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PNB Housing Finance Ltd (NSE: PNBHOUSING) Q4 2026 Earnings Call dated Apr. 21, 2026
Corporate Participants:
Chaitanya Yadav — National Head Corporate Planning and Investor Relations
Ajai Kumar Shukla — Managing Director & CEO
Analysts:
Unidentified Participant
Viral Shah — Analyst
Kunal Shah — Analyst
Nischen Javade — Analyst
Prithviraj Patil — Analyst
Avinash Singh — Analyst
Unidentified Participant
Nadesh — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to PNB Housing Finance Limited Q4 and FY 2025 conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Chetani Yadav, National Head, Corporate Planning and Industrial Relationship.
Thank you. And over to you, Mr. Yagan.
Chaitanya Yadav — National Head Corporate Planning and Investor Relations
Thank you, Ranju. Good morning and welcome everyone. We are here to discuss PNB Housing Finance Q4 and FY25 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. Ajesh 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 and 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 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 our MDM CEO Mr. Ajay Kumar Shukla. Over to you, sir.
Ajai Kumar Shukla — Managing Director & CEO
Good morning everyone. So it’s a pleasure to address you today as we reflect on the significant development shaping India’s housing finance landscape and share our performance for the quarter and the full year. FY26 has been a pivotal year for the housing finance industry. The sector continued to benefit from strong structural drivers. Rising urbanization, improving affordability and a clear shift towards home ownership 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 process may keep inflation and interest rates elevated and may also marginally impact asset quality.
However, if the situation remains uncontained, 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% YUI to 86,946 crore as on 31st March 2026.
The total loan book of company stood at 87,347 crore as on March 26th. The affordable and emerging market segment continue to increase their share in retail loan asset and is at 40% as on 31st March 26th compared to 37% as on 1st March 25th. The disbursement during Q4 grew by 36% YoY and 50% quarter on quarter to 9355 crore. During the quarter overall retail segment disbursement grew by 32% YoYo to 9020 crore. Within this the affordable rebounded and grew by 59% quarter on quarter to 1249 crore 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 market segment continued to outperform delivering a strong 34% YUI growth in disbursement. The prime segment delivered 43% YUI growth despite the broader pressure on yield following the rate cuts. Overall retail disbursement growth for full year came in at 19%. Happy to share that we have facilitated 5000 subsidiary 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 restarted corporate segment with disbursement of 335 crore in Q4.26. The corporate loan book stood at 401 crore as on March 26. Presently our distress channels generate nearly 15% of our overall leagues with focused digital transformation. We further enhance 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 of 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 lifecycle. During the quarter multiple use cases were on pilot run including AI driven calling for vkyc, Pre Delinquency management, top up offering 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 enable us to effectively capitalize on the growing opportunities in the affordable and emerging market 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 the existing distribution of lake 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% marks standing at 0.93% as of March 26. This improvement is a direct result of our strength in the collection infrastructure and continue to emphasize on portfolio quality across both retail and corporate segment. Recoveries remain strong driven by focused collection and resolution efforts. In Q4 26 we recovered 24 crore from retail return of pool and 143 crore from the corporate return of pool for the full year 26. Total recovery from retina pool account stood at 332 crore resulting in a negative rate cost of 45B.
Operationally momentum strengthened further with the sale of 689 retail properties during the year compared to 537 and 25. Underscoring improved execution across recoveries. The company has a remaining return of pool of around 500 crore in corporate and around 325 crore in retail. As far as margin is concerned, spread reduced by 10bps quarter on quarter from 2.2 to 2.12 due to lower incremental yield and BT pressure in prime business. In our view the yield have bottomed out and should start improving.
From Q1.27 net interest margin improved by 6 bips quarter on quarter in Q4.26 to 3.69%. As far as profitability in financial year 26 profit after tax increased by 18% yoy to 2,291 crores leading to a ROI of 2.66% and ROE of 12.73%. The capital adequacy ratio is 27.26% and tier one is 26.89% as on March 26th. Glad to share. The Board of Directors recommend recommended a dividend of 8 rupees per equity share having face value of rupee 10 or 26 subject to the shareholder approval. During next AGM I would like to present the guidance for 26 to 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 a 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 be 9 due to recoveries from retail pool and RO is 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.
Chaitanya Yadav — National Head Corporate Planning and Investor Relations
Thank you sir. I will now request Mr. Vinay Gupta, our CFO to
Ajai Kumar Shukla — Managing Director & CEO
Talk about the financials.
Chaitanya Yadav — National Head Corporate Planning and Investor Relations
Good morning everyone and very warm welcome to our earnings call. I am pleased to share our strong Q4 and FY25 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 MD sir during his opening remarks. Q4FY26 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 disbursements growth of 16% year on year.
Moving to key financial parameters so you would have seen net interest income has grown 11% during Q4 FY26 and 13% for the full year. FY26 yields moderated this quarter by 25bps 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 liability side, cost of borrowing improved by 15bps 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 29bps to 7.57% in FY26 compared to 7.86 in FY25.
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 10bps to 2.12% in Q4 compared to 2.22 in Q3 while remaining broadly stable at 2.2% for full year. FY26 net interest margin improved by 6bps in Q4 FY26 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. This should smoothen out from the next quarter onwards. Operating expenses grew by 13% year on year to 920 crores compared to 813 crores in FY25. This was largely driven by branch additions that we did in the later part of FY25 and one time 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 ADA Is 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 167 crores in Q4 and around 330 crores during full year FY26 which translated into a negative credit cost of 78bps in Q4 and 45bps for the full year required to our GMP 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 the metrics. Profitability remains strong. The reported PAT for Q4 is 656 crore, 19% year on year growth and 26% sequential growth for full year. Our net profit grew 18% to 22. 91 crore. ROA improved to 2.66% for FY26 compared to 2.55% in FY25. ROE stands at 12.73 in FY26. Our total CRAS stands at 27.2 with Tier 1 at 26.9%. As of March our net worth stood at 19,219 crores and our book value increased to 738 rupees per share.
Thank you for your continued Support and I now hand over the call back to Chaturna. Thank you. Vinay Renj. We can now open the call for the Q and A please.
Questions and Answers:
Operator
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question will press star and one on a touch tone telephone. If you wish to remove yourself from the question queue you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Sukrit Tea Patil but I said Fin Trade Private limited. Please go ahead.
Unidentified Participant
Good morning to the team. I have two questions. My first question to Mr. Shukla is what are your key priorities for PND 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 transparent. Transparent to all. That’s my fourth question. I’ll ask my second question after this. Thank you.
Ajai Kumar Shukla
Yes, thank you so much. You know I think partly answer was embodied in your question itself that you know how can we improve our footprint and you know 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 on field and at the same time my the LOS which is a loan, you know operating system origination system will also help fast processing.
So we are now introduced end to end from sourcing to processing to disbursement, end to end 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 links. 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 customer.
So that will give the efficiency not only in terms of sourcing but processing also the key priorities would be definitely you know as we said that we are looking for the growth of 18 to 20% growth in premium. The mantra would be growth with quality. So quality should impact. We have reduced our GLP from 1% to 0.93%. We’ll put a 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 and we can easily scale up our business by using this current infrastructure.
Unidentified Participant
Thank you. My second question to Mr. Gupta is again forward looking one. How are you approaching risks such as rising funding cost, regulatory, regulatory compliances that keeps on changing over the time and credit defaults while ensuring profitability remains steady and growth remains constant for the company? Thank you.
Chaitanya Yadav
Thank you for the question. See in Q4 you would have seen, you know that we were able to still reduce our borrowing cost by around 15bps and it 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 scope. 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 diversity finder funding.
Unidentified Participant
Thank you and BET vision.
Chaitanya Yadav
Thank you.
Operator
Thank you. Next question comes from the line of Dal Sha with IFL Capital. Please go ahead.
Viral Shah
Yeah. Hi. Congratulations on a good set of numbers and thank you for this opportunity. Ajay, I had two 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 335 crores this quarter. Like what is, is this just one single account or multiple ones yields?
Which kind of geography is the builder in or the project is in? Thank you.
Ajai Kumar Shukla
Yeah. So thank you. Thank you so much. Growth. If I talk about segment wise we will grow Almost, you know 50% in affordable segment. That’s what we are targeting. So like we did almost 3,800 crores crore approximately disbursement in the 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 two 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 the emerging would be high and affordable would be the highest growth. And that is not only ASM but also you know in terms of disbursement. If I talk about corporate disbursement last year we discussed one case of almost 36370 crore which is primarily of Mumbai. So our focus would be more on you know, reputed good builders of the cities.
We will be targeting almost 7 to 8 top category cities where the market is good, availability is high and the quality of developer is also, you know, 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 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.
Viral Shah
Right. And can you just also mention the yield at which this loan was given the corporate one.
Ajai Kumar Shukla
See the corporate business, the idea of our business to maintain the overall yield of almost 1175-12%. Because we don’t want to, you know, go beyond that, you know, price band. Because if we go beyond price band that means we have to focus on more clear 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.
Viral Shah
Got it. And if I may, can I ask one more question?
Ajai Kumar Shukla
Yeah please.
Viral Shah
When I. So basically on the margin front just wanted to check how are you thinking first of all a 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 re entry into the corporate finance segment. Is there a scope for say some higher margins versus what was guided?
Chaitanya Yadav
Yeah, we will. So as we mentioned on the yield front we expect, you know that the yield has 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, you know, that is where you know it is going to remain stable or maybe you know 5 to 10 bips improvement. So hence overall there are upside which are expected. So you know, 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 rainfall.
Viral Shah
Got it. Thank you so much and congratulations. All the best.
Chaitanya Yadav
Thank you.
Operator
Thank you. Next question comes from the line of Kunal Shah with Citigroup. Please go ahead. Mr. Shah, please go ahead. Mr. Shah, please unmute yourself and go ahead with the question.
Kunal Shah
Sorry. Yeah, thanks for taking the question. So firstly only.
Operator
We have lost the line of the participant. We’ll promote the next. That is Gaurav Toshtiwan. Please go ahead.
Nischen Javade
Hello. Yeah, yeah, hi sir, this is here from ACI. Just two things. So one on this disrespect pickup, you know in Q4 so you did highlighted about you know the whole trick transformation helping us getting better volumes. But when we are guiding for 18 to 20 growth in util assets, I’m sure the improvement which we saw in Q4, you know sort of has to sustain in 27. So can you just briefly tell us, let us say three major changes you might have done at ground level which is helping us getting these volumes and which is, you know, sustainable going forward.
Ajai Kumar Shukla
Yeah. So again Gaurav, that correct? Gauravar.
Nischen Javade
Yeah.
Ajai Kumar Shukla
Thank you so much. So Ranish, you know I think largely I would say the idea was to engage more on the field. You know, so we did some events which were related to our distribution and partners in some top four, five cities of the country wherein we invited events that 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 better 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 you know, grow this volume by way of engaging the partners. Entire team was also fully engaged with the visiting the branches, understand the challenges of the market and getting them solved at very high pace. So that was one thing, you know, I think that has helped really us very well. And we keep on focusing on that distribution engagement from April itself I would say going forward for the full year. So engagement will always be and this is, 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, you know, the focus want to shut out the challenges which team was facing at the ground with the speed, I would say.
Nischen Javade
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 is sort of motivating them and helping us to get better volumes.
Ajai Kumar Shukla
Yeah, because market is there because we are I think third largest player in this industry. Market is very large. Industry is very large. It’s growing by pace of 12 to 13% and you know, opportunity, if you keep on engaging with the market and the people, I think business will definitely flow into your city.
Nischen Javade
Got it, got it. And so just last clarification on the inside, so you did mention about retail asset growth, you know, being at 18, 20%. But since we have also entered, you know, corporate business in Q4 and obviously we’ll do some more in Q27. So does that mean the overall book growth could be touching 20%?
Ajai Kumar Shukla
Yeah. So it will be in the range of 18 to 20%. I think overall growth should come while corporate finance, you know, composition will be 3% of my book. But the focus will be remain on emerging and affordable.
Nischen Javade
But it will still help us do better numbers on the blended basis.
Ajai Kumar Shukla
Definitely, definitely. Because my emerging plus, you know, affordable would be higher than my prime business. So that is improving the my margin.
Nischen Javade
Okay, got it, sir. Thank you so much in bicep.
Ajai Kumar Shukla
Thank you.
Operator
Thank you. Next question comes from the line of Kunal Shah with Citigroup. Please go ahead.
Kunal Shah
Yeah, thanks for taking the question. So am I audible now?
Ajai Kumar Shukla
Yeah, you’re audible.
Kunal Shah
Yeah. 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 that has come down to as low as 11.35. So just wanted to check is that the level which we will operate in affordable housing?
Ajai Kumar Shukla
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 report had gone down by almost 1.25% last year. You know, the yield gone down in this business. And so is true with the market. Okay. But we were able to compensate by way of cost of fund which has also given us benefit. And you know. Yes, there was, you know, intense I would say competition in terms of pricing especially in the last quarter in the market.
And that is how you do deal with that, you know. But I think, you know, since we are able to maintain our nim, it will not. It is not impacting much to us. This is. This is not affordable. I’m talking about.
Kunal Shah
Yeah. So the question was also an affordable product. Yeah. When we look in terms of the recoveries which we anticipate getting into FY27, if you can quantify that, you indicated that that will help the overall credit cost. But how much is the recovery? We are expecting
Ajai Kumar Shukla
You to go 27, I think. When I would. Even if you can give the number.
Chaitanya Yadav
Yeah. For 27 Kunal, we are expecting around 200 to 250 crore.
Kunal Shah
Any. Any reason for increase in 30 in prime it has gone up almost 30 basis points to 3.31.
Chaitanya Yadav
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
Ajai Kumar Shukla
30 plus I think has gone down from 3.4 to 2.72, 30 plus. That is overall, overall. Yeah.
Chaitanya Yadav
For prime it has gone now. So it is in line. It’s range bound. Kunal. There is no specific movement. Q3 was an aberration.
Kunal Shah
Sure.
Ajai Kumar Shukla
Overall it is. I think for the equal year basis. It is, it has improved.
Operator
Thank you. Next question comes from the line of Prithviraj Patil with Investech. Please go ahead.
Prithviraj Patil
Yeah, so I have a couple of questions. So the first question is on the nim. In the opening questions the like we mentioned that the NIM would converge with the spread. So the ROA that looks higher this quarter, it’s largely because of accounting then that will sort of move lower next quarter or like how do we look at the NIMS going forward? And the second question is on the SR sale that’s mentioned in one of the footnotes in our financial statement. So what is the fair value gain that we have booked on sale of these srs?
Chaitanya Yadav
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 you know, some, some benefit on the overall yield trajectory and hence we should be able to maintain the current LIM trajectory that we have with a gap of between 5 to 10 basis.
Prithviraj Patil
Okay, thank you.
Operator
Mr. Pasula, are you done with the question?
Prithviraj Patil
Yes, yes, thank you.
Operator
Thank you. Next question comes from the line of Avina Singh with MK Global Financial Services Ltd. Please go ahead.
Avinash Singh
Hi, good morning. Thanks for the opportunity. A couple of questions. The first one, when you are guiding kind of you know, 2.4 to 2.5% ROA for next year, what kind of credit cost is being built into this exemption? My question is basically that okay, if I were to look at say last year’s ROA 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 you know the roas are more into a two point full year, I mean for the last quarter it will come closer to maybe 2.1 odd percentage.
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 their optimal level already. So just if you can help us with what kind of a credit cost assumption there is to 2.4 to 2.5% kind of ROI and I mean going forward beyond FY27 recovery kind of nearly goes away and you swing to more like a 2030 basis point.
Whatever the ideal paid cost you would build. I mean how are you going to sort of deliver 2.4 to 2.5%. That’s one second one. On the product front, are there some products, I mean now you are there into you know, the affordable emerging as well as you know, the developer side of you know these loans. Are there some product offering yet to be launched or you see, I mean particularly in the non housing side, will you be looking for kind of to go into say a micro lab in a category say 8, 10, 12 lakhs or something in your future?
Thanks.
Ajai Kumar Shukla
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 NF Product. 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 lab, it would be micro housing also. So the range would be on 14 to 16% range. That introduction will happen in Q1 itself.
On the financial aspect
Chaitanya Yadav
Overall roe 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 return of pool to continue. So we still expect the credit cost to remain negative next year in the range of around 15 to 20 days. So this is what is factored in and overall improvement and you know 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 you know we are working on. Currently we are at 40. We expect in the next two to three years this mix to move towards 50 plus and with higher mix of corporate as well. So the benefit of is going to come on the NIM over a period of next two to three years to cover up the gap which we have on the credit cost and should ensure, you know that we maintain the similar trajectory on a longer run.
Avinash Singh
Okay, thanks.
Operator
Thank you. Next question comes from the line of Gaurav Khandelwal with JP Morgan. Please go ahead.
Unidentified Participant
Yeah, hi, good morning. Thanks for taking my questions. 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 FY26.4Q. In fact affordable disbursements came down minus 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?
Ajai Kumar Shukla
So Gaurav affordable has started shaping up now we in last quarter we disbursed almost similar what we discussed last year as far as prime business. Basically a prime business is nothing but the replenishment of what business book you lost during the year. If you so 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 realize that that is where the growth looks high in the Affordable in terms of dispersal.
But actually 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 GNP. Our bouncing is under control. Our 30 plus is under control now in all the parameters. Of course, quality in affordable we are under control.
Unidentified Participant
Correct. In that case, sir, is it fair to say that because the incremental yields have been so low and minus 75 bits qq that was one of the key reasons of disbursing affordable at a slower pace?
Ajai Kumar Shukla
No, I think, you know, disbursing 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, you know, deliberately we wanted to check those market first and then we wanted to grow. Now we have checked those market and we found that, you know, those issues were temporary issue, temporary issue which you overcome. Now the yield dip is not because of, you know, as I said in my earlier conversation, also this 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 macro lab, we will overcome with that and will try to improve overall yield of affordable business.
Unidentified Participant
Got it? Okay. Okay, thanks for that. My other question is can you share some. Sir, can I just take one quick one
Ajai Kumar Shukla
We missed your voice and come again?
Unidentified Participant
Yeah. My other question is can you share some early indicators of how the bounce rates are shaping up in the first half of April,
Ajai Kumar Shukla
First off of April. I think the bounce in April is more or less similar to what it was in, you know, 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 in my beer bounce because maybe and that got even paid very next day when we leave them to that we have. We found that because March is generally a month of, you know, taxation because people have to clear that their taxes within March itself so might be their planning was not as per the, you know, the requirement.
And that is why there could be some shortfall in their banking and but very next day or next to next day they 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 was significant, you know, change in the bouncing.
Unidentified Participant
Got it. So effectively no early signs of asset quality stress due to the ongoing geopolitical issues.
Ajai Kumar Shukla
I don’t think so as of now.
Unidentified Participant
Got it. All right. Those are all my questions. Thank you very much.
Operator
Thank you. A reminder to all the participants, please restrict yourself to two questions. Next question comes from the line of Nishin Javate with Kotak. Please go ahead.
Nischen Javade
Yeah, thanks for taking my. Taking my questions. You know, one was on the yield side. You know, when you mentioned that we expect that yields have bottomed out and will go up from here on. What gives you that confidence? You know, given the fact that your incremental yields are going down. You know, I understand the book composition, but apart from that.
Ajai Kumar Shukla
So I think, you know, Nishant, why I’m saying that it is seems to be bottomed out because one is that there is no change in rapport in last few months. One is that because whenever there is change in rapport, you know, 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 in the rate of interest. So the charges are going drop in that it doesn’t seems to be there. And that is why the BT out will be restricted. When BT out will be restricted, you know, your overall yield will maintain.
That’s how I think.
Nischen Javade
Sure. Any color you could give as to how the BT out ratios have trended over the last four quarters.
Ajai Kumar Shukla
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 is 8% and the quarter four was 8.6. So on annualized it is 8.1. On quarter four it is 8.6. So it’s a hardly a half percent difference between quarter four and overall.
Chaitanya Yadav
And just to add misting, Q4 has actually improved from Q3. Yeah,
Ajai Kumar Shukla
Q3
Chaitanya Yadav
Was 8.8.95.
Ajai Kumar Shukla
So. So it means we have acquired more new customers than balance transfer.
Nischen Javade
So I think basically you’re saying that balance transfer trends are on an improvement and which kind of gives you this confidence
Ajai Kumar Shukla
From Q4. Q3. Q4 has improved.
Nischen Javade
Sure. And I just missed your guidance on the overall loan growth. You know, I think you mentioned something like 1 lakh crore plus. But I mean, what is the. What exactly are you really looking at?
Ajai Kumar Shukla
18-20% growth? As I said in my earlier conversation that we are looking at 18 to 30% growth in loan book.
Nischen Javade
Got it. Got it. Thank you very much.
Ajai Kumar Shukla
Thank you.
Operator
Thank you. Next question comes from the line of Hardik Shah with mlp. Please go ahead. Mr. Shah, please go ahead. With your question. Next question comes from the line of videsh with investech. Please go ahead.
Nadesh
Thanks for the opportunity. So my question is on the loan growth and loan mix. If you look at this quarter, there is a sharp increase in non individual 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?
Ajai Kumar Shukla
So loan mix, I think while value 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 you know, I would say vertical level it will be in the range of same non housing versus housing will remain that, you know, in Q4 our non housing loan grew from Q3. I would say 32.4% from 30.6%. So while there is a increase but increase is not very large, I would say it is 42% growth which has, you know, witnessed overall basis, yearly basis I would say that we grew by almost 3.5%.
And it was, you know, to keep in mind that we have to improve our NIM also, you know, keeping under consideration the regulatory norms are also met. So that is how we are, we are focusing on because we have a scope to do more non housing loan. But we are also keeping our watch on that there should not really breach on regulation which will help us in longer term to improve our margin.
Nadesh
So from PBC criteria, what is the share of retained home loans at what, what percentage we are operating at? Right now
Chaitanya Yadav
We are at 65%.
Nadesh
Okay. So there’s 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 to 24 months down the line in overall loan mix.
Ajai Kumar Shukla
So this year I think we will be having, as I said that will be having almost 3% of our book would be corporate loan book. We will be very moderate on that. We will not be very very focusing very high on corporate book. Because we want to be very going into this business in very calibrated way and sustainable way. I would say. So if I talk about first year would be around 3%. Second year would be around the 5 to 6% of my overall book. Maybe down the line three years in the range of 8 to 9% of my overall book which will be my corporate book.
Nadesh
What is the incremental yield on corporate book?
Ajai Kumar Shukla
11 and a half to 5 it would be in the range of 11 and a half to 12%. 12%. Almost.
Nadesh
Sure? Sure. Thank you, sir. That’s it. From my side.
Ajai Kumar Shukla
Yeah.
Operator
Thank you. 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 Yagav for closing comments.
Chaitanya Yadav
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.
Operator
Thank you. On behalf of PNB Housing Finance Limited that concludes this conference. Thank you for joining us. You may now disconnect your line.