Thank you, Ryan. Good morning and welcome, everyone.

We are here to discuss PNB Housing Finance Q3 and 9 months Financial Year 25-26 results. You must have seen our business and financial numbers in the presentation and the press release shared with the Indian stock exchanges and are also available on our website.

With me, we have our management team led by Mr. Ajai Kumar Shukla, Managing Director and CEO of the company.

We will begin this call with the performance update by the management team, followed by an interactive Q&A session. Please note that this call may contain forward-looking statements which exemplify our judgment and future expectations concerning the development of our business.

These forward-looking statements involve risks and uncertainties that may cause actual developments and results to differ materially from our expectations. PNB Housing Finance undertakes no obligation to publicly revise any forward-looking statement to reflect future events or circumstances.

A detailed disclaimer is on slide 44 of the investor presentation. With that, I will now hand over the call to our MD and CEO, Mr.

Ajai Kumar Shukla. Over to you, sir.

Good morning, everyone. I'm pleased to present our quarter 3 and 9 months Financial 26 performance.

Let me give you some industry update and guidance. This quarter, the RBI announced an additional 25 basis point reduction in the repo rate, bringing it down to 5.25% with immediate effect.

With this step, the RBI has delivered a cumulative 125 basis point cut in 2025, marking one of the most meaningful easing cycles in recent years. This latest policy action is a clear positive for the real estate sector as we close out the year.

It builds on the earlier rate reductions and further strengthens home-buying affordability, particularly in the affordable and mid segments. The customers are most sensitive to interest rate movements.

The decline in EMIs is expected to draw fence-sitters back into the market, supporting sustained demand momentum. With housing prices across the top 7 cities rising by around 10% to 15% over 2025, the rate cut acts as an important cushion to preserve affordability.

It offsets part of the price appreciation witnessed during the year and ensures that home ownership remains accessible to a wide base of buyers. Overall, the combination of softer borrowing cost, resilient buyer sentiment, and stable economic fundamentals positions the housing market on a strong footing as we move in 2026.

Let me talk about the performance of the PNB Housing Finance Limited. The retail loan book grew by 16% YoY to ₹81,931 crore as on 31st December 2025.

The total loan book of the company stood at ₹82,232 crore as on 31st December 20 2025. The affordable and emerging market segment now accounts for almost 39% of the retail loan book.

With continued focus on collections, our credit cost for quarter 3 26 remains at -19 bps. The gross NPA stood at 1.04% as on 31st December 2025.

The affordable portfolio continues to season. We have witnessed some uptick in delinquencies, an expected trend at this stage of the business cycle.

Importantly, delinquency level remains well within industry benchmark for the affordable housing segment. We remain deeply focused on maintaining portfolio discipline and continue to work forward achieving our long-stated target of 1% to 1.1% NPA.

NIM remains stable at 3.63% during the quarter. Achieved ROA of 2.57% for 9 months Financial Year 26 on an annualized basis.

Let me now talk about in more detail on the performance achieved during the quarter. As far as disbursement is concerned, during the quarter, overall retail segment disbursement grew by 16% YoY reaching ₹6,217 crore.

Within this, the affordable segment saw a 15% YoY drop and 4.5% quarter-on-quarter decline in disbursement, driven by our strategic decision to recalibrate affordable business in few challenging geographies due to government ordinance. However, the emerging market segment continued to outperform, delivering a strong 25% YoY growth in disbursement.

As this impacted pocket stabilized, we expect affordable disbursement to revert back to growth trajectory of Q4 Financial Year 26. The prime segment delivered 20% YoY growth despite the broader pressure on yield following the rate cuts.

Looking ahead, our strategic priorities remain unchanged. We will continue to reinforce our focus on scaling the affordable and emerging market segment, given their strong underlying demand and long-term growth potential.

Also, we are going to start construction finance business in calibrated way in Tier 1 cities. Apart from that, we are also going to start emerging developer finance with average ticket size up to ₹25 to ₹30 crore range in selected cities to improve our yield and NIM.

As far as loan book is concerned, the retail loan book grew by 16% YoY as on 31st December 2025. The loan book for emerging markets and affordable segment grew 31% YoY, reinforcing our commitment and focus on these segments.

As stated earlier, the company continues to focus on growth in emerging and affordable segments, which contribute 39% of retail book. The corporate book now stands at ₹272 crore as on 31st December 2025.

The total loan book stood at ₹82,203 crore, and asset under management is at ₹86,048 crore. The total live accounts serviced by the company crossed 3.6 lakhs.

As far as geographical presence is concerned, the total pan-India branch network of the company is 355, with the affordable and emerging market segment accounting for 79% of total branch network. Our expanding footprint in Tier 2 and Tier 3 cities positions us well to capture increasing demand in these markets.

Aligned with our long-term growth ambition, we expect to add 40 to 50 new branches annually to deepen our presence in Tier 2 and Tier 3 cities. If I talk about asset quality, the gross NPA improved to 1.04% as on 31st December 2025 as compared to 1.19% on 31st December 2024 and 1.04% as on 30th September 2025.

During the quarter, we recovered ₹49 crore from retail and corporate segments. The company has a remaining written-off pool of around ₹650 crore in corporate and around ₹350 crore in retail.

As far as borrowing mix is concerned, our cost of borrowing improved by 19 bps sequentially to 7.50% in Q3 26, driven by ongoing negotiations with banks and the impact of repo rate cuts. As far as margin is concerned, NIM remains in line with our guidance level at 3.63% for the quarter versus 3.67% in quarter 2 Financial Year 26.

Profitability: return on asset stood at 2.57% annualized in 9 months Financial Year 26 as compared to 2.48% in 9 months Financial Year 25. Our ROE is at 12.31% annualized at 9 months Financial Year 26.

Let me reiterate that we will continue the guidance of retail book growth in the range of 17% to 18% with higher focus on emerging and affordable segments. With this, I would like to hand over the call back to Chaitanya.

Thank you so much,

yeah. Thank you, sir.

I will now request Vinay, our CFO, to talk about the financial numbers.

Thank you, Chaitanya, and a very good morning to everyone. I am pleased to walk you through our financial results for the quarter ended 31st December 2025.

As you have already heard, our total loan book as of 31st December stood at ₹82,200 crores, growing 14% year on year. Our retail loan book grew 16%, reaching to INR 81,930 crores.

Affordable and emerging market segments grew 31% year on year put together and now constitute around 39% of our overall retail loan book. Let me start with an overview of our financial performance.

This quarter, our yield declined to 9.72 versus 9.95 in Q2 FY26. This is driven by reduction in corporate book, as we mentioned at the end of previous quarter, there was one large corporate account which got foreclosed.

That led to a reduction in our mix of corporate book and impacted 10 bps on my yield. We covered it largely through reduction in cost of borrowing, but there is still some marginal impact which was left out on the NIM.

Also, the impact was there due to lower disbursement yields and higher run-offs. At the same time, our cost of borrowings improved by 19 bps sequentially to 7.5 in Q3, driven by ongoing negotiation with banks and the impact of repo rate cuts.

The incremental cost of borrowing improved to 7.2% in Q3 as compared to 7.42 in the previous quarter. Our net interest income during the quarter was INR 772 crores, which is a growth of around 11% year on year.

NIM, as I mentioned, is at 3.63 compared to 3.67 in Q2 FY26. Our operating expenses grew 16.7% and 10.5% quarter on quarter to 240 crores versus 217 crores in Q2.

This increase includes one-time expense of 6 crores on account of implementation of new labor codes. Plus, there is a timing difference in ESOP.

There was a release last quarter on account of exit of previous MD, and now the cost is normalized, this cost looks a bit of an aberration. Overall, our opex to ATA for Q3 is 1.09%.

We continue to maintain our opex to ATA guidance of being range-bound between 1% to 1.1%. Our pre-provision operating profit has grown 8.4% and ex-one-offs, it has grown 10% year on year.

Credit costs continues to be benign. It is 19 bps negative.

As MD sir also clarified, we recovered around 49 crores from written-off pool during the quarter. Our PAT stood at 520, up 7.7% year on year.

ROA improved by 9 bps on a year-on-year basis at 2.57 in 9 months FY26. ROE is at 12.3, and our overall CRAR stands at 29.61 with Tier 1 capital as 29.06.

Our debt to equity is now 3.63, and our book value stands at ₹710. With this, I now hand it over back to Chaitanya for taking the call forward.

Thank you, Vinay. Ryan, we can now open the call for the Q&A, please.

Good morning, sir, and thank you for taking my question. Congratulations to sir, Ajai Shukla, on assuming the role of MD, CEO at PNB Housing.

Sir, first question on the affordable book. You have called out in the presentation and in your opening remarks as well that you have restricted ticket sizes in certain geographies.

Just trying to understand which geographies are these, right, and what are the underlying reasons for restricting ticket sizes, if you could just help us understand this.

Thank you, Abhijit. As far as affordable book is concerned, we saw some challenges especially in some part of southern market.

It was not all across India. We recalibrated our strategy in those markets.

This was primarily because of some government ordinance, and that phase is already out. I think we will rework and we'll come back again on the new methods of defining our affordable strategy for the southern market.

Got it. Sir, this ordinance that you're talking about, is it the MFI ordinance that came in last year, almost a year back?

It was that. It impacted the affordable business also because when any information comes to the market, it impacts the other segments also.

Got it. These are not geographies or customers which have got impacted by tariffs or anything, right?

There was some partial impact on geographies also. For example, Tamil Nadu, we saw some challenge because of that we decided to reevaluate our strategy in TN market.

Since now market is again stabilized, and government ordinance is also now stabilized now, I think we will be focusing again on those markets.

Got it. Sir, then the second question I had was late last night you declared a corporate account as a fraud account, despite you having called out that you've written off this account back in FY23.

Just trying to understand, did this come up during any of your RBI or NHB inspections? A related question here is, while you've been around here for a little over a month now, have you had a chance to take stock of the loan book?

Basically, how is the asset quality, and would you need to take any higher provisioning on the book in the coming quarters?

As far as the fraud which we reported, as you rightly said that we already written off this account in 2022-2023. There is no material adverse effect on financial of the company.

We are currently undertaking appropriate legal measures in this case. The amount sanctioned was ₹2.75 crore, and we reported ₹2.37 crore ₹275 crore, and the current outstanding is ₹237 crore around.

Since this is already provisioned, no financial impact. On the asset quality front, Abhijit, we don't foresee any increase in any of the segments.

We are adequately provisioned across all the stages, and that may continue.

Got it. Sir, then declaring this account as a fraud now, was there some technical reason behind it?

It was basically due to some recent developments which have happened in that particular account. Hence, as per the process, after following the due process of giving principles of natural justice, we have then decided to declare it as a fraud.

Got it. Sir, then the last question I had was, have you made any PLR changes in the last quarter or any changes effective January this year?

No, not yet. No.

Got it, sir. This is all from my side.

Hi, thanks for the opportunity and congratulations, Ajai, on the new role. It has been now 1 month since you joined PNBHF.

I just wanted to understand say from your perspective, first of all, what is it that you are finding it say different versus your expectations when you were joining? Secondly, more importantly, is there any change or an update to the strategy of say growing the share of affordable, emerging, anything within say underwriting or the collection practices where you think you can make it more robust?

Any of those things, what would be your views on this, please? Thank you,

Viral. I think in last 30 days, what I observed that we are on the almost similar kind of path which any other housing finance company works.

As already said and I reiterated that we'll continue the guidance which has already been given in the market. We'll focus on our emerging and affordable business.

There will not be much change in the strategy of the organization. It will continue, and we will further improve and explore the opportunities where we can get the better yield and NIM.

I don't see any challenge as of now, as Vinay also confirmed that, on the quality of portfolio, because even in affordable also, we are much better than any affordable company in this industry. I don't see there is any change as far as the quality and all those things.

Just as part of this only,

I think earlier guidance with regards to say the share of affordable and emerging mix stated number was 40%, and then I think couple of quarters back there was some reclassification in emerging, and we had kind of highlighted that that percentage now can look higher. Do you want to give any percentage target over a medium term?

Currently we are at 39%, and we are expecting this to grow by 45% to 50%, in the range of 45% to 50%. As a share,

right, the emerging and affordable?

Emerging and affordable, yeah, put together.

Got it. Just on the question that I asked, sorry if I am repeating, but with regards to the underwriting practices or collection practices, you don't anticipate any change because of which there can be any disruption to our growth or anything?

No, I don't see that there would be any disruption because I think things are going very well as far as underwriting and collection both.

Got it. My second question, Vinay, was to you.

How soon can we get to converge our overall cost of funds to now the incremental cost of funds of 7.2%? What would be our say medium-term now NIM trajectory guidance, if you could help us with that?

Viral, this NIM as of now, due to pressure on account of run-off, and the new disbursements yields already running lower than our portfolio yield, so that pressure is going to continue. We are offsetting it with the reduction in cost of borrowing.

We continue to maintain the guidance of NIM between 3.6 to 3.7. Post Q4, we will recalibrate looking at once the stability happens on repo, how it is going to play out in the next year.

Once we launch CF, once we launch this developer finance, I think these will obviously add on to our overall yield profile. Next year, probably we might see some expansion once these new segments start delivering.

Got it. I think this was my questions from my end.

Thank you so much, and all the very best.

Thank you.

Continuing on the question with respect to say under the new management, just wanted to understand any key priorities that would be there or maybe it's the business as usual, any key priorities from your end. In terms of the ROA, we are still guiding for 3.6% to 3.7% ROA, we still have the benefit of say the recoveries which is there.

Maybe in terms of taking the ROAs up and what would be the aspirational ROA target over next 3-odd years?

Thank you, Kunal. Let me slightly correct here.

I think you're talking about NIM or you're talking about ROA?

No, no, I was saying margins, we are guiding for 3.6% to 3.7% margins. Okay.

We still have the benefit of the recoveries which would eventually go away over the medium term. Then maybe in that scenario of steady margins and maybe some normalization of credit cost, how do we see the ROAs panning out over 2 to 3 years?

I think this will be in the range of 2.5% to 2.6%. ROA will remain stable at the rate of 2.5% to 2.6% 2.6%.

If I tell you that 9 months Financial 26, my ROA is 2.57% as of now, and which will be in the range of 2.5% to 2.6%, 2.65% only or will remain in that range only.

Just to add on, Kunal, there are three levers, as MD sir also mentioned. We are starting CF, so that will definitely support us on the NIM.

Secondly, we are also starting a small developer finance, which is also going to be a new vertical where average ticket size will range between 25 to 30, and yields will be in the range of 11% to 12%. That will also be NIM accretive.

On cost of borrowing, again we have few levers like if the rating upgrade happens in a quarter or two, that will also leads to substantial benefits on our cost of borrowing. These factors, apart from shift that we are making towards emerging and affordable, it will be somewhere around 50%, let's say, by end of next year.

By then we would have some benefit. After that, these things will definitely support the current NIM profile, actually it will help in improving the NIM profile.

In terms of this small developer and CF, we had gone through that cycle and we had run down this entire portfolio. Maybe learning from the past experiences, any differences in the business model that we would now incrementally cater to, and how much would it scale up to?

Maybe is there any cap in terms of the proportion we would want to, or maybe can it get towards 3% 5% of the AUM over a 3-year period, or no, we'll not be so aggressive?

Kunal, I think what we have planned is that we will be having almost 8% to 10% of my total book as our exposure in construction finance and emerging developer portfolio. Any given point of time, it would be in the range of 8% to 10% only.

That's the maximum exposure we want to keep. Rest, all will remain the retail business.

As far as policy is concerned, emerging developer and the construction finance both will have a separate policy. Okay.

There will be difference between both the policies because where the emerging developer financing will end, the construction finance will start. We are in the process of designing emerging developer policy.

The construction policy is already in place. That's how we've started sourcing business also, but soon you will see the disbursement will start in Q4 or maybe first quarter of Q1.

Sure. One last question if I can squeeze in, that's with respect to affordable again.

Maybe when you mentioned you have recalibrated the growth in some geographies and ticket size cap in select geographies,

overall when we look at it, it's still the ticket size of more than 15 lakhs is something which is coming down actually. Is that maybe in terms of the ticket size capping or this is something similar to what you indicated, challenges in the southern market?

Even in terms of the repayment rates in affordable housing, when we look at it with the disbursements which have been there of ₹786 crores, we are still seeing almost ₹600 crores of accretion. There's hardly been any run-down which has been there in that portfolio.

Maybe what could be the reason for that? The prepayment run rate still appears to be quite low in the affordable housing, yeah.

Where should we aim this segment to grow say over next 12 months in terms of the growth ratios?

Hi. This is Valli Sekar.

See, regarding this disbursements which you are asking about in Q4, the ticket size will slightly go down because now there is a slighter concentration towards the PMAY as well. The ticket size from the last year has slightly come down also.

This recalibration is particularly in the southern markets. As you all are aware that Tamil Nadu used to be our number one contributor in terms of the business.

When we faced that ordinance issue in the first quarter, end of first quarter, by second quarter we had recalibrated certain product policies in certain branches and on the ticket size also. The effect has come as a spiral effect on the quarter 3.

Now in quarter 3, since the ordinance has been retaken back, now we have again come back with the policies, and by Q4 we will be coming back again as usual in those markets. The guidance remains the same.

We'll be growing quarter on quarter, 25% to 30% is the level of growth which we are expecting. Yeah.

Okay. That's helpful, yeah.

Thank you. Thank you and all the best, yeah.

Thank you.

Thank you, Kunal.

Most of my questions have been answered. Just a small one on competition.

On the affordable side, you have kept the incremental rates stable sequentially. Do you see competition in the sector, and do you see these rates going down?

Likewise in the prime side, given the fact that we are probably towards the fag end of rate cuts, do you see the intensity of competition to reduce?

Nischint, I think the competition is all across in this industry. I think it's a very competitive industry.

In affordable also, there is a enough and good competition as we see in prime business. Just that competition is there, there would not be much impact on the pricing because the range wherein we are operating is already very competitive pricing in the market.

I don't see there would be much more price drop in the market, especially in affordable segment. I think this will remain as it is.

As far as prime is concerned, because of recent repo rate cut, there is a challenge in the market from nationalized banks and the private sector banks. We have segmented ourselves in a very different way.

Close to 45% of my portfolio is self-employed and 55% salaried. We get better margin in self-employed, that is why we are able to maintain our margin and NIM.

Have you called out the difference in rates between salaried and self-employed?

Yes, there is a risk-based pricing. We always do risk-based pricing.

Salaried always rates are softer than self-employed.

Got it. You're increasing the share of construction finance and emerging developers, sort of technically increasing the risk profile of the company to some extent.

In this backdrop, do we really see a rating upgrade, given the fact that the risk will incrementally be slightly higher?

Yes, definitely the construction finance business is always a riskier business in the market. I think the kind of policy and the underwriting standard we are going to set and we have set, I think we will be sail through easily.

Nishchint, also there is a cap on the overall growth. We are not going to grow very aggressively here.

It will remain range-bound between 5% to 7% in the next 2 to 3 years. It will not grow so aggressively, and large part is still retail, so that is not going to be a challenge.

You are expecting an upgrade probably in next one or two quarters as well? Yes.

We are hoping for it,

let's say. Sure.

Thank you very much, and all the best. Thank you.

Thank you.

See, Nidesh, as I mentioned, out of this 25 23 bps, 10 bps is on account of one large corporate account which got foreclosed at the end of previous quarter. Since the book mix between retail and corporate has gone down and that was a large account of around ₹340 crores-odd, so that has impacted my yield mix for this particular quarter specifically by 10 bps.

Rest, 12 to 15 bps is on account of disbursement yield being lower than the book yield, and the higher run-off pressure which entire industry is going through on the prime and emerging segment. How do you see yields going forward?

Going forward, again, this 10 bps obviously is one-off this quarter. Unless we see more run-off happening on the corporate side, this should not impact again.

Then the next 10 to 12 bps is something which will remain, and that is what we are trying to offset through the reduction in cost of borrowing. Sure.

Secondly, the run-off rate has also increased. You also mentioned that.

If I look at the calculated repayment rate was around 15% till Q1, and it has now increased to almost 19% in this quarter. How much is balance transfer out of it, and what are we doing to arrest this?

As you rightly mentioned, yes, it has gone up from 15%, 16% to around 19% now, and large part of this is on account of BT-outs. The increase is actually on account of BT-outs, and this is true because of the current rate cycle.

We are trying to manage, but I think it will remain somewhere around 18% to 19% till the rate stabilizes. Till quarter 1, Nidesh, the BT-in was higher than the BT-out.

After the softening of repo rate cut by the RBI, the trend of BT-in has changed. If I talk about this quarter, earlier the story was whatever was the BT-in, approximately same was the BT-out.

Now there is a difference between BT-in and BT-out of almost 2% month on month. In quarter 3, there was a difference of almost 2% because the rates have softened.

Customers are looking for better prospects or maybe where they can get the better rate. This challenge is not with us.

I think this is the industry challenge which industry is facing. Whenever there is a sharp rate cut, you will see this trend.

Sure, sir. Sure.

Sir, lastly, if you can also speak about the yields in the construction finance book. On the emerging developer, you mentioned yield of around 11%.

What will be the yield in the construction finance book of ticket size of more than 30 crores? Yield, I think it would be in the range of around, you can safely say between 12% to 12.5%.

That would be the range in construction finance. Because in the emerging segment you mentioned yield of 11%, I thought No, emerging it will start from 11% because see this emerging developer will have a combination of cities like Delhi and all those.

The prime, the super prime developer of this segment will definitely look for a better yield. It will start from 11%, but it will go up to 13% and 14% also.

Overall, we'll maintain in the range of 12.5% to 12.75%. Largely the corridor would be between 12% to 12.25%.

Sure, sir. Thank you, sir.

That's it from my side. Thank you.

Thank you, Nidesh.

Thank you, sir. Thank you for giving me the opportunity.

Firstly on this, as you have said that you have reported the fraud which is in already written off. Any internal implications or any steps needs to be taken internally in the system because of this, if you can highlight on that?

Thank you, Bunty, first of all for question. I don't think there is any internal implication because there's the process which just have to be followed, we followed the process.

Already legal measures are going on, I don't think there is any internal implication of this.

That was very helpful, sir. Secondly, as you mentioned that you will be able to sustain the 17% growth for retail segment for this year also.

If you see the Q4 number in terms of disbursements slightly higher on sequential basis 45%, 50%. Is it possible after you already said that we are now moving to normalization in terms of affordable?

This gives a large task in terms of disbursement in Q4.

Always in the industry the Q4 disbursement is always high. Currently on YoY basis we are at 16%, 18% should not be a challenge because that's how historically you see the data talks about.

I think we would be able to achieve those numbers.

Okay. Sir, lastly, you said we will be able to maintain the margin 3.6% to 3.7% along with the stability in ROA of 2.5% to 2.6%.

As we see currently, we are in the end of cycle of the negative provisioning. Next year, it should be normalization of credit cost and all.

What drives you to give the confident of ROA remaining stable at this level?

See, there are two aspects of this. I think we have a pool wherein at least in 4 to 5 quarter we will have a recovery from our write-off pool.

That's the first. The second confidence is that once we will improve our affordable business and emerging business from the level of 39% to 45% to 50%, that will give us better yield, as well as since we are going to start our corporate construction finance and the emerging developer finance, that will also give us edge to maintain the higher business volume and the higher yield.

This will maybe if at all we don't get much relief from after 4 to 5 6 quarter, then I think by the time this business will build and will compensate from the scale of business and the margin.

Okay. You are saying that recovery will continue still for next 4 to 5 quarters.

On that basis, what should be the normalized credit cost for FY27?

FY27, I think we are expecting, if I talk about next year from 27 onward, it would be in the range of 20 to 25 bps credit cost. Okay.

That was very helpful, sir. Thank you and congratulations, Ajay sir.

Thank you.

Hi. Good morning.

Thanks for the opportunity. Again, a bit kind of continuing on that ROA and NIM question.

Sir, currently that NIM is 3.6%, 3.7% that you kind of reaffirmed, and if we were to look at NIM plus fee, probably close to 4.1-odd percent. Now, beyond this 4, 5 quarters where you have this benefit of provision reversal, a normalized credit cost probably if it is going to be 20 basis point, assuming that okay anyway you are going into construction developer finance, probably basically this a kind of a reversal of nearly 40-odd basis points in terms of lower credit cost is.

Mathematically speaking, to maintain ROA, and also with your kind of growing book, the financial leverage will mathematically work against that NIM plus fee. Now, when you are looking say FY28 or even beyond 2.5% kind of a current level of ROA, basically that requires a NIM plus fee to go up mathematically by nearly 50 basis points.

Of course, there are push and pull factors, but are you sort of a confident, because we have very limited scope in opex, what I understand, and of course credit cost side has 40 basis point kind of a reversal. Do you see mathematically speaking that the 50 basis points pull and pull factors, taking this let's put NIM and fee to 4.5-odd percent, because that will be kind of a required level to deliver this 2.5% to 2.6% ROA?

Thanks.

Avinash, I think you rightly said that there would be impact of almost 40 to 50 bps to get that kind of ROA. I think we are pretty much confident that we would be able to do it because the kind of yield and the NIM we'll get in my construction finance and my small emerging developer funding, I think this will help us.

Plus, scale of business will also help us because once the business scales up, your cost always goes down because it gives benefit of your book also. I don't think there will be any challenge on that.

Okay. Yes, thanks.

Also, beyond FY26, now you're going to start sort of a new segments and all, medium-term growth guidance or aspiration, what's that level?

We are working on that. We'll come back on that.

Got it. Thank you.

All the best, sir.

Thank you. Thank you.

Hi, sir. Thanks for the opportunity.

Just couple of questions at my end. Given in your opening remarks you called out certain with respect to few challenges in the southern markets related to the MFI ordinance which triggered some calibration, is there anything apart from this, basically any other challenges with respect to overheating of these geographies?

Because we are seeing various players operating in the southern markets are seeing some slowdown. Can you just called out there is any apart from this, and how do you plan to react to this situation?

Second is on the affordable housing. We are seeing some of the bureau data which suggests that there is volume softness in the ticket size of up to 25 lakhs for the industry.

How do you plan to deliver growth if the industry volume remains on a muted? If you can just help us how do you plan to deliver growth in the affordable, or can we see some bit of calibration in the growth for next few quarters as well in the affordable housing?

Thanks. Then I have one more question.

Himanshu, hi. As far as this ordinance issue was there, it was a issue that came up in the end of Q1, where the spiral effect continued in Q2 also.

In our collections, we found some heat coming in the delinquency. Early delinquencies were coming.

We immediately took a proactive action, and because that being our biggest contributor of the business numbers, we immediately got into ticket size, and we have already given in one or two of our meetings that we converted the country as Tier 1, 2, 3, 4, and we bifurcated the ticket size as per the tier and Tier 3 and Tier 4 markets as well. Now by end of October, November around festivities, the ordinance circular has again come from the government, and we find the situation normalized, and by end of December we are finding even the collections strategy becoming normal.

Now again we will go back into our original policies, because we had completely slowed down there. Now we will go back and come back to the original policy, A.

Secondly, regarding up to 25 lakh cases, see, I would have slightly a deviated statement on this, because with PMAY coming in, all the players are getting more into EWS and LIG. It might be a very temporary slowdown, but I would not say, because everybody is getting into it because it is until 5 years the customer cannot leave out of us doing a BT-out.

It is a very good proposition which is given by the government. Everybody is following that.

Taking that in Q, we will be in the same level of growth which we were posting in the previous quarters. Yes, we were growing very rapidly in the first 2 years because we were a start-up mode, but now we will come as per the industry standard to 20% to 25% quarter-on-quarter growth ongoing, Himanshu.

Sure. Just the last question.

What proportion of the PMAY is in the total disbursement currently? Probably what proportion that will be in terms of the total disbursement, PMAY contribution?

PMAY 2.0, see, it is just started. Because the pool is building up now.

Till now, if I say the ballpark number, it would be the subsidy which customer have got is around in the range of ₹7 to ₹8 crore which subsidy has been given. I think there were some challenges and teething trouble in initial days when the program was launched, some technical challenges which has been sorted now.

The process is also smoothened because NHB and government has taken different measures for that and they sorted it out now. I think this will scale up and it will move very fast in terms of getting subsidy to the customer.

As of now, if you talk about, the contribution is very low because the process was slightly cumbersome.

Okay. Can you expect this PMAY 2.0 to be the game-changer in the next 6 to 9 months, probably from a post 6 to 12 months basically, can it become a game-changer in terms of the disbursement volumes?

Yeah. No, it may not be a very high game-changer, I would say, but definitely it will be game-changer because there is enough push from the government and the National Housing Bank also to promote this, and that is how I think again some meeting is going to happen in few part of country where further deliberation will happen, and I think government focus is clearly on to improve this.

Because the overall amount which they've allocated is substantial to facilitate to the underprivileged customers.

Okay. Sure.

Sir, if you can just provide, even if Valli ma'am can provide this data point for the affordable housing, how's the 6 MOB and 12 MOB for vintage portfolio for the affordable housing, how these numbers are trend? Yeah.

Thanks.

We will get back to you separately

on that. Sure.

Thank you.

Thank you.

Hi, sir. Am I audible?

Harshit, you're audible.

The question was related to the 10 basis point impact which you mentioned because of one of the account run-down. When I look at the corporate developer loan movement this quarter, from I think 319 to 250 crores, since we haven't done any disbursement, it is probably then that repayments are not very high.

It's to the tune of 70, 80 crores itself. Actually, if you can help me tie up that 10 basis point impact on the yield seems too large for a run-down of 70 crore number itself.

How should we look at that 10 basis points, and you mentioned that next quarter onwards the reversal will happen for that 10 basis points. Should we expect that the yields of 9.55 which we have come to a normalized number would be 9.72 number, a normalized number would be 9.85 to look at from the next quarter?

Harshit, as you mentioned, this run-off happened at the end of previous quarter. The run-off happened on 30th of September.

The 30th of September book was already lower by 350 crores. Oh, okay.

It has actually run down at the end of Q2. Hence, it is not showing in the run-off.

If you see Q2 beginning book and then compare, you will be able to see the difference.

Got it. In that case, then my 9.72% reported yield this quarter, shouldn't this be the normalized base rather than why would that 10 basis points normalize?

No, that's right. I was explaining drop of yield versus previous quarter, it has impacted negatively versus previous quarter.

This is a new normal now, 9.72, which will continue going forward.

Okay. Got it.

Sure, sir. Okay.

Thank you, Harshit.

Most of my questions have been answered. I just had one question on the disclosures that were given.

Affordable, prime, and emerging, have we changed any classification there? Because I see that the Q3 FY25 numbers are different from the ones that were reported earlier, I just wanted to know if there's any classification change there.

Thanks.

Praful, there is no change of classification. The classification is as it is.

There's a difference of only segment of geography. What we were following, we are following still.

There is no classification change. Rather, we'll increase our footprint in emerging and affordable segment.

Okay. Yeah.

Thank you.

Hi, sorry. Can you hear me?

Yeah. Thank you for the opportunity.

Have you answered the reason for no change in the branch addition? If I look at the branch addition in the affordable and emerging market, we have not seen sequential change while from last couple of quarters there was a very strong, healthy branch expansion.

How should we see this number going forward in Q4 and FY27?

Umesh, I think the practice which we are following is that at the end of last quarter we add new branches. If you see, it has not happened sequentially in three quarters because this quarter will add some 30 35 to 40 branches, which will reflect and operational in quarter 1 of next year.

Sure. What will be net branch addition in FY27?

27,

we are expecting 50 branches almost. Oh,

50 branches put together. What will be the affordable mix?

No, 50 branches if I'll talk about end of 27, it would be around 75 to 80 branches, but because these branches which will come up in quarter 4 will actually reflect in 27, plus 27 branches will also be working on that. The total number of branches put together for this year and next year would be around 70 to 80 branches.

Sure.

Majority would be affordable. Majority would be affordable in Tier 3, Tier 4 cities.

Yeah.

Thanks.

Thank you everyone for joining us on the call. If you have any questions unanswered, please feel free to get in touch with Investor Relations.

The transcript of this call will be uploaded on our website, that is www.pnbhousing.com. Thank you for your participation.

Thank you, everyone.