PNB Housing Finance eyeing Rs 2,500 cr biz in UP

PNB Housing Finance is bullish on the Uttar Pradesh market and is eyeing home loans portfolio of almost Rs 2,500 crore in the current fiscal. This would be a growth of over 55% compared to its total business of around Rs 1,600 crore in UP during 2014-15.

"We have been growing faster in UP and are keen to keep the momentum going," PNB Housing Finance Managing Director Sanjaya Gupta said here today.

Pan-India, the company is eyeing business of almost Rs 25,000 crore during 2015-16 vis-à-vis Rs 17,500 crore last year. The company grew by about 60% year-on-year and commands 4% market share in the home loans space.

PNB Housing Finance is the mortgage finance arm of public sector Punjab National Bank (PNB), which has a 51% stake in the company. The remaining 49% stake is held by US-based private equity firm Carlyle Group.

The company provides loans for construction, purchase, repair and up-gradation of homes. It provides loans for commercial space, loan against property and loan for purchase of residential plots.

Besides, it offers public deposits of different maturities and varying interest payment options for those with surplus savings to invest in rated instruments.

Meanwhile, Gupta claimed the recent softening of interest rates would spur positive sentiments in the home loans segment. "We are confident that the tier II and III cities and the affordable housing space would continue to post higher growth trajectory so far as home loans is concerned."

He informed the home loans portfolio with the ticket size of up to Rs 25 lakh comprised almost 12% of the PNB Housing Finance's business.

Meanwhile, the company launched its 15th regional office in Lucknow as part of its expansion plans.