PNB Housing Finance Expects 30% Jump in Revenues during 2016-17 With 35% Contribution from South India

By Manu Sharma

PNB Housing Finance Limited, a leading housing finance major expects a 30 percent jump in revenues to touch Rs 38,000 or Rs 40,000 crore during the next fiscal (2016-17). The finance company recorded Rs 27,000 during the last fiscal (2015-16) with a 32-35 percent contribution from the south Indian states.

Speaking to the media, Sanjaya Gupta, Managing Director of PNB Housing says, “The last five years say a lot of re-engineering in our set up and also owe the positive results mainly due to the contribution from the southern states. In fact, in 2010 the southern states contributed just 10-12 percent of our business but saw a 3X jump in 5 year’s time. Now we are focusing a lot on technology and also setting up more branches in all four states in the south.”

Gupta remarks that they have also moved away from being just a subsidiary of PNB, a leading PSU bank and have gone in for Public Private Partnership (PPP), where in a new professional management now runs the housing finance company since 2009.

PNB Housing Implements ESS Technology

 On the technology front, PNB Housing has implemented Enterprise System Solution (ESS) on a single platform and one database across all branches. “We have invested a sum of about Rs 60 crore to 65 crore during the last five years and the result is this software which is very scalable and build in-house with partnership from leading vendors like Microsoft. Today we are also on a private cloud so customers can access our services any time anywhere and on any device,” remarks Gupta.

PNB Open More Branches in South

PNB Housing has inaugurated its Zonal Office and Regional Processing Centre in Bengaluru to tap high-growth cities and regions in South Indian market and to garner a larger pie of the business from these zones fuelling its business expansion.

Located at BTM Layout, which is one of the prime locations, the zonal office was inaugurated by Sanjaya Gupta, Managing Director of PNB Housing. The celebration was graced by the promoters of many reputed Real Estate Companies from across the region and various business partners of the company.

Gupta said, “Business expansion is an important element for PNB Housing to carry on the growth momentum and it is essential that we stand closer to where our target customer base is. There are enormous opportunities available in South India and we have aptly honed our efforts to make this zone operationally robust which are now giving rich dividends. To continue with our commitment to support inclusive growth, we plan to strengthen the network in our existing markets and expand in untapped regions simultaneously. We believe that the key to gain optimum output from diversely spread network is decentralization of operations. Bengaluru Zonal office will cater to this growing demand and will serve as the decision making centre for our branches in South India.”

Gupta further explains that at PNB Housing, the primary objective of each member is to meet customer expectations, improve their relationships and foster customer delight. The organization’s wide focus on ensuring highest level of service competency is fuelled by their ambition to be the most admired housing finance company in the country. This zonal office will cater to the entire South Indian market while the regional processing centre will serve the state of Karnataka reaching out to cities like Mysore, Mangalore etc. This will fasten the process of loan disbursement and make it hassle free, smooth and pleasant for the customers in these regions. The new office will also augment operational efficiencies performing as the nerve centre for the state territory.

PNB Housing currently operates with 4 Regional Offices supported by a network of branches in South India. As of Sept 30, 2015, 29% of their total loan book was contributed from South India amounting to Rs 6,222 crore. The company plans to take the total number of branches in South to 14 in the next fiscal by adding 5 more branches.

The company has been registering Y-o-Y growth of over 50% since last many quarters and is now ranked 5^th in terms of Loan Assets Size and 2^nd in Deposits Book. The company displays high level of ethics, integrity and transparency with a robust delivery model including easy online access, doorstep services and a host of other conveniences that make the experience memorable. 

The company enables the people to realize their dream of owning a home by offering customized loan solutions to fit emerging needs of the customers. PNB Housing also offers fixed rate of interest for variety of term 3, 5 and 10 years to insulate customers from macroeconomic volatility and sudden rate of interest fluctuations. The company also introduced 30 years loan repayment term which allows customers to pay lower EMIs and continue the loan for a longer period.