PNB Housing Finance Limited ($PNBHOUSING)

Ladies and gentlemen, good day, and welcome to PNB Housing Finance Limited Q4 and FY 2025-'26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Chaitanya Yadav, National Head of Corporate Planning and Investor Relations. Thank you, and over to you, Mr. Yadav.

Thank you, Ranju. Good morning, and welcome, everyone. We are here to discuss PNB Housing Finance Q4 and FY '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, 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 statements to reflect future events or circumstances. A detailed disclaimer is on Slide 46 of the investor presentation. With this, I will now hand over the call to over MD and CEO, Mr. Ajai Kumar Shukla. Over to you, sir.

Good morning, everyone. So it's a pleasure to address you today and reflect on the significant developments shaping India's housing finance landscape and share our performance for the quarter and the full year. FY '26 has been a pivotal year for the housing finance industry. The sector continued to benefit from strong structural drivers, rising organizational urbanization, improving affordability and a clear shift towards homeownership across income categories. Tier 2 and Tier 3 cities, in particular, remained strong demand centers, supported by improved infrastructure and increasing economic activity. Government initiatives and supportive regulatory measures have further strengthened the environment for affordable housing. A softening interest rate cycle supported by steady economic activity has helped sustain healthy credit growth across the sector. It may also be worth noting that the ongoing geopolitical conflict may have an impact on growth projections for all sectors, including housing finance sector. The crude oil prices may keep inflation and interest rates elevated and may also marginally impact asset quality. However, if the situation remains contained, the overall impact is likely to be moderate and transient with underlying housing demand remaining structurally resilient. Overall, the industry is on a strong growth trajectory with particularly high potential in the affordable and emerging market segments, areas where we have built strong capabilities and remain strategically well positioned. Now talking about the PNB Housing Finance. Despite the pricing pressure in the market, the company has shown a strong and balanced growth during the year. The retail loan book grew by 16% Y-o-Y to INR 86,946 crores as on 31st March 2026. The total loan book of company stood at INR 87,347 crores as on March '26 . The Affordable and Emerging Markets segment continued to increase their share in retail loan assets and is at 40% as on 31st March '26 compared to 37% as on 31st March '25. The disbursement during Q4 grew by 36% Y-o-Y and 50% quarter-on-quarter INR 9,355 crores. During the quarter, overall retail segment disbursement grew by 32% Y-o-Y to INR 9,020 crores. Within this, the affordable rebounded and grew by 59% quarter-on-quarter to INR 1,249 crores, which is largely flat as Q4 '25. We are back on growth path for affordable segment and expect to deliver similar performance going forward. The Emerging Markets segment continued to outperform, delivering a strong 34% Y-o-Y growth in disbursement. The Prime segment delivered 43% Y-o-Y growth despite the broader pressure on yield following rate cuts. Overall retail disbursement growth for full year came in at 19%. Happy to share that we have facilitated 5,000 subsidies under PMAY, marking a significant milestone in our journey towards enabling affordable housing and supporting the Government of India Housing for All mission supported by National Housing Bank. The company started corporate segment with disbursement of INR 335 crores in Q4 '26. The corporate loan book stood at INR 401 crores as on March '26. Presently, our digital channels generate nearly 15% of our overall leads. With focused digital transformation, we further enhanced our onboarding process with the launch of Infinity application, which is in-house developed by our team. This fully digitized paperless workflow is now fully adopted by our in-house sales team and is helping us materially reduce turnaround times and operating costs while significantly improving customer experience. We are also in the process of onboarding all our direct selling agents to the platform. In addition, we deployed an AI-enabled calling solution for sanctioned but not disbursed cases, engaging 70% of our identified pool and securing disbursement confirmation from 50% through intelligent outreach and targeted WhatsApp follow-ups. We continue to embed AI-led initiatives across the end-to-end loan processing life cycle. During the quarter, multiple use cases were on pilot run, including AI-driven calling for re-KYC, pre-delinquency management, top-up offerings and fresh sales lead conversion. As far as geographical presence is concerned, as planned, we opened 35 branches, taking the total network to 393 branches, including 229 in affordable segment, 87 in emerging market segment. Our extensive pan-India footprint enables us to effectively capitalize on the growing opportunities in the Affordable and Emerging Markets segment, particularly across high potential Tier 2 and Tier 3 locations. In future also, we'll keep on focusing on increasing distribution, but priority is to bring existing distribution of the branches more productive. Asset quality. I'm pleased to share that we achieved a significant milestone during the year. Our GNPA continues to improve and is now below 1% mark, standing at 0.93% as of March '26. This improvement is a direct result of our strengthened collection infrastructure and continued emphasis on portfolio quality across both retail and corporate segment. Recoveries remained strong, driven by focused collection and resolution efforts. In Q4 '26, we recovered INR 24 crores from retail written-off pool and INR 143 crores from the corporate written-off pool. For the full year '26, total recoveries from written-off pool accounts stood at INR 332 crores, resulting in a negative credit cost of 45 bps. Operationally, momentum strengthened further with the sale of 689 retail properties during the year compared to 537 in '25, underscoring improved execution across recoveries. The company has a remaining written-off pool of around INR 500 crores in corporate and around INR 325 crores in retail. As far as margin is concerned, spread reduced by 10 bps quarter-on-quarter from 2.22% to 2.12% due to lower incremental yield and BD pressure in prime business. In our view, the yield has bottomed out and should start improving from Q1 '27. Net interest margin improved by 6 bps quarter-on-quarter in Q4 '26 to 3.69%. As far as profitability, in financial year '26, profit after tax increased by 18% Y-o-Y to INR 2,291 crores, leading to an ROA of 2.66% and ROE of 12.73%. The capital adequacy ratio is 27.26% and Tier 1 is 26.89% as on March '26. Glad to share the Board of Directors recommended a dividend of INR 8 per equity share having face value of INR 10 for '26, subject to the shareholder approval during the next AGM. I would like to present the guidance for '26, '27. Given the industry outlook and our business performance so far, the guidance would be, we are looking for loan book to cross more than INR 1 lakh crore mark in '27. Retail loan book projected to grow between 18% to 20%. NIM would be in the range of 3.55% to 3.65%. Credit costs continue to decline due to recoveries from written-off pool and ROA will be in the range of 2.4% to 2.5%. With this, I would like to hand over the call back to Chaitanya. Thank you so much.

Thank you, sir. I will now request Mr. Vinay Gupta, our CFO, to talk about the financials.

Good morning, everyone, and a very warm welcome to our earnings call. I am pleased to share our strong Q4 and FY '25-'26 financial performance, reflecting continued focus on execution and the underlying resilience of our operating fundamentals. Let me begin with business growth. As highlighted by our MD sir during his opening remarks, Q4 FY '26 has been one of the best quarters in terms of disbursements as we achieved 36% growth year-on-year in the current quarter. Similarly, our loan book also grew 15% year-on-year, including retail disbursement growth of 16% year-on-year. Moving to key financial parameters. So you would have seen net interest income has grown 11% during Q4 FY '26 and 13% for the full year FY '26. Yields moderated this quarter by 25 bps to 9.47% in Q4. This is largely due to lower incremental yield versus book yield and higher runoff. It seems that yield has now bottomed out and now it should start improving from Q1 with higher mix of Emerging and Affordable business. On the liabilities side, cost of borrowing improved by 15 bps sequentially to 7.35%, supported by gradual repricing with banks and transmission of policy rate cuts. For the full year, cost of borrowing improved by 29 bps to 7.57% in FY '26 compared to 7.86% in FY '25. However, the incremental cost of borrowing edged up slightly to 7.23% in Q4 from 7.2% during previous quarter, in line with the current prevailing liquidity and market conditions. As a result, spread moderated by 10 bps to 2.12% in Q4 compared to 2.22% in Q3, while remaining broadly stable at 2.2% for full year FY '26. Net interest margin improved by 6 bps in Q4 FY '26 to 3.69% compared to 3.63% during previous quarter. This one-off inverse relationship between spread and NIM is due to difference in methodology. The spread is measured on a daily interest convention, whereas NIM benefits from monthly averaging, which should smoothen out from the next quarter onwards. Operating expenses grew by 13% year-on-year to INR 920 crores compared to INR 813 crores in FY '25. This was largely driven by branch additions that we did in the later part of FY '25 and onetime impact of implementation of new labor code. We added 35 branches in Q4, the full cost of which will be visible from next financial year onwards. However, we expect operating leverage and scale benefits to kick in from existing business to partially offset these costs. Our OpEx to ATA is -- for Q4 is at 1.08% and full year is at 1.05%. We expect it to remain range bound between 1% to 1.1%. Pleased to report a successful recovery of around INR 167 crores in Q4 and around INR 330 crores during full year FY '26, which translated into a negative credit cost of 78 bps in Q4 and 45 bps for the full year FY '26. Our GNPA improved further crossing the milestone of sub-1% level and now stands at 0.93%. Further, there is marked improvement across all segments in 30-plus and 90-plus metrics. Affordable business is also now showing signs of stabilization across all delinquency metrics. Profitability remains strong. The reported PAT for Q4 is INR 656 crores, 19% year-on-year growth and 26% sequential growth. For full year, our net profit grew 18% to INR 2,291 crores. ROA improved to 2.66% for FY '26 compared to 2.55% in FY '25. ROE stands at 12.73% in FY '26. Our total CRAR stands at 27.26% with Tier 1 at 26.9%. As of March, our net worth stood at INR 19,219 crores and our book value increased to INR 738 per share. Thank you for your continued support, and I now hand over the call back to Chaitanya.

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

[Operator Instructions] The first question comes from the line of Sucrit D. Patil with Eyesight Fintrade Private Limited.

I have 2 questions. My first question to Mr. Shukla is, what are your key priorities for PNB Housing in the year ahead or in the quarters ahead, to be very specific. Specifically, how do you plan to expand lending reach, improve customer service and use digital platforms to make housing finance more accessible and transfer into all? That's my first question, I have my second question after this.

Yes. Sucrit, thank you so much. I think partly answer was embedded in your question itself that how can we improve our footprint and increase the business. So first of all, this use of digital and automation, I think, is the key -- would be the key success mantra. As I explained in my talk that we have started using Infinity app, which is an onboarding app, which is end-to-end my digital app, which will save a lot of time of field on force -- force on field. And at the same time, the LOS, which is the loan operating system, the origination system will also help fast processing. So we are now -- introduced end-to-end from sourcing to processing to disbursement and digital, then there will be no paperwork, which will be involved, which will save a lot of time of my field force so that they are more on the field and generate more number of leads. In fact, they need not to visit the office for deposit of files for processing from -- so it means whenever they are meeting with the customer, they can go and meet with the other customer by completing the work at one place where they are sitting with the customer and then they can move to the other customers. So that will give the efficiency not only in terms of sourcing, but processing also. The 3 key priorities would be definitely, as we said that we are looking for the growth of 18% to 20% growth in AUM. The mantra would be growth with quality. So quality shouldn't impact. We have reduced our GNPA from 1% to 0.93%. We'll put more focus on to improve it further. And also the key priority -- the third key priority would be to make our existing branches and distribution more productive because we have almost 393 branches as of now, and we can easily scale up our business by using the current infrastructure.

My second question to Mr. Gupta is, again, forward-looking one, how are you approaching risks such as rising funding costs, regulatory compliances that keeps on changing over the time and credit defaults while ensuring profitability remains steady and growth remains constant for the company?

Sucrit, thank you for the question. See, in Q4, you would have seen that we were able to still reduce our borrowing cost to around 15 bps, and it's now stands at around 7.35%. We still have some scope as our incremental cost is still lower than the overall portfolio cost. So there is still some growth. We are also working with credit rating agencies to see based on the performances, there is an opportunity for improvement in the credit rating as well that will further help on the cost of borrowing. At the same time, we are keeping adequate liquidity buffers and keeping the adequate LCR to ensure that the company has adequate liquidity cover in the times of need and at the same time, we are also working with enhancing our distribution and our resource profile by adding more banks and going more towards that market and diversifying our funding.

Next question comes from the line of Viral Shah with IIFL Capital.

Congratulations on a good set of numbers. Ajai, I had 2 questions. One is, can you give, say, more details of your growth guidance at a segment level, specifically how you are thinking about, say, the Affordable and the Emerging segment and also the disbursement growth kind of outlook over there? And the second question is, if you can give some more color on the corporate disbursements that we did of INR 335 crores this quarter. Like what is -- is this just one single account or multiple ones, yields, which kind of geographies the builder is in or the project is in?

Thank you, Viral, so much. Growth if I talk about segment-wise, we will grow almost 50% in Affordable segment. That's what we are targeting. So like we did almost INR 3,800 crores approximately disbursement in last year '26, we are expecting to grow by 50%. Our overall composition of Affordable plus Emerging currently, we are at 40%. We grew from 37% to 40%. Down the line, 2 years, we are expecting that we should be having composition of 50%, 50%. So growth in Emerging plus Affordable would be high. More particularly, more so the Affordable growth will be much higher than Emerging. If I talk about sequentially, the growth in Prime would be lesser. The growth in further Emerging would be high and affordable will be the highest growth. And that is not only AUM but also in terms of disbursement. If I talk about corporate disbursal last year, we disbursed one ticket -- one case of almost INR 360 crores, INR 370 crores, which is primarily Mumbai. So our focus would be more on reputed good builders of the cities. We will be targeting almost 7 to 8 top category cities where the market is good, celebrity is high and the quality of developers is also good. So if I talk about geographical presence, we will be having presence in Pune, Bombay, Bangalore, Chennai, Hyderabad, Delhi. These are the typical cities where we will be focusing as far as our corporate business is concerned. But still, our focus on retail segment will be much high. Even if we have entered into corporate finance business, our corporate finance business will not be -- this year '27 will not be more than 3% of my overall book.

Right. And can you just also mention the yield at which this loan was given, the corporate one?

See, the corporate business, the idea of ours is to maintain the overall yield of almost 11.75% to 12% because we don't want to go beyond that price band. Because if we go beyond price band then, it means we have to focus on more Tier C and Tier B kind of builders, which we don't want. So it would be in the range of 11.5% to 12% range only.

Got it. And if I may -- can I ask one more question?

Yes, please.

Vinay, so basically on the margin front, I just wanted to check how are you thinking, first of all, given how the market rates are, the bond markets, first of all, on cost of funds? And secondly, given how now the book mix probably will be changing, especially with the reentry into the corporate finance segment, is there a scope for, say, some higher margins versus what was guided?

Yes, Viral. So as we mentioned, on the yield front, we expect that the yields have now bottomed out, and it should start improving from here because now our incremental yield and book yield has coincided with the higher mix coming in from Affordable, Emerging and Corporate now. So I should see our yields improving going forward. On the cost of borrowing front, there are certain headwinds right now considering the current liquidity conditions and most of the benefits that we were supposed to get, we have realized from the rate cut cycle. So going forward, that is where it is going to remain stable or maybe 5 to 10 bps improvement. So hence, overall, there are upsides which are expected. So it all depends on the current economic, geopolitical situations. If that stabilizes, there is definitely a scope to do better. But otherwise, it should remain range bound.

Next question comes from the line of Kunal Shah with Citigroup.

Sorry. So firstly, on the [Technical Difficulty]

We have lost line of the participant. We will promote the next status, Gaurav Toshniwal.

This is Renish here from ICICI. Just 2 things. So one on this disbursement pickup in Q4. So you did highlighted about the whole transformation helping us getting better volumes. But when we are guiding for 18% to 20% growth in retail assets, I'm sure the improvement which we saw in Q4 sort of has to sustain in '27. So can you just briefly tell us, let us say, 2, 3 major changes you might have done at ground level, which is helping us getting these volumes and which is sustainable going forward?

Yes. So. Thank you so much. Gaurav? Have I heard correct? Gaurav Toshniwal.

Sir, Renish here from ICICI.

Renish?

Yes. Yes.

So Renish, I think largely, I would say the idea was to engage more on the field. So we did some events which were related to our distribution and partners in some top 4, 5 cities of the country, wherein we invited even surrounding cities distribution also. So the idea was to engage more with the partners who are doing housing finance business in the market. They might be doing lesser volume of business with us, but with the engagement, I think the commitment was high or they might not be doing also. So overall, what happened, it helped us to grow this volume by way of engaging the partners. Entire team was also fully engaged with visiting the branches, understand the challenges of the market and getting them solved at very high pace. So that was one thing. I think that has helped really -- us very well, and we'll keep on focusing on that distribution engagement from April itself, I would say, going forward for the full year. So engagement will always be there. And this is the success mantra of the retail business. You keep on engaging with the people and you will keep on getting business from the market. I think that's the only new thing which has happened. Otherwise, the focus, we want to shut off the challenges which team was facing at the ground with the speed, I would say.

Got it. Got it. So basically, what you're trying to say, sir, is that there is no big bang changes we have done, but it is just that more engagement with the ground sort of motivating them and helping us to get better volumes. I mean is that the correct understanding?

Yes, because market is there, you see because we are, I think, the third largest player in this industry. Market is very large. Housing finance industry is very large. It's growing by a pace of 12% to 13%. And so there is enough opportunity. If you keep on engaging with the market and the people, I think business will definitely flow into your figures.

Got it. Got it. And sir, just last clarification on the [indiscernible]. So you did mention about retail asset growth being at 18%, 20% but since we have also entered corporate business in Q4 and obviously, we'll do some more in FY '27. So does that mean the overall book growth could be touching 20%?

Yes. So it will be in the range of 18% to 20%. I think overall growth should come. While Corporate finance composition will be 3% of my book, but the focus will remain on Emerging and Affordable.

Got it. But it will still help us do better numbers on the blended basis?

Definitely, definitely. Because my Emerging plus Affordable would be higher than my Prime business. So that is already overall improving my margin. Yes.

Next question comes from the line of Kunal Shah with Citigroup.

Yes. Sir, am I audible now? .

Yes, Kunal, you are audible.

Yes. So firstly, with respect to the yields on the affordable housing side, that seems to be down almost 75 basis points quarter-on-quarter when the disbursements have actually picked up. So was this maybe what Vinay was also indicating in terms of catching up with the lower incremental yields or there would be more repricing and maybe we will continue to operate at this level of yields in the affordable housing? Now that has come down to as low as 11.35%. So I just wanted to check, is that the level which we will operate in affordable housing?

So Kunal, I think it's a combination of both, I would say. But largely what happened by the -- see, in fact, while the overall yield is looking low, but if you see the NIM, we are able to maintain our NIM because we also got the benefit of cost, okay? So when the repo rate gone down by almost 1.25% last year, the yield gone down in this business. And so it is true with the market, okay? But we were able to compensate by way of cost of funds, which has also given us benefit. And yes, there was intense, I would say, competition in terms of pricing, especially in the last quarter in the market. And that is how you to deal with that. But I think since we are able to maintain our NIM, it will not -- it is not impacting much to us. This is on Affordable, I'm talking about.

Sure. Yes. So the question was also on affordable broadly. Yes. And when we look in terms of the recoveries, which we anticipate getting into FY '27, if you can quantify that you indicated that, that will help the overall credit cost, but how much is the recovery we are expecting?

You are talking about '27. I think Vinay would -- Vinay, if you can give the number?

Yes, for '27, Kunal, we are expecting around INR 200 crores to INR 250 crores recovery total.

And sir, any reason for increasing 30-plus in Prime? It has gone up to almost 30 basis points to 3.31%.

No specific reason. If you see year-on-year, it is stable. It was 3.4% last year, and it is still 3.3%. The Q3 numbers were aberration actually.

No. Even 30-plus I think has gone down from 3.4% to 2.72%, 30-plus.

That is overall, sir.

Overall, yes.

For Prime, it has gone around 10 bps.

Even Prime has also gone down.

So it is in line. It's range bound, Kunal. There is no static movement. Q3 was an aberration actually.

It was about Q3, yes. Overall, it is I think for the full year basis, it has improved.

Next question comes from the line of Prithviraj Patil with Investec.

Yes. So I have a couple of questions. So the first question is on the NIM. In the opening question, we mentioned that the NIM would converge with the spread. So the ROA that looks higher this quarter, it's largely because of accounting and that will sort of move lower next quarter? Or like how do we look at the NIM going forward? And the second question is on the SR sale that you mentioned in one of the footnotes in our financial statements. So what is the fair value gain that you have booked on sale of these assets?

See, actually, on the SR bit, this is one account which we have fully realized. So this is like it's not a fair value gain. It is a cash receipt that has happened and hence SR is closed fully. So that is the recovery which has come, that is on the corporate side. And on the NIM, as I mentioned, it is more of aberration or the accounting, which has led to this change. It will normalize next quarter. But at the same time, next quarter, as I mentioned, we should see some benefit on the overall yield trajectory. And hence, we should be able to maintain the current NIM trajectory that we have with a gap of between 5 to 10 basis points.

Next question comes from the line of Avinash Singh with Emkay Global Financial Services Limited.

A couple of questions. The first one, when you are guiding kind of 2.4% to 2.5% ROA for next year, what kind of a credit cost is being built into this assumption? My question is basically that, okay, if I were to look at, say, last year's ROA of 2.66%, of course, that has a kind of a 35 basis point negative credit cost. So if we were to build a normalized case, possibly the ROAs are moved into a 2.1 -- for the full year, I mean, for the last quarter, it will come closer to maybe 2.1-odd percent. And if we were kind of looking in a normalized case, 30, 40 basis point improvement in ROA, that heavy lifting has to be done by yields and maybe some bit on the cost of funds if you were to see a rating upgrade. So in this context, just wanted because OpEx is at the optimal level already. So just if you can help us with what kind of a credit cost jump there is to 2.4% to 2.5% kind of ROA. And I mean, going forward beyond FY '27 when recoveries kind of nearly goes away and you swing to more like a 20, 30 basis points, whatever the ideal credit cost you would build, I mean, how are you going to sort of deliver 2.4%, 2.5% ROE? That's one. Second one, on the product front, are there some products, I mean, now you are there into the affordable, emerging as well as the developer side of these loans. Are there some product offering yet to be launched or you see, I mean, particularly in the nonhousing side, will you be looking for kind of to go into, say, a micro LAP in a category, say, of INR 8, INR 10 lakh, INR 12 lakh or something in near future?

So I will answer the second question first, then Vinay will take over. As far as this product development is concerned, we are already in the segment of Emerging and Affordable. Yes, you are right. We are looking the segment of -- which is between 14% to 16% segment, which we are going to start operation in the branches where my Affordable business is already present. So it would be not only micro LAP, but it will be micro housing also. So the range would be around 14% to 16% range. That introduction will happen in Q1 itself. On the financial aspect, Vinay, if you can...

Yes. On the overall ROA tree as you mentioned, so the guidance is around 2.4% to 2.5%. And even for next year, we expect the benefits on the recoveries from the written-off pool to continue. So we still expect the credit cost to remain negative next year in the range of around 15 bps to 20 bps. So this is what is factored in. And overall improvement and ensuring that it remains sustainable. So as you also rightly mentioned in your query itself that it has to be picked up through the higher mix of emerging, affordable and corporate. So this is where we are working on. Currently, we are at 40%. We expect in the next 2 to 3 years, this mix to move towards 50% plus and with higher mix of corporate as well. So the benefit is going to come on the NIM over a period of next 2 to 3 years to cover up the gap which we have on the credit cost and it should ensure that we maintain the similar trajectory on a longer run.

Next question comes from the line of Gaurav Khandelwal with JPMorgan. .

I've got a couple. I'll ask those one by one. First, if I can just understand that our focus is to grow affordable. But if I look at the disbursements on affordable side, it was quite weak in FY '26. 4Q, in fact, affordable disbursements came down -3% vis-a-vis Prime, which is not our key focus area, but we still see high disbursements. Is this something to do with the ongoing rates in the market? Or is this more to do with asset quality?

So Gaurav, Affordable has started shaping up now. We -- in last quarter, we disbursed almost similar what we disbursed last year. As far as Prime business, especially prime business is nothing but the replenishment of what book you lost during the year. If you see my growth on prime business is only 9%, while Affordable growth is very high. And so the focus will continue on -- because you want to grow overall book also. So whatever book you lose in the Prime segment during the year, you replenish that. That is why the growth looks high in the affordable in terms of disbursal, but actual, the growth is not very high. So focus will remain on affordable business. It is not related or any significant relevance with the quality because quality you see in Affordable is good. We are now below 0.6% in our GNPA. Our bouncing is under control. Our 30-plus is under control now in all the parameters of quality, in Affordable, we are under control.

Got it. In that case, sir, is it fair to say that because the incremental yields have been so low and minus 75 bps Q-o-Q, that was one of the key reasons of disbursing Affordable at a slower pace?

No. I think disbursal was not in slow pace. I would say that there were some challenges which we faced during mid of the year, which we corrected. And that is why deliberately, we wanted to check those markets first and then we wanted to grow. Now we have checked those markets and we found that those issues were temporary issue which you overcome now. The yield dip is not because of -- as I said in my earlier conversation also, yield dip was because of drop in the repo rate, okay? And that is how now going forward, when we are entering into segment of micro housing and micro LAP, we will overcome with that and we'll try to improve overall yield of Affordable business.

Got it. Okay. Okay. My other question is, can you share some -- sorry, can I just take one quick one?

We missed your voice, Gaurav. Can you come again?

Yes. My other question is, can you share some early indicators of how the bounce rates are shaping up in the first half of April?

First half of?

April.

April. I think the bounce in April is more or less similar to what it was in March. So there is no significant jump in the bounce this year. There was one set of customers which we identified by way of doing some data science analysis that some customer of government's employee segment got a higher bounce because maybe -- and that got even paid very next day. When we deep dive into that, we found that because March is generally a month of taxation because people have to clear their taxes within March itself. So might be their planning was not as per their requirement, and that is why there could be some shortfall in their banking. And -- but very next day or next to next day, most of them paid. So that was the only one indicator which came. And since they paid very next day, so I think other than that, there's nothing which you found significant change in the bouncing.

Got it. So effectively, no early signs of asset quality stress due to the ongoing geopolitical issues.

I don't think so.

I don't think so as of now.

[Operator Instructions] Next question comes from the line of Nischint Chawathe with Kotak.

One was on the yield side. When you mentioned that we expect that yields have bottomed out and will go up from here on, what gives you that confidence given the fact that your incremental yields are going down? I understand the book composition, but apart from that?

So I think, Nischint, why I'm saying that it seems to be bottomed out because one is that there's no change in repo rate in the last few months. One is that. Because whenever there is change in repo rate, the tendency of people is to do the BT out from your portfolio. Rather, I would say I think there is some upside in the market and the rate of interest. So the chances of going -- drop in the rate doesn't seem to be there. And that is why the BT out will be restricted. When BT out will be restricted, your overall yield will maintain. That's how I think.

Sure. Any color you could give as to how the BT out ratios have trended over the last 4 quarters?

I think overall, if I talk about BT out of my entire portfolio is almost, I would say, for the full year, I'm talking about this 8% and the quarter 4 was 8.6%. So on annualized, it is 8.1%. On quarter 4, it is 8.6%. So it's hardly 0.5% difference between quarter 4 and overall.

And just to add, Nischint, Q4 has actually improved from Q3. Q3 was at...

Yes. 3.95%. So it means we have acquired more new customers than balance transfer.

So I think basically, you're saying that balance transfer trends are on an improvement and which kind of gives you this confidence.

From Q3, Q4 has improved. .

Sure. And I just missed your guidance on the overall loan growth. I think you mentioned something like INR 1 lakh crore plus, but I mean, what is the -- what exactly are you really looking at?

18% to 20%.

18% to 20% growth, as I said in my earlier conversation there. We are looking at 18% to 20% growth in loan book.

Next question comes from the line of Hardik Shah with MLP. Next question comes from the line of Nidhesh with Investec.

Sir, my question is on the loan growth and loan mix. If you look at this quarter, there is a sharp increase in nonindividual home loans. And I think it grew some 12% Q-on-Q as per our calculation, while housing loan growth was still soft at 3% Q-on-Q. So what is happening here? And what is our strategy in terms of loan mix going forward?

So loan mix, I think while it could be more in non-home loan in quarter, but overall, the non-housing versus housing would be around the range of 38% to 40%. Overall, at, I would say, a vertical level, it will be in the range of -- non-housing versus housing will remain that. In Q4, our nonhousing loan grew from Q3, I would say, 32.4% from 30.6%. So while there is an increase, but increase is not very large, I would say. It is 42% growth, which has witnessed. On overall basis, yearly basis, I would say that we grew by almost 3.5%. And it was to keep in mind that we have to improve our NIM also, keeping under consideration, the regulatory norms are also met. So that is how we are focusing on because we have a scope to do more nonhousing loan, but we are also keeping our watch on that there should not be any breach on regulation, which will help us in longer term to improve our margin.

From PBC criteria, what is the share of retail home loans? At what percentage we are operating at right now?

We are at 65%, Nidhesh.

Okay. So there is significant room to reduce it. And the last question is on corporate loans. How do you see growth and share of corporate loans, let's say, 12 months down the line and 24 months down the line in overall loan mix?

So this year, I think we will be having -- as I said, that we'll be having almost 3% of our book would be corporate loan book. We'll be very moderate on that. We will not be very -- focusing very high on corporate book because we want to be very -- go into this business in a very calibrated way and sustainable way, I would say. So if I talk about first year, it would be around 3%, second year, it would be around 5% to 6% of my overall book. Maybe down the line, 3 years, it will be in the range of 8% to 9% of my overall book, which will be my corporate book.

And, sir, what is the incremental yield on corporate book?

11.5% to 12%.

It will be in the range of 11.5% to 12% almost.

Ladies and gentlemen, due to time constraints, we have reached the end of question-and-answer session. I now hand the conference over to Chaitanya Yadav for closing comments.

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, everyone.

On behalf of PNB Housing Finance Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.