PNB Housing Finance Ltd

Ladies and gentlemen, good day and welcome to PNB Housing Finance Limited Investor 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 this conference call, please signal an operator by pressing “*” then “0” on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Ms. Deepika Gupta Padhi. Thank you and over to you, ma’am.

Thank you, Reyo. Good morning, everyone and thank you for joining us on this call. With me, we have Nilesh Vikamsey – Chairperson Audit Committee of the Board and a Board Member; Mr. Girish Kousgi – Managing Director and CEO; Mr. Vinay Gupta – CFO and Mr. Jatul Anand, who has been appointed as the Executive Director for Prime and Emerging Business.

We will begin this call with the opening remarks by Mr. Nilesh Vikamsey followed by an interactive Q&A session. For the disclaimer, please read through the #Slide 45 of our investor presentation.

With that, I will now hand over the call to Mr. Nilesh Vikamsey. Thank you and over to you, sir.

Thank you, Deepika. Good morning everyone. Thank you for joining us today morning.

As you are aware, Girish Kousgi – the Managing Director and CEO of the Company, has decided to step down from his role to pursue new career opportunities. The Board acknowledges and appreciates the contribution of Mr. Girish Kousgi, during his tenure and would have been happy, if he had continued. However, he is leaving as he believes he has better career opportunities.

Mr. Kousgi would be completing three-year term and will continue working with the organization till October 28th, 2025, to facilitate efficient and effective transition. Leadership transitions are not uncommon in a fast-growing competitive sector like housing finance. What distinguishes PNB Housing Finance is the manner in which it handles such transitions with preparedness, bench strength, transparency, and minimal disruption.

This exit is not driven by internal challenges, but reflects individual career progressions and market wide mobility. I want to reassure all our stakeholders that the Board remains fully aligned and committed to the Company’s long-term strategy and operational excellence. Our business fundamentals are strong and our team is deeply capable and resilient.

The Company has gone through transformation in the first 1.5 years of Girish’s tenure with capital gains of Rs. 2.5 crores, gross NPAs going down to 1.5% as of March 2024, retail focused

Page 3 of 17 growth leading to trade rating upgrades to AA+. The return on asset also improved to over 2% by the financial year 2024.

The Company has a strong senior Management team along with the bench strength in the next level which is instrumental in delivering the strong performance. Today, PNB Housing is a retail-focused housing finance Company with 99% of the loan assets in the retail segment. The Company’s GNPA as of June 2025 is 1.06%; and the net NPA is 0.69%.

Over the last few years, the Company has built a very good collection architecture with dedicated teams focusing on different buckets of the collection cycle. Collection efficiency over the last few quarters has been above 99%. Early warning signals are encouraging and not showing signs of stress in the new portfolio. For example, the 12-month on book MOB 30-plus is 0.16% and the 24-month MOB 90-plus is 0.17%.

We remain committed to our stated guidance on credit costs and NPA. The Company maintains strong financials with capital adequacy of 28.7%, adequate liquidity with LCR ratio of 29%; and SLR ratio of 15.5%. Company ensures good regulatory compliance and transparent disclosures to all relevant authorities and rating agencies.

PNB Housing Finance remains committed to its key growth pillars which is the retail lending expansion, Affordable housing segment penetration, technology-driven operational excellence and maintaining superior asset quality. PNB Housing is a mature organization, which has gone through business transformation and is now ready for the next phase of growth.

The Company has a talent pool which is supported through the transformation phase. In the recent past, some of the senior employees chose to explore opportunities outside. However, these positions have been successfully filled from within the organization and are performing well post transition, reflecting the strength of our internal leadership pipeline and the robust succession planning framework.

The Company is run by professional Management overseen by the Board of Directors. The nomination and remuneration committee has already initiated a search process to identify the seasoned professionals from the market with proven industry expertise who can build on the strong foundation already in place. We remain straightforward in our mission to deliver sustainable growth, strong asset quality and long-term value for our shareholders.

Our focus is unwavering and we continue to execute on a well-defined strategy backed by disciplined risk management, a resilient retail portfolio and a highly capable leadership team. Thank you.

Reyo, we can now open for the question-and-answers.

Sure. Thank you very much. We will now begin the question-and-answer session. The first question comes on the line of Sudharsan from Prosperity Wealth Management. Please go ahead.

Hello, sir. My question is on the asset quality front. So, if you can give us a number on the DPD 0 to 30 and 30 to 90 between all segments for the three quarters, that is Q1 FY ’26, Q4 and Q1 FY ’25.

Can I request Vinay, our CFO to give the numbers, if he is got it handy? Because today, call is because of the leadership change. But anyway, I will request Vinay to give the numbers.

Yes, see, on an overall level, our 1+ is around 4.5%, 30+ is 3%, 60+ is 1.6, and 90+ which we have already disclosed is 1.06% which NPA.

Yes. So, is there any possibility of giving us segmental DPD?

Segmental, we have given, for example, for Affordable, we have given in the Investor Presentation. Yes, Prime and Emerging number.

Prime and Merging is stable at around similar rates. There is no increase in any of the segments.

Okay. And on the credit quality front, I mean, credit cost, are we confident of closing this year with a negative credit cost? And if so, what is the quantum of the credit cost?

Yes, we are confident to close at negative credit cost. The trend has been in line in Q1 and we are confident to maintain the similar trend in the coming quarter.

Right. And on the margin front, the NIM, so you mentioned that the rate cut would come into effect, the pass-through would be gradual in Q2 and Q3. So, how much of the NIM sacrifice are you going to see in Q2 and Q3 given the full year guidance is 3.7% and the current is at 3.74%?

So, it will remain range bound as we mentioned full year guidance will be between 3.65% to 3.7%, we will maintain that. There could be intermittent, movement in the NIMs. But overall, for the year, we will maintain that.

Page 5 of 17 Right. And on the leadership front, apart from whatever you have notified, is there any discussions with current management regarding their willingness for any other outside opportunities? Is there any discussion?

There is no indication of anybody else moving on. There is absolutely no, all the team is stable. There is no other indication.

Right. And on the MD’s exit, normally we have seen in the industries is as soon as the CEO exit is notified, there will be a notification of a new CEO appointment. So, is there any reason, so did the current CEO did not have any prior discussion with the board regarding his willingness to explore other opportunities, the manner in which there was no replacement notified along with the current intimation? Could you please comment on that?

Yes, so basically the current CEO is moving on for better opportunities. There is no challenge going to continue till October ‘25. The NRC has already initiated a search process to identify a suitable successor. We will search for that candidate, internal, external, whatever may be the thing.

In the interim, we have appointed Jatul Anandas the Executive Director. And assuming there is a gap between October 28, 2025, when Girish finishes 90-day notice period, which is given, and the new incumbent joining in, Jatul will hold charge till that time, in the interim time.

Right. Thank you. I will get back in the queue.

Reyo, may I request if you can take two questions per person as of now?

Sure. We will take the next question from Viral Shah from IIFL Capital. Please go ahead.

Yes, hi. Thanks for the opportunity. Nilesh, if you can help us understand A, timelines of what you are looking at for say the new MD, CEO. And also, secondly, is the Board kind of onboard with the continued strategy that we had until now of say growing the share of Affordable in your Prime, what is the thought process?

And secondly, the question is with regard to, you mentioned about the senior management exits recently. I am presuming they were also for better career opportunities. Is it not possible for us to say seek retention of any of them, so that now that there is a vacancy at the post of MD, CEO, I am sure they would also be quite keen for that, right? Why not pursue that?

Yes, maybe first question first, can you repeat? I think you loaded up a lot of questions together.

Yes, sure. So, the first, the timelines for...

Page 6 of 17 The timeline, I cannot sort of assure you because we are in the process of the selection. And once we identify the person, assuming he is in a different organization, his notice, etc. But our endeavour is to do it at the earliest, that is the first indication given. Our endeavour of the NRC and the Board is to have a successor as quickly as possible. But having said that, a lot of things are not within the hands of the Board of the NRC. So, that is the first thing.

That is why I said in the interim, assuming there is a gap between Girish’s term ending on October 20th and the new incumbent joining, we have decided that Jatul Anand, who has been promoted as an Executive Director, will hold forth in the interim till the time the new successor is joining the Company. Got it. My second question was -- -- On the strategy, as far as the business is concerned, our focus continues. There is no change in the strategy alignment. Our focus will be on the Affordable and of the Emerging. There will be no change in that. The board is fully aligned with the strategy.

And with regards to basically seeking, let us say, retention of some of the recent senior Management exits then why not --?

Viral, you understand, we do not want to lose any of our Senior Management Team members.

Efforts are always there. But you know the industry, it is a very hot sector and we cannot avoid the market mobility. That is true.

It is an in-demand sector if I can say so.

That is true. So, I am just thinking that earlier, of course, there was a vacancy at PNB Housing for the post of MD, CEO. And given we being the third largest player, I am sure either Dilip or Anujai, whosoever would have been the case, they would be quite keen to take up this post, right?

Well, basically, it is the Board and the NRC call whom they identify as the right successor. It is not only the candidates, which you have named or others. So, we will definitely look at and we will do whatever is in the best interest of the Company. We will have the best selection among the choice. Not only Anujai and Dilip or Jatul, but we will see what is best for the Company. Got it, Nilesh. Thank you.

Thank you. Next question is from Pradyumna Laddha from RSPN Ventures. Please go ahead.

Page 7 of 17 Yes. Good morning. I wanted to address Mr. Vikamsey on behalf of the board, since he is present on behalf of the board. Sir, I am a minority shareholder of this Company and have been one for many years now. And it is just been very disappointing how the entire situation has been handled.

The board accepted Mr. Kousgi’s resignation on July 31st post market hours.

There was no explanation given or communication provided to the investor community that day except for the stock exchange notification. On the 1st of August, as you will be aware, the stock price of our Company saw sharp panic selling. And this was not just market reaction to the news, it was a reaction to silence from the Board.

It appears that the board had no plan in place to manage the news or guide the market. And today’s call just feels like an afterthought to contain the damage and not something done in the interest of the transparency. So, if we can just fix this process and moving forward, it will be beneficial for the entire investor community.

Thanks for your suggestion. But just for your information, we came out with the press release before the market hours on 1st. And I hope, you would have had and that was put on the stock exchange also.

The moment we came to know about Girish’s, you can understand, 24 hours is a short period to get a view also in a sort of a rush. But we did whatever we could, but we take your advice and we will improve the process going forward. Thanks a lot for your suggestion Mr. Vikamsey, sorry, sir, for just one more, I completely appreciate the situation you were put in, sir. The statement came in at 8.30 in the morning and contained some two paragraphs which did not provide too much clarity. So, just one, I am just sharing an opinion like you said, we can take into consideration later. Another large NBFC, sir, last year, RBI banned one of their businesses. The first thing they did was next morning, hold a call at 8 o’clock with investors. So, I am just saying this could have been managed in a slightly more processized manner. That is all. Fair enough. Suggestion accepted. Thank you, sir. Yes.

Thank you. Next question is from Harshit Toshniwal from Premji. Please go ahead.

Yes. Sir, just to make this one point with you, that we have appointed Jatul as the Interim one for the housing business. Now, for the appointment of the new CEO, are you also considering internal and external candidates? And in that means the current appointed ones as the charge.

Are they also in the consideration for the MD, CEO role?

Page 8 of 17 So, we will have a look at it. The board and NRC will decide about it.

And just some indication as to whether we will also be looking at internal and external candidates both at this point of time? Yes, yes.

Okay. And there is nothing which stops Jatul from being in at this time?

Absolutely. There will be a process and we will go through the process, yes. Got it. So, that is it. Thank you.

Thank you. Next question is from Ashwini Agarwal from Demeter Advisors. Please go ahead.

Good morning to all. The question, the question is that there has been a significant change in the cap table in recent quarters with the exit of private equity players. And with three senior exits, one wonders if there is something compromising the independence of PNB Housing Finance versus the larger shareholder PNB. Is there some statement the chairman of the board can provide to assure us that the independence of PNB Housing Finance is indeed maintained and it is not that the NRC or the board are now significantly influenced by the decision of the chairman?

First of all, let me clarify, I am not the Chairman of the Board. I am Chairman of the Audit Committee. So, just to keep the records straight. Coming to your question, no, the Company is under a very stable leadership team guided by independent and experienced board of directors that ensures strategic oversight and governance. The strong executive team continues to drive business supported by robust governance structures. `

This is only coincidental. The PE exit and the new cap table, it is only sort of coincidental and there is nothing in the Company which has changed. It is business as usual, whether it is the board or the NRC or and there is no change, any additional, I would say, input. The promoter is supportive of us PNB, the promoter is supportive to us and they have got two nominees on the board.

Currently, they have one. They will be adding one more as per the Articles of Association. And PNB Housing is an independent entity which operates like any other private enterprise guided by an independent board of directors that ensures strategic oversight and governance. It follows market-driven hiring and compensation practices, attracting and retaining top talent through competitive remuneration, merit-based growth opportunities and performance-oriented culture.

The promoter’s continued support remains the key anchor of confidence stability of PNB Housing Finance as it moves into the next phase of growth. As informed by the Managing

Page 9 of 17 Director of PNB in the media interviews on Friday, 1st August 2025, they are not contemplating increase or decrease of stakes or any other major change.

The board is confident on the Management team which has been instrumental in delivering its strong performance. The NRC has initiated a search for the suitable candidates from market with relevant industry experience.

Thank you so much, sir.

Thank you. Next question is from Jaspreet from Acuantis. Jaspreet, you may go ahead with the question.

Hi. Good morning, everyone. My question is regarding the probably the attempts made to retain Mr. Girish Kousgi. The background is we heard the senior members coming on television and saying one of the reasons was that he wanted to shift back to Bangalore.

Now, there could have been a way to maybe manage this like a hybrid working condition for the next maybe couple of quarters. So, just wanted to understand this and maybe what were the some of the things that trying to retain him.

The information given to us by Girish is he is going for better opportunities with the personal family reason is an added maybe bonus for him. But the opportunity is possibly very huge, he would have considered and found that it is much, much better. That is the individual choice that Girish has made. We did try to retain him. He has done a fantastic job in PNB housing and continues to do so.

He is committed to have a very good transition in the next three months, but we did try to retain him. That is the only thing, I can share with you.

Sure. As the moderator mentioned out of the call that he is also there, would he be commenting at the end in the concluding? The point he came, the point he is leaving and what are some of the things from his point of view would he be commenting about that as well at the end? Because we have not heard him heard him so far, so I am sure he is there for a purpose for everyone.

I request Girish to speak. I think that will bring -- -- Good morning. Girish here good morning to all the investors for taking time out to join early in the morning. As you are aware I think Company has gone through a transformational phase and about five quarters back by March 2024, I think most of the challenges what PNB Housing as a Company saw I think most of it were resolved.

When we raised capital, we did right issue of Rs. 2,500 crores. We got rating upgrades. We ran down the corporate book. Corporate GNPA came down to 0 by June 2024; and today, if you

Page 10 of 17 look at overall GNP it is 1.06%. So, we started we know that as a housing finance Company it is difficult to be present in certain segments and compete. I am talking about super Prime and Prime. So, immediately three years back, we stopped super Prime and went slow on Prime business. We started Affordable business in Jan 2023.

As all of you are aware now the book is about Rs. 5, 750 crores, trending very well. And as per our guidance by this period we should get close to about Rs. 9,500 crores; and by March ‘27 Rs. 15,000 crores. Given the overall retail book of about Rs. 1 lakh crore by March 2027. So, if you look at any of the challenges, which this Company had faced, I think most of the challenges were resolved about five quarters back.

And after the transformation for next five quarters, that is whole of FY ‘25 and quarter one of this year, I think the performance of the Company has been really very good in all the metrics and all the parameters. You look at profitability, you look at ROE, you look at margins, you look at book growth, disbursement growth, look at asset quality. I think all the parameters, I think have come down.

We have built a very good architecture because we did a lot of changes in collections, in sales.

I mentioned about starting Affordable, I mentioned about FY ‘25 starting Emerging vertical, which comes at a higher yield, which will aid the Company on expanding the margins. And this year, FY ’26, we started a new vertical called Loan Against Property. So, all of these things are done to ensure that profitability is maintained and also further improve upon it. So, the strategy and vision of the Company remains because it is embedded into the last level in the organization and now it is more on an auto mode. We have seen this consistently for last 5 quarters because that is post transformation and Company is doing pretty well. And as I had mentioned earlier as well, today if you look at PNB Housing, we have to work on a couple of things which is true for any other housing finance company, which is true for any other well-managed housing finance Company, one is growth. We have guided 18% growth on book because corporate book is now very less, less than Rs. 1,000 crores and our focus is not really that high on corporate and therefore I am talking about retail. So, we are talking about 18%-19% growth. This year the guidance is 18%. Last year, we had guided 17%, we delivered 18.2%. So, growth is something which we are going to maintain and our strategy in terms of moving segments and improving margins, improving yield in each of these segments, I think that strategy is intact. So, today, Company is in a very strong footing. We have a very good, solid Management team and this strategy is embedded right up to the last level because we have done a lot of changes 3 years back. It is not recent. So, it is now inbuilt in the system and second is we need to maintain margins. So, actually we are not, this year we will be maintaining margins and maybe next year, the margins will start inching up. I think that is what we have guided for this year and next year, largely to be worked on two things, one is growth and second is margins. So, growth, increasing our share on Affordable and Emerging. You have been seeing that we have been increasing our share with every passing quarter and that would continue. So, today, Company is on a very strong footing. We have a good supportive Board. Board oversees the vision of the Company

Page 11 of 17 and I think as a Company we are well-placed today and I do not see any challenge in the Company doing well or meeting its guidance for the next couple of years. Thank you, Girish.

Thank you so much, sir. We wish you all the best in your future career. And just last, a very humble suggestion/observation. Sir, we have been minority shareholders for a couple of years.

Again, the 3 pillars, PNB is third largest, seen a business transformation last couple of years after having gone through some trouble a couple of years back, a fabulous job done. But the other two pillars were surely the fact that a leadership like Mr. Girish was there and obviously a marquee named Private Equity Like Carlyle was there. And now with the latter two exiting one by one and timing obviously is so coincidental, it seems that Management or the board will have to do a lot more in terms of getting that confidence back in terms of and I am sure, just wanted to understand what are the timelines within which this has to be done and what would you be aspiring to close it in terms of closing this leadership? What are the outer timelines and what are your internal?

See, two things. One is though Carlyle has moved on, I think by and large, the replacement has been institutional shareholders. There have been some other leading sovereign funds as well as mutual funds almost across boards. A lot of mutual funds are invested for institutional holding which Carlyle was having has gone to the institutions, the substantial part of it. And coming to the timeline, as I told earlier, we also want to appoint as of yesterday, but the process, it may take time. I can't assure you the time it will take. We will identify the successor. Assuming he is an external successor, he will also have to give a notice period. So, I can look at safely, Girish's term ends in October, maybe couple of 1- or 2-months outer is the timeline, I am thinking of.

But having subjected, I will stand corrected if it doesn't happen. It should happen within that time is my gut feeling, is what I can say from my past experience.

And if the Board decides for course of internal candidate, it will be earlier than that. That will be, absolutely.

And as of now, you wouldn't want to be able to comment on where does the preference lie?

The process has to be done. I can't comment at that time.

All right. I appreciate you guys doing this call today and best wishes. Thank you.

Thank you. Next question is from Kunal Shah from Citigroup. Please go ahead.

Yes. Hi. So, a couple of questions. Firstly, given maybe the promotership of PNB and exit of the private equity and the representation, which is there on the board, in terms of the evaluation between the PSU candidate and someone from private bank, because PNB has the history of

Page 12 of 17 maybe recruiting from the private side. So, would there be any change in the stance which would be taken this year, particularly with the change in the cap tables, if you can clarify on that part?

And what maybe the succession plan which Company is now looking forward to just to manage this kind of a transitioning? This was all of a sudden, which seems to have happened. But now, maybe how to prepare with respect to the transitioning plan and related to it, maybe given that there have been exits, would investors be worried about any asset quality issues cropping up over next couple of quarters because I think there have been few exits which have happened in last 3-4 months since April. And we have seen in earlier cases that it follows with some kind of quality risk as well across the board, so how would maybe board maybe assure the investors on that part?

See, I will just go back to the statement of the Punjab National Bank, the promoter’s MD on 1st of August when he gave the media interview. He said they will be supportive of the Company and the Management, and they don't want any other change, either the increase or decrease of their, I would say, stake in the Company, neither in the way the Company is being run is what the PNB envisaged. So, that is what I am just quoting. So, that is for that assurance. As regards all these exits having an impact on the asset quality, I can just share with you that your Company is a retail-focused housing finance Company with 99% of the loan assets in retail segment. The Company's gross NPA as of June 25 is 1.06% and net NPA is 0.69%. For the last few years, the Company has built a very good collection architecture with dedicated teams focusing on different buckets of the collection cycle. Collection efficiency of the last few quarters has been about 99%. As I mentioned in my opening remarks, early warning signals are encouraging and not showing any signs of stress in the new portfolio, for example, the 12 MOB 30+ is 0.16% and the 24 MOB 90+ is 0.17%. We have also discussed all segment-level asset quality metrics in our quarterly results, and we confirm that there are no signs of stress or any material deterioration in asset quality across all segments. We remain committed to our stated guidance on credit costs and NPA for the current financial year. The Company is geared up to achieve its growth targets while maintaining best-in-the-class asset quality. And just for information, we go through a number of audits, inspections and nothing of any significance has been caught. So, this is completely unrelated. There is no issue on the asset quality at all vis-à-vis the exits. Just to give you that assurance.

Thank you. The next question is from Praful Kumar from Dymon Asia. Please go ahead.

Yes. Thank you, gentlemen, for doing the call. Most of the questions are answered. Just one question. In terms of current Management bandwidth, can you talk about 2-3 key people who will be spearheading the growth for the next, say, few quarters and who have been in the system, who will be taking responsibility and being the KMPs till we find the suitable replacements to come? So, obviously, we have generally talked about the few important guys who have left, but there will be a lot more talent that will be in-grown and obviously part of the key team today that should come ahead. So, broadly, in terms of key people, key re-changes that you have done on the continuity of the strategy would be very useful?

Page 13 of 17 Just to sort of, as you would imagine, we came out of the press release the day before yesterday late night. Yes, on the two replacements.

One of them is Jatul. Jatul has been with the Company for the last 12 years and more than 20 years’ experience in the sector and he has been a veteran and he's going to head the Prime and Emerging business. Valli Sekar, who sort of, we brought her 3 years back, piloted the Affordable Housing growth, Anujai joined later, in fact, started with Valli. So, she is now being made Complete Head of the Affordable business. Earlier, she had part of the role, now full role has been given to her and you already know.

So, the Affordable business that we have seen, the success of Affordable business has been instrumental by this person and that is why, very interesting.

We brought her into sort of focus on the Affordable business. She is the one who did it and Anujai was supporting her. So, just to tell you, we have got enough internal bench strengths.

These are only the top names. I can't share all the names with you. We have got Vinay, who is the CFO, we have got the Chief Risk Officer, Neeraj Manchanda and number of other people. I don't know how to get into the names right now, but a fantastic Management team what we have.

Superb. Now, this is very useful, sir. Thank you for doing this and giving the confidence that there are no asset quality issues, since it is just a coincidence that has happened. Thank you for the reassurance. Thank you. Absolutely.

Thank you. Next question is from Pranav Gokhale from Canara Robeco Asset Management. Please go ahead.

Hi, good morning. My question is to Girish, actually. Just wanted to confirm, has your exit anything to do with Carlyle moving out, one? Second, in this entire thing, I understand there is a future aspect associated with it, but is your future position in any way where Carlyle is associated in any form or shape?

So, I can say that my exit is purely an independent decision. It is not connected with anything or anyone. I think that I can very well confirm. As I mentioned to you, my exit is because I have got a new wonderful opportunity, and it is not related to either the Board or any investor or anyone. It is an independent decision.

But in the new opportunity, has Carlyle is involved in any shape or form?

Sir, I mentioned to you, my exit is an independent decision. It is not associated with anyone.

Page 14 of 17 So, this was pertaining to the future, actually, which my question was. I understand with the past, it is not associated, or it is independent, so I take the point. The second thing, I just wanted to put a parking thought. There has been a couple of instances in your career now where you put in a strategy in place and before the strategy worked out, you moved on to a new organization.

So, for existing shareholders, it becomes a very difficult kind of a situation. So, I thought before wishing you the very best on your new journey, let me just park this thought. Thank you?

Pranav, I think I would like to clarify one more thing. All these strategies were worked out 3 years back. So, in the first 2 or 3 months, we really worked on the strategy and vision for the Company, and we also had an investor day for this where we had given the roadmap. So, all this strategy is not something which we had worked out in the last couple of quarters. It was worked out almost close to 2.5 years back and that is what we have been executing till now. So, the entire team, top level, middle level and lower level of PNB Housing, the team is aligned, and they are completely in alignment with the Company's vision and mission.

Sure, I am done with my questions. Thank you.

Thank you. Next question is from Shubhankar Ojha from SKS Capital. Please go ahead.

Shubhankar Ojha, you may go ahead with your questions. There seems to be no response from Mr. Shubhankar Ojha. We will move to the next question. The next question is from Shravan from Sincere Syndication. Please go ahead. Hello, sir. Am I audible? Yes.

Yes, sir. So, my question was regarding this. I think most of my questions are answered. It is just that how were you working on to gain investors' confidence with the CEO's resignation and then their Head of Affordable stepped down a few months ago and then there was one more exit, apparently, a senior exit. If there is a lot of chatter in the market that even with the CEO exit and the MD exit, there is a lot of instability in the upper Management, which is losing investors' confidence because the next guidance about doubling Affordable book or increasing the share of Affordable and Emerging, all of this, will the newer Management that has stepped in, the new CEO or MD, will they be aligned with this goal or will there be a change in your strategy from here on? How do you intend to gain the investors' confidence back?

Shravan, as I mentioned earlier, all the exits, the earlier exits have been filled up by internal positions and as I mentioned, for example, Affordable, Anujai was there. Anujai, in fact, came in for the transformation here. He was given additional responsibility of the Affordable. It was Valli who has initially started the whole, the Affordable thrust of the Company, if I can say so, and she continues and she is delivering well. We have added her responsibilities now, so that is one thing. Second, Jatul, who has been with the Company for the last 12 years, has been sort of

Page 15 of 17 promoted to be the Executive Director. He is now looking after Prime as well as Emerging. So, we have got enough and good bandwidth. For example, the HR had moved on Amit. He was there for 3 years. The next gentleman, Satish, who is heading, has been a Company veteran for I don't know how many years, 13+ years. So, we have got fantastic bench strength. So, rest assured on that. We have got good quality team, Management team, not only the people who exited but people who continue with the Company and who are taking on the responsibilities now. So, I think it shouldn't be too much this thing. That is all I can say.

And I would like to know the growth of Affordable, as of now, was Ms. Valli Sekar, was she a prominent part of it because you are betting a lot on Affordable growth?

She joined, she was part of the Affordable before Anujai was given that additional charge, if I can say so. As I say, the thrust of the Affordable housing in the Company, the whole thrust was we brought Valli on board and then we gave a full thrust to propel the Affordable housing. Thank you. No other questions.

Thank you. Next question is from Mohit Surana from HDFC Asset Management. Please go ahead.

Hi, sir. I just wanted to check in any of the past regulatory audits that have happened over last few months or quarters, anything adverse that has been highlighted by the regulator? So, any clarification on that would be useful?

Mohit, just to tell you, the regulatory inspections have got better and better in the time the number of issues have gone down, mainly procedural matters, nothing on the asset quality or any other significant, on the financial numbers, no major outside challenges of the regulators.

There is no divergence between what the audited accounts and the regulators focus. But yes, coming from their experience perspective, they give a lot of suggestions for improvement, which we keep on doing. That is the way we sort of look at it. And it has been better. The inspection there, I would say, impression of the Company has got better and better with the time which is there. That is the only thing. I can't share something more than that.

Got it, sir. Thank you and wish you all the best.

Thank you. The next question is from Mahrukh Adajania from Nuvama. Please go ahead.

Yes, I just wanted to know what happens to the unvested options of Girish?

That the Board will decide. I can't decide right now. The Board will decide.

Thank you.

Page 16 of 17 Thank you. Next question is from Renish from ICICI. Please go ahead.

Yes, hi. So, just two broad questions. One, again, on the strategy. So, obviously, the Management who has left or leaving were the brain behind this revised strategy and obviously, I am just assuming that the board will be in line with the strategy. So, I just wanted to reconfirm that we have seen in past that whenever there is a Management change, Management comes with their own plan, etc., what is the stance currently? Board will continue to pursue this strategy and they will just say incoming MD that this is the strategy which you have to follow or they will sort of reconcile, rethink the entire strategy with the Management who comes in?

There are two things. Number one, it has not been only the Management strategy. Strategy is sort of, it is a board-driven strategy. The Board has been a key part on the strategy direction, if I can say so. And not only the board, the full senior Management team and right down up to the grassroots level people, all the layers of Management are fully aligned with the strategy. Having said that, the Board and the Management is always open to the changes happening in the sector and in the market and we will keep eyes and ears open as things evolve. But as of now, there is no I would say, move to change the strategy in any direction with any good ideas, suggestions coming. We are always open and we keep on looking at those things. But otherwise, we don't, as of now, I can say the Board is not looking at any change of strategic direction at this juncture.

But we are open to newer things and to improve the Company, I would say, value.

No, that I agree, sir. But this is more from a number’s perspective, right, so when we say that Affordable will be 15%, Emerging will be 25%-30% and the rest will be Prime. Now, all this combination will ideally lead to 4% plus margin, what the outgoing Management has always stated. Now, if at all there is a change in strategy, the NIM strategy, everything go for a toss. So, I just wanted to reconfirm that?

Sir, just to add, Nilesh over here, it is not as if the whole Management team has moved on. As I told earlier, when Affordable, Valli started it, Anujai had joined later on. He was on transfer.

We just sort of strengthen that particular vertical, he was added. So, what are other exits? There is, the HR Head has gone and Dilip has gone, Dilip's role has been taken over by Jatul. So, we have got enough. It is not as if the whole Management has gone out of the Company. There is a fantastic team remain and there will be no change in the direction as of now. But I can't tell about the future. If some new changes happen in this sector, we will definitely be open to it and we will be guided by. Our idea is to create more value for all the stakeholders. That is, I would say, uppermost in the mind of all the people here. So, how do we enhance the value for everyone involved. That is the whole sort of idea.

Got it. And just one last thing, when we are looking out for new CEO, are we preferring an external candidate? And if yes, then whether there is any preference for a private sector CEO or how is it? What is the thought process of Board about this?

Page 17 of 17 I can't comment on the preference because we will be starting the process now. We will look at the candidates and we are sort of agnostic. We want the best person to head this Company who can do possibly do better than Girish is our expectation. We identify a very good industry leader or a successor, and it could be completely market driven is what I can say. But yes, I think all the people, we will look at the shortlist of candidates who are available and we will explore and do the best what is possible for the Company in the current time. That is what our direction is. There we will be headed.

And if the internal candidates are also in preference, or no? Absolutely. Thank you and best of luck, gentlemen.

Thank you. Next question is from Umang Shah from Kotak Mahindra Asset Management. Please go ahead.

Hi, good morning and thanks for taking my question. I just have one question related to the previous participant. Sir, under what is the probability or what is the potential situation in which let us say, the parent or the NRC may look at candidates coming from the parent PNB. It could be on deputation or maybe as a permanent position. Do you think that is a possibility or that is sort of completely ruled out?

I can tell you till as of date, there is not a single person on deputation from PNB in the Company.

Last, I remember when I joined the Company 10 years back, we had the internal audit team which was on deputation. That also we brought in market-driven professionals who are very good. Not that they were bad, but just to bring in the best practices we brought in. Other than the two board nominees, there is no other, I would say, person who is in the Company from PNB as of now. And you heard the PNB MDs speaking on Friday that they don't intend any change as I told you of increasing or of the Management side, if I can say so.

Understood. All right. Thank you so much.

Thank you very much. We will take that as the last question. I would now like to hand the conference over to the Management team for any closing comments.

Thank you. Thank you everyone for joining us on the call. If you have any questions unanswered, you can get in touch with Investor Relations. And the transcript of this call will be uploaded on our website. Thank you very much.

Thank you very much. On behalf of PNB Housing Finance Limited, that concludes this conference. Thank you for joining us, ladies and gentlemen, you may now disconnect your lines.