PNB Housing Targets ₹1 Lakh Crore AUM, Bets Big on Affordable Segment for Growth

As per exclusive reports from The Financial Express, Ajai Shukla, MD & CEO of PNB Housing Finance, has outlined an ambitious growth roadmap, targeting assets under management (AUM) of ₹1 lakh crore within the next six to seven months. The company expects affordable and emerging housing segments to drive this expansion, supported by improved credit ratings and lower borrowing costs.

Affordable Housing To Lead Next Growth Phase

The company is increasingly focusing on affordable and emerging housing, which now contribute around 40% of its total business, up from 37% last year. This share is expected to rise to 50% over the next two years.

Affordable housing disbursements are projected to grow 50% in FY27, aided by aggressive branch expansion and strong demand visibility. The company added 35 branches this year, after opening 50 branches last year, strengthening its distribution reach.

Meanwhile, the premium housing segment is expected to grow at a steady 9%, reflecting a balanced portfolio strategy.

₹1 Lakh Crore Milestone and NBFC Layer Outlook

With AUM already above ₹90,000 crore, the company is on track to cross the ₹1 lakh crore threshold, potentially placing it in the NBFC-Upper Layer category under RBI norms. However, Shukla highlighted that governance standards will remain robust regardless of classification.

He noted that the company continues to follow bank-like compliance practices, ensuring high levels of discipline and risk management.

Stable Margins and Limited Corporate Exposure

Despite a 125 basis point repo rate cut, net interest margins (NIMs) have remained stable, supported by a decline in borrowing costs from 7.85% to around 7.5%.

The company expects a further 15 basis point benefit from AAA rating upgrades. At the same time, corporate lending will remain tightly controlled, capped at around 3% of AUM, with a focus on selective construction finance in top cities.

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Conclusion

PNB Housing Finance appears well-positioned for its next growth phase, led by strong momentum in affordable housing, improving cost of funds, and disciplined execution. Crossing the ₹1 lakh crore AUM milestone is likely to mark a significant step in its expansion journey in FY27.

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