PNB Housing Finance to start Loan Against Property from April 2025, says MD & CEO Girish Kousgi

PNB Housing Finance - Roshni

PNB Housing Finance will start Loan Against Property (LAP) as a separate segment from April 2025, managing director and chief executive officer Girish Kousgi said.

“LAP vertical, we are going to start from April 2025. This will be the new vertical, which again would help us on profitability because LAP would come at a higher business and this vertical actually cuts across all the segments,” Kousgi said while unveiling strategic growth plans in Mumbai.

He also said that LAP vertical will be under retail segment.

The company, in a release, said that it is keen to beef up its non-housing portfolio to 30 percent of its retail product mix, enhancing its LAP offerings with customer-friendly features such as flexible repayment options and increased loan limits to meet evolving financial needs.

Currently, the non-housing loan book of the company is standing at 27.8 percent of the total retail mix, which they aim to grow to 30 percent.

In Q2FY25, retail disbursements of the company grew by 28 percent year-on-year to Rs 5,341 crore; affordable and emerging markets segments accounted for 31 percent of the retail disbursement.

Further, corporate loan side, Kousgi said that it will grow to Rs 7,000 crore to Rs 8,000 crore by financial year 2026-27.

“In FY27, corporate book would be about Rs 7,000 crore to Rs 8,000 crore. Overall book would be about Rs 1 lakh crore and Rs 8,000 crore,” Kousgi said.

In July-September quarter, corporate loans stood at Rs 1,531 crore, which was reduced by 35.7 percent as compared to year-ago period.

On the fundraising front, Kousgi said that PNB Housing Finance will raise $100 million to $150 million each through two external commercial borrowings by the end of current financial year.