 per cent) and Can Fin Homes (2 per cent).

The rest of the 29.2 per cent market is composed of various other players.

The total loan outstanding by the HFCs by end of March 2022 stood at Rs 12.2 trillion, up by nearly 11 per cent from the preceding fiscal.

Kousgi said this year is going to be far better than the previous one.