“If you look at the real estate sector, the momentum started a year and a half ago and now we are through the journey. So with the economic activity in the country and the real estate boom with a high shortage of housing, the opportunities are still huge. It’s high. All these things taken together, I think demand is strong and we’re seeing that.
“I think this year, we will be able to show 40 per cent growth on disbursements and loan Book growth of around 10 per cent,” Kausgi told PTI in an interview.
In the first half of the current fiscal year 2022-23 ended September, the city-based housing finance company reported a 49.3 per cent jump in its net profit to Rs 7,045 crore.
The top five Housing Finance Companies (HFCs) are HDFC Ltd. with a market share of 41.8 percent by the end of March 2022, thereafter LIC Housing Finance (18.5 percent); Indiabulls Housing Finance company (4.4 percent); PNB housing finance (4.2 percent) and can fin homes (2 percent).
The remaining 29.2 percent of the market is made up of various other players.
The total debt owed by HFCs at the end of March 2022 stood at Rs 12.2 trillion, an increase of nearly 11 per cent over the previous fiscal.
Kausagi said that this year is going to be much better than last year.
“From next year onwards, we plan to increase the loan book by 17-18 per cent and disbursements between 22-25 per cent,” he said.
The debt book of the company stands at Rs 52,124 crore at the end of September 2022.
Talking about the key profitability ratio, the official said that at this point of time there is volatility in terms of margins.
“It’s really fluctuating. I think as of now, there’s a 2.2 percent spread and a 3.2 percent net NIM (net interest margin) that we’ll try and protect… so that, we’re going to have a margin for the next few quarters. decide and then revisit the margins.”
talking about Capital He added that PNB Housing is going ahead with its planned rights issue and it will file a draft letter of offer before this calendar year.
Earlier in July this year, the company had announced a rights issue of Rs 2,500 crore with the expectation of closing it by December.
Kausagi said the raising of capital would further strengthen the company’s capital position and help the company accelerate its growth plan.
On the status of promoter’s participation Punjab National Bank In the (PNB) rights issue, he said, Bank RBI approval has been received for capital infusion up to Rs 500 crore.
In the second quarter ended September of the current financial year, PNB Housing Finance reported a 12 per cent increase in its net profit to Rs 263 crore. For the first half ended April-September 2022-23, net profit jumped 4 per cent to Rs 498 crore.