We continued to scale our retail franchise by strategically focusing on the Emerging Markets segments. Our retail loan asset portfolio reached `74,802 crore as of 31^st March 2025, reflecting an 18% year-over-year (yoy) growth. This performance was supported by targeted disbursements, deeper geographic penetration, and improved internal productivity.

Our Emerging Markets segment, which caters to customers in outskirts of Tier 1 and Tier 2 cities, grew by 21% yoy and reached `14,125 crore. What makes this segment particularly strategic is its incremental yield—on average, 41 bps higher than our Prime segment. We also expanded our footprint from 50 to 60 branches during the year to deepen our presence in these markets.

Our Affordable business, ‘Roshni’, delivered outstanding results this year. We crossed a significant milestone by scaling the affordable Loan asset from `1,790 crore in March 2024 to `5,070 crore by March 2025, marking a 183% yoy growth. This was made possible through disciplined execution, localised customer engagement, and rapid geographic expansion.

We increased our Roshni branches from 160 to 200, now covering over 130 high-potential districts across 15 states. We entered new markets like Punjab and the Northeast, with a branch launched in Guwahati. These additions increased our physical reach, and helped us engage with underserved and first-time borrowers.

One of our biggest achievements this year was the significant improvement in asset quality. Through proactive risk management, digitised collections, and legal enforcement under SARFAESI, we were able to bring our gross NPA down to 1.08% as of 31^st March 2025, from 1.50% the year prior.

We recovered `336 crore from our written-off pool in FY25 – more than double the `100 crore recovered in FY24 – thanks to aggressive possession and resolution actions. Our SMA-2 resolution rate stood at 99.6% and X-Bucket resolution at 97%.

We have one of the best asset quality metrics among housing finance companies, and we aim to sustain this through continued investment in credit risk analytics, early resolution mechanisms and disciplined field collection.

Despite tight liquidity conditions in the market, we successfully diversified our borrowings and maintained a strong capital position. Our total borrowings increased to `62,310 crore, while our capital adequacy ratio improved slightly to 29.38%, with Tier I capital at 28.39%.

We raised `5,000 crore from NHB and secured USD 350 million in ECB sanctions during the year. Our cost of borrowing improved by 15 bps yoy to 7.86%, supported by better market rates and proactive liability management.

This year, we made significant headway in improving our profitability ratios. Our RoA improved to 2.55%, while RoE rose to 12.2%, reflecting enhanced efficiency, higher margin business, and lower credit costs.

Our net interest margin (NIM) remained stable at 3.70%, while spreads stood at 2.19%. The shift toward Affordable and Emerging Markets segments played a crucial role in margin resilience. Preprovision operating profits grew 9.5% yoy, and credit costs turned negative due to recoveries.

We believe that as we further scale our Affordable and Emerging Markets portfolios, profitability will continue to strengthen.

Technology continues to be a key enabler across our value chain—from customer acquisition to collections. We fully implemented Salesforce CRM in the affordable segment and enhanced analytics across field collections and delinquency management.

This year, each agent handled an average of 63 service calls per day, and 16% of customer service requests were addressed through automation.

As we look ahead, we will continue to invest in digital onboarding, straight-through processing, and AI-powered credit decisioning to improve speed, accuracy and customer satisfaction.

At PNB Housing Finance, we believe that strong governance is fundamental to long-term value creation. In FY25, we took consistent steps to institutionalise best practices in governance, compliance, and risk oversight—ensuring we are not only growing but growing responsibly.

We continued to strengthen our board structure, enhanced our ESG disclosures, and reinforced risk management systems across verticals. The Risk Management Committee and Audit Committee remained deeply engaged throughout the year in monitoring credit, liquidity, cyber, and operational risks. We also realigned our internal audit systems in line with the evolving regulatory expectations for Housing Finance Companies (HFCs).

Our alignment with RBI’s revised HFC guidelines included implementing tighter control over asset classification, provisioning norms, and risk-based pricing. Additionally, we progressed on the digitisation of compliance and audit trails, improving transparency and reporting accuracy.