Last conference call titbits: Sanjaya Gupta is the MD of PNB Housing.
Nidhesh Jain: Secondly sir the expected change in shareholding, do you expect any change in the
employee morale or the change in the management level?
Sanjaya Gupta: Do you find a difference in my tone. Well that’s the leader of the Company. Whenever M&A happens the top brass get shunted out first, but this is a performing top brass. So, will people come for the management team or will they come for all offices that we have on rent and pay an OPEX and do not know how to run it because our technology is
different, our target operating model is different, our go-to market strategies are different. So, it can be a spacecraft without an astronaut.
Aayushi Mohta: My question is how are you managing 38% growth in individual housing loans like what sets you apart?
Sanjaya Gupta: One is that we work hard, so we get our growth. Second is our growth is backed by our expansion program of distribution, so we create capacity and capacity creation is not
only infrastructure, it has people training skills, vendors, technology, everything and we
have added last year itself 21 branches, this year already we have added one more
branch, yes, additional cost do come, but is also the engine of growth of this Company.
Just to comment on your question, our new branches and the definition of new is any
branch which is opened from 16-17, they are contributing about 30% of incremental
business.
Aayushi Mohta: What is your competitive advantage, because there are so many other players also in the same segment?
Sanjaya Gupta: One is our communication, our turnaround time, our technology, our people, our
product, which are marked to the market and we are one financial institution which even
advertises its turnaround time on a website and every week the entire leadership team
across the Company that means, the central support office (CSO) and our 21-hubs,
analyze our quality vectors for about half a day every week of what has happened in
the previous week and we do take corrective action. Our Enterprise System Solution,
which is known as Kastle cuts across the organization right from lead management to
retirement of loans, asset/liability management, loan appraisal, property documents,
digitization of document, etc., So, we together have common faith in God but we only
trust data. Point of truth comes from a system, our MIS are generated from the system
through a BI tool, so there is no human intervention, we believe in them and we monitor
our processes very well.
Aayushi Mohta: But if you see loan book growth of say other housing finance companies, they are not growing at such a pace, so just wanted to understand that?
Sanjaya Gupta: You have to have faith in our growth and our portfolio quality now for last 32 quarters is consistent. So, we are doing things in a wise manner with I would say tactical sharpness and head on our shoulders. That is the difference.
Aayushi Mohta: Do you kind of see similar growth going forward as well?
Sanjaya Gupta: If the macroeconomic situation is stable, I do not see why we cannot penetrate deeper into the inherent demand, internally, I always say that housing finance is like a
toothpaste, so every Indian family at least in the urban center uses this service twice in
a life time. So, we are on the top of the mind recall or in the list of preferences. It is all
about organization, how they are positioning. Service is a cornerstone of a promise to
our customers and communications. We do not sell discarded products at a discount.
We are at least 25 bps more expensive but we are not costly.
Aayushi Mohta: But sir if you see for instance RERA, it did kind of slowed down the loan book growth of other companies also. So, how did you sort of manage that, your growth has not slowed
down at all?
Sanjaya Gupta: I think RERA is a very positive thing and it will bring back the confidence of a home buyer in the real estate sector. Let me again emphasize that organized developers are
not the only source of supply, that may be true in a place like Bombay or Delhi, but it is
not even true in Bangalore or Hyderabad or Pune, or Lucknow or Calcutta or other places. So, they have other sources and it is all about how focused you are and how I would say nimble-footed you are to change your gears.