Portfolio quality to better industry avg in 2-3 yrs: PNB Hsg Fin

PNB Housing Finance's portfolio quality is going to be better than industry average over the next 2-3 years, says company's Managing Director Sanjay Gupta. The company's portfolio currently consists of 62 percent of retail housing loans and 18 percent is loan against property.Construction finance consists of 9-10 percent of their overall portfpolio. Corporate term loans fill their remaining portfolio.He says the asset quality of the company is also superior. Below is the verbatim transcript of Sanjaya Gupta’s interview to Prashant Nair & Ekta Batra on CNBC-TV18. Prashant: Could you give us some details of the anchor book first up? A: The anchor book sort of response has been very good whether it comes from the global long only, hedge funds or the domestic mutual funds and insurance companies. Just to take a few names on the long-term, on the long only we have GIC, we have General Atlantic, Blackrock and Nomura etc. On the Hedge funds we have Macquarie, UBS etc. On the mutual funds we have HDFC, SBI, Reliance, Tata, Bharti, we have Birla, DSP BlackRock, Franklin Templeton. So, if you see across all segments, we have a very diverse sort of an investor interest in this IPO. It got subscribed pretty sort of handsomely at a good valuation. We had closed a book before the banking hours yesterday. So, it was a very good response and we are very thankful to these investors across the globe. Ekta: What are the details on the loan mix as well as borrowing mix? A: On our portfolio mix 85 percent of our portfolio is retail; out of the entire portfolio of 100 percent 61-62 percent of our portfolio is retail housing loans to individuals. About 18 percent is loan against property to individuals. About 9-10 percent is construction finance and the remaining is corporate term loans. So, it is a very healthy sort of and a very diverse product mix that we have. On the borrowing side 25 percent is our deposits, about 7-8 percent is banking borrowing, non-convertible debentures (NCDs) are about 30 percent, 10 percent is National Housing Bank (NHB) refinance, External Commercial Borrowings (ECB) is about 3-4 percent and the remaining is subordinated debt. So, both on the asset side and on the borrowing side our mix is very diverse and very robust and it sort of de-risks us from any sort of sectoral either lending or borrowing.